My health insurance is still through my employer, same plan as last year. But you know what, I'm going to go back and check those health insurance questions again to make sure I answered them the same way. I honestly tend to click through those sections pretty quickly since nothing changed, but maybe I did check something different. Thanks for the suggestion!

Not OP but this happened to me! I had 8 weeks of unemployment and had NO idea they barely withhold any taxes. Got absolutely wrecked at tax time. Now I always select the maximum withholding on unemployment.

No unemployment for me - been at the same job the whole time. But that's good to know about unemployment withholding being low. I actually might have some temporary layoffs coming up later this year, so I'll definitely remember to adjust the withholding if that happens. Thanks for the heads up!

Do you need to complete the whole application process to see the current amount, or does it show that information early in the process?

You'll see the current amount with penalties and interest fairly early in the process, usually on the second or third screen when you've entered your basic information. You don't need to complete the entire application or commit to any payment plan to view this information.

They used a local tax preparer, not software. That's part of the issue - they just have the paper copies the preparer gave them and aren't tech-savvy enough to navigate online tools themselves. I was hoping there might be a simple way to confirm the current amount without having to call since the phone wait times are so long.

I've heard about Free Tax USA a few times now but wasn't sure if it was legit. Do they handle student loan interest deductions without requiring upgrades? That seems to be what's triggering the TurboTax upgrade requirement.

Yes, they handle student loan interest deductions in their free federal package. I deduct my student loan interest every year with them and have never paid for anything except the state filing. Their interface isn't quite as polished as TurboTax, but it gets the job done and they're much more transparent about what's included. No surprise upgrade notices halfway through the process.

There was actually a big ProPublica investigation about this! TurboTax (Intuit) and H&R Block actively lobbied against the IRS creating its own free filing system, then made their "free" versions intentionally hard to find and limited. Super shady business practice.

No T5 slip yet since the film just hit festivals and hasn't had any commercial distribution. But that's good to know for the future! I am in Ontario - is the provincial credit something I apply for directly or does the production company handle that too?

The Ontario Film and Television Tax Credit is also handled by the production company, not individual investors. Similar to the federal CPTC, it's designed to incentivize production companies to create content in Ontario. As an investor, your tax benefits come primarily through how you classify your investment and any income it generates. When the film does eventually generate revenue, make sure the production company has your current address to send any T5 slips. For now, you'll just need to report the investment itself as we discussed above. Keep good records of all your investment documentation - if the film becomes commercially successful or if it fails entirely, the tax implications will differ.

You might be able to claim a capital loss if you can demonstrate that your investment has become worthless. You'd need documentation showing the production has been abandoned or the company has dissolved. Typically, you'd need to file an election under subsection 50(1) of the Income Tax Act to deem the investment disposed of at the end of the tax year. The CRA will want evidence that the investment has no reasonable chance of future value. A letter from the production company stating the project has been abandoned would be helpful.

That's a really good point about banking. Did you have any issues with payment processors too? We'll be using Stripe and PayPal for most client payments, and I'm wondering if there are any special considerations with a foreign co-owner.

Stripe was actually fairly straightforward for us. They required identity verification for both owners, but having a US-registered business with a US bank account made it workable. My foreign partner had to upload his passport and proof of address, but no major hurdles. PayPal was a bit trickier because they wanted a US phone number for verification for both owners. We ended up using my phone for business purposes and adding him as an authorized user rather than setting him up with full owner access. Not ideal, but it worked. Just make sure your operating agreement covers how payment processors are handled so there's no confusion about who has access to what.

Do you use any specific tools for managing the partnership agreement and financial distributions? We're setting up with a partner in Malaysia and realized we need better tracking for partner draws and tax withholding.