Have you tried the free calculator on H&R Block's website? They have one specifically for 2023 returns that allows you to input your original info and then add the mortgage interest to see the difference. I used it to estimate before amending my return (forgot some education credits) and it was pretty accurate. Just google "H&R Block tax calculator 2023" and it should come up.

Just as a heads up, if your mortgage interest pushes you from taking the standard deduction to itemizing, make sure you've got ALL possible itemized deductions included when you amend. Many people forget to include charitable donations, medical expenses (if they exceed 7.5% of AGI), state and local taxes (SALT), etc. No point in filing an amendment and not maximizing the benefit!

Don't overlook the safe harbor provisions! As a new freelancer, you can avoid penalties by paying either: - 90% of your current year tax - 100% of your prior year tax (110% if your income was over $150k) For first-year freelancers, using last year's tax liability is often the easiest method since you just look at your previous tax return. If you didn't owe any tax last year, you might not need to make estimated payments at all!

One thing nobody mentioned - make sure you're tracking all your business expenses from day one! As a video editor, you can deduct portions of: - Computer equipment - Editing software subscriptions - External hard drives - Office space (even home office) - Internet costs These deductions can significantly reduce your taxable income and might even keep you under that $1000 threshold longer than expected!

Has anyone considered that the IRS might view this as a tax scheme rather than a legitimate business? I'm not saying it is, but starting a business primarily to reduce taxes seems risky.

The profit motive concern is absolutely valid and something you need to plan for carefully. I've seen too many people get caught up in the tax savings without thinking through the business fundamentals. Here's what I'd suggest: Before you buy that $98k truck, start small and actually prove the business model works. Get a few regular clients, use basic equipment, and show some profit in year one. This establishes legitimate business intent from the start. When you do scale up with the heavy truck, make sure the purchase makes business sense - not just tax sense. Can you realistically generate enough additional revenue to justify a $98k vehicle? Document your business plan showing how the truck will help you serve more clients or charge premium rates. Also consider the cash flow impact. Even with the depreciation deduction, you still need to actually pay for the truck. If your lawn business isn't generating enough cash to cover the payments, that's another red flag for the IRS. The strategy can work, but treat it as a real business first, tax strategy second. The tax benefits should be a bonus, not the primary motivation.

This is why I stopped using Robinhood for crypto completely. They're not actually designed primarily as a crypto platform and their tax reporting for it is terrible. Most dedicated crypto exchanges have much better tracking systems for transfers. For your current situation tho, make sure you're keeping all your transaction receipts and transfer confirmations. The blockchain itself is your friend here since all those transactions are recorded. You might want to consider using dedicated crypto tax software next year that can scan wallet addresses and consolidate everything across platforms.

I work as a tax preparer and see this exact issue multiple times every tax season. What's happening is that Robinhood's system doesn't maintain cost basis tracking when you transfer crypto off their platform - they treat it as a disposal event in their internal accounting. Here's what you need to do: Keep detailed records of your original Bitcoin purchase from Robinhood (date, amount, price per coin, any fees). When you file your taxes, you'll report the actual transaction on Form 8949 using YOUR records, not what Robinhood reports on the 1099-B. On Form 8949, you'll enter the sale with your correct cost basis and use adjustment code "B" to indicate that the basis reported to the IRS was incorrect. Include a brief note like "Cost basis per taxpayer records of original purchase." The key thing to remember is that transferring crypto between wallets you own is NOT a taxable event - it's just moving your property from one location to another. Only the actual sale triggers a tax obligation. Don't let Robinhood's poor record-keeping system trick you into overpaying taxes on gains you didn't actually make.

Don't forget you can also deduct a portion of your home expenses if you use part of your home regularly and exclusively for business. Look up "home office deduction" in TurboTax. It's based on the percentage of your home used for business. Totally legit deduction that many new business owners miss!

Great question! I went through this exact same situation when I started my consulting business last year. You're absolutely on the right track - all those startup expenses you listed are definitely deductible as business expenses on Schedule C. A few quick tips for TurboTax: When you get to the "Federal" section, look for "Business Income and Expenses" or "Self-Employment." Once you tell TurboTax you have business income, it'll create a Schedule C for you and walk you through different expense categories. Your business cards and flyers go under "Advertising," the DBA fee goes under "Legal and Professional Services," and the logo software subscription would be "Other Business Expenses." One thing to keep in mind - since these are startup costs, make sure you're clear about when your business actually "began" (when you started actively trying to make money vs. just planning). The IRS has specific rules about startup costs vs. ongoing business expenses, but based on what you've described, it sounds like you're well within the limits. Keep those receipts organized! I learned that lesson the hard way. Good luck with your business!