


Ask the community...
Don't forget about product taxability! Each state has different rules about what products are taxable. For example, clothing is exempt in some states but taxable in others. Food items have their own complex rules. If you sell digital products, that's a whole other set of regulations. I learned this the hard way when I was collecting the same tax rate on all my products and then discovered I was over-collecting in some states and under-collecting in others. Now I use TaxJar to handle all this automatically, but there are several good options out there.
As someone who just went through this exact situation with my small online business, I can definitely relate to the overwhelm! Here's what I wish I had known when starting out: 1. Start by tracking your sales by state from day one - even if you're not required to collect tax yet. This makes it much easier to know when you're approaching thresholds. 2. Focus on the states where you actually have significant sales rather than trying to understand all 50 states upfront. Most small businesses only need to worry about 5-10 states initially. 3. Consider starting with just collecting tax in your home state while you're learning the ropes, then expand as needed. 4. The economic nexus thresholds mentioned by others are your friend - they give you breathing room to grow before you need to worry about most states. For handmade jewelry specifically, you'll generally be dealing with tangible personal property which is usually taxable, but the rates and any exemptions vary by state. The complexity is real, but it's manageable if you take it step by step rather than trying to solve everything at once. Good luck with your expansion - the multi-state tax stuff is intimidating at first but becomes routine once you get systems in place!
Has anyone successfully had their tax preparer cover the actual tax amount owed too? My preparer completely missed reporting my crypto transactions which led to a $4500 bill plus penalties. They're offering to cover penalties but saying the tax is my responsibility even though I gave them all my transaction records.
Generally, you're still responsible for the actual tax amount regardless of who made the error. The preparer typically only covers penalties and interest. The reasoning is that you would have owed that tax anyway if the return had been filed correctly the first time.
I'm dealing with a similar situation right now with my 2022 return where my preparer missed some Schedule C deductions, resulting in a $3,200 bill from the IRS. What really helped me was documenting everything in writing - I sent an email to my preparer summarizing their verbal admission of the error and asking them to confirm their plan to resolve it. One thing I learned is to ask specifically about their errors and omissions insurance policy limits. Some smaller firms have lower coverage amounts that might not fully cover larger mistakes. Also, if you're not getting satisfactory responses, consider reaching out to your state's board of accountancy even though they're EAs - they sometimes handle complaints about tax preparers operating in the state. The silver lining in my case was that when I had to review everything so carefully, I actually found a few legitimate deductions my preparer had missed in previous years too. Might be worth having someone else review your past returns once this gets resolved.
As someone who switched from DIY to using a CPA, the best question I asked was "What tax planning opportunities am I missing?" This led to a great discussion about retirement accounts, HSA contributions, and timing of income/expenses that ended up saving me WAY more than the CPA's fee. Don't just focus on getting your return done - focus on strategies for next year too!
Another important question to ask is about their policy on amendments and corrections. What happens if you discover a missed document or error after filing? Some CPAs include one amendment in their fee, others charge extra. Also ask about their backup system - what happens if your primary CPA is unavailable during busy season? Do they have other qualified staff who can help with questions about your return? And definitely ask for references or examples of how they've helped clients in similar situations. A good CPA should be able to share general examples (without violating confidentiality) of how they've saved money for other clients with rental properties and side businesses.
When I replaced my roof in 2023, I made sure to get the special energy efficient shingles that qualified for a tax credit. Definitely cost more upfront, but between the energy savings and the tax credit, it's been worth it. My tax software (TurboTax) actually had a specific question about energy efficient roofing and walked me through it. Make sure whatever roofing material you get has the manufacturer's certification statement saying it qualifies!
Which brand of shingles did you use? I'm planning a roof replacement soon and would like to get something that qualifies.
As someone who just went through this exact situation, I can confirm that regular roof replacements typically don't qualify for tax credits. However, I learned there are some specific circumstances where portions might qualify. The key is in the materials and energy efficiency ratings. After reading through all these responses, I'd recommend: 1. Check if your roofing materials have Energy Star certification or meet specific energy efficiency standards 2. Keep all your receipts and manufacturer documentation 3. Don't assume your regular contractor knows about tax implications - verify independently For your $14,000 roof replacement, it's unlikely the standard materials qualify, but if you upgraded to any special energy-efficient materials or coatings, those portions might. Definitely bring your receipts to your tax appointment next week and ask your preparer to specifically review them for any qualifying components. The confusion often comes from people mixing up different types of credits and deductions. Your coworker might have had special circumstances or materials that you didn't, so don't feel bad about missing out - most standard roof replacements genuinely don't qualify for credits.
Mia Rodriguez
Update: just checked again this morning and my refund finally hit my account! Still no change on the tracker though - it still says "approved" and not "sent" 𤔠The IRS systems are such a joke.
0 coins
Camila Castillo
ā¢I'm so jealous! Still nothing in my account. Happy for you though!
0 coins
Jacob Lewis
ā¢congrats! š hoping the rest of us get ours soon too
0 coins
TechNinja
I'm in the exact same situation! Filed early February, got a 3/12 DDD, and still nothing in my account as of this morning (3/15). The tracker hasn't budged from "Refund Approved" either. Reading through these comments is actually really reassuring - sounds like this is pretty normal and the IRS systems are just terrible at updating in real time. I'm going to give it until Monday like others suggested before I start really panicking. It's so stressful when you're counting on that money though! Will definitely update here if/when mine hits.
0 coins