Does anyone know what software is best for tracking inventory this way? We've been using QuickBooks but it seems designed for the traditional COGS method. Now I'm wondering if we need something different if we switch to expensing inventory at purchase.

This is such helpful information! I've been struggling with the same decision for my small electronics repair shop. We stock replacement parts and I've always done the traditional COGS method, but it's been a real headache tracking everything. One thing I'm curious about - if we make this election to expense inventory when purchased, does it affect our ability to use Section 199A (the 20% small business deduction)? I know that deduction is based on qualified business income, and I'm wondering if changing how we account for inventory impacts that calculation at all. Also, has anyone dealt with sales tax implications? In my state, we pay sales tax on inventory purchases, and I want to make sure switching to this method doesn't create any issues with how we handle sales tax reporting or credits.

Another money-saving option for your state taxes: check if your state has a free filing option directly through their tax department website. Many states offer free filing portals that aren't advertised as much as the paid services. For example, I live in California and was able to file for free using CalFile directly through the state franchise tax board. I had a similar situation where FreeTaxUSA wanted to charge for state filing after I did federal for free.

Pro tip: If you're filing back taxes just for FAFSA purposes, you can also request your tax transcript directly from the IRS after filing your federal return. This is free and often processes faster than waiting for your full return to be processed. The FAFSA verification process will accept tax transcripts if they need to verify your information.

Another option is to contact your Congressional representative's office! A lot of people don't realize this, but they often have staff dedicated to helping constituents with federal agency issues, including IRS problems. My brother was waiting on a $6,200 refund for almost 6 months and got nowhere until he contacted our Congressman's office. They have special channels to inquire about these things and his refund was processed within 3 weeks after they got involved. Just go to house.gov and enter your zip code to find your rep, then call their office and ask to speak to the staff member who handles IRS cases. Worth a shot!

I've been dealing with a similar situation for the past 4 months - filed in March and still waiting on a $2,800 refund. After reading through all these suggestions, I'm definitely going to try the Taxpayer Advocate Service route first since I can document the financial hardship this delay has caused me. For anyone else in this boat, I also wanted to mention that you can request your tax transcript online at irs.gov to see if there are any specific codes or flags on your account. It's free and might give you some clues about what's causing the holdup before you spend time on hold or pay for a service. The transcript will show processing dates and any error codes that might explain the delay. Has anyone had success getting their transcript and figuring out the issue themselves? I'm going to pull mine today and see what it shows.

To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c

If your call gets disconnected after paying for the service, you should definitely contact Claimyr's customer support immediately. Most legitimate callback services have policies in place for technical issues like this. Document the time of disconnection and your payment confirmation. You can also try calling the IRS directly using their main line (1-800-829-1040) - while wait times are long, it's free. For future reference, consider calling early morning or late in the week when call volumes might be lower.

Slightly off topic but congrats on having six figures in savings! That's impressive. Just make sure that money is working for you efficiently. At current high yield rates that's great, but you might want to look into I-bonds or CDs for portions of it if you don't need immediate access to all of it. Some CDs are paying even higher rates than savings accounts right now and the tax treatment is the same.

Great question Sofia! I went through something similar when my savings account started earning significant interest. One thing that really helped me was setting up automatic transfers to move a portion of my interest earnings into a separate "tax savings" account throughout the year. For your $5,500 projected interest, you're probably looking at owing around $1,100-1,400 in additional federal taxes depending on your bracket. I'd recommend adjusting your W4 withholding as others mentioned - it's much easier than remembering quarterly payments. Also, keep detailed records of all your interest statements throughout the year. While the bank will send you a 1099-INT, it's good to track it yourself monthly so there are no surprises. Some high-yield accounts compound daily so the actual amount can vary from projections. One last tip: if you're consistently earning this much interest, consider whether you need all $120k immediately accessible. You might want to ladder some CDs or Treasury bills for better rates while still maintaining liquidity for true emergencies.