Anyone have recommendations for legit tax software that has good fraud protection built in? I used to use an accountant but trying to save money this year. Worried about accidentally falling for one of these tax scams the IRS warns about.

Thanks for sharing this - I had no idea the IRS published an annual "Dirty Dozen" list! Just looked it up and wow, there are so many scams I wouldn't have thought to watch out for. The fake charity scams especially caught my attention since we're always getting donation requests. One thing that really stood out to me was the warning about preparers who won't provide you with a copy of your return or refuse to sign it. That seems like such an obvious red flag now but I probably wouldn't have thought twice about it before reading this thread. For anyone looking, the IRS website has a really helpful section called "How to Choose a Tax Return Preparer" that walks through all the credentials to look for. They recommend starting with the IRS Directory of Federal Tax Return Preparers to find qualified professionals in your area. Definitely bookmarking that for next year!

Anyone know if you should be making quarterly estimated tax payments on donation income? I just started doing this and don't want to get hit with penalties.

Great question! Since you're getting a 1099, you're absolutely right that this is treated as self-employment income. Here's what you need to know: **Yes, you can deduct mileage!** Use the business mileage rate (65.5 cents/mile for 2025), not medical. With your 50 miles round trip twice weekly, that's about 5,200 miles annually - roughly $3,406 in deductions. **File on Schedule C** - Report your donor income and expenses here. You'll also need to pay self-employment tax (15.3%) on your net profit after deductions. **Keep detailed records** - Your mileage log with dates, odometer readings, and trip purposes is perfect. Also save receipts for any other business expenses. **Consider quarterly payments** - Since no taxes are withheld, you may need to make estimated quarterly payments to avoid penalties if you'll owe more than $1,000. The math works in your favor: $7,800 annual income minus $3,406 mileage deduction = $4,394 net income subject to self-employment tax. Much better than paying tax on the full amount! You're doing everything right by keeping good records. This is a legitimate business expense that many people in similar situations can take advantage of.

Quick question - do gambling losses count against the winnings before they're taxed? Like if I won $10,000 but lost $8,000, do I only pay taxes on $2,000?

Carmen, I've been through this exact situation! One thing that helped me was creating a simple spreadsheet with dates, locations, and amounts won/lost for each casino visit. Even if you don't have perfect records, reconstruct what you can remember - the IRS accepts reasonable estimates if you can show a good faith effort. Also, don't forget about other gambling-related expenses that might be deductible if you itemize - things like travel costs to/from the casino, meals while gambling, and even parking fees can sometimes be included as part of your gambling activity documentation. Just make sure you keep it reasonable and can justify the connection to your gambling sessions. The key is being thorough and honest. Report all winnings (not just W-2G amounts) and document your losses as best you can. If you're unsure about anything, consider consulting a tax professional who has experience with gambling income - it's worth the cost to get it right the first time!

Ugh I feel your pain! Been waiting since March 2023 myself with similar codes. That 1099-G from Indiana is totally separate from your federal refund - it's just saying you got a state refund in 2024 for your 2023 taxes, which you might need to report as income on your 2024 federal return if you itemized deductions. It has nothing to do with your federal refund delay. The 571/290 codes are actually good signs though - means they released a hold and made an adjustment. You should hopefully see movement soon! 🤞

I totally feel your frustration! Been in a similar situation myself. Those codes 571 and 290 are actually good signs - the 571 means they released a previous hold on your account, and 290 indicates they made some kind of adjustment to your return. This usually means your refund is in the final stages of processing. Regarding the Indiana 1099-G, that's completely separate from your federal refund delay. Since you received a state refund in 2024 for your 2023 taxes, Indiana is required to send you this form. If you itemized deductions on your 2023 federal return and claimed state tax payments, you might need to report some of that $1106 refund as income on your 2024 federal return (the one you'll file this year). The federal delay with those codes typically resolves within 2-4 weeks, so hopefully you'll see that 846 refund code with a DDD soon! Keep checking your transcript rather than WMR - it's more accurate. Hang in there! 💪

Don't forget that you can put some of your money in I-bonds through TreasuryDirect to avoid this exact problem! The interest on I-bonds is exempt from state and local taxes and federal taxes can be deferred until you cash them in. They're currently paying over 4% and the rate adjusts with inflation. I keep my emergency fund in a mix of HYSA and I-bonds specifically to manage the tax impact. Just remember I-bonds have a 1-year lockup period where you can't access the money at all.

I went through this exact same situation a couple years ago when I started taking personal finance seriously! That initial shock of seeing your refund drop is really jarring, but you're absolutely making the right financial moves. One thing that helped me was thinking about it differently - that $520 difference in your refund represents roughly $2,364 in interest income you earned (assuming you're in the 22% bracket). So even after taxes, you still came out ahead by about $1,844 compared to keeping that money in a regular checking account earning nothing! For next year, I'd recommend starting with the IRS Tax Withholding Estimator in January to get a baseline, then checking it again around June when you have a clearer picture of your actual interest earnings. Interest rates can change throughout the year, so your projections might need adjusting. Also consider that if your savings continue to grow (which sounds like the plan!), your interest income will keep increasing, so you'll want to revisit your withholding annually. The key is just staying on top of it rather than letting it surprise you again. You've got this!