Don't forget about the educational component! If you pay for your au pair's educational requirements (often around $500), those can also be included in your dependent care expenses. Also, keep a log of any additional benefits you provide - like if you pay for their cell phone or transportation costs. Some of these might qualify as additional dependent care expenses if they're required as part of their childcare duties. One thing that surprised me was that you can still claim the dependent care credit even if you use dependent care FSA funds to pay for some of the au pair expenses. You just can't double-dip on the same expenses.

Great question! I've been hosting au pairs for three years now and can share some practical experience with the tax side. One thing I learned the hard way is to keep meticulous records from day one. I use a simple spreadsheet to track weekly stipend payments, program fees, educational expenses, and any other qualifying costs. This makes tax time so much easier. A few key points from my experience: - You'll need your au pair's SSN or ITIN for Form 2441, so make sure they get one early in their stay - Keep copies of all program documentation - the agency contract, visa paperwork, etc. This helps establish the legitimate childcare relationship - Document the hours your au pair works in childcare vs. light housework, since only childcare hours count toward the dependent care credit Also, don't overlook state-specific benefits. Some states have their own dependent care credits that can stack on top of the federal credit. Worth checking with a local tax professional who understands au pair arrangements. The savings really do add up - between the federal credit and our state credit, we save about $1,800 annually on our tax bill, which definitely helps offset the program costs!

Just wanted to add that if you're planning to pay off your tax debt immediately anyway, you might want to look into the IRS Fresh Start program. Sometimes they offer penalty abatement if you pay in full. Might save you a chunk of money since penalties can add up fast on $13,500!

Great advice from everyone here! As someone who's dealt with IRS collections professionally, I can confirm that without formal levy notices, your account won't be automatically frozen when the deposit hits. The IRS has to follow strict procedural requirements before taking funds. One additional tip - when you do pay off that $13,500, make sure to get a zero balance transcript from the IRS afterward to confirm everything is properly credited. Sometimes payments can take a few weeks to fully process, and having that documentation protects you if any collection notices were already in the mail before your payment cleared. Also, definitely explore that Fresh Start program Sophia mentioned. First-time penalty abatement can be significant on a debt that size, especially if you've been compliant with filings and payments since the business closed. Worth a phone call to ask about it when you make your payment.

I completely understand your anxiety - I went through something very similar last year! I forgot to include a 1099-INT for about $87 and was convinced I was going to get audited when I filed my amendment. The good news is that amended returns for small amounts of missing interest income are extremely routine. The IRS processes thousands of these every day, and they actually view self-correction favorably compared to having to send you a notice later. Your $105 in interest would only increase your actual tax owed by roughly $25-35 depending on your bracket, which is genuinely not worth the IRS's time to scrutinize given their limited resources. They're focused on much larger discrepancies and more complex issues. My amended return took about 14 weeks to process (filed in March), but I eventually got my adjusted refund without any additional contact from the IRS. No audit, no letters, nothing - just the corrected refund amount. I know the waiting is stressful, especially when you're counting on that money for your dental work, but try to remember that you did exactly the right thing by catching and correcting this yourself. That demonstrates good faith compliance to the IRS, not suspicious behavior.

I completely understand your anxiety about this! I was in almost the exact same situation a few months ago - forgot a 1099-INT for about $95 and was absolutely convinced that amending my return would somehow flag me for an audit. Here's what I learned: filing an amended return for small amounts of missing interest income is incredibly routine for the IRS. They process thousands of these every week. The fact that you're correcting it yourself before they have to contact you actually works in your favor - it shows good faith compliance rather than trying to hide something. Your $105 in interest would only increase your actual tax liability by maybe $25-30 depending on your tax bracket. The IRS is dealing with much bigger issues than people who forgot small interest payments. They're focused on major discrepancies, unreported business income, or suspicious deductions - not honest mistakes on tiny amounts of interest. My amended return took about 13 weeks to process, which was frustrating because I was also counting on my refund for something important. But I eventually got the adjusted refund without any additional contact from the IRS. No audit, no letters, no drama - just the corrected amount. I know the waiting is stressful, especially with your dental work planned, but you absolutely did the right thing by correcting this proactively. Try not to let the anxiety spiral - you're going to be fine!

This thread has been incredibly helpful! I'm dealing with a similar K-1 situation and wanted to add one more consideration that might be relevant for some folks here. If your partnership is involved in oil, gas, or other natural resource activities, some of those box 13, code W expenses might actually be depletion-related costs that could be handled differently. I learned this the hard way when I assumed all my box 13 expenses were the same suspended miscellaneous deductions. Also, for anyone tracking these expenses for future deductibility after 2025 - make sure you're also keeping records of any AMT adjustments related to these items. Some partnership expenses that aren't deductible for regular tax purposes might still affect your alternative minimum tax calculations, and you'll want that documentation if the rules change again. One last tip: if you're working with a tax professional, bring them the entire K-1 instructions booklet that came with your K-1, not just the form itself. Those instructions often contain partnership-specific explanations for the various codes that can be really helpful in determining the exact nature of your box 13 items.

This has been such an educational thread! As someone who's been wrestling with these same box 13, code W expenses from my real estate partnership K-1, I wanted to share what I learned from my state tax research. For those asking about state deductibility - it's really worth checking your specific state's conformity rules. I'm in Illinois, and while IL generally conforms to federal tax changes, they specifically chose NOT to suspend miscellaneous itemized deductions for state purposes. So I was able to deduct my $6,200 in management fees on my IL-1040, saving me about $310 in state taxes. The key is understanding that each state made its own decision about whether to conform to the TCJA changes. States like California, New York, Pennsylvania, and Illinois maintained these deductions, while others followed the federal suspension. Don't assume either way - check your state's specific rules or consult their tax website. Also, for those tracking these expenses for future years - I created a simple spreadsheet with columns for the tax year, partnership name, amount, and notes about the specific nature of the expenses. When 2026 rolls around and these become federally deductible again, you'll have a clean record of everything you've accumulated over the years. One more thing - if you're in a state that still allows these deductions, make sure you're actually itemizing on your state return. Some states require you to itemize state even if you take the standard deduction federally, which could make these partnership expenses valuable even if your other itemized deductions aren't high enough to beat the federal standard deduction.

Stupid question maybe but do the rules change if you have a multi-member LLC instead of single-member? My partner and I just formed one and now I'm confused about quarterly payments.

This is such a common source of confusion for new LLC owners! I went through the same thing when I started my consulting business. The key thing to remember is that even though you got an EIN (which was smart for banking and other business purposes), your single-member LLC is what the IRS calls a "disregarded entity" by default. This means for tax purposes, it's like the LLC doesn't exist - all the income and expenses flow through to your personal tax return on Schedule C. So when you make quarterly estimated payments, you're essentially making payments toward your personal income tax liability (including self-employment tax), which is why you use your SSN on Form 1040-ES. Your EIN is still valuable though! You'll need it for business banking, if you ever pay contractors over $600 (for 1099 reporting), and potentially for state tax filings depending on where you're located. Just remember: EIN for business stuff, SSN for your actual tax payments to the IRS.