One more thing to consider - if you make over a certain amount from your contractor work (I think it's around $1,000), you'll need to file Schedule C along with your tax return. This is where you report business income and expenses. You'll also fill out Schedule SE for self-employment tax. Start keeping track of ALL business-related expenses now if you haven't already! Mileage for business travel (not commuting), home office if applicable, portion of internet/phone, software subscriptions, office supplies, professional development, etc. These can significantly reduce your taxable income.

This thread has been incredibly helpful! As someone who just started contracting this year too, I want to add one thing that caught me off guard - make sure you're tracking your business expenses from DAY ONE, not just when tax season approaches. I learned this the hard way when I realized I had forgotten to save receipts for legitimate business expenses like software subscriptions, equipment purchases, and even parking fees for client meetings. The IRS requires documentation for deductions, so having a system in place early (even something as simple as a dedicated folder or app) can save you hundreds or thousands in missed deductions. Also, don't forget about the home office deduction if you work from home regularly and exclusively use a space for business. You can either use the simplified method ($5 per square foot up to 300 sq ft) or calculate actual expenses. Even if it's just a corner of your bedroom that you use only for work, it might qualify! One last tip: consider making estimated payments for 2025 even if you're not required to. It helps with cash flow management and prevents that massive tax bill shock next April. You can always adjust the amounts throughout the year if your income changes.

I've been dealing with this Kentucky refund delay too - filed on February 28th and still waiting. What's really frustrating is that I called their automated line yesterday and it now says they're processing returns filed in "early February" which means I probably have several more weeks to go. For anyone else in this situation, I found that you can sign up for email notifications on the Kentucky revenue website so you don't have to keep manually checking. At least that way you'll know immediately when your status changes instead of obsessively refreshing the page like I've been doing. Has anyone had luck with the Taxpayer Service Portal that @Natasha Petrova mentioned? I'm willing to try anything at this point to speed this up.

I'm experiencing the exact same delays - filed my KY return on March 2nd and still waiting. What's particularly frustrating is that I'm a tax preparer and have clients asking me daily about their Kentucky refunds while I can't even get my own processed. The timing of this system upgrade is absolutely baffling from a business perspective. Every other state manages to do major system maintenance during the off-season (May-December). Kentucky decided to do it right in the middle of tax season when they're processing the highest volume of returns. It's like deciding to renovate a restaurant kitchen during the dinner rush. I've been advising my clients to expect 8-10 weeks minimum based on what I'm seeing, even though the official estimate is still 6 weeks. Better to set realistic expectations than have people calling constantly. The whole situation has been a nightmare for tax professionals trying to manage client expectations.

Does anyone know if you can still get the refund advance if you have tax payments due from previous years? I owe about $800 from 2023 that I'm on a payment plan for, but I should be getting about $3000 back this year.

Just to add some helpful context for everyone asking about eligibility and amounts - the TurboTax refund advance program typically has a few key requirements beyond just the minimum refund amount: 1. Your expected federal refund needs to be at least $500 (as mentioned earlier) 2. You can't have any federal tax liens or levies 3. Your Social Security benefits can't be garnished 4. You need to pass their identity verification process The advance amounts are usually tiered: $250, $500, $750, $1,000, $1,250, $2,000, $3,500, or $4,000 depending on your expected refund size and their risk assessment. One thing I learned from experience - if you're planning to use the advance, make sure you have all your tax documents ready to go on January 2nd. The sooner you file after the program launches, the better your chances of getting approved, especially if you're borderline on any of their criteria. Also, keep in mind that while there are no fees for the advance itself, you do need to use TurboTax's paid service (usually around $60-120 depending on your return complexity) unless you qualify for their free version.

I'm going to disagree with most people here and suggest consulting a tax professional for at least your first year as homeowners. Yes, TurboTax can handle basic mortgage deductions, but there are strategic decisions that could save you thousands. For example, unmarried couples have flexibility in how they allocate property tax and mortgage interest that married couples don't. A tax pro might suggest structures that maximize deductions based on your individual tax situations. They can also help with things like home office deductions if applicable.

I'd recommend going with a tax professional for your first year as homeowners, especially given your income level and unmarried status. While TurboTax can technically handle the basic deductions, there are some strategic considerations that could save you significant money. At $270k combined income, you're likely in higher tax brackets where proper allocation of deductions matters more. A good CPA can help you optimize which partner claims what percentage of mortgage interest and property taxes based on your individual tax situations. They can also advise on timing strategies - like whether to bunch certain deductions in one year vs. spreading them out. The cost of a tax professional (usually $300-600) is often recovered through the additional deductions and strategies they identify. You can always go back to TurboTax in future years once you understand the optimal structure for your situation. Think of it as an investment in getting your homeowner tax strategy right from the start.

Has anyone used Drake Tax software for complex trusts with timber sales? I'm trying to figure out if it will automatically handle the distribution of capital gains correctly between schedules or if I need to make manual adjustments. The software keeps giving me a diagnostic warning about capital gains distributions.

I've been dealing with similar timber sale issues in complex trusts for several clients, and I want to add a few practical points that might help. First, regarding your Schedule B Line 10 question - yes, absolutely include the $1,600 there. This is critical for ensuring the income gets the proper tax treatment at the beneficiary level rather than being taxed to the trust. One thing I'd recommend double-checking: make sure your trust document actually allows for discretionary distributions of capital gains. Some older trust documents only permit income distributions, not principal distributions (which capital gains are often considered). If your trust document is restrictive on this point, you might need different treatment. Also, since you're both trustee and sole beneficiary, document your distribution decision properly. Even though it seems straightforward, having a written trustee resolution authorizing the distribution of capital gains can help if the IRS ever questions the treatment. For the timber specifically, keep detailed records of the basis adjustments over time. With small periodic sales like yours, tracking the depletion properly becomes important for future sales. The IRS has specific rules for timber depletion that can affect your basis calculations in subsequent years.