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Guys what about H&R Block? They're running a 25% off promo right now that makes their Deluxe + State about $52 total. Might be cheaper than the TurboTax deals people are finding.
If you're looking for discounts, don't forget to check your local library! Many public libraries offer free access to tax software including TurboTax through their digital resources. I discovered this completely by accident when I was at my library last month - they had a whole section on their website with free tax prep tools. Also, if you're military (active duty or veteran), USAA members get significant discounts on tax software. And some credit card companies offer statement credits when you use their card to purchase tax software - I got $25 back on my Chase card last year which made the effective cost much lower. One more tip: wait until mid-March if you can. That's when a lot of the software companies start getting desperate to hit their quarterly numbers and roll out their best promotions.
Check if your state has a tax preparer registry or licensing requirement. In some states you can report unlicensed preparers and they face heavy penalties. In California the CTEC can fine them $5000 per return!
This is absolutely infuriating and I'm so sorry you're going through this. Unfortunately, tax preparer fraud is way more common than people realize. A few additional things that might help: ⢠Contact your state's Attorney General's office - many have consumer protection divisions that handle tax preparer fraud ⢠If the preparer was using a PTIN (Preparer Tax Identification Number), report them to the IRS Office of Professional Responsibility ⢠Document the timeline of when you discovered the fraud vs when the refund was issued - this can be crucial for criminal charges ⢠Consider reaching out to local news stations - they love these consumer protection stories and the public pressure sometimes gets faster results The fact that she's ghosting you now actually works in your favor for proving intent to defraud. Keep trying to contact her via text/email so you have records of her avoiding you. Don't give up! I've seen people recover their money even a year later when they stayed persistent with the legal process. The IRS takes preparer fraud seriously once you get the right person's attention.
Don't forget about FBAR requirements if you're a US person with foreign financial accounts! If the total value of all your foreign accounts exceeds $10,000 at any point during the year, you need to file FinCEN Form 114. This is separate from your tax return and has serious penalties if missed.
Based on your situation, yes, you are considered a US person for tax purposes since you filed jointly with your US citizen spouse. This means you should be providing W-9 forms to those platforms (Etsy, Fiverr, Twitch) instead of W-8 forms. A few additional things to keep in mind: 1. **Foreign Tax Credits** - Since you're earning income in Canada that's likely subject to Canadian taxes, make sure you're claiming Foreign Tax Credits on your US return to avoid double taxation. 2. **Form 8938 (FATCA)** - If your foreign financial assets exceed certain thresholds, you may also need to file Form 8938 with your tax return (this is in addition to FBAR that others mentioned). 3. **Provincial vs Federal** - Remember that your Canadian income might be subject to both provincial and federal Canadian taxes, and you can generally claim credits for both on your US return. Since you're in the green card process, it's worth consulting with a tax professional who specializes in US-Canada tax issues to make sure you're optimizing your filing strategy and not missing any opportunities for credits or exclusions.
This is really helpful information! I'm new to understanding international tax situations but this makes a lot of sense. Quick question though - when you mention Form 8938 thresholds, what are those specific amounts? And does having a joint Canadian bank account with my spouse count toward those thresholds even though it's technically "our" money? I want to make sure I'm not missing anything important since this is all pretty overwhelming as a newcomer to US tax obligations.
I think there's some confusion here. Even with the 100% deduction in 2021/2022, you still needed to meet the "ordinary and necessary" business expense test. For delivery drivers, your meals during shifts are generally considered personal expenses, not business expenses. The IRS views this as: everyone needs to eat, whether working or not. Where people get confused is with the "de minimis" fringe benefit rules for employers. If an employer provides meals to keep employees working (like during busy periods), those can sometimes be 100% deductible for the EMPLOYER. But as a 1099 contractor, you're not your own employee in that sense.
So if I understand right - if I own a small business and take clients out to lunch to discuss business, that was 100% deductible in 2021/2022 instead of 50%. But my personal lunch, even while "on the clock" as a 1099 worker, isn't deductible at all because I would need to eat lunch anyway?
You've got it exactly right! The business meal with clients discussing business matters would qualify for the temporary 100% deduction during 2021/2022 (now back to 50% for 2023 and beyond). Your personal meals during work time as a 1099 contractor generally don't qualify for any deduction percentage because they're considered personal expenses, not business expenses. The IRS position is that everyone needs to eat regardless of whether they're working or not, so these meals lack the "ordinary and necessary" business purpose required for deduction.
Just to add - I've been driving for Uber/Lyft for years, and instead of trying to deduct meals, I focus on maximizing my mileage deduction (58.5 cents per mile for 2022). That's where the real tax savings are for us gig drivers! Also, don't forget you can deduct a portion of your phone bill, car cleaning, amenities for passengers, etc. Those are much safer deductions than trying to claim your Taco Bell lunch while on shift.
Do you use a specific app to track mileage? I've been writing down odometer readings but it's a pain and I forget half the time.
I use MileIQ - it automatically tracks your drives using GPS and you just swipe left or right to classify them as business or personal. Super easy and creates reports you can export for tax time. There are other good options like Everlance and Stride too. Definitely worth using an app instead of manual tracking - I was losing out on so many deductible miles before I switched!
Isabella Costa
My transcript been saying 'as of' date March 4th for like 2 months now... anyone else?
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StarSurfer
ā¢Mine too! Starting to think that date dont mean nothing fr
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Cynthia Love
Looking at your transcript, that code 807 "Reduced or removed W-2 or 1099 withholding" is definitely concerning - it means the IRS removed your $10,557 in withholding credits, which is why you now owe $3,472 instead of getting a refund. This usually happens when they can't verify your W-2s or suspect there's an issue with the withholding reported. You'll need to contact them ASAP to find out why they removed it and provide documentation to get it reinstated. The 971 notices should explain what documentation they need from you.
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Nia Johnson
ā¢This is really helpful @facf45268409! I was wondering if this could be related to identity verification issues? I've heard the IRS sometimes removes withholding when they can't verify someone's identity. Did you get any letters in the mail about this @9461ebb9f50a? Also those penalty and interest charges from November suggest they're treating this like you underpaid, which makes sense if they removed your withholding credits.
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