That's a good point about the payment plans. I hadn't considered that they might be filing but just paying over time. About talking to my neighbor who runs the business, I'm honestly not sure how to bring it up without making it awkward. He's not a close friend, more of an acquaintance, and I don't want him to think I'm poking around in his business affairs.

If you're not comfortable talking to the business owner, that's understandable. These situations are definitely awkward. Maybe the best approach is to simply stay out of it then. The IRS has matching systems that will eventually catch up with them if they are indeed not filing or paying. If it really bothers you on a moral level, you could file that Form 3949-A that was mentioned earlier and let the IRS handle the investigation. That way you're not directly involving yourself or your neighbor in an uncomfortable conversation.

This is so true! I had a similar experience. I was a contractor for the first time in 2023 and had NO IDEA I needed to make quarterly estimated payments. Got hit with a huge tax bill plus penalties. The IRS payment plan interest rates are no joke either.

It's a painful lesson to learn! The tax system really isn't designed for people to easily understand, especially when transitioning from W-2 to 1099 work. The quarterly estimated payments catch so many people off guard. What's worse is that the longer someone goes without filing, the more intimidating it becomes to start. The fear of what you might owe can be paralyzing. I hope these women get proper tax advice before they dig themselves into a deeper hole.

Thanks! Is there a way to attach the CSV file directly or do I have to manually type each transaction? I have about 74 trades to report from last year.

Unfortunately FreeTaxUSA doesn't have a direct CSV import feature for crypto transactions. You'll need to enter them manually if you're not using a third-party tool like some others mentioned. If you have a lot of transactions, you might want to consolidate them by date if they're similar (like multiple small trades on the same day with the same cryptocurrency). FreeTaxUSA has a "Form 8949" checkbox that lets you indicate you're reporting summary information rather than each individual trade. Just make sure your totals are accurate.

What information did the exchange send if they didn't give you a 1099-B? I thought smaller exchanges weren't required to report?

Do you need a specific reason for hardship? My business is struggling mainly because I made some bad inventory decisions, not because of any external factors. Would that still qualify?

You don't necessarily need a specific external reason like a natural disaster. The SBA recognizes that small businesses face various challenges. Poor business performance itself can qualify as hardship, regardless of the cause. What matters is demonstrating that your current financial situation makes the original loan terms unmanageable. You'll need to provide financial statements showing reduced revenue or increased expenses that impact your ability to make payments. Your inventory decision issue would likely qualify as long as you can document its impact on your business finances.

Thanks for bringing this up! I actually didn't know about SCORE. Just looked into it and there's a chapter near me. Did you meet with your mentor in person or virtually? How long did it take to get matched with someone?

How do you even verify which type was paid? My financial service just says "tax payment" on the statement, and my company's equity admin isn't helpful.

You need to get documentation from the financial service that specifically shows the payment type and ideally the form used to make the payment. For estimated taxes, it would typically be Form 1040-ES. For AMT specifically, there's no separate payment form, but the payment should be designated for Form 6251. Ask the financial service for the exact copies of what was submitted to the IRS. Sometimes they use a payment voucher with specific codes that indicates what the payment was for. You can also request your IRS transcript which will show all payments received and how they were coded in the system. This is where services like Claimyr can help because you can ask the IRS agent directly how a specific payment was coded.

Very risky to dispute 409A valuations. The company sets those based on independent assessments, and challenging them can flag you for audit. Better to focus on properly tracking AMT credits for future years.

What about if you're divorced and alternate years claiming the child as a dependent? My ex claimed our daughter this year but I paid most of the daycare expenses. Can I still get the Child & Dependent Care Credit even though he claimed her?

That's a good question regarding divorced parents. The general rule is that the parent who claims the child as a dependent is the one eligible for the Child & Dependent Care Credit. However, there's an exception - if you're the custodial parent (child lived with you more than half the year), you can claim the credit for care expenses you paid even if you released your right to claim the child as a dependent to your ex. You would need to complete Form 8332 and make sure you're still eligible in other ways (like having earned income and paying for care so you could work or look for work). TurboTax should walk you through this specific scenario if you indicate your divorced status.

I switched from TurboTax to FreeTaxUSA two years ago and have been really happy with it. Their Child & Dependent Care Credit calculation has been spot-on for me. Plus, their interface actually shows you the form calculations so you can see exactly how they're determining your credit amount. And it's WAY cheaper!