Has anyone tried the Surgent Income Tax School? Their website looks good but I can't find many reviews. I'm debating between that and the H&R Block course.

Another option to consider is the Penn Foster Tax School - they offer a comprehensive online program that's self-paced and covers everything from basic individual returns to more complex scenarios. What I liked about it is that they provide real tax software training (using actual professional software, not just consumer versions) and include practice with mock client situations. The course covers all the fundamentals you mentioned - deductions, credits, filing statuses, plus things like rental property, small business income, and retirement distributions that come up frequently even in "simple" individual returns. They also keep the materials updated each tax season, which is crucial since tax laws change. The enrollment fee is reasonable (around $400-500 when I checked), and you get access to their materials for the entire tax season, so you can refer back as needed. They also offer job placement assistance if you decide to pursue seasonal work later. Might be worth looking into alongside the other suggestions here!

The key IRS principle here is the "origin of the claim" doctrine. Since your claim originated from being overcharged (not from seeking profits or damages beyond what you paid), the settlement should be non-taxable as return of capital. Document everything carefully tho - if the moving company reports the payment on a 1099, you'll need to show why it's not taxable income on your return.

Great question about a really frustrating situation! I went through something similar with a contractor who overcharged me, and I was stressed about the tax implications too. The good news is that based on what you've described, your settlement should NOT be taxable income. Since you're simply recovering money that was fraudulently taken from you (not earning new income or profits), this falls under the "return of capital" principle. You're just getting back what was rightfully yours to begin with. Regarding your legal fees - since the settlement itself isn't taxable income, you typically can't deduct those expenses against it. However, you might want to check if any portion could be deductible under other circumstances (like if this was related to business expenses). One thing to watch out for: if the moving company issues you a 1099 for the settlement amount, don't panic! You can still report it as non-taxable on your return, but you'll need to include it and then show why it's not taxable income. Keep all your documentation from the case - court records, settlement agreement, original contracts, etc. It's definitely frustrating to think about paying taxes on money that was stolen from you, but thankfully the IRS recognizes the difference between recovering your own money and actually earning new income. You should be in the clear here!

Has anyone considered that the IRS might view this as a tax scheme rather than a legitimate business? I'm not saying it is, but starting a business primarily to reduce taxes seems risky.

The profit motive concern is absolutely valid and something you need to plan for carefully. I've seen too many people get caught up in the tax savings without thinking through the business fundamentals. Here's what I'd suggest: Before you buy that $98k truck, start small and actually prove the business model works. Get a few regular clients, use basic equipment, and show some profit in year one. This establishes legitimate business intent from the start. When you do scale up with the heavy truck, make sure the purchase makes business sense - not just tax sense. Can you realistically generate enough additional revenue to justify a $98k vehicle? Document your business plan showing how the truck will help you serve more clients or charge premium rates. Also consider the cash flow impact. Even with the depreciation deduction, you still need to actually pay for the truck. If your lawn business isn't generating enough cash to cover the payments, that's another red flag for the IRS. The strategy can work, but treat it as a real business first, tax strategy second. The tax benefits should be a bonus, not the primary motivation.

Have you tried the free calculator on H&R Block's website? They have one specifically for 2023 returns that allows you to input your original info and then add the mortgage interest to see the difference. I used it to estimate before amending my return (forgot some education credits) and it was pretty accurate. Just google "H&R Block tax calculator 2023" and it should come up.

Just as a heads up, if your mortgage interest pushes you from taking the standard deduction to itemizing, make sure you've got ALL possible itemized deductions included when you amend. Many people forget to include charitable donations, medical expenses (if they exceed 7.5% of AGI), state and local taxes (SALT), etc. No point in filing an amendment and not maximizing the benefit!

Don't overlook the safe harbor provisions! As a new freelancer, you can avoid penalties by paying either: - 90% of your current year tax - 100% of your prior year tax (110% if your income was over $150k) For first-year freelancers, using last year's tax liability is often the easiest method since you just look at your previous tax return. If you didn't owe any tax last year, you might not need to make estimated payments at all!

One thing nobody mentioned - make sure you're tracking all your business expenses from day one! As a video editor, you can deduct portions of: - Computer equipment - Editing software subscriptions - External hard drives - Office space (even home office) - Internet costs These deductions can significantly reduce your taxable income and might even keep you under that $1000 threshold longer than expected!