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The TurboTax satisfaction guarantee is only for their desktop software. I used to work for Intuit (not in tax stuff tho). Online products have different terms. Its in their fine print but they dont make it obvious.
That should be illegal though, right? They can't advertise a guarantee prominently and then hide in fine print that it doesn't apply to their main product that most people use?
Has anyone tried Credit Karma Tax (now called Cash App Taxes)? It's completely free for federal and state filing. I switched from TurboTax last year and it was pretty good, handled my somewhat complicated return with no issues. No hidden fees or fake guarantees.
I used it this year! It's definitely more basic than TurboTax but gets the job done. The interface isn't as polished but I saved like $120 and my refund was exactly the same as what TurboTax calculated when I did a comparison before submitting. Only downside is they don't support some more complex tax situations like multi-state filing or foreign income.
One thing nobody's mentioned yet - the Qualifying Surviving Spouse status is only available for the two tax years following the year of death. Since the husband died in 2021, the 2023 tax return (filed in 2024) would be the LAST year your mom could use QSS. Also, make sure you're looking at the right income threshold for your brother. It's not just whether he files his own return, but whether his gross income exceeds the threshold for being a qualifying relative ($4,700 for 2023 taxes). If he made more than that, he can't be your mom's qualifying person regardless of how much support she provides.
Thanks for pointing that out about the two-year limit! I think I got the year wrong in my original post - stepdad actually passed in 2021, not 2022, so this would indeed be the final year mom could use QSS status. My brother's income is definitely over that $4,700 threshold - he works part-time and makes around $18,000. Sounds like that automatically disqualifies him as a "qualifying person" for mom's QSS status then? So she'll have to file as single?
Yes, if your brother's income is around $18,000, that unfortunately means he cannot be considered a qualifying relative for tax purposes, regardless of how much support your mom provides. The gross income test is a firm threshold. Since he can't be a qualifying person for QSS purposes, your mom will need to file as Single for her 2023 tax return. For 2024 and beyond, she'll continue filing as Single unless her circumstances change (like remarriage).
Friendly suggestion - even though it sounds like your mom won't qualify for QSS based on your brother's income level, she should look into whether she qualifies for Head of Household status instead! It's not as beneficial as QSS but still better than Single. For HOH, the rules are a bit different. She would need to pay more than half the cost of keeping up the home where a "qualifying person" lived for more than half the year. A qualifying person can be a qualifying child OR qualifying relative. Your brother probably fails the gross income test for being a qualifying relative, but if there are other relatives living with her (like a parent, or maybe a different child), they might qualify her for HOH.
This is actually a really good point - a lot of people don't realize there's still hope for HoH status! I work at a tax prep office and see this misconception all the time. One correction though - for Head of Household, if you're trying to qualify using a relative who isn't your child, that person MUST be your dependent. So the brother still needs to meet the qualifying relative tests including the gross income test.
I'm surprised nobody mentioned the Qualified Business Income deduction (Section 199A)! As a 1099 contractor, you'll likely qualify for this deduction, which allows you to deduct up to 20% of your qualified business income. This is HUGE and can offset a good chunk of that self-employment tax. Of course, there are income limitations and other rules, but for someone at your income level, you should be able to take advantage of it. This deduction alone can make a big difference in your overall tax situation compared to being a W2 employee.
Don't make the mistake I did by not understanding the difference between a solo 401k and a SEP IRA. They sound similar but have different contribution limits. For my situation, the solo 401k was WAY better because I could put more away. Also check if your state has additional taxes for self-employed people. Here in California we have an additional 1.5% for the State Disability Insurance that caught me by surprise my first year.
One thing nobody's mentioned yet - make sure you check if you're eligible for your state's education credits or deductions too! Many states offer their own education benefits that are separate from the federal credits. For example, I live in New York and was able to claim the NY college tuition credit in addition to my federal Lifetime Learning Credit. Got me an extra $400 on my state refund that I almost missed!
Do you know which states offer these additional education credits? I'm in California and wondering if there's something similar I could claim.
I don't know all the states, but I know California doesn't have a specific education credit like New York does. Some states that definitely have education tax benefits include Indiana, Massachusetts, Michigan, and Wisconsin. The best way to find out is to check your state's department of revenue website or look at your state tax forms for education-related credits or deductions. Sometimes they're called different things like "Education Expense Credit" or "Tuition and Fees Deduction.
Heads up - you need to be really careful with the American Opportunity Credit if you think you might qualify. The IRS is super strict about checking eligibility for that one since it's partially refundable and worth up to $2500. Make sure you're actually enrolled at least half-time in a degree program and haven't already claimed it for 4 years. They will absolutely flag your return if something doesn't add up right!
Thanks for the warning! Since I'm returning to college and have taken classes years ago, I'll need to figure out if I've already used up my 4 years of American Opportunity Credit eligibility. Is there any way to check that, or do I just need to look through my old tax returns?
You'll definitely want to check your previous returns if you have them. The AOC can only be claimed for 4 tax years total, and they don't have to be consecutive. If you went to college right after high school and claimed it then, you might have used it up already. If you don't have your old returns, you can get tax transcripts from the IRS website that will show if you claimed the credit before. Just go to IRS.gov and search for "Get Transcript." This is something you want to be 100% sure about because claiming it a 5th time would definitely trigger problems.
Mohamed Anderson
Speaking from experience, I'd avoid Tax Hardship Center completely. I made the mistake of using them last year after being in a similar situation (7 years unfiled, mostly self-employed). They charged me the $500 initial fee, then came back and wanted another $3,000 to actually resolve my situation! I ended up going to a local Volunteer Income Tax Assistance (VITA) site instead, which helps people who make under $57,000 for FREE. They helped me file 3 years of returns (which was all I actually needed based on my income level) and set up a payment plan with the IRS. Total cost: $0. For your situation, especially as someone who's done freelance work, you might actually have deductions you don't know about that could significantly reduce what you owe. Look into expenses related to your illustration and music work - supplies, equipment, software, workspace, etc.
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Caleb Bell
ā¢Thank you for sharing this. Do you know if VITA sites can handle more complicated situations like mine with a decade of unfiled returns and mixed income types? I'm worried they might turn me away because it's too complex.
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Mohamed Anderson
ā¢VITA sites can definitely handle your situation. They're staffed by IRS-certified volunteers who specifically help people with lower incomes navigate tax issues. Many locations have volunteers who specialize in self-employment and 1099 income situations. You're right that some VITA sites might initially seem hesitant about handling 10 years of unfiled returns all at once. What I'd suggest is going in first to get help determining which years you actually need to file for (likely not all 10), and then working on 2-3 years at a time. Most people in your situation find they only need to file 6 years back to get into compliance.
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Daniel White
Has anyone ever filed for multiple years at once using online tax software like TurboTax or H&R Block? I'm in a similar situation (5 years unfiled) and wondering if that's a viable option.
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Ellie Perry
ā¢I filed 4 years of back taxes using FreeTaxUSA last year. You have to buy previous year versions separately, but it was WAY cheaper than TurboTax or H&R Block. I think I paid about $15 per year for state filing (federal was free). The downside is you have to print and mail the previous years - can't e-file them. Current year can be e-filed though.
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Daniel White
ā¢Thanks for the tip on FreeTaxUSA! Did you have to wait for each year to process before filing the next one, or did you send them all at once? I'm worried about penalties accumulating while I'm getting everything organized.
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