I've been wfh full time for 3 years and have a side freelance thing too and let me tell u, the IRS sucks with these rules. like my neighbor has his transportation to work covered as a business expense for his corporate job but i cant deduct someone to help with my kids so i can work more??? makes no sense 🙄

I totally get your frustration! I'm in a similar boat with my consulting business. What I ended up doing was getting creative with legitimate business expenses that actually helped free up time. For example, I now deduct meal delivery services when I'm working late on client projects (business meals), upgraded to a business phone line that handles scheduling automatically, and hired a virtual assistant who only does actual business tasks like client follow-ups and invoice processing. While I can't deduct my house cleaner directly, maximizing these legitimate business deductions gave me more cash flow to afford the household help anyway. Sometimes you have to work within the system rather than fight it. The key is making sure every deduction you take is genuinely business-related and well-documented.

The Transaction Code 290 with zero amount is confirmatory acknowledgment of your amended return in the Master File system. The 'as of' date (6/10/2024) represents the posting date when interest calculations would begin if applicable, not necessarily your refund issuance date. For amended returns, expect sequential processing: TC 290 → TC 971 (Amended Return Filed) → TC 29X series for adjustments → TC 846 for refund issuance. Current processing timeframes for Form 1040X are exceeding the standard 20-week window due to persistent backlogs. Your account is in normal processing status based on the information provided.

I understand your hesitation about getting your hopes up - dealing with tax issues can be emotionally draining! That said, the code 290 with $0.00 is actually a positive development. It means the IRS has received and begun processing your amended return. The 'as of' date typically indicates when their system will next cycle through updates, so there's a good chance you'll see additional activity around that time. While I can't promise a specific timeline (amended returns are notoriously unpredictable), you're definitely moving in the right direction. Try to check your transcript weekly rather than daily to avoid the stress of constant monitoring. Hang in there!

Has anyone considered Drake Tax's training program? I used it when transitioning from finance to tax, and it was super helpful for learning practical application. They have a certification program too that's way more affordable than most options.

As someone who's been preparing taxes for over 8 years and now runs a small practice, I'd strongly recommend against H&R Block for your situation. You're absolutely right to be concerned about getting the experience you need there. Given your 14-year FA background and EA pursuit, you're actually in a great position to approach boutique tax firms or fee-only RIAs that already offer tax services. These firms often struggle to find preparers who understand investment taxation, retirement planning implications, and business structures - all areas where your background gives you a huge advantage. I'd suggest reaching out to firms in your area that serve high-net-worth clients or business owners. Offer to work the upcoming tax season part-time while you complete your EA. Many firms would jump at someone with your qualifications, even for $30-35/hour starting out. Also consider joining local tax professional groups or NATP chapters - great networking opportunities and many firms recruit through these channels. You'll learn more in one season at a quality firm than multiple seasons at a volume preparer like Block. The EA designation combined with your FA experience will make you incredibly valuable in the tax prep world. Don't undersell yourself by starting at the bottom of the food chain.

Has anyone considered that the tax brackets might change before the end of 2025? Remember in 2020 when everything changed mid-year because of covid relief stuff? Maybe the IRS is hedging their bets with Publication 15-T in case Congress makes changes?

This is exactly the kind of systemic issue that makes tax compliance so frustrating for both employers and employees. I've been tracking this discrepancy across multiple clients this year, and it's definitely more pronounced than in previous years. What's particularly concerning is that this gap disproportionately affects middle-to-upper-middle income earners who don't typically need to make estimated tax payments. These are people who have always relied on payroll withholding to cover their full liability, and they're going to be blindsided next filing season. I think the IRS needs to be more transparent about these intentional buffers in their guidance. Publication 15-T should include a clear disclaimer explaining that the withholding tables may result in underpayment for certain income levels and circumstances. Right now, employers like us are left trying to explain to confused employees why their withholding doesn't seem adequate when we're following official guidance to the letter. Has anyone reached out to their payroll software vendor about this? I'm wondering if there are any patches or updates coming to help address this issue.

Omg i had this exact question last year! my daughter works in my pet grooming business and i wanted to help with her community college. my accountant told me to just put her on regular payroll and pay her fairly for the ACTUAL work she does. he said if i tried to deduct tuition directly id be asking for an audit. i now pay her $22/hour (what i pay my other grooming assistant) for about 15 hrs/week. she gets a regular paycheck with taxes taken out and everything. then what she does with her money is her business. yeah i still help her with tuition but thats just me being a mom lol.

Just wanted to chime in as someone who went through this exact situation with my son last year. The bottom line is that the IRS treats family employment arrangements with extra scrutiny, so you really need to do everything by the book. Here's what I learned: Pay your daughter actual wages through regular payroll (W-2, tax withholdings, the whole nine yards) for legitimate work performed. Document everything - hours worked, job duties, market rate justification for her pay. The $45k for 1000 hours ($45/hour) might be high depending on what kind of work she's actually doing. Research what similar positions pay in your area. Once she's getting regular paychecks, what she does with that money is her business. You can still help with tuition separately as a parent, but that's a personal expense, not a business deduction. Don't try to get creative by paying tuition directly as a "business expense" - that's a red flag for the IRS and could trigger an audit. Keep your business expenses and personal family support completely separate. It's cleaner, safer, and will save you headaches down the road.