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I'm surprised nobody's mentioned the potential consequences for your dad. If he's been falsely claiming you for years, he could potentially owe back taxes plus penalties if the IRS investigates. Not trying to scare you, but if maintaining your relationship is important, you might want to approach this carefully. Maybe have a conversation like "Hey dad, I was looking into FAFSA and learned about dependency requirements. I realized there might be an issue with how you've filed in the past since I haven't lived with you. Could we talk about fixing this going forward so it doesn't cause problems with my financial aid?" This frames it as solving a future problem rather than accusing him of past fraud.
This is such a stressful situation, but you have more options than you might think! I went through something similar when I was starting college. Here's what I learned: First, don't panic about FAFSA - they deal with dependency issues all the time. The key is being proactive. Since you're planning to move to California for college anyway, this is actually perfect timing to get everything straightened out. My recommendation: Start by gathering any documentation you have that shows where you've actually been living (leases, school records, mail, etc.). Then approach your dad with a collaborative tone - something like "I'm applying for financial aid and need to make sure we're filing everything correctly. Can we review the dependency requirements together?" The IRS dependency test is pretty clear: you need to have lived with the claiming parent for more than half the year. If you haven't, he legally can't claim you. But framing it as "let's make sure we're doing this right going forward" rather than "you've been doing this wrong" might help preserve your relationship. Also definitely reach out to your college's financial aid office early. They've seen this before and can guide you through a dependency override if needed. Getting ahead of this now will save you so much stress later!
Is this your first time needing to verify your identity with the IRS? I had to do this last year and was worried too, but after verification my refund came about 2 weeks later. Do you have any credits on your return like Child Tax Credit or Earned Income Credit? Those can add extra time even after verification.
I completed ID verification about 2 weeks ago and I'm still waiting to see movement on my transcript. Reading through everyone's experiences here is really helpful - it sounds like the 9-14 day timeframe is pretty common right now. I've been checking my Account Transcript daily (probably obsessively at this point) but still only see the 570 hold code. No 571 release yet. It's reassuring to know this is normal and I'm not the only one dealing with the uncertainty. The waiting is definitely the hardest part when you're expecting a refund!
The FreeTaxUSA interface can be really confusing with QBI. I've found that TurboTax actually explains the QBI rules better and walks you through the calculations, but it's more expensive. H&R Block's software is somewhere in the middle.
I switched from FreeTaxUSA to TaxSlayer this year and found their QBI section much clearer. It specifically asks about former employers and automatically calculates the adjustment. Might be worth looking at for next year if you're running into these issues.
This is exactly the kind of situation that trips up a lot of people! You're handling it correctly - when freelance work is substantially the same as what you did as an employee for the same company, it doesn't qualify for QBI. The IRS created this rule specifically to prevent people from just switching to contractor status to claim the deduction while doing identical work. One thing to keep in mind for future planning: if your wife continues freelancing, she might want to diversify her client base. Income from different clients (not former employers) doing similar work would qualify for QBI. Also, if she can expand her services to include substantially different work for her former employer, that portion might qualify. Don't feel bad about "losing" the QBI deduction - you're following the rules correctly, and she can still benefit from legitimate business expense deductions on Schedule C. It's better to be compliant than to incorrectly claim QBI and face potential penalties later.
This is really helpful advice! I'm new to dealing with freelance taxes and had no idea about the QBI rules for former employers. It makes sense that the IRS would want to prevent people from just switching to contractor status to get the deduction. I'm curious - when you mention "substantially different work," how different does it need to be? If someone was previously a marketing coordinator as an employee but then does freelance social media management for the same company, would that qualify as substantially different enough for QBI? Or does it need to be completely unrelated work? Also, thank you for emphasizing the compliance aspect. It's tempting to want to maximize deductions, but you're right that following the rules correctly is way more important than risking penalties later.
Beyond the tax thing, I'd be careful about claiming your personal dog is a "working dog" if you're not licensed/insured that way. Could create insurance issues if something ever happened with a client dog. Just something to think about!
Oh that's a really good point I hadn't considered! We do have business insurance for the pet daycare, but I should probably check if our policy has any specific language about working animals. Thanks for flagging this - definitely something to look into before tax season.
As someone who's dealt with similar business expense questions, I'd recommend keeping meticulous records if you decide to pursue this. The IRS looks for three key things: ordinary (common in your industry), necessary (helpful for your business), and reasonable (not excessive). For a pet daycare, having a "demo dog" that helps socialize and train client animals could potentially qualify, but you'll need to prove it's genuinely business-related. Consider getting a letter from a veterinary behaviorist or animal trainer explaining how your dog's role benefits the business operations. Also, only deduct the percentage that's truly business use. If your German Shepherd spends 30% of her time actively working with client dogs, then 30% of training costs might be deductible. But regular vet care and food would likely be considered personal expenses unless you can document a clear business need. One more tip: take photos and videos of your dog actually working with client animals. Visual documentation of her training other dogs could be valuable evidence if the IRS ever questions the deduction.
Luca Romano
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Nia Jackson
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Luca Romano
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LunarLegend
Ugh I feel your pain! I'm at 13 months waiting on my 2022 return and it's driving me absolutely insane. The worst part is how they act like this is totally normal when you call. Like no Karen, waiting over a year for MY money is not normal š¤ Have you tried reaching out to your congressman's office? Sometimes they can light a fire under the IRS but honestly at this point I'm losing hope
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