Has anyone here dealt with filing in PA and NJ as a married couple? We're in the same boat and curious if joint or separate is better for these specific states.

Great question! As someone who's been through this exact situation, I'd strongly recommend running both scenarios in TurboTax before deciding. Generally, married filing jointly tends to be better for most couples because you get access to higher standard deductions ($29,200 for 2024), better tax brackets, and credits that aren't available when filing separately. However, your two-state situation does add complexity. Some states handle joint vs. separate filing differently, so what's better federally might not be optimal for your state returns. The good news is TurboTax will let you compare both options and show you the total refund difference (federal + both states combined) before you file. Given that you only worked 6 months last year, your lower income combined with your spouse's income might actually put you in a better position filing jointly this year. The key things to compare are: total tax owed, available credits (like Earned Income Credit if applicable), and any deduction limitations that kick in with separate filing. Definitely take advantage of TurboTax's comparison feature - it's designed exactly for situations like yours!

I'm at week 4 of waiting for my CP09 refund and this thread has been absolutely amazing to find! Got my notice in early April, responded both online and by mail like so many others here, and was starting to get really worried about the complete lack of updates on the IRS website. Reading through everyone's experiences has been incredibly reassuring - I had no idea that 8-12 weeks was the standard processing time or that the online refund tools basically don't work for EITC cases. I was checking daily and seeing the same generic "still processing" message, thinking something must be wrong. The success stories here are really encouraging, especially hearing about people getting substantial amounts like @b83406405c6c with $3,700+ and learning about the interest payments after 45 days. I'm definitely going to look into using Claimyr or taxr.ai based on all the positive feedback - seems much better than my failed attempts to call the IRS directly. Thanks to everyone who's shared their timelines and kept updating us on their progress! This real community support is so much more helpful than anything I could find on the official IRS website. It's such a relief to know I'm not alone in this waiting game and that there's light at the end of the tunnel!

I'm at week 1 of waiting for my CP09 refund and finding this thread has been such a blessing! Just got my notice last week, responded both online and by mail following the advice I've seen here, and was already starting to panic about what to expect. Reading through everyone's experiences has been incredibly eye-opening - I had no idea that 8-12 weeks was completely normal or that the "Where's My Refund" tool basically doesn't work for EITC cases. I was already checking it daily and getting frustrated with the generic messages, but now I know that's just how it works. The success stories are really encouraging, especially hearing about substantial refunds like @b83406405c6c getting $3,700+ and learning about interest payments after 45 days. It's also helpful to see the tools people recommend (Claimyr, taxr.ai) for when I get further along in the process. Thanks to everyone who's been sharing their timelines and updates! As someone just starting this journey, it's so reassuring to know there's a whole community going through the same thing and that patience really does pay off. I'm going to follow the advice about checking the IRS website just once a week instead of obsessing over it daily. Here's to hoping we all get our refunds soon!

Just want to point out that depending on the type of business entity, there might be restrictions on which accounting method is allowed. C-corps with over $27 million in gross receipts generally must use accrual. Also, certain types of businesses like those with inventory often have specific requirements.

This is definitely a tricky situation, but you're right to be concerned about fixing it properly. From my experience, the key question is whether the difference between what you reported (using accrual numbers) versus what cash basis would have shown is material. If we're talking about significant differences in taxable income, then amending is really your safest bet. The IRS takes accounting method consistency seriously, and having a mismatch between your declared method and actual reporting can cause issues down the road, especially if audited. One thing to consider is the timing - if you're still within the statute of limitations for amendment, it's better to proactively fix this rather than hope it doesn't come up later. I'd recommend calculating what the cash basis numbers would have been and comparing the tax impact. If it's material, bite the bullet and amend. If it's relatively minor, you might have more flexibility, but document your reasoning either way. Have you looked into whether your client meets any of the requirements that would actually require them to use accrual method? Sometimes what seems like a mistake might actually point to a method change that was needed anyway.

Does anyone know if the employee retention credit can still be claimed on Form 3800 for 2023? I'm getting conflicting information. Some places say it ended in 2021, others say there were extensions.

I've been dealing with Form 3800 for my small marketing agency and wanted to share a few things that helped me get through it successfully. The biggest breakthrough was realizing that Form 3800 is really just a summary form - you have to complete all the underlying credit forms first. For Sofia's situation with R&D expenses, definitely start with Form 6765 (Research Credit) before touching Form 3800. The key is documenting that your software development involved genuine technical uncertainty and experimentation. Keep detailed records of problems you encountered, different approaches you tried, and how you tested solutions. One tip that saved me hours: create a simple spreadsheet listing all potential business credits and check which ones apply to your business type and activities. Common ones for small businesses include the Small Employer Health Insurance Credit, Work Opportunity Credit, and Research Credit. Don't assume you don't qualify - I missed out on credits for two years because I thought my business was "too small." Also, if this is your first time claiming significant credits, consider getting a consultation with a tax professional just to review your work before filing. The documentation requirements can be tricky, and an audit on business credits is much more intensive than a regular tax audit.

This thread has been incredibly helpful! I'm in a very similar situation - my partner makes about $5,800 annually, so just over the dependent threshold. One thing I wanted to add that I learned from my benefits administrator: make sure you understand whether your employer calculates imputed income based on the full premium cost or just their contribution portion. My company only counts their subsidy as imputed income, not the total premium cost, which made a significant difference in my tax impact. Also, for anyone considering this, don't forget that some employers offer flexible spending accounts (FSA) that can help offset some of the additional tax burden. Even though the imputed income for your partner's coverage is taxable, you can still use pre-tax FSA dollars for their medical expenses. Has anyone here dealt with how this affects state taxes? I'm in California and trying to figure out if the state follows the same rules as federal for domestic partner coverage taxation.

I went through this exact situation two years ago and wanted to share a few additional considerations that might help. My partner makes around $6,200 annually, so like yours, just over the IRS dependent threshold. One thing that surprised me was how the timing of enrollment affected my taxes. I added my partner mid-year (July), so I only had imputed income for half the year. This actually helped me ease into understanding how it would impact my overall tax situation before committing to a full year. Also, make sure to ask your benefits administrator about the "look-back" period if your partner's income fluctuates. Some employers will reassess domestic partner eligibility annually based on the previous year's income, while others look at projected current year income. This could matter if your partner's income changes significantly from year to year. Another practical tip: if you're using direct deposit, the imputed income will show up in your regular paycheck deposits, so your take-home might be less than expected even though your gross pay appears higher on your paystub. I had to adjust my budget when I first noticed this. The good news is that even with the extra tax burden, it was still much cheaper than my partner getting individual coverage through the marketplace. Just make sure you factor in the full annual impact when making your decision!