I'm dealing with the exact same frustration! Filed my Colorado return on February 8th and still showing "pending" while my federal was processed weeks ago. What's really bothering me is that my tax liability jumped by almost $900 this year even though my 1099 income was actually slightly lower than 2023. I've triple-checked my deductions and everything looks correct. Has anyone figured out specifically which deduction limits Colorado changed? I'm wondering if it's worth having a tax professional review my return before it finishes processing, or if I should just wait it out and potentially file an amended return later if needed.

I'm experiencing the exact same delays and tax increases! Filed my Colorado return on February 12th and it's still showing "pending" on the Revenue Online portal. Like many of you, my federal return was processed weeks ago. What's really concerning is that my tax bill increased by about $750 this year despite my income being roughly the same as last year. I've been an independent contractor for 3 years and this is the first time I've seen such a significant jump. I'm starting to wonder if I should contact the Department of Revenue directly or just wait it out. The uncertainty is really stressful, especially when you're budgeting around expecting a refund and suddenly owing money instead. Has anyone had luck getting specific information about what deduction changes are causing these increases?

Everyone saying "report all your cash tips" must not work in the industry 😂 nobody reports 100% of cash tips and we all know it. But definitely report your credit card tips since those are tracked. For real tho, all my server friends have been talking about this no-tax tip thing and nobody seems to know what's actually happening. Thanks for clearing it up that it's not a thing yet.

As someone who's been working in restaurants for over 8 years, I can confirm what others have said - there is NO current law that makes tips tax-free. The confusion is understandable because politicians have been talking about it a lot, but talking about something and actually passing it into law are very different things. Here's what you need to know RIGHT NOW for your 2024 taxes: - ALL tips (cash and credit card) are taxable income - You must report them on your tax return - Your employer already reports your credit card tips to the IRS - Not reporting tips can result in penalties, interest, and potential audit I know it sucks because tips are such a huge part of our income, but the current law is clear. Keep doing what you're doing and report everything properly. If any tip tax law does pass in the future, it will be widely announced through official channels, not just workplace rumors. Stay safe and file correctly!

Make sure you actually set up your business properly! Don't just start buying stuff and assume the IRS will see it as a business. Get an EIN, open a separate business bank account, maybe file for an LLC depending on your situation. I made the mistake of mixing personal and business expenses my first year and got audited. Total nightmare trying to prove what was actually for business vs personal. I'm not saying you need to incorporate right away but at minimum keep EVERYTHING separate.

One thing to keep in mind is the timing of when you can actually deduct these startup costs. The IRS distinguishes between true "startup costs" (like market research, legal fees to set up the business) and regular business expenses once you've begun operations. Equipment purchases like laptops are generally considered regular business expenses once you're actively in business, not startup costs. The good news is you can typically deduct equipment immediately under Section 179 or bonus depreciation rules, but make sure you're actually "in business" when you buy it - meaning you're actively pursuing clients and revenue. If you buy everything months before you start marketing your services, the IRS might question whether you were truly in business yet. Consider timing your equipment purchases closer to when you actually begin operating. Document everything showing you're actively working toward generating income!

What tax software are you using? This matters because different programs handle 1099-NEC entry differently. I use TurboTax and it automatically asks about Schedule C after I enter a 1099-NEC, but it doesn't double-count the income.

I ran into this exact same problem when I first started doing freelance work! The key thing to understand is that you're not actually filing "both" - the 1099-NEC and Schedule C work together as part of one process. Here's what's probably happening in your tax software: You entered the 1099-NEC information correctly the first time, but then later when the software asked about "business income" or "self-employment income," you entered that $12,500 again thinking it was a separate requirement. That's why you're seeing $25,000 total. The fix is simple - go back and remove one of those entries. Keep the 1099-NEC entry and let the software automatically flow that information to Schedule C. Don't manually add the same income amount anywhere else in the program. Even though you have zero business expenses, you still need the Schedule C because it's required for all self-employment income. It will show your gross income ($12,500), zero expenses, and net profit ($12,500). This is also what triggers the calculation of your self-employment taxes. Most tax software handles this pretty intuitively once you know not to double-enter the same income. Which program are you using? That might help others give you more specific guidance on where to look for the duplicate entry.

Has anyone here dealt with an audit where you had a small amount of earnings between the time you made the nondeductible contribution and when you converted it? I contributed $6k to a traditional IRA in January and it grew to $6,250 before I converted it to Roth in March. The IRS is saying I owe taxes on the full $6,250 instead of just the $250 earnings.

I went through almost the exact same situation last year with my backdoor Roth conversion audit. The IRS flagged my 2021 return for the same reason - they treated my conversion as an early withdrawal despite proper Form 8606 filing. What really helped me was organizing a complete timeline of the transactions with all supporting documents. I created a simple table showing: 1) Date of nondeductible contribution to traditional IRA, 2) Form 5498 showing the contribution, 3) Date of conversion to Roth IRA, 4) Form 1099-R showing the distribution, and 5) Form 5498 showing the Roth conversion deposit. I also included a cover letter explaining that this was a legitimate backdoor Roth IRA conversion, not an early withdrawal, and referenced IRC Section 408A(d)(3) which governs IRA-to-Roth conversions. The key was showing the IRS that every dollar distributed from the traditional IRA was immediately deposited into the Roth IRA. My audit was resolved in about 6 weeks with no additional taxes or penalties. The IRS auditor even mentioned that these cases are becoming more common as more people do backdoor Roth conversions, but their computer systems don't always recognize the transaction pattern correctly. Don't panic - you did everything right, it's just a documentation issue that can be cleared up!