Has anyone used TurboSelf-Employed for this kind of thing? I'm in a similar situation (not feet pics but custom digital art) and wondering if the extra cost is worth it over regular TurboTax.

One more thing to consider - keep detailed records of everything! I learned this the hard way when I got audited for my online business. The IRS wanted to see proof of income sources, business expenses, and that I was actually running a legitimate business. For your situation, I'd recommend: - Screenshots of your payment app earnings summaries - Records of any business-related purchases (equipment, supplies, etc.) - A simple spreadsheet tracking monthly income - Any communication with customers (helps prove it's a real business) Also, since you mentioned privacy concerns, you might want to look into getting a Google Voice number for business communications instead of using your personal phone. It's free and creates another layer of separation between your business and personal life. The good news is that what you're doing is completely legitimate business activity, so don't stress too much about the privacy aspect. The IRS has seen it all and they just care that you're reporting income correctly!

Just FYI - the American Opportunity Credit didn't exist in 2006. It started in 2009 as part of the American Recovery and Reinvestment Act. Before that there was the Hope Credit, which was similar but had different rules. If you were in school in 2009, that was the first year you could have possibly claimed the AOC.

Hey Edwards, I completely understand your frustration - I went through something very similar a couple years ago! The good news is that based on your timeline, you actually have fewer years to worry about than you think. Since you started college in 2010 but the American Opportunity Credit wasn't available until 2009, and you only did two semesters in 2010-2011, you would have potentially claimed it for 2010 and 2011 at most during that first stint. Then if you claimed it for that summer 2014 session, that would be year 3. Add 2019-2021 and you'd be at 6 years total - but that seems unlikely given your described timeline. My guess is you probably claimed it for 2010, 2011, and then 2019-2021, which would make this year your 5th and final eligible year. The 2014 summer session might not have even qualified depending on your enrollment status and course load. I'd definitely recommend getting that tax transcript for 2014 like others suggested - it'll give you the definitive answer. But don't stress too much about accidentally over-claiming. The IRS is pretty good about catching these things and treating honest mistakes reasonably, especially with education credits where the rules can be confusing to track over many years.

Check your tax transcript. Not WMR. Transcripts update first. Look for TC 570 code. This means verification needed. Then TC 971 with notice number. Wait 9 days after verification. Call if no update. Online system fails often. Phone is more reliable. Always get confirmation number. Write it down. Ask agent for expected timeframe. Follow up if needed.

This is such a widespread problem! I filed in late January and went through the same exact experience - completed online verification on February 8th, got what looked like a successful confirmation, but after 3 weeks of no movement on WMR I finally called. The agent told me my verification was "incomplete" in their system even though I had screenshots of the completion page. Phone verification took literally 12 minutes and now I'm finally seeing movement on my transcript. The frustrating part is there's no way to know the online verification failed unless you call - they should at least send an email or something! For anyone still waiting after online verification, don't waste time like I did. Just call the verification line directly at 800-830-5084. The hold times are long but it's better than waiting indefinitely for a verification that never actually went through.

Something else no one has mentioned - track EVERYTHING for your home office deduction. I mean: - Exact square footage of your workspace - Portion of utilities - Internet - Cell phone - Office supplies - Computer equipment - Furniture I went from paying 40% in taxes my first self-employed year to about a normal 28% once I tracked everything properly. Total game changer.

The 37% rate your accountant quoted is unfortunately accurate for your income level. As a new business owner making $61K in Q1, you're looking at roughly 24% federal income tax, plus 15.3% self-employment tax (both sides of Social Security/Medicare), plus state taxes if applicable. Here's what you can do RIGHT NOW to reduce your tax burden: **Immediate Deductions:** - Set up a dedicated home office space (even a corner of a room counts if used exclusively for business) - Track all business mileage from day one - Deduct any equipment, software, or supplies you've purchased - Business meals are 50% deductible - Professional development/training costs **Retirement Contributions:** Consider opening a SEP-IRA or Solo 401(k) ASAP. You can contribute up to 25% of your net self-employment earnings, which directly reduces your taxable income. This could significantly lower your quarterly payments. **Cash Flow Strategy:** Since you mentioned not having enough saved for the full 37%, you might qualify for the "safe harbor" rule - pay 100% of last year's total tax liability divided into quarterly payments (110% if your prior year AGI was over $150K). This prevents underpayment penalties while you adjust to self-employment. Find a tax professional who specializes in small business planning, not just compliance. They should be proactively discussing these strategies with you, not just telling you what you owe.

I completely understand your frustration - I went through the same nightmare when I first moved here! One thing that helped me was calling the IRS's dedicated line for international taxpayers at 267-941-1000. Since you're dealing with new resident filing questions, they're specifically trained for situations like yours and often have shorter wait times than the main number. Also, try calling right at 7 AM Eastern when they open - I've had much better luck getting through early in the morning. If you still can't get through, the Taxpayer Advocate Service mentioned by others is definitely worth trying. They can often help navigate complex situations for new residents. Good luck!

I've been through this exact same struggle! Here's what finally worked for me after weeks of frustration: Try calling 800-829-1040 and when you get to the automated system, press 1 for English, then 2 for personal tax questions, then 1 again for form/tax law questions, and finally 3 for all other tax questions. This specific sequence seems to bypass some of the endless loops. Also, I discovered that calling on Wednesday or Thursday afternoons around 2-3 PM Eastern actually had shorter wait times than the early morning rush everyone talks about. And definitely have your Social Security Number and last year's AGI ready - they ask for it immediately. As a fellow newcomer, I also recommend checking if your local library offers free tax preparation services through the VITA program - they helped me understand the new resident filing requirements without the phone hassle!