anyone else notice netspend been acting sus lately with deposits? My paycheck got rejected last week too

Katherine, I feel for you! This exact thing happened to me two years ago with a different prepaid card. Marcus is right - once the deposit is rejected, you can't change your bank info for that return. The IRS will mail a paper check to whatever address you used on your tax return. Just make sure that address is still valid! If you've moved since filing, you can submit a change of address form (Form 8822) to the IRS, but do it ASAP. The waiting sucks but at least you know the money is coming. Hang in there! 💪

Does anyone know if there's an income limit for the Lifetime Learning Credit? I think I might be getting close to the phaseout and I'm worried I won't qualify even though I have the expenses.

Great question Sofia! I was in a similar situation a few years back. Yes, you can absolutely claim the Lifetime Learning Credit after using up your 4 years of AOTC - that's exactly what it's designed for! The LLC allows you to claim 20% of up to $10,000 in qualified education expenses (so max $2,000 credit). Those monthly $350 payments you made should definitely qualify as long as they were for tuition and required fees. The fact that FAFSA covered most expenses doesn't disqualify you - you can claim the LLC on the portion you paid out of pocket. Just make sure you keep good records of what those payments covered. Download official receipts from your student portal showing the breakdown of fees - this will be important if you ever get audited. The IRS wants to see exactly what the payments were for, not just bank statements. Also double-check your income limits - the LLC phases out starting at $80k for single filers, so you should be fine unless you're in a higher income bracket.

I'm a bit confused. I have a client with a family partnership that owns mineral rights, but they're not actively involved in operations - they just receive checks from the oil company. Should I still be reporting this on page 4 of Form 1065? Or should it go somewhere else?

As someone who's dealt with similar mineral royalty reporting issues, I'd recommend creating a standard checklist for your oil and gas partnerships to ensure consistency across all your clients. Based on what others have shared here, the key is proper categorization rather than lumping everything together. Here's what I've found works well: 1. Always report royalty income on page 4 as portfolio income (confirms it's not subject to SE tax) 2. Break out expenses by their true nature - don't default everything to line 13i 3. Maintain detailed supporting schedules for any "other deductions" reported on line 20 4. Keep good documentation of the partnership's passive vs. active role in operations The IRS instructions may be vague, but consistent application of these principles has served me well. If you're still uncertain about specific situations, the suggestions about getting direct IRS guidance or using specialized tax research tools might be worth exploring for your more complex cases. One additional tip: make sure your K-1s clearly identify the character of income being passed through to partners so they can properly report it on their individual returns.

Don't forget about streaming service subscriptions! If you use Spotify Premium, Apple Music, etc. to research songs for your setlists or to study musical styles for paid gigs, you can deduct a percentage of those costs based on business use vs. personal use. I also deduct a portion of my cell phone bill since I use it to coordinate with venues, band members, and promote on social media. Same with my home internet.

Great question! As someone who's helped many musicians navigate these tax waters, I can confirm you're absolutely on the right track wanting to report this income properly. Since you made $11,400, you'll definitely need to file Schedule C for self-employment income. All your equipment purchases (guitar, PA system, effects pedals) are legitimate business deductions. For items over $2,500, you might want to consider Section 179 depreciation to deduct the full amount in the year of purchase. Your mileage to gigs is definitely deductible - just keep a log with dates, destinations, mileage, and business purpose. At 65.5 cents per mile for 2023, this can add up quickly! One thing I'd add that others haven't mentioned: since you're earning cash and Venmo payments, make sure you're setting aside money for taxes throughout the year. You'll owe both regular income tax AND self-employment tax (Social Security/Medicare) on your net profit. A good rule of thumb is to save 25-30% of your net income for taxes. Also consider making quarterly estimated tax payments going forward to avoid underpayment penalties. The IRS expects you to pay as you earn, not just at year-end. For the "stage clothes" question - unless it's something truly outlandish that you'd never wear elsewhere (like a costume), regular clothes aren't deductible even if you only wear them for performances.

Another option to consider - I found my S Corp accountant through the Enrolled Agent directory on the NAEA website. Many EAs specialize in small business and S Corps and are much more affordable than larger CPA firms. Plus they're licensed by the IRS and can represent you in case of audit. Most now work virtually so location doesn't matter. Mine is in a different state but handles everything perfectly through secure document sharing. Way better service than I ever got from retail tax chains.

As someone who went through this exact transition last year when my longtime CPA retired, I'd recommend being very cautious with H&R Block for S Corp work. Their retail locations often lack the specialized knowledge needed for proper S Corp tax preparation. I initially tried their Small Business Services (which is separate from their retail offices) and while the preparer was more knowledgeable than the seasonal staff, they still made some concerning errors with my reasonable compensation calculations that I caught during review. What worked for me was using the IRS's "Find a Tax Professional" tool on their website - you can filter specifically for Enrolled Agents and CPAs who work with S Corps. I found three candidates in my price range within a week, all willing to work remotely. The EA I ultimately chose has been fantastic and actually costs less than what H&R Block quoted me. My advice: get quotes from both H&R Block's business division AND a few independent professionals before deciding. Don't let the big name fool you into thinking they're automatically better - often the opposite is true for specialized work like S Corp returns.