Don't overthink this! The IRS isn't going to come after small-time bloggers about QBI classification. They have bigger fish to fry.

I've been dealing with this exact issue for my personal finance blog. After extensive research and consulting with my CPA, here's what I've learned: The critical factor is whether your blog's revenue depends on your personal reputation and skill, or on the platform/audience itself. For most successful blogs, even if you write all the content, the primary asset is actually the audience and the platform you've built. Consider this test: If you sold your blog tomorrow, what would the buyer be purchasing? If it's primarily the domain, audience, revenue streams, and content library rather than access to YOU personally, then you're likely not an SSTB. For my finance blog, even though I create content about financial topics, I'm not providing personalized financial advice or services. I'm creating general educational content and monetizing through ads, affiliates, and course sales. The IRS guidance suggests this falls outside the SSTB definition. One thing I'd add to your analysis - document your reasoning thoroughly. Keep records of your revenue sources, business model, and how your blog operates independently of your daily involvement. This documentation will be crucial if you're ever questioned about your QBI position. The 21% corporate rate is interesting, but remember you'll still face double taxation when you eventually distribute profits. For most bloggers, the QBI deduction on pass-through income is still more beneficial.

Great question about the Child and Dependent Care Credit! You're right to bring this up, but there are some important limitations to be aware of. Generally, if you're receiving payment for caring for someone, you can't also claim the Child and Dependent Care Credit for expenses related to that same person's care - it would be like getting a double benefit. However, there might be some gray areas depending on your specific situation. For example, if the government program only covers certain hours or types of care, and you're paying out-of-pocket for additional care services (like respite care, medical transportation, or specialized equipment), those separate expenses might still qualify for the credit. The key is that the credit is meant for expenses you pay to enable you to work or look for work. Since your husband is the caregiver being paid in this situation, it would be tricky to claim he needs to pay for care to enable him to work as a caregiver - if that makes sense! I'd definitely recommend consulting with a tax professional or using one of the tax analysis tools mentioned earlier to get clarity on your specific circumstances. The rules around caregiver income and related credits can get pretty complex.

This thread has been incredibly helpful! As someone who just started caring for my elderly mother through a state waiver program, I was completely confused about the tax implications. The agency told us something similar about being "tax exempt" as a family member, but reading through all these responses, it's clear that was misleading information. I'm particularly concerned because my mother's care coordinator specifically told us we wouldn't need to report the income at all, which now sounds completely wrong based on what everyone is saying here. We haven't received any tax documents yet since I just started last month, but I want to make sure we handle this correctly from the beginning. Does anyone know if I should proactively contact the agency to clarify what kind of tax documents they'll be sending me? I'd rather get ahead of this than be surprised like some of you were with unexpected W-2s or 1099s. Also, should I start setting aside money for taxes now, even if they're not withholding anything currently? Thanks to everyone who shared their experiences - this is exactly the kind of real-world advice that's impossible to find anywhere else!

Pro tip: Always send these international information forms via CERTIFIED mail with return receipt! I learned this lesson the hard way with my FBAR filing a few years back. Also keep a copy of everything you send, including proof of mailing. The penalties for late filing Form 3520 are insane (either $10,000 or 35% of the gross value of the trust distributions, whichever is greater).

This is exactly why I always recommend keeping multiple forms of documentation when dealing with international tax forms. In addition to certified mail, I also take screenshots of the IRS website showing the correct mailing address on the day I send the form, just in case addresses change or there's any dispute later. For Form 3520 specifically, I've found it helpful to also keep a copy of the trust documents and any correspondence that shows the filing requirement, since the IRS sometimes questions whether certain arrangements actually constitute reportable foreign trusts. The more documentation you have upfront, the easier it is to resolve any issues that come up during processing. Your situation with the ZIP code discrepancy is actually pretty reassuring - it shows the form made it to an IRS facility, which is the most important part. The internal routing between 84201 and 84409 is their problem, not yours!

The IRS verification system is like a temperamental security guard - sometimes it recognizes you and waves you through, other times it demands to see every form of ID you own even though you were just there yesterday. I've been tracking this issue across several tax forums, and there's a pattern emerging. The verification requirement seems to be triggered by an algorithmic risk assessment rather than a simple yes/no rule. Some factors that increase your chances of needing re-verification: 1. Filing from a new IP address or device 2. Income changes exceeding 20% year-over-year 3. New dependents or changed filing status 4. Claiming refundable credits you didn't claim previously 5. Filing significantly earlier or later than your previous year's pattern Interestingly, the IRS increased verification requirements after the massive fraud during COVID relief programs. Their systems are now more sensitive, which means more legitimate filers are getting caught in the verification net.

Just wanted to share my experience as someone who went through verification last year and was dreading having to do it again. Filed my return on February 15th this year and... no verification letter! My refund was processed normally within 3 weeks. For context, last year I had to verify after claiming the Child Tax Credit for the first time when my daughter was born. This year, same situation (claiming CTC again), same address, same employer, filed using the same software from the same computer. The only difference was my income went up about 15% due to a raise. It seems like once you're in their system and your filing pattern is consistent, you're less likely to get flagged again. Though based on other comments here, there's definitely no guarantee - the IRS system seems pretty unpredictable! For anyone still waiting on verification, hang in there. I know how stressful it is when you're counting on that refund.

Just wanted to add a practical tip about timing your expenses for maximum tax benefit. Since rental property expenses are deductible in the year paid (not when incurred), you have some flexibility with year-end planning. For example, if your rental property is showing a profit this year and you're hitting the passive activity loss limitations, consider prepaying some January expenses in December - things like insurance premiums, property management fees, or scheduled maintenance. This can help offset current year rental income. Conversely, if you're already maxed out on passive losses you can use this year, it might make sense to defer some discretionary expenses to next year when you might have more rental income to offset. Also, regarding the mortgage interest - keep copies of all your loan statements, not just the 1098 forms. Sometimes lenders make errors on the 1098s, and having your actual payment records makes it much easier to catch and correct these mistakes. I learned this the hard way when my lender undereported my rental property interest by almost $800 one year!

Great discussion everyone! I want to add something important that I learned from my CPA about the acquisition debt vs home equity debt distinction that could affect your primary residence deduction. The $750K limit applies specifically to "acquisition debt" - loans used to buy, build, or substantially improve your home. If you later refinance and take cash out for other purposes (like funding your rental property purchase), that portion above your original acquisition debt is considered home equity debt and isn't deductible for personal use. So if you originally had a $600K mortgage on your primary residence and later cash-out refinanced to $750K to help buy your rental property, only the first $600K of interest would be deductible as qualified residence interest. The remaining $150K portion would be considered home equity debt. However, if you used that $150K specifically to acquire or improve the rental property, you might be able to deduct that interest as a rental property expense on Schedule E instead. The key is tracing where the loan proceeds actually went - this is called the "debt tracing rules" and requires careful documentation. Just wanted to mention this since many people don't realize that not all mortgage interest on a primary residence automatically qualifies for the personal deduction, especially with cash-out refinances.