23 Has anyone here used TurboTax to handle the PSO health insurance exclusion? I'm wondering if it has a specific input for this or if I need to somehow manually adjust my income to account for it.

12 Great discussion here! As someone who went through this exact situation a few years ago, I wanted to add that it's also worth keeping detailed records of your health insurance premium payments throughout the year, even though they're being deducted directly from your pension. The IRS could potentially ask for documentation during an audit to verify that the excluded amount was actually used for qualifying health insurance or long-term care premiums. I keep copies of my insurance statements showing the monthly premium amounts, plus documentation from my pension administrator showing how much was deducted each month. Also, don't forget that this exclusion applies to both health insurance AND qualified long-term care insurance premiums, up to the combined $3,000 limit. Some retired officers miss the long-term care piece and could be excluding more if they have both types of coverage.

One thing I haven't seen mentioned yet is the home office deduction - if you use part of your home exclusively for managing your Uber Eats business (like a desk where you track expenses, plan routes, or handle paperwork), you might be able to deduct a portion of your rent/mortgage and utilities. It's called the simplified home office deduction and you can claim $5 per square foot up to 300 square feet. Also, don't forget about other potential deductions like: - Hot/cold bags and other delivery equipment - Car phone mounts or GPS devices - Hand sanitizer and masks (still deductible if used for work) - Parking fees and tolls during deliveries The key thing to remember is that you're running a small business, so think like a business owner when it comes to expenses. Keep receipts for everything and when in doubt, ask a tax professional. Many will do a quick consultation for free to tell you if something is deductible. You're going to be fine! The first year is always the scariest but once you get through it, you'll have a system down for next time.

Hey Brielle! I totally get the panic - I was in almost the exact same situation when I started doing gig work. The good news is it's really not as scary as it seems once you break it down. Here's the simple version: on $30k from Uber Eats, you're probably looking at paying around 25-30% of your NET profit (after deductions) in total taxes. The key word is NET - not the full $30k. First thing to do is track your mileage ASAP. At 65.5 cents per business mile, this alone could save you thousands. If you drove 20,000 miles for work, that's a $13,100 deduction right there! Also deductible: phone bill (business portion), delivery bags, car supplies, even hand sanitizer you bought for work. For the quarterly payments - yes, you'll probably face some penalties, but they're typically just a few hundred dollars, not thousands. The IRS has payment plans if you can't pay everything at once. My advice: don't try to do this alone. Either use a service designed for gig workers or find a tax pro who understands 1099 work. It'll save you way more money than it costs. And next year, start putting aside 25-30% of each week's earnings in a separate account - trust me on this one! You've got this! The first year is always the hardest, but you're asking the right questions.

I've been lurking and reading through all these responses, and wow - this community is amazing! As someone who's also dealing with unemployment and unexpected tax debt (I owe about $2,100 from some contract work), seeing all these different experiences and solutions has been incredibly reassuring. What really stands out to me is how many different paths there are to handle this situation. Between payment plans, Currently Not Collectible status, penalty relief for reasonable cause, and even services like the Taxpayer Advocate that can help explain everything for free - there are way more options than I initially thought. I think the most important takeaway from this whole thread is what several people mentioned: the IRS actually wants to work with you if you're proactive about it. They'd rather get paid eventually than have to chase people down. And filing on time even if you can't pay is crucial since the failure-to-file penalties are so much worse. For anyone else reading this who's in a similar situation - don't let the fear paralyze you like I almost did. Start with the IRS Payment Plan tool online to see what you qualify for, and if your situation is more complex, reach out to the Taxpayer Advocate Service for free guidance. Document everything about your unemployment status and be honest about your financial situation. Thank you to everyone who shared their experiences here. You've turned what felt like an impossible situation into something manageable with clear next steps!

I'm reading through this thread as someone who's been in a very similar situation, and I want to add a few things that helped me when I was unemployed and owed the IRS money. First, don't underestimate the power of calling the IRS directly and explaining your unemployment situation in detail. I know it's intimidating, but when I finally got through (yes, it took multiple attempts), the agent was actually very understanding. They walked me through options I didn't even know existed and helped me figure out which one made the most sense for my specific situation. Second, if you do end up setting up a payment plan, ask about penalty abatement right away. Many people don't realize you can request this separately, and unemployment definitely qualifies as reasonable cause. I got about $400 in penalties waived just by asking and providing documentation of my job loss. Third, once you do find work again, consider opening a separate savings account specifically for taxes if you plan to do any freelance or gig work. I learned this lesson the hard way, but now I automatically transfer 30% of any 1099 income into a "tax account" that I don't touch. It's made tax season so much less stressful. The anxiety you're feeling is completely normal - I was losing sleep over a $2,400 tax bill when I was unemployed. But there really are solutions, and the IRS is more willing to work with people than most of us expect. You're already on the right track by seeking advice and being proactive about it!

As someone who went through this exact same struggle last year, I completely understand the confusion! The W-8BEN form is definitely intimidating when you're dealing with it for the first time. Here's what I learned after making a few mistakes and having to resubmit: **The essentials for Australian developers:** - Leave the US taxpayer ID field blank (you don't need an ITIN for app royalties) - For the foreign tax ID, you can use your TFN or ABN if you have one, but it's actually optional - I left mine blank for privacy reasons and it was accepted - Reference number field stays empty - **Most important:** Check box 9 for treaty benefits - this drops your withholding from 30% to 5% - Leave box 10 blank unless you're claiming special exemptions (which you're not as a standard developer) **Pro tip:** Make sure your name on the form exactly matches your Apple Developer account. Even small differences like using a middle initial on one but not the other can cause rejection. The good news is once Apple processes it (usually within 48 hours), the reduced tax rate applies immediately to all future payments. It made a huge difference to my first few months of revenue! Don't overthink it - you've got this! Your game sounds exciting and this tax form is just a small hurdle before you can start earning from your hard work.

Hey Andrew! I just went through this exact same process about 4 months ago when launching my first indie game, so I totally understand the confusion. The W-8BEN definitely looks more intimidating than it actually is! Here's what worked for me as an Australian developer: **Key fields to focus on:** - US taxpayer ID: Leave blank (you don't need this as an Australian) - Foreign tax ID: I used my TFN, but you can leave this blank if you're concerned about privacy - both work - Reference number: Leave blank - **Line 9 (most important!)**: Definitely check this box for treaty benefits - reduces withholding from 30% to 5% - Line 10: Leave blank unless claiming special exemptions (which you won't be as a standard developer) **Quick tip:** Double-check that your name on the W-8BEN exactly matches your Apple Developer account - even small differences can cause rejection. Once Apple processes it (usually takes 24-48 hours), the 5% withholding rate applies immediately to all your payments. Made a huge difference to my revenue right from the first payment! The form might seem overwhelming now, but you're literally just a few checkboxes away from getting your game earning money. Congrats on getting so close to launch - that's the exciting part! This tax paperwork is just a small administrative step before you can start seeing the results of all your hard work. You've got this! 🎮

Has anyone used the Safe Harbor for Small Taxpayers provision for this kind of expense? If your rental property has an unadjusted basis of $1 million or less, and your gross receipts are under $10 million, you might be able to deduct repairs and improvements up to the lesser of $10,000 or 2% of the unadjusted basis of the building annually.

For your $8,700 foundation repair in Phoenix, the key factor is whether this is restoring your property to its previous condition or actually improving it beyond what it was before the damage occurred. Since you mentioned the soil shifted after heavy rains and created new cracks, this sounds like you're dealing with sudden damage that needs to be repaired to restore normal function. This could potentially qualify as a deductible repair expense rather than a capital improvement that needs to be depreciated. Make sure to document everything thoroughly - take photos of the damage, get weather reports from that time period, and have your contractor provide a detailed invoice explaining exactly what work is being done to address the specific damage. The IRS will want to see that you're fixing a problem, not upgrading or improving the foundation beyond its original condition. Given the substantial cost though, I'd strongly recommend getting professional guidance from a tax professional or CPA who specializes in rental property taxes before making your final decision on how to classify this expense.