I'm confused about the timing. Can I still make a backdoor Roth contribution for 2024 right now in August 2024, or do I have to wait until Jan 2025 to do it?

Great question! Yes, backdoor Roth IRAs are definitely still allowed for 2024. At your income level of $168k, you're correct that you're above the direct Roth IRA contribution limits ($153k-$168k phaseout range for 2024), so the backdoor method is your best option. Since you mentioned you don't have existing traditional IRA balances, you're in a perfect position - no pro-rata rule complications to worry about! The process is straightforward: contribute $7,000 (2024 limit) to a non-deductible traditional IRA, then convert it to a Roth IRA shortly after. For tax reporting, you'll need Form 8606 to report the non-deductible contribution and the conversion. The conversion itself isn't taxable since you're converting after-tax dollars. Just make sure to keep good records of the contribution date and conversion date. One tip: consider doing this early in the year so any small gains between contribution and conversion are minimal. The strategy has been around for years and Congress hasn't moved to eliminate it despite various tax reform discussions.

Look, everyone's saying it's normal, but here's the straight talk: TurboTax sometimes has transmission hiccups. I've seen cases where people thought they filed but the return was sitting in some digital limbo. Double-check your TurboTax account to make sure it shows as "transmitted" not just "prepared." If it says transmitted, you're fine and just need to wait. If it shows any other status, you might need to take action. Trust your gut - if something feels off by Thursday, it's worth investigating rather than just waiting.

I'm going through the exact same thing right now! Filed Saturday evening and it's Wednesday morning with still no acceptance notification. Reading through these responses is actually really reassuring - sounds like this is totally normal for weekend filings. I was starting to panic because last year when I filed on a weekday it was so much faster. Going to give it until Friday before I start worrying, but it's good to know about those backup options like checking transcripts or calling the IRS if needed. Thanks everyone for sharing your experiences!

Has anyone here actually tried claiming the childcare credit for a babysitter rather than a daycare? My tax guy told me last year I couldn't claim it unless the childcare provider had a tax ID number or something?

I just went through this exact situation last year with my regular babysitter! At $250/week, you're looking at about $13,000 annually, which means you'll definitely need to handle the household employer responsibilities that others have mentioned. One thing I wish I'd known earlier - you can actually start withholding the employee portion of Social Security and Medicare taxes from your babysitter's pay (if they agree), which makes things easier at tax time for both of you. Otherwise, you're responsible for paying both the employer AND employee portions yourself. For the Child and Dependent Care Credit, I was able to claim the full amount I paid my babysitter. Just make sure to get their SSN early on and keep detailed records of all payments with dates. I used a simple spreadsheet to track everything. The credit was worth about $1,050 for me, which definitely helped offset some of those employer tax costs! Also, don't forget you might need to pay state unemployment insurance depending on where you live. Each state has different thresholds, so check your state's requirements too.

One thing I wish I'd done from the beginning: develop clear client acceptance criteria. When you're starting out, it's tempting to take anyone who's willing to pay you, but some clients will drain your time and energy in ways that aren't worth the fee. I now have a checklist of red flags that help me decide whether to take on a new client: - Do they have multiple years unfiled? - Are they bringing you their taxes on April 14th expecting same-day service? - Do they argue about your fees before you've even started? - Are they unwilling to provide complete information? - Do they tell you what their refund "should be"? Being selective about clients from the start will save you major headaches down the road.

This is a really comprehensive checklist! As someone who made the transition from working at a firm to solo practice about 3 years ago, I'd add a couple more items: - Client onboarding process/intake forms (beyond just engagement letters) - having a standardized process helps you look professional from day one - Backup plan for technology failures - what happens if Drake goes down during busy season or your internet cuts out? - Malpractice/liability insurance separate from E&O (depending on your state requirements) - Document retention policy - how long you'll keep client files and in what format Also, since you mentioned potentially buying your current employer's book of business eventually, start thinking about how you'll handle that transition with clients. Having your systems and processes dialed in early will make that much smoother when the time comes. One last tip: consider starting with a smaller subset of services initially rather than trying to do everything from day one. I focused just on individual returns and simple business returns my first year, then expanded into more complex work as I got comfortable with my workflow. Good luck with the venture!

Late to the party but went through this exact situation last year. Form 4549 is basically the IRS's way of saying "here's what we MIGHT charge you if you can't prove your claim." Don't panic! Make sure your documentation includes: - Itemized receipt showing separate costs for equipment and labor - Manufacturer's certification statement (this is crucial!) - Copy of your original Form 5695 that you filed - Photos of the installed system (not required but helpful) - Utility interconnection agreement if grid-tied

I actually just went through this exact same situation with my solar panel installation from 2022! The Form 4549 definitely freaked me out at first, but everyone here is right - it's just showing you what would happen if they disallow your credit. The key thing that helped me was organizing my documentation really clearly. I created a simple cover letter that said something like "Response to Form 15508 - Residential Energy Credit Documentation" and then listed out each document I was including and what it was proving. One thing I'd add to the great advice already given - if your installation involved any electrical work (like a new electrical panel or service upgrade), make sure to clarify which costs are eligible for the credit and which aren't. The IRS will sometimes question mixed installations where only part of the work qualifies. My audit was resolved in about 8 weeks after I submitted everything, and they accepted my credit in full. The Form 4549 basically became irrelevant once I proved my eligibility. Don't let it stress you out too much - just focus on getting solid documentation together for the Form 15508 response.