Has anyone used TurboTax for this situation? Will it guide me through the process correctly for both my return and my kid's return?

This is such a common situation and you're absolutely on the right track! Your daughter can definitely file her own return while you claim her as a dependent - happens all the time with college students. Just to reinforce what others have said: since you're providing over half her support (housing, utilities, insurance, groceries, phone) and she's a full-time student under 24, she qualifies as your dependent. The $800-900/month she makes for personal expenses doesn't change that. When she files her return, she'll need to check the box indicating someone else can claim her as a dependent. This is crucial - if she forgets to check that box, it can cause issues when you file your return claiming her. One thing I'd add: keep good records of what you pay for vs. what she pays for. The IRS support test looks at the total cost of her support for the year, and you need to provide more than 50%. Given that you're covering all the major living expenses, you should be well over that threshold, but it's good to have documentation just in case. Your daughter should definitely file her own return if she had any taxes withheld from her paychecks - that's likely the only way she'll get those refunds back. Plus it's good practice for her to learn the process!

This is exactly the kind of confusion that trips up so many small business owners! You're absolutely right that as a sole proprietor LLC filing Schedule C, you most likely don't have an applicable financial statement under IRS definitions. I went through this same issue last year with some photography equipment purchases. What really helped me was creating a simple spreadsheet to track all my options: 1) **Regular depreciation** - 5 years for computer equipment 2) **Section 179 expensing** - Full deduction in year of purchase (up to $1.16M limit for 2024) 3) **Bonus depreciation** - Currently 60% in 2024, then 40% in 2025 For your $3,200 items, Section 179 is probably your best bet since you can expense the full amount immediately. Just make sure you're using the equipment primarily for business (over 50% business use) and that you place it in service during the tax year you want to claim the deduction. One thing that caught me off guard - make sure you have that written de minimis policy in place by the beginning of your tax year if you want to use any safe harbor elections going forward. Even though it won't help with your current purchases, it's good to have documented for future years.

The applicable financial statement (AFS) requirements really are a major hurdle for small businesses like yours. As others have mentioned, you likely don't qualify for the $5,000 threshold since sole proprietors typically don't have audited financials or SEC filings. However, I'd suggest looking beyond just Section 179 and bonus depreciation. Have you considered whether your equipment might qualify for the Research & Development credit if you're using it for developing new products or processes? Also, if any of your equipment has dual-use capabilities (like a workstation that can also function as a server), you might want to document the business percentage carefully. One practical tip: start a detailed usage log now for all your equipment. Track business vs personal use for at least 90 days to establish a clear pattern. This documentation will be invaluable if you're ever audited, regardless of which depreciation method you choose. The IRS loves detailed contemporaneous records, and it can make the difference between having your deductions accepted or challenged. For next year, definitely implement that written de minimis policy that others mentioned - it needs to be in place at the beginning of the tax year to be valid.

I went through this exact same situation with a CP2000 notice showing different TP FIG and "per computer" amounts. The key thing to understand is that the IRS isn't necessarily right just because they have computers - they're working with the information that was reported to them by third parties (employers, banks, etc.). In my case, the discrepancy was because my employer had submitted a corrected W-2 that the IRS processed, but I had filed my return before receiving the correction. The "per computer" amount reflected the corrected information while my "TP FIG" was based on the original W-2. Don't panic about the $1,200 difference - these notices are designed to look scary but they're often resolvable. Since you mentioned the 1099 contract work, double-check if you reported it on the correct line of your return. Sometimes income gets reported in the wrong section (like Schedule C vs Schedule C-EZ) and the IRS computer flags it as missing even though you included it. My advice: gather all your tax documents, compare them line by line with what's on your filed return, and if you find the error is on the IRS side, respond with documentation. Most of these discrepancies get resolved in your favor once you provide the missing context.

I've been dealing with tax notices for years as a bookkeeper, and the confusion between "TP FIG" and "per computer" amounts is incredibly common. Here's what's happening in simple terms: Your "TP FIG" (Taxpayer Figure) is what you calculated and reported on your return - basically what you or Jackson Hewitt put down as your tax liability or refund amount. The "per computer" figure is what the IRS calculated based on all the tax documents they received about you (W-2s, 1099s, etc.). When these don't match, it usually means they have information that wasn't included on your return, or there's a reporting error somewhere. The $1,200 difference suggests this isn't just a small math error - it's likely a substantial piece of missing income or an incorrect deduction. Since you mentioned a 1099 from contract work, I'd bet that's the culprit. Even if you think you included it, double-check exactly how and where it was reported on your return. The "per computer" amount is generally what you'll need to address, but don't just assume the IRS is right. They make mistakes too, especially when employers or clients submit incorrect or duplicate forms. Take the time to verify their calculations before paying.

This whole situation is exactly why the tax code needs to be simplified. It's ridiculous that getting married can actually increase your tax burden. I've been using a really thorough spreadsheet to project my taxes each year since getting married in 2021. I can share it if anyone wants it - it lets you compare Single vs MFJ vs MFS side by side so you can see the differences. The most important thing I learned is that withholding and filing status are completely separate things. You can have your employer withhold at the higher single rate even when you're married by completing your W4 correctly. This has saved me from owing at tax time.

I completely understand your frustration - this is such a common shock for newlyweds! The marriage penalty is real and hits hardest when both spouses earn similar incomes in certain brackets. Here's what's happening: When you were single, your income got its own trip through the tax brackets. Now married, even filing separately, the tax brackets for MFS are exactly half of the MFJ brackets - which often works out worse than the single brackets you used to enjoy. It's like the tax code is designed assuming married couples will always file jointly. A few practical things that might help: - Since you keep finances completely separate anyway, definitely run the numbers for both MFJ and MFS. Sometimes MFJ comes out better overall even if it feels wrong given your separate financial lives - The Child Tax Credit phases out at different income levels for MFS vs MFJ, which could be affecting your calculations - Consider having additional tax withheld from both your paychecks going forward (line 4c on the W4) to avoid this surprise next year The tax software is correct that you can't file as Single - your marital status on Dec 31st determines your filing options. But don't give up! Sometimes there are deductions or credits available to married filers that can help offset the penalty. Have you tried itemizing vs taking the standard deduction?

I actually found a working H&R Block discount code recently through a method nobody's mentioned yet - checking with your employer's HR department! Turns out my company has a partnership with H&R Block that I never knew about. They had a special landing page with automatic discounts built in, no code needed. Also wanted to add that if you're a AAA member, Costco member, or belong to certain professional associations, they often have tax prep partnerships too. I saved $45 this way last year just by logging in through my AAA member portal. Since you mentioned you're already deep into the process with H&R Block, don't give up now! The time you've invested in entering your info is worth preserving. Even a 15-20% discount will probably save you more than the hour it takes to hunt down a legitimate code. And honestly, paying full price for software that correctly handles your 1099 work is still cheaper than paying a CPA to do it manually.

Another angle worth trying - if you have a student email address (even from years ago if it still works), H&R Block often offers student discounts that can be pretty substantial. I used my old .edu email from graduate school last year and got 30% off the Deluxe version. Also, since you mentioned you've been using H&R Block for 3 years, try logging into your account and checking if they have any loyalty discounts or "returning customer" offers in your account dashboard. Sometimes they don't advertise these prominently but they show up once you're logged in. One more tip - if you end up not finding a code, consider waiting until closer to the April deadline. H&R Block typically releases "last chance" promotions in the final weeks of tax season to capture procrastinators. Obviously don't wait if you're expecting a refund, but if you owe money, the discount might be worth the strategic delay. The fact that you're already halfway through means you've done the hard part! Don't let the discount hunt derail your progress completely.