Anybody have recommendations for how to handle expenses when you're doing both freelance and a part-time W-2 job? I'm still at my design agency 20 hrs/week but building up freelance clients too.

Hey Giovanni! Welcome to the freelance tax world - it's definitely overwhelming at first but you'll get the hang of it. A few quick points to add to the great advice already given: Since you're 8 months in and haven't made quarterly payments yet, you'll likely owe a penalty when you file. For 2025, you can avoid penalties by paying 100% of last year's tax liability (110% if your AGI was over $150k) or 90% of this year's liability through quarterly payments. Since you missed the first few quarters, calculate what you should have paid and make a catch-up payment ASAP. One thing I learned the hard way - keep separate business and personal bank accounts even if you're not formally incorporated. It makes tracking income and expenses SO much easier come tax time. Also, consider getting a business credit card for all your freelance expenses - the statements become your expense records. For your monthly income range ($4,800-5,500), you're definitely going to want to bump that savings rate up to at least 30%. Don't forget about state taxes too if you're in a state that has them. And seriously, start tracking EVERYTHING now - mileage, client meals, software subscriptions, even that new ergonomic chair for your home office. The IRS loves documentation, so keep those receipts!

I just want to add: MAKE PHOTOCOPIES OF EVERYTHING before you mail it! I learned this the hard way when my amended return got "lost" and I had no proof of what I sent. Also take a picture of the envelope with the address and postage before mailing.

Great advice from everyone here! I'll add one more tip that saved me headaches - when you're filling out the explanation section on Form 1040X, be very specific about what changed and why. Don't just write "correcting income" - explain exactly what income you're adding or removing and the source (like "adding $2,500 in freelance income from 1099-NEC not reported on original return"). Also, if you're amending because of a corrected tax document (like a revised 1099 or W-2), attach a copy of both the original AND corrected document. This helps the IRS processor understand exactly what changed without having to dig through their records. And definitely echo what others said about single-sided printing and making copies. The IRS processing centers are still catching up from pandemic backlogs, so anything you can do to make their job easier will help your amendment get processed faster.

Your turbo tax may have actually known what it was doing when it prompted you to use those SLCSP amounts. Did they ask you specifically about your employment situation and whether you were offered coverage? I use HR Block and it asked me detailed questions about my job status changes and when I had access to employer coverage throughout the year. It then automatically adjusted my premium tax credit eligibility month by month.

I went through something very similar when I changed from full-time to part-time status mid-year. The IRS does treat declining employer coverage during open enrollment as making you ineligible for premium tax credits, even if you can't enroll later when you need it. However, your part-time switch in May is the key here. When you became part-time and lost eligibility for employer coverage, that's a legitimate qualifying event that restores your eligibility for premium tax credits going forward. I'd recommend amending to claim credits only for May through December. Make sure to document the exact date your employer coverage eligibility ended due to the part-time change - this will be important if the IRS has any questions about your amendment. Also, double-check that your employer truly doesn't offer any coverage to part-time employees, as some companies have different rules or waiting periods. You'll want to be certain about this before filing the amendment.

Has anyone successfully had penalties waived without hiring a tax pro? I'm in a similar situation with my photography LLC and got hit with $2,600 in penalties even though I filed closure paperwork in 2019. I've been unemployed for 7 months and really can't afford this or a tax professional.

This is exactly the kind of bureaucratic nightmare that makes dealing with the IRS so frustrating. You clearly did everything right - submitted proper closure documentation, followed up multiple times, and kept detailed records. The fact that they're now penalizing you for their own processing delays is completely unfair. I want to echo what others have said about filing Form 843 for penalty abatement. Your situation screams "reasonable cause" - you have documented proof of timely submission, multiple attempts to follow up, and the IRS's own letters acknowledging processing delays. Make sure to emphasize in your abatement request that the penalties resulted from IRS administrative delays, not any failure on your part to comply. Also, don't forget to mention your current unemployment situation when requesting abatement. The IRS has provisions for economic hardship considerations, and being unable to pay without severe financial distress is a valid factor they must consider. Your case has all the elements for a successful abatement - you just need to present them clearly and persistently. Keep fighting this. You shouldn't have to pay penalties for the IRS's own administrative failures.

To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c

Tax topic 152 is completely normal and just indicates your return is being processed. I had the same code for about 3 weeks before my refund was approved. The key thing is to be patient - the IRS is still working through a backlog from previous years. If it's been more than 21 days since you filed, definitely check your account transcripts online to see if there are any specific codes that might indicate what's holding things up. Most of the time it's just a matter of waiting your turn in the queue. Keep checking WMR and your transcripts for updates!