Has anyone had experience with Maryland? I filed last week and authorized a direct withdrawal but nothing has happened yet. Starting to wonder if I should contact them or just keep waiting.

Maryland typically takes 3-7 business days to process direct withdrawals, so you're still within the normal timeframe. Their processing times tend to be a bit longer than other states, especially during peak filing season. If you don't see any pending transaction by the end of next week, then I'd recommend contacting them. You can check your return status on the Maryland Comptroller's website using their "Where's My Refund?" tool (it also shows payment status) or call their taxpayer service line at 1-800-MD-TAXES.

You know what, I'm not 100% sure now that you mention it. I think I just went with whatever default date it suggested. I assumed it would be immediate but maybe I did select a specific date without realizing it. I'll need to go back and check my TurboTax submission again. That's a really good point - thanks for bringing that up!

I do get their certificates, but I never thought about them expiring. Do I need to verify them periodically? Most of these nonprofits are local organizations I know pretty well.

Yes, you absolutely need to periodically verify them. Personal relationships don't matter to auditors! In many states, exemption certificates expire after a set period (often 1-5 years depending on the state). I recommend setting up a simple tracking system - even just a spreadsheet - with each nonprofit customer, their certificate number, and expiration date. Then set calendar reminders to request updated certificates. Some states also have online verification systems where you can check if a certificate is still valid. Even in states where certificates don't technically expire, a nonprofit could lose its tax-exempt status, and you'd have no way of knowing unless you verify periodically. If that happens and you continue to make tax-free sales, you're the one who'll be responsible for that uncollected tax.

Smart business approach! We did something similar with our office supply company. The nonprofit discount program brought in so many new customers that it more than made up for the margin reduction. Plus, their ordering is often more predictable than regular retail customers.

Did your CPA suggest you form an LLC or S-Corp? I've heard that can save on self-employment taxes but not sure if it's worth it at my income level (around $70k).

My CPA actually advised against forming an LLC at first since it wouldn't provide tax benefits by itself - it's mainly for liability protection. However, once I hit about $80k consistently, she suggested an S-Corp structure which has saved me thousands in self-employment taxes. At $70k, you're right at the threshold where it might make sense. The basic concept is that with an S-Corp, you pay yourself a "reasonable salary" which is subject to self-employment taxes, but can take the rest as distributions that avoid those taxes. However, there are additional costs like payroll processing and more complex filing requirements. My CPA said generally it doesn't make sense until you're netting at least $60-70k after expenses.

I did exactly this last year! Cost me $125 for the review which was way cheaper than the $350+ for full preparation. The CPA found two mistakes - I had categorized some software subscriptions incorrectly and missed a home office deduction. Saved me about $800 in taxes for a $125 investment.

This is super helpful, thank you! My mom definitely provides way more than half my support. She pays the mortgage, all groceries, my cell phone, and even my car insurance. The money I made mostly went to save for college and some fun stuff.

That's perfect then - you absolutely qualify as her dependent. Just make sure when you file your return that you check the box saying someone else can claim you as a dependent. She'll get a much bigger tax benefit from claiming you than you would from claiming yourself.

This is important! My brother and I both claimed our mom one year (miscommunication) and we both got letters from the IRS within weeks. They flagged it immediately and it was a huge hassle to fix.

Thanks for sharing your experience! That's really helpful to know. I think I'll give H&R Block a try this year since I'd rather pay a bit more for a smoother experience, especially with something like backdoor Roth where the tax implications can be significant if reported incorrectly. Did you use their Deluxe or Premium version? I'm trying to figure out which tier I need.

I used their Premium version because I also had some investment income and rental property to report. For just the backdoor Roth, I believe their Deluxe version would be sufficient as it covers IRA contributions and Form 8606. Their website has a comparison chart that can help you determine exactly which features you need. The interface is pretty intuitive, with a dedicated section for IRA contributions where you specifically mark them as non-deductible. Then when you enter the 1099-R for the conversion, it connects the dots automatically. Just make sure you complete both sections for everything to calculate correctly.

This is such an important point that often gets overlooked! I nearly made this mistake myself. For anyone confused: with a backdoor Roth, you should NOT be deducting your Traditional IRA contribution at any point. The whole strategy only works tax-efficiently if you use after-tax dollars for the initial contribution. Otherwise, you'll end up paying taxes during the conversion step.

Thank you for bringing this up! I didn't deduct my Traditional IRA contribution on last year's taxes, so I should be okay on that front. But it's a really good reminder about ensuring consistency between tax years. I feel like there are so many gotchas with this strategy that the software doesn't really warn you about. Do you know if FreeTaxUSA has any special review checks for these kinds of issues?