I went through this exact situation two years ago and can share what I learned. Your accountant is incorrect - you cannot file as "Single" for 2024 taxes if you're still married on December 31, 2024, even if the divorce is finalized in early 2025. Here's what I'd strongly recommend: File "Married Filing Separately" and don't let your ex pressure you into joint filing. Yes, you'll both be required to use MFS if you choose it, and yes, you might pay slightly more in taxes. But the peace of mind and financial protection is absolutely worth it. I made the mistake of filing jointly during my divorce to "save money" and it created so many additional complications - we had to coordinate on every single deduction, share sensitive financial information, and I remained liable for any issues with his portion of the return. The $800 we "saved" wasn't worth the stress and ongoing financial entanglement. Also, make sure you understand the timing - whatever status you choose for 2024 taxes only affects that tax year. Once your divorce is final, you'll be able to file as Single for 2025 taxes (filed in 2026). Trust your instincts about keeping things clean during this transition. Your financial independence starts with your tax filing decisions.

Another important consideration during divorce - make sure you update your withholdings and estimated tax payments if you decide to file separately! When I switched from joint to separate filing mid-divorce, I didn't realize my withholdings were still calculated based on the married filing jointly tax brackets. I ended up owing an additional $2,100 at tax time because my employer was withholding too little for my new filing status. The IRS has a withholding calculator that can help you adjust your W-4 once you decide on your filing status. Also, if you have any estimated tax payments due for the current year, you'll need to make sure those are calculated correctly for separate filing too. Just another reason to get your filing status decision locked in sooner rather than later so you can adjust everything accordingly.

Something else to consider - accrual basis can actually be beneficial during economic downturns or when your business is growing. In a downturn, you can recognize expenses earlier while potentially deferring income recognition. During growth, it gives a more accurate picture of profitability. I switched to accrual 5 years ago and it initially seemed like a headache, but now I appreciate the clearer picture it gives of my actual business performance. The key is having good systems in place to track everything properly.

One thing that really caught me off guard after switching to accrual was the timing of quarterly estimated tax payments. Since you're now recognizing income when earned (not received), you might owe taxes on money you haven't actually collected yet. This can create cash flow issues if you have slow-paying clients. I learned this the hard way when I had a big project complete in Q4 but didn't get paid until the following year. Still had to pay estimated taxes on that income in January, even though the cash wasn't in my account yet. Now I set aside tax money as soon as I invoice, not when I get paid. Also, make sure your bookkeeping software can handle accrual properly. Some basic programs aren't great at tracking the timing differences between when income is earned vs. received.

Has anyone actually filed a BOI report yet? I'm trying to prepare for mine (Jan 2025 deadline) and wondering how complicated the actual process is. Do I need to gather a bunch of documents first?

I went through this exact same confusion with my single-member LLC! Here's what I learned after consulting with a CPA and doing a ton of research: Being the sole member of an LLC doesn't make you a "sole proprietor" in the legal sense - you're still operating an LLC entity. However, for tax purposes, the IRS does treat single-member LLCs as "disregarded entities" (similar to sole proprietorships) by default. For BOI reporting, what matters isn't your tax classification but whether you meet the specific exemption criteria. The most common exemption is for "small operating companies" which requires: - Under 20 full-time equivalent employees - Under $5 million in gross receipts/revenue from US sources - Physical office within the United States Since you mentioned it's just you running things with no employees, you likely meet the first two criteria. The key question is whether you have a physical US business address (not just a PO box or virtual office). My advice: Don't assume you're exempt just because you're the only person involved. Check all the exemption criteria carefully, and when in doubt, it's better to file than risk penalties. The actual filing process is pretty straightforward once you determine you need to do it. Hope this helps clarify things for you!

As someone who's been in tax for over 20 years, I'd strongly recommend starting with the CPA route. Here's why: the barrier to entry is lower, you'll start earning income sooner, and you'll get real-world experience that will make you a better professional regardless of whether you later add a JD. I've seen too many people go straight to law school without understanding what tax work actually entails day-to-day. The CPA path gives you that foundation. Plus, many employers will help fund law school if you decide to pursue it later - but they rarely help fund CPA programs for attorneys. One thing I'll add that others haven't mentioned - consider your personality type. CPAs tend to work more collaboratively with clients on planning and compliance. Tax attorneys often deal with more adversarial situations - audits, disputes, litigation. Both are valuable, but think about what energizes you more. The money will come with either path if you're good at what you do. Focus on which type of work excites you more, and don't underestimate the value of getting into the workforce sooner rather than later. You can always add credentials, but you can't add back years of experience.

This is such a great discussion! As someone currently working as a CPA in tax, I wanted to add another angle - consider the type of clients you want to work with long-term. If you're drawn to working with individuals and small businesses on planning and compliance, the CPA route is probably your best bet. But if you're more interested in complex corporate transactions, high-net-worth estate planning, or tax controversy work, you might find the JD opens more doors. One thing I've noticed is that having both credentials can really set you apart, especially in boutique tax practices or if you want to start your own firm someday. Clients love knowing their advisor can handle both the technical tax work AND represent them if issues arise with the IRS. My advice? Start with the CPA since you're already so close to having the credits. Get 2-3 years of solid experience, then reassess. You'll have a much clearer picture of what specialized areas interest you most, and you'll be in a better position to make law school financially viable. Plus, you might find that the CPA path gives you everything you're looking for career-wise. Good luck with whatever you decide - both paths can lead to rewarding careers in tax!

Has anyone used TurboTax for AMT calculations with stock options? I heard it doesn't handle the AMT credit carryforwards correctly and I'm worried I'll mess something up. Would I be better off with H&R Block or going to a CPA?

I went through a similar situation last year with ISOs and AMT, and I wish I had understood the mechanics better beforehand. Let me try to fill in some gaps that might help you. The key thing to understand about your $143,000 ISO exercise is that the "bargain element" (difference between what you paid and fair market value) gets added back as an AMT preference item. So if you exercised options with a strike price of $10 and the shares were worth $20, that $10 difference per share becomes AMT income even though it's not regular taxable income until you sell. With your $187,000 salary plus the ISO adjustment, you're definitely going to be in AMT territory. The good news is that your mortgage interest is still mostly deductible under AMT (unlike state taxes), and your charitable deductions will help both calculations. One thing that helped me was using the AMT Assistant worksheet from IRS Publication 909 to do a rough calculation before year-end. It's not perfect, but it gave me a ballpark figure. The key is understanding that you'll likely owe AMT this year, but you'll generate AMT credits that can be recovered in future years when your regular tax exceeds AMT. For planning purposes, if you still have unvested options, consider the timing of future exercises more carefully. Spreading them across multiple years can help minimize the AMT impact compared to doing large exercises all at once.