To add to this convo - don't forget that if you do form an LLC and keep it as a disregarded entity (basically taxed as a sole prop), you can still deduct the annual LLC fee that most states charge as a business expense on Schedule C! That's separate from your state income taxes. I pay $800/year to California for my LLC and that amount IS deductible as a business expense.

I think we're all overcomplicating this. Just use an accountant people! I tried doing my own taxes as a sole prop for 2 years and missed so many deductions. Paid $650 for an accountant last year and she found over $3k in deductions I missed. She also explained that some business structures have higher audit risk than others so it's not just about the deductions.

My neighbor is a tax preparer and she said some parents try to deduct this as a medical expense if their child has an IEP or 504 plan, claiming it's necessary transportation for medical/educational services. But she strongly warned against this unless the transportation is specifically for medical treatment or special education services explicitly required in the IEP. Regular transportation to standard schooling doesn't qualify, even with an IEP. The IRS apparently flags these kinds of questionable deductions often. Just FYI before anyone goes down that path!

I went through this exact same frustration last year when our district cut bus routes! After researching extensively and even consulting with a CPA, I can confirm that unfortunately there's no federal tax deduction for mandatory school transportation costs. However, don't give up entirely - here are a few things that might help your situation: 1. **Check your state tax code** - Some states offer education expense credits that are more generous than federal rules. A few states actually do provide small credits for transportation-related educational expenses. 2. **Document everything anyway** - Keep detailed records of your mileage, gas receipts, and any vehicle maintenance costs related to school transportation. While not deductible now, tax laws can change, and having good records never hurts. 3. **Look into other education deductions** - Make sure you're not missing any legitimate education-related tax benefits like the Child and Dependent Care Credit if you're paying for before/after school care due to your work schedule. 4. **Consider the bigger picture** - If you're doing any work-from-home or side business, make sure you're maximizing those vehicle deductions for legitimate business use. It's genuinely unfair that we're legally required to get our kids to school but can't deduct the forced expense, especially when districts cut transportation. Hopefully future tax reform will address this gap!

Has anyone actually gotten their refund before Feb 15 with PATH? Starting to think its impossible lol

As someone who's been through this exact situation before, I can confirm what others are saying - PATH Act means waiting until Feb 15th regardless of when you were accepted. The "test batch" just helps them work out processing kinks, but the law is the law. Your transcripts being updated is actually a good sign though! It means you'll likely be in that first wave of refunds once the PATH restrictions lift. I know the waiting sucks but at least you know everything is processing correctly on their end.

Nope not possible. PATH is PATH. Its literally in the law that they cant process these returns till after feb 15. buckle up buttercup 🤡

Just want to add that while you're waiting for PATH to lift, you can still check for other updates on your transcript like processing dates or any notices. The 846 code specifically won't show until after Feb 15th, but at least you can monitor that your return is moving through the system. Hang in there - the wait is brutal but it's the same for everyone with EITC/ACTC!

I'm really moved by how supportive and knowledgeable everyone has been in this thread - it's exactly the kind of community response that can make such a difference when someone is facing a stressful situation like this. As a newcomer to this conversation, I wanted to add that your cousin might also want to look into whether she qualifies for any innocent spouse relief if she was married during 2019 and filed jointly in previous years. While it sounds like she was single for the unfiled return, understanding all her options could be helpful. One thing that really stands out from reading everyone's experiences is how much the voluntary disclosure aspect matters. The IRS genuinely does treat people differently when they come forward on their own versus when they're contacted first. Your cousin's proactive approach, combined with her consistent filing since 2019, puts her in a really good position. I'd also suggest that when she does meet with a professional, she should ask about setting up a payment plan even if she doesn't end up owing much. Having that conversation upfront can provide peace of mind and show the IRS she's committed to resolving everything properly. The strength it takes to rebuild after an abusive relationship is immense, and handling this tax situation is just another part of that healing journey. She's clearly got people who care about her and a community here willing to help with advice and support!

This has been such an incredibly helpful and supportive thread! As someone new to this community, I'm really impressed by the depth of knowledge and compassion everyone has shown. I wanted to add one more resource that might be valuable for your cousin - the IRS has a program called "Currently Not Collectible" (CNC) status that can temporarily halt collections if someone is experiencing financial hardship. Given that she's rebuilding her life after an abusive relationship, this might be relevant if she does end up owing money but can't afford to pay it immediately. What really strikes me about all the advice shared here is how it emphasizes that your cousin has agency in this situation. She's not at the mercy of some terrifying bureaucratic machine - she has multiple pathways forward, strong reasons for penalty relief, and clear evidence of good faith through her consistent filing since 2019. The combination of voluntary disclosure, potential reasonable cause relief due to her circumstances, and her proactive approach gives her significant leverage in resolving this positively. Plus, with all the professional resources mentioned (EAs, CPAs, TAS, VITA programs), she has options that fit different comfort levels and budgets. Tell your cousin that taking this step to address the situation head-on shows the same courage she demonstrated in leaving that toxic relationship. She's already proven she can handle difficult challenges and rebuild her life - this is just another step in that journey, and she's got an entire community rooting for her success!