


Ask the community...
Has anyone used TaxAct or TurboTax for filing multiple years of back taxes with 1099 income? I'm in a similar situation and wondering which software handles this best.
I used TurboTax for 3 years of unfiled 1099 taxes last year. It worked ok but you have to buy each year separately which adds up fast. They don't make it super clear how to find the previous year versions either - you have to specifically search for "TurboTax 2019" etc. on their site. The business version is what you need for 1099s, which is their most expensive tier.
One important thing nobody's mentioned yet - if you're trying to catch up on unfiled 1099 taxes, make sure you're keeping your current year tax obligations on track too! For 1099 income, you should be making quarterly estimated tax payments. One of the biggest mistakes I made when catching up on my back taxes was ignoring my current year, which just created another problem. Set up those quarterly payments while you're sorting out the past years.
One thing nobody's mentioned yet - get your divorce attorney involved in this decision if possible. My lawyer actually advised against filing jointly during our separation because my ex had some questionable business deductions that could have triggered an audit. The potential tax savings weren't worth the risk of being tied to his return. Different situation for everyone tho.
That's actually really helpful - I hadn't thought to ask my attorney about the tax implications. Were you able to claim head of household status since you had the kids, or did you have to use married filing separately? I'm trying to figure out which status would give me the best outcome.
I couldn't claim head of household that year because my divorce wasn't final yet and my ex and I were still living together for part of the year. I had to use married filing separately, which wasn't ideal tax-wise but gave me peace of mind. For your situation, since you've been living separately since June and have the kids primarily with you, you might qualify for head of household status even while still technically married. You'd need to meet certain requirements like paying more than half the cost of keeping up your home and having a qualifying dependent living with you for more than half the year. This status gives you better tax rates than married filing separately and access to certain credits you'd otherwise lose.
Don't forget about the timing of your divorce! If your divorce will be final early in 2025, it might be worth delaying it by a few weeks to have the option of filing jointly for 2024. My ex and I saved almost $3k by pushing our divorce finalization from December 28 to January 3. Totally awkward but worth it financially.
That's actually genius but also kinda hilarious. Did your lawyer suggest this or did you figure it out yourself? I wonder if judges ever get annoyed by people strategically timing their divorces around tax season lol
Just to add a bit more detail since I work in HR - the 1095-C form has three parts: 1. Your employer and personal info 2. Info about the coverage your employer offered 3. Covered individuals (if your employer is self-insured) Your husband probably got this from his large employer. The 1095-B is similar but comes from insurance companies or government programs. As others mentioned, you don't file these forms with your taxes, but keep them for your records in case the IRS has questions about your health coverage.
Do you know if these forms matter for the Premium Tax Credit? My sister gets insurance through the marketplace and she's trying to figure out if these forms affect her refund.
Great question! The 1095-B and 1095-C forms themselves don't directly impact the Premium Tax Credit. However, if your sister receives insurance through the marketplace, she should receive Form 1095-A, which IS needed to claim the Premium Tax Credit. The 1095-A is different from the B and C versions and contains essential information for calculating the Premium Tax Credit on Form 8962. So while the B and C forms are just for your records, the 1095-A is actually needed for filing if you got marketplace insurance and want to claim the credit.
I actually threw mine away last year thinking they were junk mail lol. Nothing bad happened! But now I know to keep them with my records just in case.
Same! I tossed mine and then panicked afterward. Called the IRS and they said it wasn't a big deal as long as I had health insurance. The forms are mostly for their records.
One thing nobody mentioned - you should DEFINITELY get something in writing from the IRS stating that your balance is $0 and the CP-2000 issue is resolved. Even if your online account shows zero, having documentation is crucial for protecting yourself if this ever comes up again. You can request a tax account transcript through the IRS website or ask the IRS representative to send you a formal letter confirming the $0 balance. I learned this the hard way when an issue I thought was resolved popped up again three years later, and I had nothing to prove I'd already taken care of it.
Can I just print out the screen from my online account showing the $0 balance? Or do I need something more official than that?
A screenshot of your online account is a good start, but it's not enough by itself. IRS systems can update, and a screenshot doesn't prove that a specific issue (your CP-2000) was resolved - only that your balance was $0 at a particular moment. You should request an official "Account Transcript" through the IRS website. This document shows all transactions and communications on your account, including adjustments that cleared the CP-2000 issue. Even better is to request a "closing letter" that specifically addresses the CP-2000 notice by its reference number. This gives you concrete proof that this specific issue was resolved, not just that your balance was temporarily zero on a certain date.
As someone who used to work for a tax resolution firm, I'd add one more thing - check if you received a closing letter for the CP-2000 (often a letter number 2030C). If not, you should absolutely call to verify the status. Sometimes the IRS makes adjustments based on information they receive from third parties without properly notifying you. Even if your account shows $0 now, if the issue isn't formally closed in their system, it could potentially come back later. The IRS operates on extremely slow timelines, and sometimes notices cross in the mail. Better to be 100% sure than to have this resurface years later with interest and penalties attached.
Do CP-2000 notices have a statute of limitations? Like, if they don't follow up within a certain timeframe, does the issue expire?
Lauren Zeb
Important note that nobody has mentioned yet - if you end up having to pay taxes as if you were a 1099 contractor for 2023, make sure you deduct all your business expenses! That includes a portion of your phone bill if you use it for work, home office deduction if applicable, mileage, work supplies, etc. This can help offset some of the extra tax burden.
0 coins
Daniel Washington
ā¢How do you properly document these expenses if you didn't track them throughout the year? I'm in a similar situation and I use my personal computer and cell phone for work all the time, but I don't have any special receipts or anything.
0 coins
Lauren Zeb
ā¢You can still claim those expenses even without perfect documentation. For things like cell phone and internet, determine what percentage is used for work (be reasonable and honest) and deduct that percentage of your bills. Pull your statements from 2023 to calculate the total. For a home office, measure the square footage of your dedicated work space compared to your total home size. That percentage can be applied to rent/mortgage, utilities, etc. For computer equipment you already owned, you can deduct the business-use percentage based on current fair market value if you started using it for business in 2023. Going forward, keep better records - a simple spreadsheet works, along with taking photos of receipts. Remember, in an audit you need to prove these were legitimate business expenses, so some documentation is better than none.
0 coins
Aurora Lacasse
Has anyone actually succeeded in getting their employer to pay back taxes after being misclassified? My employer just agreed to make me W2 going forward but refuses to do anything about 2023 where I paid way too much in taxes.
0 coins
Anthony Young
ā¢I had partial success. Filed the SS-8 and 8919 forms, and after the IRS determination (took like 8 months), my employer had to pay their share of FICA taxes. They were annoyed but ultimately it worked out. We're still on good terms. The key was being super professional about it and framing it as "just following tax law" not a personal issue.
0 coins