Does FreeTaxUSA handle state taxes too? I've been wanting to switch from TurboTax but I have a somewhat complicated return with multiple state filings.

Yes, FreeTaxUSA handles multiple state returns! Federal filing is completely free for any tax situation (unlike TurboTax's bait and switch), and each state return is only like $15. I had to file in two states this year because I moved, and it was super straightforward. Their interface isn't as pretty as TurboTax, but it asks all the same questions and found the same deductions. Honestly felt like it explained things more clearly too.

Omg yes!! I just checked my TurboTax receipt and they charged me an extra $25 for "Tax Planning Plus" which I never asked for! How do you even get that refunded?

Thanks for bringing this up! I hadn't even considered Form 8938. Do foreign properties always count as "specified foreign financial assets" or does it depend on how they're used?

Foreign real estate directly owned by you generally isn't considered a specified foreign financial asset for Form 8938 purposes. However, if your property is held through a foreign entity like a corporation or partnership, then the interest in that entity would need to be reported. That said, you absolutely need to report the income from the property (rental income, farming profits, or capital gains from selling) on your tax return regardless. And if you have foreign bank accounts where you're depositing the income from these properties, those accounts may need to be reported on both Form 8938 and the FBAR if they meet the thresholds.

This is an important point. I messed up my first year in the US because I didn't understand the dual-status alien filing requirements. Had to do an amended return and it was a nightmare. The year you move to or from the US has special tax considerations.

Thank you so much for this insider perspective! That makes a lot of sense. I've been keeping all my bank statements, invoices, and copies of the joint venture agreement, so I should have good documentation. I'll go ahead and report it all on my Schedule C as normal self-employment income. Do you think I should also include a note or explanation somewhere on my tax return about why there's no matching 1099-NEC for this income?

You're welcome! Glad I could provide some clarity from the federal side. I wouldn't add a separate explanation to your tax return - there's no good place for that kind of note anyway. However, when you complete Schedule C, there is a question that asks if you received all required Forms 1099. You can answer "No" to that question, which is sufficient. Just make sure you keep all your documentation organized in case of questions later.

OMG yes! I worked with the EPA on a water quality project and they called me a "cooperating technical advisor" instead of a contractor. But when I asked about taxes they just said "consult your tax professional" which wasn't helpful at all. Government speak is like a whole different language sometimes.

Thanks for mentioning this! We did get a small EIDL advance at the beginning of our operation. Should we bring the original loan documents or just the statement showing the forgiveness? My partner and I both work full-time in the bakery, easily over 500 hours each, so I'll definitely note that for self-employment tax purposes.

Bring both the original loan documents and the forgiveness confirmation if you have it. Your CPA will need to see the dates, amounts, and terms to properly account for everything. The forgiveness letter is especially important as it confirms the amount that won't be treated as taxable income. Since you both work full-time in the business, definitely make that clear to your CPA. You'll likely be subject to self-employment tax on your distributive shares of income. This is an area where partnerships can get complicated with the split between guaranteed payments and distributive shares, so having an experienced CPA is really valuable.

So true! Last year I thought I had everything and my CPA asked for documentation of my home internet expenses since I claimed part of it as a business expense. This year I'm scanning EVERYTHING just in case.

How do you handle student loan interest in TurboTax? My wife and I both have loans but I think there's an income limit for the deduction?

TurboTax handles student loan interest pretty well automatically if you enter the information from your 1098-E forms. You're right that there are income limits - the deduction starts phasing out at a modified adjusted gross income of $145,000 for married filing jointly and eliminates completely at $175,000. The nice thing is that TurboTax will calculate this phase-out automatically based on your income entries. Just make sure you've entered the 1098-E information correctly, and if you're near the income threshold, you can actually see the calculation change in real-time if you go into the tax forms view. It's an "above-the-line" deduction so you can take it even if you don't itemize.

I've used all three over the past few years. TurboTax has the slickest interface but charges for everything. FreeTaxUSA does everything TurboTax does for federal returns but charges only $15 for state. H&R Block is somewhere in between price-wise. For complex situations with multiple credits, I found TurboTax and H&R Block had slightly better explanations, but FreeTaxUSA got me the same refund amount for a lot less money. All three are accurate in my experience.