I hadn't considered a Certified Acceptance Agent. Is there any downside to using one compared to submitting directly? Does it take longer to process when going through an agent?

There's really no downside in terms of processing time - in fact, it can be faster because CAAs reduce the likelihood of rejections due to documentation errors. The IRS processes the application the same way regardless of submission method. The only real downside is the cost. Most CAAs charge between $200-300 for their service, which includes document verification and submission. But considering the hassle of potentially having to resubmit if something goes wrong (plus the risk of sending original documents through the mail), many find it worthwhile. In my experience, using a CAA actually shaved weeks off the process because everything was submitted correctly the first time.

From my understanding, you need the current year's Form 1098, not the previous year's. That's what my tax preparer told me. Maybe that's why it was rejected?

You actually need the most recently issued Form 1098, which would typically be from the previous tax year. When applying early in the year (like now for 2025 filing season), you'd use the 2024 mortgage interest statement since the 2025 one wouldn't be available yet. The IRS specifically wants to see that you have an ongoing mortgage interest situation that creates a tax need. If you're applying mid-year, you might also include recent mortgage statements showing continued interest payments. The key point is demonstrating a continued tax purpose for needing the ITIN, not just a one-time situation.

That's really helpful! I'll double check my 5498 form. Is there a specific place on the form where it shows which tax year the contribution is for? My contribution was made in April 2025 but designated for 2024 tax year.

Look at Box 8 of Form 5498. It should specifically indicate "SEP contributions" and show the amount. Most importantly, the form should have the correct tax year printed at the top (2024 in your case, even though it was issued in 2025). If the form shows the contribution but lists it for the wrong year, ask your financial institution to issue a corrected 5498. This happens more often than you'd think, and most institutions can fix it pretty quickly if you point out the error.

Good thought! I checked the transcript pretty carefully and didn't see any offsets or redirects of the funds. It specifically shows they just calculated a lower refund amount because they zeroed out the SEP IRA deduction line. No other debts or issues mentioned.

That's definitely an IRS processing error then. One more tip - when you do call them, make sure to use the specific phrase "math error authority" when explaining your situation. This is a technical term they use internally and can sometimes help get your case to the right department faster.

What's the ballpark cost difference between having someone prepare my taxes vs just reviewing what I've done myself? I'm trying to save money but also don't want to miss deductions.

For simple returns like yours, full preparation might run $200-400 depending on your location and the professional's credentials (CPAs charge more than enrolled agents or tax preparers). A review service typically costs $50-150. The review can be really valuable - they'll look for obvious errors, missed deductions, and red flags that might trigger an audit. They can also advise on adjusting your withholding so you don't end up owing again next year. Many people find this middle ground approach gives them peace of mind without the full expense of preparation.

This is so true! I used TurboTax for years and then got audited over a home office deduction. Their "audit defense" was basically just a PDF explaining what I should do. Ended up hiring a professional anyway to help me respond properly. Wish I'd just gone to them in the first place.

That's really good to know, thanks! Is there any specific way you need to track usage to prove the business percentage? Like a logbook or something?

Yes, definitely keep a usage log! I learned this the hard way. Document dates, hours of operation, and whether each use was personal or business. Take photos of job sites where you're using it for business purposes. Keep all receipts for jobs where you used the equipment. If you're using it on your own property sometimes, be very clear about which uses are business-related (like digging a trench for a paying customer) versus personal (improving your own property). The more detailed your records, the better you'll be if you get audited.

Did TurboTax handle all the Schedule C stuff well? I'm considering using it this year but worried about missing deductions for my new pressure washing business.

Thanks for this! I didn't track my miles super carefully since I only drove for those couple days. Is there any way to reconstruct this after the fact or am I just out of luck?

You can try to reconstruct your mileage based on records you might have. Lyft should have records of the actual rides and miles driven with passengers, but that doesn't include the miles driven between rides or positioning yourself. If you have a general idea of the areas you worked and approximately how much "dead" mileage you had between rides, you can make a reasonable estimate. Some tax pros recommend using a 1.2x to 1.3x multiplier on your actual ride miles to account for the between-ride miles, though this varies based on your market.

Is there a way to calculate approximately how much I should set aside? I just started doing Instacart as a side gig.