Has anyone used FreeTaxUSA for filing with a single-member LLC and W2 income? I'm trying to avoid the higher fees from TurboTax but not sure if the cheaper options handle Schedule C well.

As someone who went through this exact transition two years ago, I'd say start with good tax software first before jumping to a CPA. With $18K in LLC income, you're definitely in manageable territory for self-filing. The key things that made my first year smooth: 1) Keep meticulous records of ALL business expenses (even small ones add up), 2) Set aside about 25-30% of your LLC profits for taxes (you'll owe self-employment tax on top of income tax), and 3) Don't forget about potential quarterly payments for next year. I used TaxAct Business which handled my Schedule C perfectly and cost way less than TurboTax. The software walked me through everything step-by-step, including home office deductions and business use of vehicle if applicable. One thing I wish someone had told me - even though you're a single-member LLC, make sure you're treating it like a real business from a record-keeping standpoint. Separate bank accounts, proper receipts, detailed mileage logs if you drive for business. The IRS scrutinizes Schedule C filers more than W2-only folks, so having everything documented properly is crucial.

This has been such an informative discussion! I'm in a somewhat similar boat - got ordained through ULC a couple years ago to officiate my cousin's wedding, and like the original poster, I'd completely forgotten about it until tax season got me thinking about potential deductions. Reading through everyone's responses, it's crystal clear that my one-time ceremony definitely doesn't meet any of the IRS criteria for minister status. The "four-fold test" and "primary occupation" requirements that several people mentioned really put it in perspective - there's a huge difference between having an ordination certificate and actually functioning as a minister. What strikes me most is how misleading some of those online ordination sites can be. They heavily promote the "tax benefits" angle without explaining that you need to essentially be running a full-time ministry to qualify. It's almost like they're banking on people not understanding the actual IRS requirements. I'm grateful for everyone sharing their experiences and expertise here - definitely saved me from making a costly mistake on my tax return. Better to stick with the deductions I actually qualify for rather than risk an audit over benefits I was never entitled to in the first place!

This thread has been incredibly helpful! I've been wondering about the same thing since I got ordained through ULC to officiate my sister's wedding last year. Reading through everyone's explanations about the "four-fold test" and the "primary occupation" requirement really clarifies why those online ordination sites are so misleading when they advertise tax benefits. It's fascinating (and a bit concerning) how the IRS has had to crack down on this because of people trying to game the system. The complexity of legitimate minister tax situations - like the dual tax status Harper mentioned - really shows why casual ordinations don't make financial sense even if you could somehow qualify. I appreciate everyone sharing their professional expertise and personal experiences. Definitely better to understand these requirements upfront rather than risk an audit! For anyone else in a similar situation, it sounds like unless you're genuinely running a full-time ministry with regular services and a congregation, the ordination certificate is just for the legal authority to perform ceremonies, not for tax advantages.

I'm in the same boat! I started selling my vintage toy collection on eBay and am confused about whether I need to track my original purchase price from years ago? Most of these toys I bought in the 90s and have no receipts for. How do I figure out cost of goods sold in this case?

Just went through this exact same situation last year! The confusion is totally normal for first-time Schedule C filers. Here's what I learned after consulting with a tax professional: Your $4,800 total sales (including shipping charged to buyers) is correct for Line 1 gross receipts. Then you'll deduct your business expenses - the $650 eBay fees, $900 actual shipping costs, and don't forget about other deductibles like packaging materials, printer ink for labels, gas/mileage for post office trips, and even a portion of your home if you use it for storage/photography. One thing that tripped me up initially: if you're selling personal collectibles you owned for years (not bought specifically to resell), some of those might actually be capital gains/losses rather than business income. But if you're actively sourcing and reselling as a regular activity, then Schedule C is the right form. Pro tip: Start keeping detailed records NOW for this year - every receipt, every mile driven, every supply purchased. It makes next year's filing so much easier! Also consider opening a separate business bank account to keep everything clean and organized. You've got this! The first year is always the hardest but it gets much simpler once you understand the process.

As a newcomer to this community, I found this thread incredibly helpful! I'm 68 and just started receiving Social Security benefits this year, so I'll likely be in a similar situation when I file my taxes. It's reassuring to know that the 1040SR form is designed specifically for seniors and that these CP12 notices are relatively common. The explanations here about how the IRS basically "called it even" by offsetting the refund against the tax adjustment makes perfect sense. I'm definitely bookmarking some of the resources mentioned here - especially the advice about keeping the SSA-1099 form handy for reference. Better to be prepared than surprised by one of these letters next year!

As someone who's also new to this community and dealing with IRS correspondence for the first time, I really appreciate how thoroughly everyone explained this situation! I'm 66 and will be filing my first tax return that includes Social Security benefits next year, so this whole thread has been like a masterclass in what to expect. The fact that TurboTax automatically switches to the 1040SR form for seniors is something I had no idea about. And knowing that CP12 notices are common for first-time Social Security filers actually makes me feel less anxious about potentially receiving one myself. One question for those with experience - is there a way to double-check the Social Security benefits calculation before filing to avoid these adjustments? Or is it just one of those things where you have to be extra careful with data entry and hope for the best?

Quick tip - if your combined mortgage debt (primary mortgage + HELOC) is over $750,000, you might hit the cap on deductible interest. Worth checking with a tax professional if you're in that situation. I also found my credit union didn't automatically send a 1098 for my HELOC when the interest was under $600, but they did provide a year-end statement showing the interest paid. The IRS still let me claim it with that documentation.

Just wanted to add my experience for anyone else in a similar situation. I took out a HELOC last year specifically for home improvements and was able to deduct 100% of the interest since I used every penny for qualifying renovations (new HVAC system, flooring, and electrical upgrades). One thing I wish I'd known earlier - make sure you have a clear paper trail from the HELOC draws to the home improvement expenses. I kept a spreadsheet tracking each draw amount, date, and what specific project it funded, along with all contractor invoices and receipts. This made tax filing much smoother and gives me confidence if the IRS ever questions the deduction. Also, even though my lender didn't send a 1098 (interest was only about $400 for the year), I was still able to claim the full deduction using my year-end loan statement. The key is just having proper documentation of both the interest paid and how the funds were used.