Just another voice confirming 712110 for museum work. I've been a contract exhibition designer for 5 years and use this code. BTW if you do a lot of this work, make sure you're tracking all your deductions like mileage to/from the museum, any supplies you purchase, home office if you do planning there, etc. Those deductions add up fast on Schedule C!

Coming from someone who's been doing freelance archival work for museums for about 8 years now - definitely go with 712110 (Museums, Historical Sites, and Similar Institutions). That's exactly what I use for my collection management and archival processing contracts. The IRS description specifically mentions "establishments primarily engaged in the preservation and exhibition of objects of historical, cultural, and educational value" which perfectly describes what we do as collection registrars. Don't overthink it - this code covers all the museum operational work including cataloging, records management, and exhibition support. You're not performing or creating art, you're managing cultural collections, so 712110 is spot on!

i messed this up last year and got audited!!! make sure ur using cash accounting not accrual. sounds like u want cash method so u can deduct when u pay not when u get the stuff. my tax guy says most of us freelancers use cash method anyway its easier

This is a great question that trips up a lot of freelancers! Since you're filing Schedule C as an independent contractor, you're almost certainly using the cash method of accounting (unless you specifically elected accrual method with the IRS, which is rare for freelancers). With cash method accounting, you deduct business expenses in the tax year you actually make the payment, not when you receive the goods or services. So in your case, if you take the equipment home this weekend but don't pay until January/February 2025, you would claim this $2,800 deduction on your 2025 tax return. Just make sure to keep detailed records of: - The purchase agreement showing the buy-now-pay-later terms - When you actually received the equipment - All payment receipts when you start making payments in 2025 This timing strategy is perfectly legitimate and sounds like it aligns well with your tax planning goals. The key is being consistent with your accounting method and having good documentation to support the timing of your payments.

I had almost the exact same issue last year! What I did was call Vanguard directly (waited forever) and asked for a "return of excess contributions" for 2023. The rep knew exactly what to do. They sent the money back to my bank account plus any earnings those contributions had made. Had to pay regular income tax on those earnings, but no 6% penalty since I fixed it before filing my taxes. The whole process was pretty smooth once I actually got someone on the phone. They sent me a special tax form (1099-R) showing the correction.

I went through something similar with my Vanguard Roth IRA last year and can confirm that calling them directly for a "return of excess contributions" is definitely the way to go. The process is much more straightforward than it initially seems. One thing to keep in mind - when you call, be very specific about requesting a "return of excess contributions for tax year 2023" rather than just saying you want to "withdraw money." The reps are trained to handle these requests and using the correct terminology will get you to the right department faster. Also, make sure to ask them to calculate any earnings on that $500 over-contribution period so they can return those too. You'll owe regular income tax on the earnings portion, but this is still way better than the 6% penalty that would apply if you left the excess in the account. Since you caught this before filing your taxes, you're in a great position to fix it cleanly with no penalties. The whole process should take less than a week once you get Vanguard on the phone.

This community has seen a lot of these cases since April 15th, 2024. The general wisdom is: 1) Always compare your W-2 copies against your return before filing, 2) Keep your final paystub from December showing year-to-date withholding, 3) If you need to amend, file electronically if possible as paper amendments are taking 20+ weeks to process. I appreciate everyone sharing their experiences here - it helps those of us still working through similar issues!

This is incredibly helpful everyone! I just went through my W-2s line by line and found the issue - Box 2 (Federal income tax withheld) on one of my W-2s shows $0.00, but my final paystub from December clearly shows $1,847 in federal withholding for the year. My tax preparer must have used the paystub amount instead of what was actually reported on the W-2. I'm going to contact my employer's HR department first thing Monday morning to see if they can file a corrected W-2 (W-2c) before I consider amending my return. If the employer made the error, it seems like getting them to fix it would be the cleanest solution rather than me having to amend and potentially lose part of my refund. Thanks especially to @Tony Brooks and @Arjun Patel for the clear steps - this process is definitely more complex than what I'm used to back home, but at least now I understand what's happening!

Anyone used the free IRS Direct File this year? I heard they finally rolled it out for some states. Wondering if it catches all the same stuff as paid options.

The main difference I've noticed (working in tax prep for 5+ years) is that software often doesn't dig deep enough into your specific situation. Even with a "simple" return, there might be credits you qualify for that the software's question flow misses or doesn't explain clearly. For example, if you contributed to a retirement account, moved for work, paid student loan interest, or had any education expenses, these can all impact your refund. The software asks about these things, but the questions can be confusing or buried in screens people skip through. Also, tax preparers are required to ask specific questions that might uncover deductions you didn't think were relevant. Sometimes what seems like a "simple" situation actually has more complexity than you realize. That said, if you truly have just one W-2 and no other factors, the difference should be minimal. But it might be worth having your return reviewed once just to make sure you're not missing anything year after year.