Wait, I think everyone is confusing two separate issues here. As a fellow indie contractor, let me clarify: 1) Line 18 on Form 1040 is where WITHHOLDING appears, not your tax liability. Of course this is zero for you - nobody withholds taxes from your contractor payments. 2) The actual income tax you owe appears on line 16 of Form 1040. This amount should NOT be zero unless you have other credits offsetting it. The Form 8880 credit is limited to your income tax liability, not your SE tax. So if your income tax on line 16 is actually zero after all deductions and other credits, then yes, you can't use the Saver's Credit. Check your line 16 amount before the Form 8880 credit is applied - that's your limiting factor.

This thread has been incredibly helpful! I'm also an independent contractor and was making the same mistake as the original poster - looking at line 18 instead of understanding the actual tax liability limitation. After reading through all the responses, I realize my situation is that my income tax liability (line 16) gets reduced to zero by the child tax credit, which means there's no income tax left for the Form 8880 credit to offset. It's frustrating because I'm paying plenty in self-employment taxes, but those don't count for this particular credit. For anyone else in a similar situation, it might be worth looking at whether you can adjust your retirement contribution timing or amounts to optimize between the different credits available. Sometimes spreading contributions across tax years can help maximize the total tax benefits you receive.

17 Has anyone used TurboTax Self-Employed for filing both 1099-NEC and 1099-MISC income? Is it worth the extra cost compared to the regular version?

Welcome to the 1099 world! As someone who made the same transition a few years ago, I can tell you that yes, you absolutely need to file a tax return even though you've been making quarterly payments. Those quarterly payments are essentially just prepayments toward your actual tax liability that gets calculated when you file. Here's what I wish someone had told me when I started: your quarterly payments are estimates based on what you think you'll owe, but your actual tax liability is determined by your real income and deductions when you file Form 1040 with Schedule C attached. If you overpaid through quarterlies, you'll get a refund. If you underpaid, you'll owe the difference (plus potential penalties if it's significant). For your 1099-MISC income from surveys and online platforms, it should be included in your quarterly estimates since it's all self-employment income subject to both income tax and self-employment tax. When filing, you'll report everything together unless the activities are completely unrelated businesses. My advice: start organizing all your business expenses now (home office, internet, phone, software, supplies, etc.) because these deductions can really add up and reduce your tax liability. And consider using tax software designed for self-employed folks - it's usually worth the extra cost for the guidance on deductions you might miss.

One thing nobody's mentioned yet - if part of the inheritance is coming from a LIFE INSURANCE policy, that's typically tax-free even if it's a large amount. Just make sure you don't confuse annuities (which can be taxable) with life insurance death benefits (which usually aren't). My family got really confused about this distinction when my grandfather passed.

Great question! You're absolutely right to be confused because there's a lot of misinformation floating around about inheritance taxes. The good news is that for most people, inherited money is NOT subject to federal income tax. Here's what you need to know for your $260K inheritance: 1. **No federal income tax**: As the beneficiary, you won't pay income tax on the $260K itself. This is true whether you take it as a lump sum or installments. 2. **Estate tax threshold**: The federal estate tax only kicks in for estates over $13.61 million in 2024 (and $13.99 million in 2025), so unless grandma's total estate was massive, no estate tax was owed either. 3. **State considerations**: A few states do have inheritance taxes that beneficiaries pay, but most don't. Check your state's rules to be sure. 4. **What IS taxable**: Any income you earn FROM the inheritance (like interest, dividends, or rental income if you invest it) will be taxable going forward. 5. **Special cases**: If any portion comes from retirement accounts like traditional IRAs or 401(k)s, those distributions would be taxable as income to you. The family members insisting you'll owe taxes might be thinking of other situations or confusing inheritance with other types of income. For a straightforward cash inheritance like yours, you should be in the clear!

Don't make the mistake I did last year - I thought tolls were included in the standard mileage rate so I didn't bother keeping separate records. My accountant told me too late that I could've deducted over $1,200 in business tolls separately! 😭 Definitely track those toll receipts and parking fees separately.

As a tax preparer, I see this confusion all the time! You're absolutely right to keep those detailed EZ Tag records. The key thing to remember is that tolls and parking are specifically excluded from what the standard mileage rate covers, so you can claim both the mileage deduction AND the actual toll costs. For Texas state taxes, you're in luck since there's no state income tax, so you only need to worry about federal deductions. Make sure your records show the business purpose for each toll - like "client meeting at XYZ Corp" or "site visit to ABC project." The IRS loves that level of detail. One tip: consider setting up a separate EZ Tag account just for business if the volume gets high enough. Makes the record-keeping much cleaner come tax time!

Since you're dealing with an international situation and this is your first time filing US taxes, I'd recommend also checking if you qualify for any tax treaty benefits between the US and your home country. Many countries have agreements that can reduce or eliminate tax on certain types of income like bank bonuses. Also, keep in mind that as a J-1 visa holder, you might be considered a "nonresident alien" for tax purposes even if you were physically present in the US for several months. This could affect which forms you need to file (possibly Form 1040NR instead of regular 1040) and how your income is taxed. Before you spend too much time chasing down the 1099-INT, it might be worth consulting with someone who specializes in international tax situations to make sure you're filing the right forms altogether. The tax treatment for temporary visa holders can be quite different from regular residents.

As someone who went through a similar situation with missing tax documents after my exchange program, I'd suggest trying a multi-pronged approach. First, definitely call Chase directly - but be persistent. Sometimes the first representative can't help, so don't hesitate to ask to be transferred to their tax documents department specifically. When you call, have your account number, SSN, and the dates you were in the US ready. Second, check your Chase online account again but look under "Statements" rather than just "Tax Documents" - sometimes the 1099-INT information appears in your year-end account statements even if the dedicated tax section isn't working. If you absolutely can't get the form, you can file without it using the $475 amount you know. The IRS already has Chase's copy, so as long as your reported amount matches theirs, you'll be fine. Just document your attempts to obtain the form (save emails, note phone call dates/times). One more thing - since you mentioned this is your first US tax filing and you're on a J-1 visa, double-check whether you should be filing Form 1040NR (for nonresident aliens) instead of the regular 1040. The filing requirements can be different for temporary visa holders, and it might affect how this bonus income is treated.