This is such a common confusion! You're definitely not responsible for paying her taxes - that's entirely her obligation as the service provider. However, you absolutely need proper documentation to claim the Child Care Tax Credit. Here's what you need to do immediately: Start keeping detailed records of every payment (date, amount, method). Since you've been paying cash, ask your provider for a year-end summary showing total payments made, along with her Tax ID number (either SSN or EIN). You'll need this information to complete Form 2441 when filing your taxes. The fact that you're paying $225 weekly means you're spending about $11,700 annually on childcare, which could qualify you for a significant tax credit! Don't let poor documentation cost you hundreds or thousands in legitimate tax savings. If she's reluctant to provide her Tax ID or proper receipts, that's a red flag. Legitimate childcare providers understand they need to provide this documentation to parents. You might want to start looking for alternative arrangements if she continues to be uncooperative about basic tax requirements.

I'm dealing with a very similar situation right now! My in-home provider has been great with care but terrible with documentation. What I've learned is that you're absolutely not responsible for her taxes - that's entirely her business obligation as a service provider. However, you MUST get proper documentation to claim the Child Care Tax Credit, and at $225/week, you're looking at almost $12,000 annually that could qualify for a significant credit. Here's what I did to solve this: 1. I started keeping my own detailed payment log immediately (date, amount, payment method) 2. I had a direct conversation with my provider explaining that I legally need her Tax ID number and year-end payment summary for my taxes 3. I switched from cash to Venmo so there's an automatic record of every payment If she pushes back on providing her Tax ID, that's a major red flag that she may not be reporting her income properly. A legitimate childcare business understands these are standard requirements. You might need to start looking for alternative arrangements if she won't cooperate, because without that documentation, you'll lose out on potentially thousands in tax credits you're entitled to claim. Don't let poor record-keeping cost you money you've already earned through legitimate childcare expenses!

Has anyone used the Section 179 deduction for purchasing business vehicles? I heard SUVs and trucks over 6,000 lbs qualify differently than regular cars.

Just to add some clarity on the current situation - as of April 2024, there's still no finalized legislation that has restored bonus depreciation back to 100%. The House did pass some tax provisions earlier this year, but they stalled in the Senate. What I'm seeing from my CPA contacts is that most businesses are planning with the current rules (60% bonus depreciation for 2024) while keeping an eye on any late-year developments. The reality is that even if something passes, it might not be retroactive to January 1, 2024. For anyone making major equipment purchases, I'd echo the advice about working with current known figures. You can always amend your return if better provisions get passed later. The Section 179 deduction limits are still quite generous at $1.16M, so that might be sufficient for many small businesses anyway.

Don't forget to check if your state has a tax relief program too! I owed the feds $21k and my state another $7k. I qualified for my state's Hardship Program which actually forgave about half of what I owed them. The federal payment plan was still rough but that state relief made a huge difference. Just google "[your state] tax relief program" and see what comes up.

I'm sorry you're going through this - the stress of owing that much to the IRS is overwhelming, but you do have options. First, definitely don't ignore this or let it spiral further. One thing I haven't seen mentioned yet is requesting penalty abatement for reasonable cause. Since you mentioned you lost your job 6 months ago and are struggling financially, you might qualify to have some of the penalties removed if you can show the failure to file/pay was due to circumstances beyond your control. Also, make sure you're getting proper representation. The IRS has a Low Income Taxpayer Clinic (LITC) program that provides free or low-cost assistance to people who can't afford professional help. You can find one in your area on the IRS website. These clinics have attorneys and CPAs who specialize in tax debt resolution. Given your current income situation, you'll likely qualify for Currently Not Collectible status while you get back on your feet. Yes, interest still accrues, but it stops the immediate collection pressure and gives you breathing room to stabilize your finances. Document everything about your financial hardship - job loss, medical bills, basic living expenses. This will be crucial for any hardship-based relief programs you apply for.

Has anyone used TurboTax for reporting vacant land sales? Cash App Tax is confusing me and I'm thinking about switching.

Great thread everyone! Just to summarize the key points for anyone else dealing with vacant land sales: 1. **Schedule D & Form 8949**: Yes, you report it here - not just for stocks/bonds 2. **Long-term vs Short-term**: Since you held it 2017-2022, it's long-term capital gains (better tax rate!) 3. **Covered vs Not Covered**: Real estate is "not covered" - check Box E on Form 8949 4. **Your basis calculation**: $11,500 (purchase) + $950 (selling costs) = $12,450 adjusted basis 5. **Taxable gain**: $21,500 (sale price) - $12,450 (adjusted basis) = $9,050 Don't forget you can also add any improvements you made to the land (surveys, driveways, etc.) to your basis. Keep all your documentation in case the IRS has questions later. The 1099-S is just informational - the IRS knows about the sale, so make sure you report it correctly. Good luck with your filing!

Has anyone used the 14-day rule with their STR? If you rent your place for less than 14 days total during the year, you don't have to report ANY of the income! But you also can't deduct any expenses either. I'm wondering if it makes sense for my lake house that I only rent out occasionally.

This is such a common source of confusion for STR owners! Based on what you've described - managing bookings, guest communications, and putting in significant work - you're likely meeting the material participation standard for active income classification. The key factors the IRS looks at are: 1) More than 500 hours annually in the activity, 2) Substantially all the work being done by you, or 3) At least 100 hours when no one else puts in more time. With earnings of $3,200-3,800 monthly, it sounds like you're doing substantial management work. Keep detailed records of your time spent on rental activities - booking management, guest communication, property maintenance, cleaning coordination, etc. This documentation will be crucial if the IRS ever questions your classification. If you qualify as active, you'll report on Schedule C and pay self-employment tax, but you'll also get access to business deductions that can significantly reduce your taxable income. One tip: the personal use days vs rental days test you mentioned applies more to determining if it's a business vs personal residence, not the active vs passive classification. That's a separate calculation altogether.