Thanks for the advice! One question - if I pay online now before filing, how do I make sure the payment gets matched to my return when I eventually mail it?

When you make a payment through the IRS Direct Pay system, you'll select the reason for payment (in your case "extension" or "tax return"), the tax year (2022), and provide your identifying information like SSN. The IRS will automatically match your payment to your return when it's processed based on this information. Make sure to print the confirmation page after making your payment and keep it with your tax records. If there's ever a question, this confirmation serves as proof that you paid on time, even if your return is processed later.

The Non-Filer tool is actually designed for people who aren't required to file a return but need to register for specific benefits or credits. It's not appropriate for someone who has a regular tax filing obligation like the OP who has already prepared their return. Using the Non-Filer tool when you actually should be filing a complete tax return can create complications in the IRS system and potentially flag your account. The OP should either mail their completed return or work with a tax professional to efile it.

The S-Corp strategy doesn't work well at such low income levels. The costs of maintaining the S-Corp (state fees, additional tax return, payroll processing) would likely eat up any SE tax savings. Plus the IRS scrutinizes "reasonable compensation" - you can't just say your $35K job is only worth $25K salary. Most tax professionals don't recommend an S-Corp until you're netting at least $60-80K from your business because of these fixed costs.

You make good points about the costs eating into potential savings. For $35K, you're right that the administrative burden probably outweighs the benefits. Regarding reasonable compensation, there are actually legitimate ways to determine this based on market rates for the specific work being performed. It's not arbitrary, but you do need documentation to support your salary level if audited. But your broader point stands - at lower income levels, the S-Corp strategy offers diminishing returns due to fixed costs.

That's really helpful! She does pay for her own health insurance - about $350/month. So that should help reduce the SE tax a bit. Thanks for pointing this out! Is there anything else that can reduce SE tax for a sole proprietor with 1099 income?

This is good advice. Financial aid offices deal with this kind of thing all the time. My son's college accepted a signed statement explaining why we couldn't provide the exact document they requested, along with the tax transcript showing the amended information.

Did you claim any tax credits like the Earned Income Credit or Child Tax Credit? I've heard those always take longer to process.

I didn't claim any of those credits this year. Just standard W-2 employment income and the standard deduction. I claimed the child tax credit last year and that return definitely took longer - almost the full 21 days. So there does seem to be a clear pattern with certain credits triggering longer processing times.

Check if you claimed the Earned Income Tax Credit or Additional Child Tax Credit. By law, the IRS cannot issue refunds for returns claiming these credits before mid-February, so that might explain the delay.

11 Does exclusive business use mean I can't ever let my kids do homework in there or have guests use it when they visit? What about if I occasionally take personal calls in the space? The IRS can't possibly monitor how I use every room, right?

21 The exclusive use requirement is quite strict. Your kids doing homework there, guests using the space, or taking personal calls would all technically violate the exclusive business use requirement. No, the IRS doesn't have cameras in your home, but if you're audited, they may ask detailed questions about how the space is used, request photographs, or even visit the location. They look for things like children's toys, guest beds, or other indicators of personal use. Many taxpayers have lost their entire home office deduction because they couldn't prove exclusive business use. It's not worth risking a potentially large deduction over occasional personal use, especially with a dedicated construction project specifically for business purposes.

1 I did look into renting, but where I live, commercial space is ridiculously expensive. Even a tiny office would cost me about $3,000/month. The construction is around $42,000 total, so it pays for itself pretty quickly compared to renting. Plus, I love working from home and not having to commute. The depreciation and potential recapture issues are definitely something I need to consider though. I just want to make sure I'm taking advantage of all possible tax benefits since this will be 100% business use.