Don't forget about platform fees when calculating your true income! If you're using sites like Fiverr, Etsy, or commission sites that take a cut, those fees are deductible business expenses. My first year I reported my full income without deducting the 20% platform fees and ended up paying way more in taxes than I needed to. Track ALL your expenses - even small stuff like reference subscriptions, brushes/assets you buy, etc.

Great advice everyone! As someone who just went through my first year of freelance art taxes, I can confirm that keeping detailed records from the start is absolutely crucial. One thing I wish I'd known earlier: if you're using digital art software subscriptions (Adobe Creative Cloud, Procreate, Clip Studio Paint, etc.), those are 100% deductible business expenses. Same goes for any online courses or tutorials you take to improve your skills - the IRS considers those legitimate business education expenses. Also, if you're doing client work that requires specific fonts, stock photos, or reference materials, keep those receipts! Even small purchases add up over the year. I tracked everything in a simple Google Sheet with columns for date, amount, description, and category (software, education, supplies, etc.). The self-employment tax rate is 15.3% on top of regular income tax, so definitely set aside about 25-30% of each payment you receive to cover both. It's better to have too much saved than to scramble at tax time!

Anyone know if we're supposed to enter these 1042-S values in local tax software? I use the Australian equivalent of TurboTax and there's nowhere obvious to put "foreign tax paid" from these forms.

Great breakdown from everyone here! As someone who's been through this exact situation, I want to emphasize that the 1042-S is really just a "receipt" showing what happened with your US-source income and withholding. The key thing to check is Box 7a (withholding rate) against your country's tax treaty rate. Australia has a pretty favorable treaty with the US - for most types of income like AdSense, the rate should be 0% or very low. If you're seeing 30% withholding, that means your W-8BEN wasn't properly processed or there was some other issue. One thing I learned the hard way: even if everything looks correct on your 1042-S, make sure you're reporting this income on your Australian tax return. The ATO can cross-reference this data, and you'll want to claim any foreign tax credits for whatever was withheld. Keep these forms with your tax records - they're essentially proof of income and tax paid that you may need later. If you're getting different withholding rates year over year for the same income source, that's usually a red flag that something needs to be fixed with your W-8BEN.

Ok so here's my actual timeline from last year when I had to verify ID for state (North Carolina): - Filed Feb 10 - Got letter requesting verification March 15 - Sent docs March 20 - Called April 25 (couldn't get through) - Finally got through May 2 (used claimyr.com after wasting days trying to call) - Was told docs were received and being processed - Refund deposited May 12 So about 7.5 weeks total from sending docs to getting money.

I'm going through the exact same thing right now! Filed in early February, federal came through fine but state is doing the whole ID verification dance. The uncertainty is killing me - I keep checking the status tracker obsessively even though it never changes. Reading through everyone's experiences here, it sounds like Michigan can be pretty slow with this stuff. I'm trying to stay patient but it's hard when you're counting on that money. At least we're not alone in this frustrating process! Hopefully both our refunds come through soon. Keep us posted on how it goes for you!

Don't forget to check which tax software the firms you're applying to use! Most use either UltraTax, Drake, ProSeries, or Lacerte. Is there a way you could get some basic familiarity with one of these before interviewing? Even being able to say "I've completed the Drake Software tutorial" gives you an edge over other newbies.

As someone who made a similar transition from a completely unrelated field (I was in retail management), I want to emphasize that your healthcare administration background is actually more valuable than you think! The skills you've developed - managing sensitive information, working with detailed documentation, handling client interactions under pressure, and maintaining accuracy in high-stakes situations - are exactly what tax preparation requires. Here's what worked for me when crafting my resume: 1. **Lead with your credentials** - Put your tax certifications and education right at the top, above your work history 2. **Reframe your healthcare experience** - Instead of "processed patient records," write "managed confidential financial and personal data for 500+ clients annually" 3. **Highlight deadline management** - Healthcare has strict compliance deadlines, just like tax season 4. **Emphasize your learning ability** - The fact that you completed multiple courses shows you're committed to continuous education Also, don't underestimate the value of those Udemy courses! Create a separate "Professional Development" section and list each course with the specific topics covered. Employers want to see you've gone beyond the minimum requirements. One last tip: Many firms are actually hiring NOW for next season's training programs. Don't wait - start applying in November/December when they're planning their staffing. Good luck with your career change!

As a tax professional, I want to emphasize that your approach is spot-on. The key is providing general information while maintaining clear boundaries about what constitutes tax advice. For promotional expenses specifically, the IRS does recognize these as legitimate business deductions under Section 162 when they serve a bona fide business purpose. Items like branded giveaways, promotional products distributed at trade shows, or marketing materials generally qualify. Your disclaimer language is good, but I'd suggest one small addition. Consider adding "Tax deductibility may be subject to limitations and specific IRS requirements" to help clients understand that even qualifying expenses might have restrictions (like the $25 limit per person for business gifts in some cases). I really like AstroAce's idea about a best practices checklist. You could create something that outlines general documentation standards without crossing into tax advice territory. Things like "maintain records of distribution dates, business events, and intended business purpose" are valuable guidance that any accountant would appreciate their clients already having organized. This approach positions you as a knowledgeable partner who understands the business implications of your services while respecting professional boundaries. That's exactly the kind of vendor relationship most businesses are looking for.

This has been such an insightful thread! As someone new to this community, I'm really impressed by the depth of knowledge and practical experience everyone has shared. I'm in a similar situation with my small consulting business - I often recommend software tools and services that have tax implications for my clients, but I've always been nervous about mentioning the potential tax benefits directly. Reading through all these responses has given me much more confidence about how to approach this properly. The key takeaways I'm getting are: 1. Use qualifying language like "may be" rather than definitive statements 2. Focus on business value first, tax benefits second 3. Always include strong disclaimers directing clients to their tax professionals 4. Consider providing general documentation guidance as a value-add I'm particularly interested in the documentation checklist idea that AstroAce and others mentioned. That seems like a great way to add value while staying in safe territory. For Omar's original question - it sounds like you're definitely on the right track with your Q&A approach. Just strengthen that disclaimer language as others have suggested, and you should be good to go. The fact that you're being this thoughtful about it shows you'll handle it responsibly. Thanks to everyone who contributed their expertise here - this is exactly the kind of practical guidance that makes online communities so valuable!