I had a similar issue with FreeTax. The solution for me was to complete the ENTIRE income section first (all W-2s, 1099s, etc.) before the expense page became available. Don't look for expense options while entering each 1099-NEC. Instead, after entering all income sources, look for a section called "Business Expenses" or "Self-Employment Deductions" in the main menu. Also, make sure you correctly answered the question about whether these 1099s are for the same business or different businesses. If you indicated different businesses, FreeTax should give you separate expense sections for each.

I'm a CPA and want to add some clarification to help others who might be reading this thread. The advice here is mostly correct, but there are some nuances worth mentioning. When you have multiple 1099-NECs, the key question is whether they represent the same trade or business. The IRS uses a "facts and circumstances" test for this - it's not just about whether the work seems similar to you. For example, if you're a freelance writer who got 1099s from a magazine, a blog, and a marketing agency, that's typically ONE business (writing services) even though the clients are different. But if you're a freelance writer who also drives for Uber, those are clearly different businesses. The gray area comes with things like "consulting" - if you do IT consulting and also business strategy consulting, the IRS might consider those separate businesses depending on how different the skill sets and activities are. One tip: if you're unsure, it's often safer to file separate Schedule Cs rather than combining different types of work. The IRS is more likely to question why you combined things that should be separate than why you separated things that could have been combined. Also, remember that each Schedule C needs to show a profit motive - if one of your activities consistently loses money year after year, the IRS might reclassify it as a hobby rather than a business.

Does anyone know how the audit rates compare between CRA and IRS? I've heard the IRS is much more likely to audit low-income taxpayers while the CRA focuses more on wealthy individuals and businesses. Is that accurate?

Having dealt with both agencies as a US expat living in Canada, I think the key difference comes down to resources and scope. The IRS operates on a massive scale - they process nearly 10x more returns than the CRA - but they're chronically underfunded relative to their mandate. This creates the paradox where they're technically sophisticated but often inaccessible. The CRA benefits from serving a smaller population and generally has better funding per capita. Canadian taxpayers can usually reach someone by phone within a reasonable time, while getting through to the IRS can take hours or days of trying. From a compliance perspective, both agencies are getting more aggressive, but the IRS has always had more of a "fear factor" in American culture. Movies, TV shows, and political rhetoric have built up the IRS as this intimidating enforcement agency, while the CRA maintains a more bureaucratic, less threatening public image. Interestingly, both agencies are dealing with similar challenges around cryptocurrency, digital assets, and remote work taxation that became huge issues during the pandemic.

This is such a common source of confusion for taxpayers! As someone who's been through this exact scenario, I can confirm that the Letter 4364C is definitely the authoritative source - not the online tracking tool. The IRS has acknowledged this is a known issue with their systems not syncing properly. What's frustrating is they don't really publicize this fact, so people naturally assume something's wrong when the statuses don't match. One thing I'd recommend is also checking your IRS online account (not just the "Where's My Amended Return" tool) to see if the changes are reflected there. Sometimes the main account view updates faster than the amendment-specific tracking tool. But even if that doesn't show the updates, your Letter 4364C is still your official confirmation that everything was processed correctly. The good news is that once you get that letter, you're done! No need to take any further action or keep checking the website. Just file the letter away with your tax records and move on.

I went through this exact same situation about 8 months ago and it was so stressful until I understood what was happening! The IRS basically has legacy systems that don't talk to each other properly. Your Letter 4364C is generated from their primary processing system, while the "Where's My Amended Return" tool pulls from a completely different database that updates much slower (if at all). What really helped me was realizing that the letter isn't just an acknowledgment - it's an official notice that your amendment has been fully processed and your tax account has been updated. The IRS doesn't send these letters lightly. If they say they've made the correction, then it's done. I actually kept checking the online tool for months afterward out of habit, and it never did update to show "completed." But when I pulled my tax transcript the following year, all the changes from my amendment were there correctly. So definitely trust the letter over the website - the letter is your proof that everything was handled properly.

Your calculation does seem a bit low for $60k in Michigan. Based on the breakdown others have provided, you should be looking at closer to $47,000-$48,000 in take-home pay before any benefits deductions. Here's what might be throwing off your calculation: many online calculators don't properly account for the standard deduction ($13,850 for single filers in 2024), which significantly reduces your taxable income. They also sometimes include estimated state disability or other local taxes that may not apply to your situation. My recommendation would be to use the IRS withholding calculator on their official website (irs.gov) as your baseline, then cross-reference with your state's tax calculator. Once you get the job, your first few paystubs will tell you exactly where you stand, and you can always adjust your W-4 if needed. Also keep in mind that $60k gross with typical benefits (health insurance, 401k contribution, etc.) will bring your actual take-home down further than just the tax calculation alone.

Your $43,751.52 calculation does seem low for a $60k salary in Michigan. As others have mentioned, you're likely looking at closer to $47,000-$48,000 in actual take-home pay after taxes. Here's a quick reality check: I'm also in Michigan making $61k, and my annual take-home after all taxes (federal, state, FICA) is $46,892. That's about $3,908 per month or $1,804 per biweekly paycheck. Your calculation suggests you'd be paying about $16,248 in total taxes, which would be roughly 27% - that seems high for your income bracket. The most likely culprits for the discrepancy: 1) The calculator might not be properly applying Michigan's $4,900 personal exemption, 2) It could be overestimating your federal tax bracket, or 3) You might have accidentally included some voluntary deductions. I'd suggest double-checking with a different calculator or even calling your future employer's payroll department - they can often give you a pretty accurate estimate based on their actual withholding tables. Good luck with the new job!

Just a heads up - if you're claiming a home office deduction too (which it sounds like you might be since you work from home), make sure your mileage claims are consistent with that. The IRS may cross-check these deductions. Also, some tax software doesn't explain the vehicle questions very well on Schedule C. Where it asks if the vehicle is "available for personal use" - the answer is almost always "yes" unless you have a dedicated business vehicle that you NEVER use personally. And you should answer "yes" to "Do you have evidence to support the business use?" if you have that Excel spreadsheet you mentioned.

Great question! As someone who's dealt with mileage deductions for my freelance work, I'd recommend keeping more detailed records than just trip dates and mileage. The IRS prefers contemporaneous records, so ideally you'd track: - Date of each trip - Starting point and destination - Business purpose (e.g., "pickup materials from Client X" or "deliver finished project to Client X") - Odometer readings or calculated mileage - Any tolls or parking fees Your Excel spreadsheet approach is perfect for organizing this. Just make sure to back it up! For Part IV on Schedule C, you're absolutely right that trips from your home office to pick up/deliver materials are business miles, not commuting. The "other" mileage category should include all personal driving - grocery runs, doctor visits, vacations, etc. This helps the IRS see that you're reporting total vehicle usage accurately. One more tip: keep gas receipts and maintenance records even if you're using the standard mileage rate. While you can't deduct these expenses when using the standard rate, having them shows you're maintaining good business records overall.