4 Has anyone had success calling the IRS to link multiple amended returns after sending them? I mailed two separate amendments three weeks ago and I'm worried they'll be processed out of order.

11 Based on my experience handling similar situations, I'd recommend mailing them separately and timing it strategically. Send your 2020 amendment first via certified mail, then wait about 2-3 weeks before sending the 2021 amendment. This gives the IRS processing centers a better chance of handling them in the correct sequence. Include a cover letter with each return explaining the relationship between them. For the 2020 return, mention "This amendment establishes capital losses that will carry forward to affect my 2021 tax year." For the 2021 return, state "This amendment depends on capital loss carryovers from my 2020 amended return submitted on [date]." Also consider e-filing if your situation qualifies - it's much faster and creates a clearer electronic trail for the IRS to follow between related returns.

Has anyone used TurboTax to claim a non-relative dependent? Their questionnaire keeps asking about family relationships and I can't figure out where to indicate its my roommate not a family member.

Just wanted to add something important that I learned from my tax preparer last year - if you do qualify to claim your roommate as a dependent, make sure you understand ALL the tax benefits you might be eligible for. It's not just the dependent exemption - you might also qualify for Head of Household filing status if you're unmarried and providing more than half the cost of maintaining the home for your dependent. Head of Household has better tax brackets and a higher standard deduction than Single filing status, which could save you even more money. My preparer said a lot of people miss this because they don't realize non-relatives can qualify you for HOH status if they meet the dependent requirements. Also, definitely keep detailed records of all expenses you pay for your roommate - rent, utilities, medical costs, transportation, etc. The IRS defines "support" pretty broadly, so even things like paying for her phone or helping with medical appointments could count toward that "more than half support" test.

I went through this exact same situation two years ago! You definitely need to pay quarterly taxes on that income even without the LLC formed yet. The IRS doesn't care about your business structure - they care about the income you're earning. With $3,500 so far this year, you're likely looking at owing around $500-700 in self-employment tax alone (that's the Social Security/Medicare tax at 15.3%), plus regular income tax on top of that. If you expect to make more throughout the year, you could easily hit that $1,000 threshold that triggers the quarterly payment requirement. My advice: don't wait until you form the LLC. Calculate your estimated taxes now using Form 1040-ES and make the payment. You can always adjust future quarters once your LLC is formed. The penalties for underpayment can be way more expensive than just paying a bit extra now to be safe. Also, keep those spreadsheets organized! You'll need them for Schedule C when you file, whether you're still a sole proprietor or have formed the LLC by then.

Great question! As someone who's helped many clients through this transition, I want to clarify a few key points that might save you some headaches. First, regarding the $500-700 self-employment tax estimate - that would be roughly what you'd owe for the full year if you only made $3,500 total. But since you're asking about quarterly payments, you need to project your full-year income. If you think you'll make $10,000+ this year, you're looking at significantly higher tax obligations. For quarterly payments, you should estimate your total annual business income, then pay 25% of your expected annual tax liability each quarter. Don't just base it on what you've earned so far - the IRS wants you to pay as you earn throughout the year. Regarding the LLC transition mid-year: it's actually pretty seamless for tax purposes. You'll report all your business income for the entire year on Schedule C, whether it was earned as a sole proprietor or after LLC formation. The LLC formation date doesn't create a tax filing break - it's all one continuous business year on your personal return. One tip: if you're unsure about your projections, it's often safer to pay a bit more in estimated taxes rather than underpay. You'll get any overpayment back as a refund, but underpayment penalties can be costly and annoying to deal with.

23 Another solution might be to look for eligible expenses besides direct childcare! Your FSA might cover day camps (even specialty ones like sports or art camps) if you can find any with last-minute openings. Some FSAs even cover transportation costs related to childcare. Worth checking your specific plan details!

Just want to add a practical tip from my experience - when paying grandparents with FSA funds, I created a simple spreadsheet to track everything the IRS and FSA administrator needed. I included columns for date of service, date of payment, amount, which grandparent provided care, and brief description of services. Also, I had each grandparent sign a simple "childcare provider agreement" that outlined the arrangement. Nothing fancy, just a one-page document stating they're providing childcare services, their SSN, address, and acknowledgment they'll report the income. My FSA administrator loved having this documentation when I submitted for reimbursement. One more thing - check if your state has any specific requirements. Some states require childcare providers to be registered even if they're family members, though this is pretty rare for informal grandparent care.

Something important nobody's mentioned yet - Section 179 isn't always the best choice! If you expect to have higher income/profits in future years, sometimes it's better to take regular depreciation instead of Section 179. For example, I own a small manufacturing business and deliberately chose NOT to take Section 179 on some equipment last year because I knew I'd be in a higher tax bracket this year. By taking regular depreciation, I'm spreading the deduction across years when I'll be paying higher tax rates.

Quick heads up - if your business shows a loss, Section 179 might not help you much. You need to have positive business income to offset with the Section 179 deduction. I learned this the hard way last year with my startup. Bought $22k of equipment, took Section 179, but my business had minimal profit. Most of the deduction was wasted! Should've just done regular depreciation so I could use those deductions in future profitable years.