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Another option is TaxAct - it also lets you do multiple returns under one account, and they have a specific feature for people helping family members with taxes called "Multi-User Mode" where it clearly labels each person's return.
TaxAct was terrible last year! They raised their prices midway through the filing season and their customer service was non-existent when I had questions about my mother's pension distribution.
That's strange, I didn't experience any price increases during filing season. Their prices are listed upfront before you start. Maybe you started on a promotional rate that expired? I agree their customer service can be hit or miss though. I mainly mentioned them as another option for the multiple return feature which works well. FreeTaxUSA probably has better overall service if that's important to you.
I've been using FreeTaxUSA for my family's returns for the past two years and it's been great for exactly what you're describing. I handle taxes for myself, my parents, and my grandmother - all under one account. One tip that really helps: when you create each return, give it a clear name like "Mom - Jane Smith 2024" or "Dad - John Smith 2024" right from the start. This makes it so much easier to navigate between returns later, especially when you're jumping back and forth to double-check information or make corrections. Also, keep physical folders organized the same way you organize the digital returns. I learned this the hard way when I was looking for my dad's 1099-R and couldn't remember which pile of documents it was in! Now I use separate manila folders labeled the same way as the digital returns. The auto-save feature is fantastic when you're managing multiple returns - you never have to worry about losing progress if you get interrupted by a phone call or need to switch to helping another family member.
This is really helpful advice! The naming convention tip is brilliant - I hadn't thought about how confusing it might get when I'm switching between multiple family members' returns. Do you find that FreeTaxUSA keeps all the returns easily accessible year after year, or do you need to start fresh each tax season? I'm hoping to build up a good system since this will likely be an ongoing responsibility for me.
kinda unrelated but ive noticed these youtubers always buy way more food than needed for the actual video. like theyll buy 5 different kinds of expensive cheese just to use a tiny bit of each one. seems wasteful but i guess if they can write it all off who cares lol
This is such a fascinating area of tax law! As someone who's worked with small business tax issues, I can confirm that the "primary purpose" test is absolutely crucial here. One thing I'd add is that food YouTubers should also consider the "exclusive use" vs "mixed use" principle. If ingredients are used EXCLUSIVELY for content creation (like specialty items they'd never normally buy), those are slam-dunk deductions. But for mixed-use items (like basic staples they'd buy anyway), they need to be more careful about only deducting the business portion. I've seen creators get into trouble by treating their entire grocery budget as a business expense just because they occasionally film cooking videos. The IRS is pretty good at spotting patterns that don't make sense - like a family of four suddenly claiming $2000/month in "business" food expenses when their channel only has 500 subscribers. The documentation advice everyone's giving is spot-on. Keep those receipts, match them to specific videos, and be honest about what's truly for the business versus personal consumption. Better to be conservative and sleep well at night than get aggressive and risk an audit.
When I was in your situation, I picked Wyoming for my LLC formation. Main reasons were: - No state income tax - Low annual fees ($50-60/year) - No need to disclose owner names in public filings - Only need to file an annual report I used a registered agent service that provided a physical address for about $120/year. Been running it for 3 years from Southeast Asia with zero issues. Most clients don't even realize I'm not in the US. Just make sure you understand the tax filing requirements for expats with businesses. You'll still likely need to file: - Schedule C with your 1040 - Self-employment tax (unless you're in a country with a totalization agreement) - Possibly FBAR if your business accounts exceed $10k
Did you have any issues setting up a business bank account? I've heard some banks won't let you open one if you don't have a US address or if you're not physically present.
I opened my business account with Mercury Bank online. They're used to working with remote business owners and didn't require me to be physically present in the US. I provided my Wyoming business documents, EIN, and passport - all done virtually. Some traditional banks might give you trouble, but several online-focused banks like Mercury, Novo, and Wise Business understand the digital nomad/expat business model. Just be upfront about your situation when applying, and make sure you have all your business formation documents properly set up first.
One thing nobody has mentioned yet is that regardless of which state you choose, you'll need to be aware of "foreign qualification" requirements. If you're "doing business" in a state other than where your LLC is formed, you technically need to register as a foreign entity there. The definition of "doing business" varies by state, but generally includes having employees, office space, or conducting in-person services in that state. As an expat with an online business, this probably won't affect you if you truly have no physical presence in any state. But something to keep in mind if your situation changes!
So if I form in Wyoming but occasionally visit California and work from there for a few weeks, would I need to register in California too? Their taxes are insane!
@Alexander Evans That s'a really good question about California! Generally, just visiting and working temporarily like (a few weeks wouldn) t'trigger foreign qualification requirements. California looks for continuous "business" activity or having a permanent "place of business in" the state. However, California is notoriously aggressive about tax nexus, so you d'want to be careful about establishing any kind of regular pattern there. If you re'just visiting occasionally as a tourist who happens to work remotely during your stay, you should be fine. But if you re'there for extended periods regularly or have clients specifically in California, that could potentially create nexus. The threshold varies, but most states consider things like having an office, employees, or conducting regular business meetings as triggers for foreign qualification. Remote work from a laptop while visiting usually doesn t'count, but I d'recommend consulting with a tax professional if you plan to spend significant time in high-tax states like California or New York.
One thing nobody's mentioned - if you use actual expenses instead of standard mileage for Schedule C, you have to track your business use percentage. That means calculating what percentage of your total annual mileage was for business. Example: If you drove 12,000 total miles and 8,500 were for business, that's about 71% business use. You'd multiply all your car expenses (gas, insurance, repairs, etc.) by 71% to find your deduction. The first year you use a car for business is crucial because it locks you into either standard mileage or actual expenses for the life of that vehicle. If you choose actual expenses the first year, you can't switch to standard mileage later!
Wait, seriously? So if I claimed gas receipts last year on my Schedule C, I can't use the standard mileage rate this year for the same car? That's a huge deal nobody told me about!
That's correct. If you used actual expenses in the first year, you're locked into that method for the life of the vehicle. The IRS doesn't let you switch back and forth to maximize your deduction each year. However, if you used standard mileage in the first year, you actually can switch to actual expenses in later years if you want. The restriction only applies in one direction. So if you used standard mileage last year, you still have options this year.
Don't forget that you need to have good documentation regardless of which method you choose for Schedule C. The IRS specifically looks for: 1) Mileage logs with dates and purpose 2) Odometer readings (beginning/end of year) 3) Total miles driven for the year (personal + business) 4) Receipts if using actual expenses I got audited on my Schedule C a few years back and they specifically went after my mileage deduction. I had a decent log but was missing some details. They disallowed about 40% of my claimed miles because I couldn't prove business purpose for every trip.
This scares me. I've been driving for Uber and delivering for GrubHub but have been pretty lazy about logging. Would bank statements showing deposits from these companies on specific dates help prove I was working those days?
Fatima Al-Maktoum
I'm dealing with a similar situation right now. Filed my 1040X in January and it's been radio silence ever since. The "Where's My Amended Return" tool has been stuck on "received" for over 8 weeks now. What's frustrating is that with regular returns, you at least get status updates like "being processed" or "refund approved." With amended returns, it's basically just "we got it" and then nothing until suddenly a check appears in your mailbox months later. I've been keeping a spreadsheet tracking when I check the status just so I don't go crazy checking it every day. From what I'm reading here, sounds like I need to prepare for a much longer wait than I initially thought. The timing with your PCS move in August is going to be tricky - definitely recommend setting up mail forwarding well in advance since you might still be waiting by then. Has anyone had luck getting more specific timelines by calling the IRS directly, or is it just the standard "16 weeks" response?
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Oliver Cheng
ā¢I'm new to this community but going through the exact same thing! Filed my 1040X in February and it's been "received" status ever since. The spreadsheet idea is brilliant - I've been obsessively checking daily which is probably not helping my stress levels. Reading through everyone's experiences here, it sounds like the 16-week estimate is more like a minimum rather than an average. That's pretty discouraging but at least now I know what to expect. For what it's worth, I called the IRS last week and spent 2 hours on hold only to be told "it's within normal processing time, please wait 16 weeks from filing date." So yeah, not much help there. The agent couldn't give me any more specific information than what's already on the website. Thanks to everyone sharing their timelines - it's helpful to know I'm not alone in this waiting game!
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Marcus Marsh
I'm going through this right now too and can share some recent experience. Filed my 1040X in late January after discovering I missed claiming some medical expenses. It's now been about 6 weeks and still showing "received" status. What I've learned from talking to other military families (I'm Army) is that the timeline really depends on complexity. Simple amendments like missed deductions seem to take the full 16+ weeks, but more complex ones involving multiple forms or business income can stretch even longer. Since you mentioned a PCS move in August, I'd definitely recommend: 1. Set up mail forwarding through USPS well before your move 2. Update your address with the IRS as soon as you know your new one 3. Consider having the refund sent to a trusted family member's address if timing gets tight The "Where's My Amended Return" tool really is pretty useless compared to the regular tracker. I check mine maybe once a week now instead of daily - saves my sanity. From what everyone's saying here, it sounds like we're all in for a long wait regardless of when we filed. Good luck with your move prep! At least dealing with the IRS gives us practice for all the other military bureaucracy we deal with regularly.
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