Has anyone mentioned the premium tax credit? If either of you gets health insurance through the marketplace, that could be another factor in deciding who claims the kid. It can drastically affect subsidy amounts.

This is such a complex situation with so many moving pieces! As someone who works in tax prep, I see this exact scenario all the time with unmarried couples. One thing I haven't seen mentioned yet is the timing consideration - make sure you're both on the same page about who's claiming your son BEFORE either of you files. The IRS will reject the second return that tries to claim the same dependent, and then you'll have to file an amended return to fix it, which delays everything. Also, since you mentioned daycare costs, don't forget about Dependent Care FSAs if either of your employers offers them. You can set aside up to $5,000 pre-tax for childcare expenses, which is separate from the Child and Dependent Care Credit. The person whose employer offers the FSA can use it regardless of who claims the child as a dependent on their tax return. With your income levels ($110k vs $16k), my gut says the lower earner claiming the child will probably result in better overall household savings due to EIC, but definitely run the numbers both ways. The difference could be significant - I've seen it swing $2,000-4,000 either direction depending on the specific circumstances.

This thread has been incredibly helpful! I'm in almost the exact same situation as the original poster - made about $4,600 from plasma donations last year going twice weekly. After reading through everyone's experiences, I'm leaning toward reporting it as self-employment income on Schedule C since I've been treating it like a consistent income source. The mileage deduction alone seems worth it - my donation center is about 20 miles away, so that's roughly 4,160 miles per year at twice weekly visits. One thing I haven't seen mentioned yet is whether anyone has dealt with state tax implications for this type of income? I'm in California and wondering if there are any state-specific considerations for plasma donation income beyond just following the federal treatment. Also, has anyone ever been audited specifically related to plasma donation income? I'm probably overthinking this, but I want to make sure I'm bulletproof in my documentation and reporting method. The lack of 1099 forms makes me a bit nervous that the IRS might question how I'm calculating and categorizing this income if they ever look closely. Thanks again to everyone who shared their real-world experiences - this is so much more valuable than the generic tax advice you find on most websites!

I've been donating plasma for about 6 months now and this thread is exactly what I needed! I've been stressing about tax time because I wasn't sure how to handle this income. Based on everyone's experiences here, it sounds like the key factors are regularity and intent. I go twice a week pretty religiously and definitely treat it as income I can count on, so I'm thinking Schedule C is probably the right approach for me. One thing I wanted to add that might help others - I called my plasma center's customer service line to ask about tax documentation, and they confirmed they don't issue 1099s but they can provide a year-end summary of all your donations and payments if you request it. This might be helpful backup documentation alongside the prepaid card statements. Also, for anyone worried about the self-employment tax on Schedule C, remember that it's not just an extra cost - you're actually paying into Social Security and Medicare, which can increase your future benefits. My dad (who's a retired accountant) pointed this out to me when I was complaining about the extra 15.3%. It's not just money down the drain. Thanks to everyone who shared their real experiences - this community is so much more helpful than trying to navigate IRS publications alone!

Kinda silly question but does the price of the tote matter? Like if I spent $800 on a designer work bag, can I still deduct the whole thing or will the IRS be like "you could've bought a cheaper bag"?

Great question! I'm also relatively new to 1099 work and had similar concerns about what I could deduct. One thing that helped me was keeping a simple business expense log where I write down the date, amount, and business purpose for each purchase. For your tote bag situation, I'd suggest writing something like "Professional tote bag - exclusively used for transporting laptop, client documents, and business materials to meetings and co-working space." This creates a clear paper trail showing business intent. Also, don't worry about it being from Mercari - the IRS cares about the business purpose, not the retailer. Just make sure you have that receipt/purchase confirmation saved somewhere safe. Since you're under the $2,500 threshold, you can deduct it all in one year instead of depreciating it, which makes your taxes simpler too.

Quick question - does anyone know if the Child and Dependent Care Credit is refundable for 2025? It was temporarily refundable during covid but I can't remember if that's still the case.

Just wanted to add one more thing that might be helpful - if you're using a nanny or babysitter instead of (or in addition to) the preschool, make sure you're handling the household employee tax requirements correctly. If you pay them more than $2,700 in 2025, you'll need to withhold and pay Social Security and Medicare taxes, plus provide them with a W-2. This can affect your Child and Dependent Care Credit eligibility if not done properly. Also, for your situation with the $375k AGI, you're still well within the phase-out range so you should get a decent credit. The phase-out actually starts around $15,000 AGI and gradually reduces the credit percentage, but even at higher incomes you can still claim the full $3,000/$6,000 in expenses - you just get a lower percentage back as a credit.

Just wanted to chime in as someone who's been using TurboTax desktop versions for about 5 years now. The confusion between online vs desktop capabilities is totally understandable - I made the same mistake early on! One thing I'd add to the great advice already given: if you're buying the desktop version, consider getting it early in the season (like now) rather than waiting until closer to the deadline. The prices tend to go up as we get closer to April, and popular retailers like Costco sometimes run out of stock. Also, for anyone with investment income, I highly recommend doing a "practice run" with your prior year's data first if this is your first time using the desktop version. It helps you get familiar with the interface and see exactly which forms you'll need. The desktop versions let you prepare returns without filing them, so you can experiment risk-free. @CosmicCaptain - You're making a smart choice going with Deluxe for basic investments. The money you save can probably pay for a nice dinner after you finish your taxes!

This thread has been incredibly helpful! I'm in a similar situation as the original poster - switched from online to desktop TurboTax last year and wasn't sure about the version differences. One additional tip I'd share: if you're buying TurboTax desktop from a physical store (Costco, Best Buy, etc.), check that you're getting the current tax year version. I accidentally bought the 2022 version in early 2023 thinking it would work for 2023 taxes, but obviously that didn't work out! Also, for anyone hesitant about the desktop version - the customer support is actually better than the online version in my experience. When you call with desktop software questions, they can often remote into your computer to help troubleshoot issues directly rather than just talking you through steps. The investment reporting in Deluxe desktop really is solid for most people. I have a mix of regular stock trades, dividend reinvestments, and some mutual fund transactions, and it handled everything without needing to upgrade to Premier.