Has anybody used FreeTaxUSA instead of Turbo Tax? I switched last year and saved so much money, plus it was actually easier to understand why my refund changed when I added different information.

This exact thing happened to me two years ago! The initial excitement followed by the crushing reality check is so frustrating. What helped me understand it was realizing that TurboTax was essentially calculating two completely different tax scenarios - you as head of household vs. married filing jointly with combined income. Beyond what others mentioned about tax brackets and credit phaseouts, another factor could be that your withholdings weren't optimized for your actual filing status. When you're married but both working, the standard withholding tables assume that's your only income, so you might not have had enough withheld overall. For next year, definitely use the IRS withholding calculator after you both get your first paystubs. It'll help you avoid getting a huge refund (which is basically an interest-free loan to the government) and give you more money in your paychecks throughout the year instead.

14 Quick question - if a teen files their own return, does that social security number get "used up" for the year so parents can't claim them as dependents? My neighbor told me this and now I'm worried about having my son file.

Great question! As someone who went through this exact situation with my 16-year-old last year, I can confirm that your son is not required to file since he earned under the $12,950 threshold for dependents with only earned income. However, I'd still recommend filing for a few reasons. Even though no federal taxes were withheld in your case, filing establishes an official record with the IRS that can be helpful later. It's also great practice for him to learn the process while his return is still simple. One thing to double-check - make sure absolutely no federal taxes were withheld by looking at Box 2 on his W-2. Sometimes employers withhold small amounts even for low earners. If any amount shows there, filing would be the only way to get that money back. Since you're in Washington state, you don't need to worry about state taxes at all. The federal return would be very straightforward with just the W-2 income to report.

Has anyone dealt with a situation where the original shares had stock splits between the first death and second death? My parents had a similar situation but there were 3 stock splits between my dad's death and mom's death, and I'm having trouble figuring out how to calculate everything correctly.

This is exactly the kind of complex inheritance situation where getting professional help is worth every penny. Based on what you've described, Yuki is correct - the cost basis should step up to the fair market value at your aunt's death in 2018, not your uncle's death in 1992. However, determining that 2018 value for a non-publicly traded company is going to be the challenging part. Since the company was acquired in 2023, you might be able to work backwards from the acquisition price, but you'll need to account for any changes in the company's value between 2018 and 2023. I'd strongly recommend consulting with both a tax professional and potentially a business valuation expert. The amount of tax you could save by getting the basis calculation right will likely far exceed the cost of professional help. Plus, having proper documentation will protect you if the IRS ever questions your return. Don't let this sit too long - there may be deadlines for claiming certain elections or filing estate-related forms that could affect your tax situation.

One thing nobody's mentioned yet - don't forget about the self-employment tax implications. When you're deciding whether to take the full deduction for your business expenses or not, remember that reducing your net income also reduces your self-employment tax (which is currently 15.3% for 2025). So if you don't deduct your business expenses, you'd pay more in SE tax, which might offset some of the benefit of the higher 401k contribution. It's usually better tax-wise to take all legitimate business deductions and then calculate your Solo 401k contribution based on the lower net amount.

Don't overthink this! Just use the IRS formula: your contribution limit is lesser of $22,500 or your net earnings. And you ALWAYS wanna deduct business expenses. I made the mistake of not tracking my expenses properly when I started my side hustle and probably overpaid hundreds in taxes. Oh and btw the plan needs to be established by Dec 31st of the tax year, but you can actually make the contributions up until your tax filing deadline (including extensions). Super helpful if you're tight on cash at year end!

The audit risk stuff is important but don't overlook making sure you handle the business closure properly! When I closed my little consulting business last year, I had to: 1. File final employment tax returns (if you had employees) 2. Issue final W2s/1099s 3. Cancel EIN 4. Close business tax accounts with state 5. Report sale/disposal of business assets 6. Maintain records for at least 7 years Did TurboTax walk you through all these steps?

I completely understand your anxiety about this situation! I went through something very similar with my small photography business that had losses for 3 years before I closed it. Here's what helped put my mind at ease: the IRS audit statistics show that Schedule C businesses with gross receipts under $100k have an audit rate of less than 1%. With your highest year being $47k, you're well below that threshold. The key thing about the hobby loss rule is that it's not just about the 3-out-of-5-year test - the IRS looks at nine factors including whether you operated in a businesslike manner, kept good records, and made changes to improve profitability. Since you mentioned you were legitimately trying to run a business and made the rational decision to close when it wasn't working, that actually supports your case. Keep all your documentation organized (receipts, bank statements, inventory records, any business correspondence) just in case, but honestly, your situation sounds very low-risk. The IRS is generally more concerned with larger operations or obvious red flags like claiming massive losses on minimal income.