9 Whatever you do, don't use Liberty Tax! My brother paid them $800 for three years of back taxes last year. They made several mistakes that resulted in him getting audited. When he went back to them for help, they wanted to charge him an additional $250 for "audit assistance" even though it was their error. Go with a reputable CPA or do it yourself with good software.

23 quick PSA: If you qualify for IRS Free File (income under $73,000), you can use free versions of tax software even for prior years. go to irs.gov/freefile and check which ones offer prior year returns. i did 2 years of back taxes thru them last yr for $0.

Maybe they need more information from you .

has anyone else noticed that the standard deduction increase didn't seem to help them much? i thought with the higher standard deduction we'd all be getting bigger refunds but my refund was tiny this year too.

This is actually a great example of how the tax system is supposed to work! I know it feels disappointing when you're expecting a bigger refund, but that $4 means your payroll department nailed the withholding calculations. Think about it this way - instead of getting a $700-900 refund like previous years, you actually got to keep an extra $60-75 per month in your paychecks throughout 2024. That money was available to you when you needed it rather than sitting with the government earning zero interest. The updated withholding tables are designed to be much more precise, which is why you're seeing this change even though your income and filing status stayed the same. If you really prefer getting a larger refund (even though it's not financially optimal), you can submit a new W-4 and request additional withholding on line 4(c) for this year.

I'm an accounting student working on a project about this exact topic. From my research, I think there are three possible scenarios: 1. If assets were held in a revocable trust of the first spouse to die and then transferred to the surviving spouse outright or to their revocable trust, you get stepped-up basis at both deaths. 2. If assets were held in an irrevocable bypass/credit shelter trust after the first death with the surviving spouse as beneficiary but not owner, you only get stepped-up basis at the first death. 3. If assets were in a QTIP trust after the first death, it gets complicated and depends on other factors. Has anyone here actually filed taxes using either the first death date or second death date as basis? What documentation did the IRS require to support your position?

As someone who recently went through a similar situation with my grandmother's estate, I can tell you that the trust language is absolutely critical here. We had what seemed like a straightforward case where grandma had control of grandpa's assets after he passed, but the devil was in the details. The key thing that saved us was finding language in the trust that gave her the power to "invade principal for any purpose she deemed appropriate." Our estate attorney explained that this type of broad language constitutes a general power of appointment, which means the assets were included in her taxable estate and we got a stepped-up basis when she died. However, if the trust language limits the surviving spouse's power to specific purposes (like health, education, maintenance, and support - often called "HEMS" provisions), then you're likely looking at the 2001 date for your basis calculation. Given that you're dealing with a $450,000 difference in basis, I'd strongly recommend getting both trust documents reviewed by an estate planning attorney who specializes in tax issues. This isn't something you want to guess on, and the specific wording can make or break your case with the IRS.

Don't overlook the advantages of S Corps for self-employment tax savings, but watch out for these common traps: 1) Reasonable compensation is THE biggest audit trigger. The IRS knows people try to minimize payroll by taking mostly distributions. Document why your salary is reasonable with industry data. 2) Health insurance is tricky - if you own >2% of the S Corp, your health insurance premiums paid by the business must be reported as income on your W-2, but then you get a self-employed health insurance deduction on your 1040. 3) Losses only offset other income to the extent of your basis in the S Corp. Track your basis carefully!

Great question about S Corp management! I've been running my S Corp for about 3 years now and learned a lot through trial and error. For your specific questions: **Quarterly taxes**: If you're not generating revenue yet, you don't need to file quarterly estimated taxes. However, once you start earning income, you'll need to make quarterly payments based on your projected annual tax liability. **Salary structure**: This is crucial - you can't just pay yourself hourly or skip salary altogether. The IRS requires "reasonable compensation" for services performed. Research what similar consultants in your area earn as employees and set an annual salary accordingly. Pay yourself regularly (monthly or bi-weekly) regardless of when clients pay you. The remaining profits can be taken as distributions, which aren't subject to self-employment tax. **Business losses**: Yes, S Corp losses pass through to your personal return and can offset your spouse's W2 income on a joint return, but only up to your basis in the S Corp (essentially your investment in the business). Any excess losses carry forward to future years. **Home office expenses**: You can use either the simplified method ($5 per square foot up to 300 sq ft) or actual expense method (percentage of actual home expenses). For phones/internet, document your business usage percentage - I track mine quarterly and use that percentage consistently. One tip: Keep meticulous records from day one. The IRS scrutinizes S Corps more closely than other entities, especially around reasonable compensation and basis calculations.