I might be able to offer some insight based on my experience. After having a somewhat similar issue last tax season, I found that H&R Block was, in my opinion, the most accommodating alternative. They seem to have a fairly straightforward process for refund advances, and they partner with Pathward (formerly MetaBank), which is completely separate from the Credit Karma/TurboTax ecosystem. I was initially concerned about approval odds after having issues with another service, but their requirements appeared to be primarily based on your expected refund amount rather than other factors. Within approximately 48 hours of filing, I received my advance, which was about 25% of my expected refund. This timing worked out particularly well for my inventory purchasing schedule.

I completely understand your frustration - having your Credit Karma account deactivated right in the middle of tax season feels like getting a flat tire on the way to an important meeting! From what I've researched, you definitely have several solid alternatives beyond just TurboTax. FreeTaxUSA offers refund advances through their partnership with Axos Bank, and their fees are typically lower than the big-name competitors. TaxSlayer also has a decent advance program, and I've heard good things about their customer service when issues arise. One thing to keep in mind is that each service uses different banking partners, so Credit Karma's issues shouldn't affect your eligibility elsewhere. Given that you mentioned needing funds for inventory restocking, you might also want to consider filing as early as possible with whichever service you choose - even without an advance, the IRS has been processing refunds faster this year (usually within 21 days if you e-file). Best of luck getting your business back on track!

Jumping in with a quick question - does anyone know if there's a specific tax form I should use if I need to explain the 1099-K situation? I got one from eBay last year even though most of what I sold was just clearing out my garage.

Just wanted to add my experience here since I went through something very similar last year. I was laid off and had to sell a bunch of my personal stuff - furniture, electronics, clothes, you name it. Everything was sold for way less than what I originally paid, just like your situation. The key thing I learned is that the IRS doesn't care about these sales from a tax perspective when you're selling at a loss. Think about it - if you could deduct losses on personal items, everyone would be claiming deductions for their used cars, old furniture, etc. So it works both ways - no deduction for the loss, but also no income to report. I kept a simple spreadsheet with three columns: what I sold, approximate original price, and selling price. This was mostly for my own peace of mind and in case I ever got questioned. But honestly, since everything was clearly sold at a loss and these were obviously personal belongings (not business inventory), I didn't stress about it too much. Hope your job search goes well - I know how tough that whole situation can be!

Anyone else curious WHY tax software companies can't get this stuff right? I mean, Form 2441 is complicated but it's not THAT complicated. I spent hours trying to figure out why TurboTax and H&R Block gave me different childcare credit amounts last year. Ended up having to manually override things. The IRS instructions are super clear about FSA reductions!

This is exactly why I always recommend doing a manual check of Form 2441 when you have FSA involved! The math is pretty straightforward once you understand the logic - your total qualifying expenses of $6,718 minus the $483 FSA should give you $6,235 in eligible expenses for the credit calculation. The third software program giving you the higher credit is definitely wrong. You can't claim the full $6,718 in expenses when $483 was already paid with pre-tax dollars through your husband's FSA. That would be double-dipping on tax benefits, which the IRS specifically prohibits. I'd go with the calculation from your first two programs showing the $1,247 credit. Better to be conservative and correct than to claim too much and potentially face questions later. The $98 difference might seem small, but accuracy is key when it comes to tax filings!

Remember that Schedule C isn't just for calculating taxes - it's also important documentation if you ever apply for loans! I got denied for a mortgage because I'd been too aggressive with deductions on my Schedule C and my "paper income" looked too low. Consider the bigger picture with how much you deduct.

Don't forget about the Qualified Business Income deduction (Section 199A)! If your tattoo shop is a sole proprietorship, you might qualify for up to a 20% deduction on your QBI. This is separate from your regular business expenses.

Does anyone know if having a US LLC while living abroad affects this QBI situation? I've got a Wyoming LLC for my consulting business but I live in Germany. My tax person said something about US LLCs being "disregarded entities" for international tax purposes but I'm not sure how that impacts QBI eligibility.

Based on your situation, you should definitely be able to claim QBI on at least a portion of your income. Since all your clients are US-based companies and you're providing services to the US market, your consulting business likely qualifies as "effectively connected with a US trade or business" even though you're physically working from Portugal. The key issue you'll need to navigate is the interaction between FEIE and QBI that others have mentioned. You can't claim both benefits on the same income. Given your $142k earnings, you could potentially exclude up to about $120k with FEIE and then claim QBI on the remaining $22k portion. However, I'd strongly recommend getting professional confirmation before filing. Marketing consulting can sometimes fall under the Specified Service Trade or Business (SSTB) rules, which could limit your QBI deduction based on your income level. The SSTB limitation kicks in around $182k for single filers, so you're likely under that threshold, but it's worth verifying. Also consider whether taking FEIE on the full amount versus claiming QBI on more of your income might be more beneficial overall - sometimes the math works out better to exclude less with FEIE and claim more QBI, depending on your total tax situation.