Has anyone actually found a tax form where self-employed people can claim sick days? I have TurboTax and don't see anything like this mentioned.

Just to add some clarity here - I went through this exact confusion last year when I started freelancing! The accountant was likely referring to the old FFCRA credits that ended, but there are still some things worth knowing as a self-employed person. While there's no federal "sick day" program currently, don't forget about these legitimate self-employment deductions that can help offset income loss when you're unable to work: - Health insurance premiums (huge deduction if you're not covered elsewhere) - HSA contributions if you have a qualifying high-deductible plan - Home office expenses (a portion of rent, utilities, etc.) - Professional development and training costs - Equipment and software purchases Also, some cities and counties have their own programs - worth checking your local government website. And definitely consider setting up a separate "sick fund" savings account where you put aside 5-10% of each payment for those inevitable down days. It's frustrating that we don't have the same safety net as W-2 employees, but building these habits early in your freelancing career will really pay off!

I went the EA route before pursuing my CPA and want to share a tip about the exam itself. The Prometric testing experience can be jarring if you're not prepared for it. They have strict security procedures - expect to empty your pockets, roll up sleeves, get wanded with a metal detector, and be under camera surveillance. You can't bring anything into the testing room except your ID, and they provide a small whiteboard or scratch paper. The computer interface for the SEE exam is also pretty dated - nothing fancy like the CPA exam software. Make sure you do the sample test on the Prometric site to get familiar with it. And lastly, don't underestimate Part 3 (Representation). Many people focus on the tax law parts (1 & 2) but neglect studying the procedural rules and representation practices which can be quite technical and specific.

Great question about becoming an EA! I actually just completed my enrollment last year and can share some practical insights from the process. One thing I'd add to the excellent advice already given is to consider your timeline carefully. Since you're in Houston, you might want to check out local tax firms that value the EA credential - many of the larger practices here really appreciate having EAs on staff for representation work. Regarding study materials, I used a combination of Gleim and the IRS's own Publication 17 and Circular 230. Don't overlook the free resources from the IRS website - they have sample questions and detailed content outlines for each part that are invaluable for focusing your studies. Also, once you pass and get enrolled, consider specializing in a particular area like international tax or estate planning. The EA credential opens doors, but having a specialty can really set you apart in a competitive market like Houston. Good luck with your studies! The EA is definitely worth pursuing alongside your CPA - they really do complement each other well in practice.

Has anyone used the annualized income method instead? I'm in a similar situation but my income is VERY uneven throughout the year, so paying equal installments seems like it would create cash flow problems for me.

I'm in a very similar boat - just started freelancing in March and was totally confused about estimated payments! Reading through all these responses has been super helpful. One thing I'd add is to make sure you're also setting aside money for self-employment tax (the additional 15.3% for Social Security and Medicare) on top of your regular income tax. That caught me off guard my first year since as a W-2 employee, half of that was paid by my employer. Also, don't forget that you can deduct half of the self-employment tax when calculating your adjusted gross income, which can help reduce your overall tax burden. It's not huge but every bit helps when you're navigating this for the first time! The safe harbor route definitely seems like the way to go for peace of mind, especially in your first year when you're still figuring out your income patterns.

Kind of off-topic but this is why I always do a "paycheck checkup" a couple times a year using the IRS withholding calculator. I had a similar issue at a previous job and caught it after my third paycheck because the net amount seemed too high. Saved me from a huge surprise at tax time. OP, for the future, always check your first few paystubs at any new job to make sure taxes are being withheld correctly. The IRS has a good withholding estimator tool that can help you figure out approximately how much should be coming out.

This is a really frustrating situation, and I feel for you having to deal with this mess. As others have mentioned, employers are absolutely required to withhold federal income tax based on your W4 - they can't just decide not to do it. Since you have your original W4 showing you claimed 0 exemptions and your 2024 W-2 shows $0 federal withholding in Box 2, you have solid documentation that this was their error, not yours. The fact that they withheld correctly in 2023 but not 2024 suggests something changed in their payroll system or process. A few things to consider while you're waiting for HR to respond: 1. Request a copy of what W4 they have on file for you currently - sometimes forms get lost or replaced incorrectly 2. Ask for detailed payroll records showing how your withholding was calculated (or not calculated) 3. Document all your communications with HR about this issue Even though you'll still need to pay the taxes you owe, having this documentation could be important if the IRS assesses any penalties. You might also want to look into whether your employer could be liable for any interest or penalties you incur due to their mistake - that would probably require talking to a tax professional though. Definitely keep pushing HR for answers. This kind of payroll error affecting someone's entire tax year is a serious issue they need to address and prevent from happening to other employees.

I'm dealing with this exact same situation! I'm 64 and received a Code 1 on my 1099-R from my 403(b) withdrawal. Reading through all these responses has been incredibly helpful - I was panicking thinking I'd somehow owe that 10% penalty despite being well over 59.5. It sounds like the consensus is that the IRS systems will automatically catch this based on my age, which is reassuring. I'm using FreeTaxUSA and I'll make sure to double-check that it's not applying any early withdrawal penalty when I enter the form. Thanks everyone for sharing your experiences! This is such a common issue that it really should be better communicated by the plan administrators. At least now I know I'm not alone in dealing with this coding error.

This is such a frustrating but common issue! I went through the exact same thing two years ago when I was 63. Got a Code 1 on my 401(k) distribution and immediately thought "Oh no, they're going to hit me with that 10% penalty!" Here's what I learned after going through it: the IRS computer systems are actually pretty smart about this. They cross-reference your Social Security records (which include your birthdate) with the distribution information. So even though your 1099-R shows Code 1, their system will see that you were over 59.5 and won't apply the early withdrawal penalty. That said, I'd still recommend trying to get a corrected 1099-R if possible, just to avoid any potential confusion down the road. When I called my plan administrator, they initially said they couldn't issue a correction, but when I explained that Code 1 specifically indicates an early distribution subject to penalty (which wasn't accurate in my case), they agreed to send a corrected form with Code 7. TurboTax will definitely handle this correctly - it calculates your age at the time of distribution and applies the appropriate treatment regardless of what code is on the form. You'll see on your tax summary that the early withdrawal penalty shows as $0.