What kind of spreadsheet do you use? I'm trying to get organized for next year and have no idea where to start tracking all this stuff.

I use a pretty simple Excel spreadsheet with different tabs. The main tab has columns for Date, Item Sold, Amount, Payment Method, and Fees. I have another tab for expenses broken down by categories like Materials, Shipping Supplies, Marketing, etc. I also take screenshots of my payment app summaries at the end of each month as backup. The key is to update it regularly - I do it every Sunday night so it never becomes overwhelming. Some people use apps like QuickBooks Self-Employed, but honestly for a small side hustle, a simple spreadsheet works fine as long as you're consistent with it.

That's terrible advice. The IRS has a 3-year window to audit returns (and longer in some cases), so "nothing happened" YET. They're also dramatically increasing enforcement for small businesses with the new funding they received. Not worth the risk for what would probably be a few hundred in taxes.

Moving to a different state doesn't change how you report health insurance on your federal taxes. The requirement for qualifying health coverage is federal, not state-specific. The only potential complication would be if you moved to or from a state that has its own individual mandate (like California, Massachusetts, New Jersey, Rhode Island, or DC). Those states might require additional reporting on your state tax return, but it doesn't affect your federal return. As long as you maintained continuous coverage during your move, you're all set for federal tax purposes.

You don't need to worry! When you file jointly, you're just verifying that everyone in your household had coverage. Your wife doesn't need to report you dropping off her plan. The 1095 forms you each receive will show the coverage periods for each person, and as long as you both had continuous coverage (even if through different plans at different times), you're good to go!

16 Does this $0 AGI trick also apply if you didn't file taxes at all the previous year? I wasn't required to file in 2023 but now need to file for 2024.

3 Yes, that's exactly right! If you weren't required to file in 2023 and didn't file, you would use $0 as your prior-year AGI when filing your 2024 return electronically. The $0 AGI entry works in several scenarios: when you filed previous year returns on paper, when you didn't file the previous year at all, or when you recently filed the previous year's return and it hasn't fully processed in the IRS system yet.

9 I switched from Tax Act to FreeTaxUSA this year and found it much more user-friendly, especially with handling prior year AGI issues. They have a specific section that explains what to do if you filed previous years' returns recently.

Do you need to have an actual CPA for this? My guy has some tax credential but I don't think he's a CPA. Not even sure what the difference is honestly.

You can file complaints against any tax preparer regardless of their credentials. For CPAs, you'd contact the state board of accountancy. For enrolled agents, you'd file with the IRS Office of Professional Responsibility using Form 14157. And for any preparer who has a PTIN (Preparer Tax Identification Number), you can still file with the IRS. The important thing is documenting that they had access to the correct information and still prepared the return incorrectly. The fact that your preparer advised you on the 940/941 process and then still filed Schedule H is particularly damning since it shows they knew about both methods and still double-taxed you.

How often do these kinds of major errors happen? I always assumed professional preparers had software that would catch obvious stuff like double taxation...

Major errors like double taxation are relatively rare because most tax software does have flags for obvious issues. However, the software is only as good as the information entered into it. In this case, it sounds like the preparer entered the Schedule H without checking previous tax payments made through 940/941. Most professional offices have quality review procedures specifically to catch these kinds of errors - someone other than the preparer should review the return before filing. That's what's particularly troubling here. Either they completely skipped quality review, or whoever did it was equally incompetent. The issue with stock basis errors confirms a pattern of carelessness rather than a one-time mistake.

AVOID THE CHAINS! I worked at one of the big ones for two tax seasons. The training is minimal and they push quantity over quality. Most of the preparers there could handle basic W-2 returns but would be completely lost with brokerage statements or anything remotely complex. For your situation with multiple accounts and a new dependent, you definitely want either an independent EA or CPA. The price difference isn't huge but the expertise gap is massive. The chains often use software that's basically the same as consumer tax software, just with a person inputting the data instead of you.

Thanks for the inside info! That's exactly what I was worried about. I'll start looking for independent pros instead of going to one of the big chains. Been seeing their commercials everywhere so was tempted by the convenience, but sounds like it's worth finding someone with more expertise.