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Don't forget to track mileage! As a freelancer, I was leaving so much money on the table by not tracking trips to client meetings, supply store runs, etc. The standard mileage deduction adds up fast. I use MileIQ app to automatically track my drives and it's been amazing - just swipe left for personal trips and right for business. Takes seconds but saved me over $2k in taxes last year!
Do coffee shop working sessions count for mileage? I literally do all my freelance writing at different cafes because my apartment is too distracting. Can I claim those trips?
I totally feel your pain with the procrastination spiral! I'm a freelance photographer and used to do the exact same thing - suddenly my kitchen needed deep cleaning whenever tax time came around. One thing that really helped me was setting up a simple system throughout the year instead of trying to tackle everything at once. I created a basic Google Sheet with columns for Date, Amount, Category, Description, and Receipt Photo. Every Friday, I spend just 15 minutes adding that week's expenses while they're still fresh in my memory. For categories, I keep it simple: Equipment, Software/Subscriptions, Travel, Office Supplies, Marketing, Professional Development, and Miscellaneous. The key is being consistent rather than perfect. Also, don't forget about some sneaky deductions that creative freelancers often miss: bank fees for your business account, PayPal/Stripe processing fees, domain renewals, cloud storage for client files, and even a portion of your phone bill if you use it for business calls. You've got this! Just start with one category at a time and reward yourself with something nice (but not a vintage motorcycle research session) after each one is done.
This is such great advice about setting up systems throughout the year! I'm definitely guilty of the same procrastination patterns - last week I reorganized my entire bookshelf instead of dealing with my Q4 expenses. The Google Sheet idea sounds so much more manageable than trying to use complex accounting software. I love that you take photos of receipts right in the sheet - I've lost so many paper receipts over the years. Quick question about the phone bill deduction - do you just estimate what percentage you use for business calls, or is there a specific way the IRS wants you to calculate that? I'm always on client calls but also use my phone for personal stuff obviously. Thanks for the encouragement! Going to start with just one category this weekend and see how it goes.
I just checked and the IRS has actually removed eFile.com from their authorized e-file providers list as of this morning. I was halfway through my return with them - thank god I didn't submit yet! Anyone know if there's a way to report if you think you might be affected? I entered my SSN and everything...
You can report it to the IRS Identity Theft department. Call the dedicated Identity Theft line at 800-908-4490 or fill out Form 14039 if you suspect your info was compromised. Also freeze your credit reports ASAP with all three bureaus!
This is exactly why I always check the IRS website directly before using any tax software. It's scary how quickly these situations can develop - one day they're on the authorized list, the next day they're serving malware to unsuspecting taxpayers. For anyone who did enter information on eFile.com, beyond the excellent security advice already given, I'd also recommend enabling two-factor authentication on all your financial accounts if you haven't already. The malware could have potentially captured login credentials that might be used to access your bank accounts or other sensitive financial services. I've been using TurboTax for years without issues, but given the increasing frequency of these security breaches across the industry, I'm seriously considering switching to a more security-focused option like some of the ones mentioned here. The peace of mind is worth potentially paying a bit more or learning a new interface.
You should double check if youre getting all the credits you deserve as a single parent. Theres the Earned Income Credit, Child Tax Credit, and Child and Dependent Care Credit. With 2 kids and your income level u should qualify for all of these.
She might not qualify for the full EIC with her income level. For 2024 filing season, EIC starts phasing out around $42,000 for a single parent with 2 kids. Her $42,800 main job plus $5,300 freelance puts her at $48,100 total income, which could reduce the EIC significantly.
I'm going through the exact same thing! Single mom with two kids (3 and 6) and my refund dropped from around $3,800 last year to $1,400 this year. I was panicking until I realized it's mostly because of the Child Tax Credit changes everyone's mentioning. One thing that helped me was looking at my total tax liability compared to last year - I actually paid LESS in taxes overall, but got less back as a refund because less was withheld from my paychecks throughout the year. So it's not that we're worse off, it's just that the money came to us differently. For the question about applying part of your refund to next year - definitely say "no" if you need the money now. That option is just for people who typically owe taxes at filing time and want to make an estimated payment. Since you're getting a refund, you clearly don't owe anything, so take your full $1,250 now!
Has anyone tried using the IRS Free File Fillable Forms for amended returns? I know they have limits but curious if that's a potential solution for the original poster's issue.
Free File Fillable Forms don't support Form 1040-X (amended returns) for e-filing. I tried that route last year and ended up having to use TaxSlayer instead. The IRS is weirdly selective about which forms can be e-filed through which systems.
Thanks for the suggestion, but I just checked and unfortunately it looks like Free File Fillable Forms don't support amended returns for e-filing. Seems like my options are either trying another tax software or just mailing it in.
I went through almost the exact same issue last year with a 2020 amended return! The IND-031-04 error is so frustrating because the error message isn't clear about what it actually needs. What finally worked for me was using FreeTaxUSA instead of the bigger name software. They seem to handle the prior year verification issues better, especially for people who didn't file in previous years. When it asks for your prior year PIN or AGI, there's actually a specific checkbox for "I did not file a return for the prior year" that sends the correct code to the IRS system. The key thing I learned is that different tax software handles this verification differently on the backend. Some try to send "0" or blank fields, while others send specific non-filer codes that the IRS system recognizes. Before you give up on e-filing entirely, I'd suggest trying FreeTaxUSA or even calling their support line - they walked me through the exact steps for handling the prior year verification when you didn't file. It's worth one more attempt before dealing with the 6+ month paper processing wait! Also, just to confirm - you're trying to amend your 2021 return, not file it for the first time, correct? The process is slightly different and that might affect which options are available to you.
Yes, this is definitely an amended return - I already filed my 2021 return originally and now need to amend it because I discovered some additional income that wasn't reported. FreeTaxUSA sounds promising! I hadn't heard of them handling the non-filer verification issue differently. Do you remember roughly what their fee was for e-filing an amended return? At this point I'm willing to pay again if it means avoiding the paper filing nightmare. The "I did not file a return for the prior year" checkbox option sounds exactly like what I need. TaxAct definitely doesn't have anything that clear - it just keeps asking for an AGI amount with no alternative options. Thanks for the suggestion - I'll give FreeTaxUSA a try this weekend!
Luca Ferrari
I actually got my letter yesterday after seeing that message for 3 weeks. They just needed me to verify my identity on ID.me. Once I did that it updated to approved within 48 hrs
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Freya Nielsen
ā¢omg that gives me hope! š
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Sofia Torres
Hang in there! I went through the exact same thing last year - filed in late January, got the "action required" message, and didn't get my letter until mid-March. Turns out they just needed to verify some information from my previous year's return. The waiting is the worst part, but most of these resolve pretty quickly once you get the letter and respond. Keep checking your mailbox and maybe set up informed delivery with USPS so you can see what's coming. The system is slow but it usually works out in the end!
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