I'm a small business owner who got audited last year. My advice: hire a bookkeeper even if it's just quarterly. My audit wasn't because I was trying to cheat - it was because my DIY bookkeeping was a mess and I mixed personal/business expenses occasionally. The audit found I had OVERPAID taxes by mixing up some inventory costs vs. expenses. Having organized records is worth every penny.

Great question about audit risks! As someone who's been through this journey from solo filing to working with professionals, here's what I've learned: The statistics show that Schedule C filers (sole proprietors) have about a 1% audit rate compared to 0.4% for regular W2 employees, so yes, business owners do face higher scrutiny. But don't let that scare you - 1% is still pretty low odds. A few practical tips from my experience: - Keep meticulous records from day one. I use a simple system: scan every receipt immediately and categorize it in a cloud folder - Avoid the "home office deduction" unless you truly have a dedicated space - it's historically been a red flag - Be conservative with meal deductions (50% rule) and make sure travel expenses are clearly business-related - If your income jumps significantly year-over-year, include a brief explanation with your return The peace of mind from proper documentation is worth way more than the time investment. I sleep better during tax season knowing I could produce backup for every deduction if needed. Your growing business success is something to be proud of, not stressed about!

Slightly different take - I was in almost your exact situation (3 kids, similar income) and did the zero withholding thing based on the IRS calculator. It was mathematically correct BUT it gave me serious anxiety all year knowing I wasn't "saving" for my tax bill. I ended up changing it back to a small withholding ($75/check) just for the peace of mind. If you're disciplined, you could take the extra money each check and put it in a high-yield savings account, then you'd actually earn interest on it instead of giving the government an interest-free loan. But honestly, sometimes the psychological comfort of knowing your taxes are "handled" is worth more than the small amount of interest.

I'm in a very similar boat - married with 2 kids under 10 and around $85k income. Just went through this exact same process and had the same "this can't be right" moment when the IRS calculator suggested minimal withholding! What helped me understand it was breaking down the actual numbers: with the standard deduction of ~$29k for married filing jointly, my taxable income drops significantly. Then the $4k in Child Tax Credits (2 kids x $2k each) essentially wipes out most of my remaining tax liability. I ended up compromising and setting my withholding to about $50 per paycheck - not because the math required it, but because I wanted a small safety net in case anything changed during the year (like if one of us picked up some freelance work or we had unexpected investment gains). The psychological peace of mind was worth the tiny bit of "inefficiency." You could always try the zero withholding for a few months and see how it feels, then adjust if needed. The beauty of the W-4 is you can change it anytime!

I've been using claimyr.com for the past 3 years whenever I need to actually talk to someone at the IRS. After spending literally DAYS trying to get through their phone lines, I discovered this service that gets me through to an agent usually within an hour. For your situation, you'd definitely want to speak directly with an IRS rep to understand any potential implications of the late filing. It was the best investment ever considering how much time and stress it saved me.

You're definitely not too late! As others have mentioned, you have until April 2025 to file your 2022 return if you're expecting a refund. The fact that you already got your 2023 refund doesn't affect your ability to file 2022 at all - they're completely separate. A few things to prioritize: 1. Get ALL your documents back from that preparer immediately - don't wait for her to call back 2. Gather your 2022 tax documents (W-2s, 1099s, etc.) 3. File that 2022 return ASAP, even if you're owed a refund, just to get it done I'd also document everything about this situation - when you paid her, what you asked for, her failure to file. You paid for a service you didn't receive. This is a serious professional error and you have every right to demand either a refund or completion of the work at no additional cost. Don't stress too much about penalties if you're owed money - there aren't any. Just focus on getting this sorted out quickly so you can move on and find a more reliable tax preparer for next year!

Make sure you check the entire transcript. Code 150 by itself is normal. But if you see codes 420 or 424 after it, that means you're being audited. Had that happen to me in 2022. Took 8 months to resolve. Don't ignore those codes if they appear.

Adding to what everyone else has shared - Code 150 is indeed standard processing, but I wanted to mention that the timing can vary significantly based on your filing method and return complexity. E-filed returns typically show TC 150 within 2-3 weeks, while paper returns can take 6-8 weeks or longer. Also, don't panic if you see TC 150 but your "Where's My Refund" tool still shows "processing" - there's often a lag between when codes appear on transcripts and when the WMR updates. The key thing to remember is that TC 150 just establishes your tax liability in their system - it's not an indicator of when you'll receive your refund. Keep checking for TC 846 if you're expecting money back!

Remember that there's also the Child Tax Credit to consider. For 2023, it's up to $2,000 per qualifying child under 17. With twins, that's potentially $4,000 in tax credits! This is separate from dependent exemptions (which don't exist anymore) and can significantly reduce tax liability. This credit begins to phase out when income exceeds $200,000 for single filers, which might affect your girlfriend at $230K. You might benefit more from claiming the children for this reason alone.

This is exactly the kind of situation where you need to run the numbers both ways! With your girlfriend at $230K, she's likely hitting some phase-out thresholds that could make it more beneficial for you to claim the twins. A few key things to consider: - Child Tax Credit phases out starting at $200K for single filers, so she might not get the full $4,000 credit for both twins - Your lower income might qualify for better credits and deductions - Since you mentioned rental property, claiming Head of Household could give you better tax brackets for all your income The tricky part is that if she's been claiming them on her W-4 all year, she's gotten bigger paychecks but will owe that back if she doesn't claim them on the return. You'll want to coordinate this so one of you doesn't get stuck with a surprise tax bill. I'd suggest using a tax calculator or software to model both scenarios - her claiming them vs you claiming them - and see which gives you the better combined outcome as a family unit. The difference could be substantial given your income levels and the various credits involved.