Has anyone filed taxes as a QJV using TurboTax or other DIY software? Is it easy to set up or should I use a CPA the first year?

Great question! I've been following this discussion closely since my wife and I are considering a similar transition. One thing I'd add is to make sure you understand the liability implications of switching to a QJV. Unlike a sole proprietorship where only one spouse is typically liable for business debts, with a QJV both spouses become jointly and severally liable for all business obligations. This means creditors can go after either spouse's personal assets for business debts. Also, regarding your sons as employees - definitely keep them as W-2 employees rather than trying to bring them into the QJV structure. The IRS is very strict that QJVs can only include the married couple as owners. Having your kids as regular employees actually provides better liability protection and clearer tax treatment. One more tip: consider getting an EIN for the QJV even though it's not strictly required. It can make banking and business transactions cleaner, especially when dealing with vendors who expect a business tax ID.

Has anyone here actually tried to file an Offer in Compromise themselves? I'm hearing mixed things about how hard it is to get accepted. I've got about $25k in tax debt and a resolution company wants $4k to handle it.

Ruby, please don't pay that tax resolution company $16k! You can absolutely handle this yourself and save thousands. Here's what I'd recommend based on your situation: First, pay your 2023 taxes directly to the IRS with that $10k you have saved. This keeps you current and eligible for relief programs. Never fall behind on current year taxes while trying to resolve old debt. For the remaining $30k, you have several options you can pursue yourself: 1. Request Currently Not Collectible status if paying would create hardship - this pauses collections for free 2. Set up an installment agreement directly with the IRS 3. File an Offer in Compromise yourself using Form 656 The IRS actually has great resources and payment calculators on their website. You can also call them directly (or use a callback service like Claimyr if you can't get through) to discuss your options with an actual IRS representative who can explain what you qualify for. I've seen too many people get scammed by these resolution companies promising miracles. Save your money and handle this directly with the IRS - they're usually much more reasonable to work with than these companies make them out to be.

Have you checked your IRS transcript online? Sometimes it shows processing steps that WMR doesn't reveal. The combination of self-employment and credits often triggers what the IRS lovingly calls "additional review" (their euphemism for "we're going to take our sweet time"). 😂

Been in this exact situation for the past month! Filed February 10th with 1099-NEC income, CTC, and EIC. Finally got my refund deposited yesterday (March 6th) - so about 24 days total. My transcript updated with codes 846 and 571 about a week before the actual deposit hit my account. The waiting is absolutely brutal, especially when you're getting daily "any updates?" questions from family. What helped my sanity was checking my transcript instead of WMR - at least the transcript gives you SOME indication of movement even when WMR is stuck on that useless first bar. Hang in there - seems like most self-employed filers with these credits are hitting the 3-4 week mark this year. Your refund is coming! 🤞

Does anyone know if vehicle registration fees count toward the SALT cap? I pay almost $900 a year and TurboTax has a special section for this, but I'm not sure if it's part of the $10,000 limit.

This is really helpful info everyone! I've been wrestling with SALT deductions too since moving from a low-tax state to California. One thing I learned the hard way - if you have estimated tax payments, make sure you're allocating them correctly between federal and state portions. I was accidentally including my federal estimated payments in my SALT calculation and it threw everything off. Also, for anyone dealing with multi-state situations (like I was when I moved mid-year), each state's taxes still count toward the same $10,000 federal cap. So if you paid $6,000 to one state and $5,000 to another, you're right at the limit even though you dealt with two different tax systems. The timing of property tax payments can be tricky too - it's based on when you actually paid, not when the tax year was for. So December 2024 property tax payments go on your 2024 return even if it's for the 2025 tax year.

I'm genuinely curious why the $16,000 limit for QPA hasn't been adjusted for inflation. If it was set in the 1980s, that would be equivalent to around $45,000-50,000 today. Seems like the government has just let this deduction become useless for most actual performing artists.

The $16,000 AGI limit is indeed frustratingly outdated. It was established in 1986 and hasn't been adjusted since - that's nearly 40 years without any inflation adjustment! In today's dollars, that $16,000 would be worth about $44,000. The practical reality is that very few professional performing artists can survive on less than $16,000 annually, which makes this deduction almost useless for the people it was intended to help. Meanwhile, the standard deduction has increased regularly, and many other tax provisions get annual inflation adjustments. There have been some proposals in Congress over the years to either increase the limit or eliminate it entirely for QPA status, but they haven't gained enough traction. The performing arts community would benefit from more organized advocacy on this issue, as it affects thousands of working musicians, actors, and other performers who are caught in this outdated income trap. Until then, your best bet is exactly what others have suggested - maximize your legitimate Schedule C deductions for 1099 income and work with venues when possible to ensure proper worker classification based on the actual nature of your working relationship.