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.

Just wanted to add something important - make sure you track your business expenses! That $2600 isn't all taxable if you spent money to earn it. Did you buy any equipment? Software subscriptions? These can be deducted from your income before calculating taxes. I made about $3000 last year from my Etsy shop, but after deducting all my supplies and shipping costs, my taxable income was only about $1800. That saved me a decent amount on self-employment taxes.

I'm in a similar boat - made around $1,800 from tutoring other kids in my neighborhood and now I'm panicking about taxes. Reading through all these responses has been super helpful though! One thing I want to add is that you should definitely keep good records going forward. I wish I had tracked my expenses better from the start. Things like if you had to buy any coding books, pay for software licenses, or even gas money driving to meet clients - these could all potentially be business deductions. Also, don't beat yourself up about not knowing this stuff. Most adults don't understand taxes either! The important thing is you're asking the right questions now and taking care of it properly. Better to file late than never file at all, but you still have plenty of time before the April deadline. Good luck with everything - sounds like you've got some solid options with the tax software people have recommended here.

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.

Have you verified if you're affected by the PATH Act? This legislation requires the IRS to hold refunds involving EITC or ACTC until at least February 15th, causing significant delays for qualifying taxpayers. Did you claim either of these credits on your 2023 return?

I feel your frustration - filed mine on February 14th and still waiting too! The uncertainty is the worst part, especially when you're budgeting around that refund. One thing that helped ease my anxiety was setting up IRS account online and checking my transcript weekly instead of obsessing over WMR daily. The transcript often shows activity before WMR updates. Also found that calling the automated refund hotline (1-800-829-1954) sometimes gives slightly different info than the website. Hang in there - based on what others are sharing, it sounds like many February filers are still in the same boat!

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.