Another household employer here! We've had a nanny for 3 years now. One thing to consider is your nanny's perspective in all this. If you don't withhold, your nanny will be hit with a huge tax bill at the end of the year (self-employment tax is about 15.3%). Most professional nannies now expect proper payroll and will actually appreciate you doing things right. It makes it easier for them to qualify for apartments, car loans, etc. We found it helped us attract and keep a better nanny by being a legit employer.

I'm also a first-time household employer and went through this exact same confusion last year! One thing that really helped me was understanding that you have two separate obligations: employment taxes (which you MUST handle) and income tax withholding (which is optional but recommended). Here's what I learned the hard way: **Required:** - Social Security and Medicare taxes (you pay half, nanny pays half - total 15.3%) - Federal unemployment tax (FUTA) - you pay this, not the nanny - State unemployment tax (varies by state) - Workers' compensation insurance (check your state requirements) **Optional but helpful:** - Federal income tax withholding (makes life easier for your nanny) The key insight for me was that even if you don't withhold income taxes, you still have to handle all the employment taxes. You can't just "let her handle everything" - that would make her a contractor, not an employee, which has different (and stricter) IRS tests. I ended up using a payroll service after trying to DIY the first quarter and making mistakes. The peace of mind was worth the monthly cost, especially since penalties for getting household employment taxes wrong can be steep. Also, keep detailed records of everything - wages paid, dates, hours worked. You'll need this for Schedule H and your nanny's W-2.

Don't forget that if your dad doesn't qualify for Surviving Spouse status, Head of Household might still be better than Single! Even if you don't qualify as his dependent, does he support anyone else who might qualify? The tax rate differences between Single and Head of Household can be significant. Also check whether he qualifies for the Credit for Other Dependents ($500) for supporting you, even if you don't meet all the tests to be a qualifying child or qualifying relative. The income limits for this are different from the dependency requirements!

I'm sorry for your dad's loss. Based on what you've described, your dad unfortunately won't qualify for Qualifying Surviving Spouse status. The key issue is that you don't meet the requirements to be his qualifying dependent - since you're over 18, not a full-time student, and earned more than the $4,400 threshold, you can't help him qualify for this beneficial filing status. However, don't overlook some potential benefits! Even though you're not a qualifying dependent, your dad might still be eligible for the Credit for Other Dependents ($500) if he provided more than half of your support during the year. The income limits for this credit are more generous - you can earn significantly more than $4,400 and he can still claim it. Also, make sure to double-check if there are any other potential dependents in his situation. Sometimes people forget about elderly parents they support or other relatives who might qualify. If he does have another qualifying dependent, that could open up Head of Household filing status, which has better tax rates than Single. The tax software confusion you mentioned is common - many programs don't clearly explain the "why" behind these dependency rules, especially for blended families with stepchildren.

Protip: Check your transcript instead of WMR. Its usually more accurate and updates faster

I'm in the exact same situation! Filed on 2/28 and still getting that "still being processed" message on WMR. It's so frustrating seeing some people who filed around the same time already getting their refunds while we're stuck waiting. I've been trying not to check it obsessively but it's hard when you're expecting that money. At least we know we're not alone in this - seems like a lot of late February filers are still waiting. Hopefully we'll see some movement soon! 🤞

The TurboTax advance works differently than the actual IRS refund process. Unlike H&R Block which requires IRS acceptance first, TurboTax makes their decision based on their own risk assessment immediately after you submit. For amended returns, they're more cautious since those have higher scrutiny rates from the IRS. Check your TurboTax messages section - that's where approval notifications appear first.

Just to add to what others have said - I had an amended return situation last year and TurboTax did approve me for the advance, but it took about 48 hours instead of the usual 24. They were more conservative with the amount too (only advanced about 40% of my expected refund). The key thing is that their decision is completely independent of IRS processing. Even if your return gets delayed or questioned by the IRS later, you still keep the advance money. Make sure to check both your TurboTax account dashboard AND your email (including spam) for the decision notification!

Is there any minimum amount of freelance income needed to qualify for QBI? I only made about $3,000 from my side gig last year but would love to get that 20% deduction.

Thanks everyone for the detailed responses! This is super helpful. I'm definitely going to file an amended return for 2023 to claim the QBI I missed. One follow-up question - when I amend my return, do I need to include any special documentation to support the QBI deduction, or is having the 1099-NEC sufficient? I want to make sure I have everything properly documented in case the IRS has questions later. Also, for anyone else in a similar situation, it sounds like the key points are: 1) Freelance income on 1099-NEC typically qualifies for QBI, 2) No minimum income threshold, 3) You don't need a formal business registration, and 4) It only reduces income tax, not self-employment tax. Did I miss anything important?