Great question about business accounts! I actually started with a free personal checking account that I dedicated solely to my craft business - many banks offer basic free checking if you maintain a minimum balance or set up direct deposit. This gave me all the benefits of separation without monthly fees. Once I was making consistent income (around $5K annually), I upgraded to an actual business account. By then, the monthly fees were easily justified by the tax benefits and professional appearance. Some credit unions also offer free or low-cost business accounts for small businesses. The key is having that separation from day one, whether it's a dedicated personal account or a true business account. You can always upgrade later once your income justifies the fees. Even if you only make $2K in year one, having clean records will save you hours during tax season and potentially save money if you need professional tax help.

I'm in a very similar boat - just getting ready to turn my hobby into a small side business! Reading through all these responses has been incredibly helpful. I especially appreciate the clarification about the $25-26K threshold for simplified accounting methods. One thing I'm wondering about that I haven't seen mentioned yet - what about business insurance? I know some craft fairs require vendors to have liability insurance, and I'm not sure if my homeowner's policy would cover any issues that might arise from selling my handmade items. Has anyone dealt with this aspect of starting a craft business? Also, for those who mentioned using apps or services to track expenses and receipts - are there any free options you'd recommend for someone just starting out? I love the idea of keeping everything organized digitally from day one, but I'm trying to keep startup costs minimal while I figure out if this will actually be profitable for me. Thanks again to everyone who shared their experiences - this thread is a goldmine of practical advice!

I was in a similar situation last year with over 200 cryptocurrency transactions that I was dreading having to list individually. After researching the IRS guidelines and consulting with a tax professional, I can confirm that consolidation is absolutely allowed and widely practiced. The key things I learned: Keep meticulous records of every individual transaction (date, amount, price, fees, etc.) even though you're consolidating on the form. Group transactions by the same asset and similar circumstances (regular trades vs wash sales). Make sure your consolidated totals exactly match what's reported on your 1099-B forms. Use "VARIOUS" for dates when you have multiple acquisition or sale dates for the same asset. I ended up consolidating about 200 transactions down to 12 lines on Form 8949, and my tax preparer said it was perfectly compliant. The IRS actually prefers this approach for high-volume traders because it makes their processing easier too. Just be prepared to provide detailed backup documentation if they ever ask for it (which is rare). Don't let the fear of an audit keep you from using a legitimate IRS-approved method!

As someone who's been through this exact situation, I can confirm that consolidation is definitely the way to go! I had over 300 trades last year and was absolutely panicking about the paperwork until I learned about this option. The IRS Publication 550 specifically mentions that you can use summary reporting for multiple transactions of the same security. Your tax advisor was right - this is completely legitimate and widely used by active traders. A few practical tips from my experience: Make sure you have a good system for organizing your detailed records by asset type and date. I created a spreadsheet that tracks every individual transaction and then calculates the consolidated totals for each unique security. Double-check that your consolidated amounts match your 1099-B forms exactly - even a penny difference can cause headaches. Also, don't forget to indicate the proper basis reporting category (covered vs non-covered) and holding period (short-term vs long-term) when consolidating. You can't mix these categories on the same line. The peace of mind of having a manageable Form 8949 instead of a phone book is absolutely worth it, and you're not doing anything wrong or risky!

I've been following this discussion with great interest as someone who's been considering the switch from commercial tax software myself. The consistent theme I'm hearing about Open Tax Solver's accuracy and security approach is really compelling - especially the multiple accounts of side-by-side comparisons with commercial software and tax professionals showing matching results. What particularly resonates with me is the privacy-first approach of keeping everything local on your computer. As someone who works in cybersecurity, I've seen firsthand how vulnerable centralized data storage can be, regardless of how "secure" companies claim their systems are. The idea of maintaining complete control over my sensitive financial information while still getting professional-level tax calculations is exactly what I've been looking for. I'm definitely planning to follow the advice several people have mentioned about downloading the software now to practice with 2023 data before tax season hits. The learning curve seems very manageable based on everyone's experiences, and the long-term benefits of no annual fees plus enhanced privacy control make it worth the initial time investment. Thanks to everyone who shared detailed real-world experiences rather than just theoretical opinions. This thread has been incredibly valuable for someone like me who was on the fence about trying open source tax software. The community knowledge sharing here is exactly what makes these discussions so helpful!

I've been lurking on this thread for a while and finally decided to jump in since I'm in almost the exact same situation as the original poster. The detailed experiences everyone has shared here are incredibly valuable - way better than the generic reviews I've been finding elsewhere. What really convinced me to try Open Tax Solver is the consistent theme about accuracy that keeps coming up. Hearing from multiple people who've done side-by-side comparisons with commercial software and tax professionals, all getting matching results, is pretty compelling evidence. The fact that @Miguel Castro has been using it for three seasons and @Emily Parker verified against a paid preparer really addresses my concerns about trusting open source software with something as important as taxes. The security angle is fascinating too. I never thought about how keeping everything local on my computer might actually be MORE secure than uploading sensitive data to cloud services. Given all the data breaches we keep hearing about, having complete control over my SSN and financial information is really appealing. I'm definitely going to follow the advice several people mentioned about downloading it now to practice with my 2023 return. That seems like such a smart way to get familiar with the interface without the pressure of actual filing deadlines. Thanks everyone for sharing real experiences instead of just opinions - this community is incredibly helpful for navigating these kinds of decisions!

its giving me anxiety just looking at my transcripts nowadays ngl

Don't stress about it! This is totally normal. The IRS system automatically generates non-filing letters for future tax years that haven't been filed yet. Since we're still in 2023, of course there's no 2024 return on file - nobody can file 2024 taxes until next year! The system is just showing you that no 2024 return exists yet, which is exactly what should happen. Your other years showing actual return transcripts proves everything is working correctly with your account.

I went through this exact same situation in 2022 when my divorce was finalized! The Child Tax Credit amount hasn't changed - it's still $2,000 per qualifying child for tax year 2023. What really helped me was using the IRS Interactive Tax Assistant online to confirm I qualified for Head of Household status since I have custody of my kids more than half the year. That filing status alone saved me about $1,200 compared to filing as Single. Also, don't forget to check if you qualify for the Earned Income Tax Credit - with two kids, the income limits are pretty generous and it can add significantly to your refund. One last tip: if your ex-spouse tries to claim the kids too (happened to a friend), your return will be delayed for months while the IRS sorts it out, so make sure your divorce decree is crystal clear about who claims them. Best of luck with your first tax season as a single parent - you've got this!

Hey Isabella! I completely understand the confusion - there's so much conflicting information out there about tax credits. As others have confirmed, the Child Tax Credit is still $2,000 per qualifying child for 2023 taxes (no increase from last year). The good news is that as a newly single parent, you'll likely benefit from Head of Household filing status, which gives you better tax brackets and a higher standard deduction than filing Single. This can make a bigger difference in your overall refund than any CTC increase would have! Also worth checking if you qualify for the Earned Income Tax Credit with two kids - the income limits are pretty generous and it can add substantial money to your refund. Since you're budgeting carefully post-divorce, I'd recommend filing ASAP if you're expecting a refund, as processing times tend to get longer as we get closer to the April deadline. Hang in there - the first tax season after a major life change is always stressful, but you've got this!