Don't forget about self-employment taxes! Even if your YouTube business has losses that offset your other 1099 income for income tax purposes, you'll still pay SE tax on the net profit from your existing 1099 work. The SE tax is calculated separately for each Schedule C business - losses from one don't offset SE tax on another. Also, have you looked into an S-Corp election for your profitable 1099 business? At your income level, you might save significantly on SE taxes by taking a reasonable salary plus distributions.

One thing I haven't seen mentioned yet is the importance of timing your equipment purchases strategically. Since you're expecting significant expenses in the early years of your YouTube business, consider using Section 179 expensing or bonus depreciation to deduct the full cost of equipment purchases in the year you buy them, rather than depreciating them over several years. This is especially valuable when you have high income from your other sources that the YouTube losses can offset. For example, if you buy $13.5k worth of camera equipment in year one when your YouTube channel has minimal income, you can potentially deduct the full amount against your W-2 and 1099 income that same year. Also, keep in mind that the IRS looks at the totality of circumstances when determining business vs. hobby status. Even if you show losses in the first few years, factors like time and effort devoted to the activity, expertise you bring, success in similar activities, and expectation of asset appreciation all work in your favor. Since you already have successful business experience with your 1099 work, that demonstrates you understand how to run a profitable business. Just make sure you're treating the YouTube venture like a real business from day one - separate accounts, business plan, marketing efforts, etc. The documentation you create now will be crucial if the IRS ever questions your deductions later.

Just to clarify something I'm seeing in some of the responses - the key date is December 31st of the tax year. If your son turned 18 in December 2023, that means he was 17 at the beginning of 2023 and turned 18 during the year. For Child Tax Credit purposes, he needed to be under 17 at the end of the year (December 31, 2023) to qualify. I had a similar situation when my daughter turned 17 in November a couple years back. I remember being disappointed to lose that credit, but was still able to claim her as a dependent for other purposes. Double-check your son's birthdate against these requirements just to be certain.

I went through this exact situation two years ago when my son turned 18 in November. The age cutoff rules can be really frustrating, especially when you're used to getting certain credits year after year. Just want to add one thing that helped me - make sure you keep detailed records of his college expenses if he's starting school. Even though you lose the Child Tax Credit, education credits like the American Opportunity Tax Credit can actually be more valuable (up to $2,500 vs the $2,000 CTC). You'll want to save all tuition statements, book receipts, and required fee documentation. Also, if your son has any part-time job income, make sure he understands whether he needs to file his own return. The IRS gets copies of his W-2s regardless, so coordination between your returns is important to avoid any complications with dependent claims. The silver lining is that this is typically a one-time adjustment year. Once you navigate it this time, you'll know exactly what to expect going forward!

Pro tip: you can call the IRS automated system at 800-829-1040 and it will tell you if you have any outstanding balances. No need to wait for a human. Just have your SSN and filing status ready. It's how I check if I owe anything before I file each year.

Just wanted to add that you should also check if you have any estimated tax payment requirements for this year to avoid being in this same situation again. Since you had to pay additional taxes on your amended return, it might mean your withholding or estimated payments weren't quite right. The IRS generally expects you to pay as you go throughout the year, either through payroll withholding or quarterly estimated payments. If you end up owing more than $1,000 when you file, you might be subject to underpayment penalties next year even if you pay on time. You can use Form 1040ES to calculate if you need to make estimated payments for the current tax year. Better to stay ahead of it than deal with another surprise balance later!

turbotax has been sus lately ngl. might switch to hr block next year

Same boat here! Filed 8 days ago through TurboTax and still showing pending. Called their support and they said it's just heavy volume this season. The waiting is killing me though - really need that refund for some bills coming up. Fingers crossed we both see movement soon! 🤞

Think of this like when a restaurant brings you the wrong order - you need to flag down the server right away, not just eat it and complain later! I had almost the identical situation last year. I owed about $2,200 for 2021 and was supposed to apply my 2022 refund to it. They sent me the full refund anyway. I called within a week, explained the situation, and the agent was actually super helpful. They did a direct transfer from my account to cover the old balance and even waived the small amount of additional interest that had accrued. The key was acting quickly and being super polite on the call. The whole thing took about 20 minutes once I got through to someone. Don't stress too much - this happens all the time and there's a simple fix!

This exact thing happened to my neighbor last month! She was panicking because she thought she'd have to pay twice, but it turned out to be a pretty straightforward fix once she knew what to ask for. The IRS agent explained that their computer systems sometimes process refunds before they check for the offset instructions - especially during busy filing season. Here's what worked for her: She called the main IRS number (1-800-829-1040) early in the morning around 7 AM when call volume is lower. When she got through, she specifically asked for a "manual payment application" to transfer her refund amount to her 2022 tax debt. The agent was able to do this over the phone using her bank account info from the refund deposit. They also backdated it to avoid any additional penalties. One thing she learned - apparently if you're on a payment plan already, there can be some glitches in how their system handles refund offsets. The agent told her this is becoming more common as people set up payment plans online. Definitely call sooner rather than later though - she said the agent mentioned that after 90 days it becomes much harder to do these manual transfers.