That's interesting - my company definitely sets my hours and tells me exactly how to do the work. They even monitor my computer activity during work hours. Does that mean I should be classified as an employee instead? What would happen if I filed those forms you mentioned?

Based on what you're describing, it sounds like you're likely misclassified. When a company sets your hours, dictates how you perform your work, and monitors your activity, those are strong indicators that you should be classified as an employee, not an independent contractor. If you file Form SS-8, the IRS will review your situation and make a determination about your proper classification. This process can take several months, but it's free. If the IRS determines you are an employee, your employer would be responsible for paying their share of Social Security and Medicare taxes (the 7.65% you're currently paying as part of your self-employment tax). You could then file Form 8919 instead of Schedule SE to report those uncollected taxes on your income tax return, which would reduce your tax burden.

I'd recommend FreeTaxUSA over TurboTax for self-employed people. It does basically the same thing but costs like $15 instead of $120+ for the self-employed version of TurboTax. I've used both and FreeTaxUSA actually explained the self-employment deductions better.

We don't have marketplace insurance (covered through my employer) but your point about income-driven repayment plans is really helpful! I am on an IBR plan for my loans. Do you know how much filing separately typically reduces the monthly payments? Is it worth losing the tax benefits?

For Income-Based Repayment (IBR) plans, filing separately can make a significant difference in your monthly payments. When you file jointly, both your income and your spouse's are considered when calculating your payment, even if your spouse isn't responsible for the loans. Filing separately means only your income counts. The impact varies widely depending on income disparity between spouses. In your case, with your $85,000 income and your husband's $32,000, filing separately could reduce your monthly student loan payment by roughly 25-40%. However, this needs to be weighed against tax benefits lost. You'd lose the student loan interest deduction (up to $2,500), potentially higher retirement contribution limits, and other credits. I usually recommend calculating both scenarios - the annual tax savings from filing jointly versus the annual student loan payment savings from filing separately. For many clients, the student loan savings actually outweigh the tax benefits, especially if you're working toward loan forgiveness programs.

FreeTaxUSA is decent for basic comparison but it misses some of the nuances. Last year it showed only a $300 difference for us between filing methods, but when our accountant did it properly, there was actually a $1,800 difference because of how our state taxes interacted with federal deductions. The software missed that completely.

Omg I didn't even think about that! We aren't exactly on speaking terms but I guess I should try to find out how he reported the sale on his taxes. Is there any way to fix this if he did claim the entire exclusion? We're supposed to split everything 50/50 according to our divorce decree.

Yes, there's definitely a way to fix it, but it can be a bit complicated. First, your divorce decree is hugely important here - if it specifies a 50/50 split, that document will help you if there's any dispute with the IRS. What you need to do is file your return correctly according to your actual situation (claiming your rightful portion of the exclusion). If the IRS sends you a notice because of conflicting information from your ex's return, respond with a copy of your divorce decree and an explanation. You might also need to include Form 8379 (Injured Spouse Allocation) with your return if you think this might be an issue.

This is super important! When I sold my house, I initially forgot about the $22k we spent on a new HVAC system and bathroom renovation. Adding those to my basis saved me thousands in taxes. Even smaller improvements like new appliances or flooring can add up.

What about crypto? My CPA is charging me $350 extra just for my crypto transactions from last year. Is that normal?

Crypto typically does warrant higher fees because it's more complex and time-consuming than standard stock transactions. Many tax software programs don't handle crypto well, and there are special reporting requirements and basis calculation issues. That said, $350 extra depends entirely on volume and complexity. If you have just a handful of straightforward crypto transactions with clear basis information, that fee seems excessive. However, if you have dozens or hundreds of trades, mining income, staking rewards, or DeFi transactions, then $350 might actually be reasonable given the specialized knowledge and extra time required.

That's really helpful insight! I'll definitely ask what software she's using and if she's doing manual entry. I just checked my Robinhood 1099 again and I literally only made 7 trades last year, so manual entry wouldn't even be that time-consuming. Maybe it's worth getting a quote from another CPA who uses better software.

Thanks for bringing that up! Yes, my brother has lived with me full-time for the entire year. I have legal custody and provide over half of his financial support. He's still in high school even though he turned 18, so he meets the qualifying relative tests. I confirmed all the requirements before claiming him. It's just the credit refund part that was confusing me.

Sounds like you've done your homework! Just wanted to make sure because sometimes people don't realize all the specific requirements. Since your brother lives with you full-time and you provide most of his support while having legal custody, you're definitely filing correctly as HOH with him as a dependent. The ODC is still frustrating though. I had a similar situation with my mom living with me last year. What I did was adjust my W-4 at work to withhold a bit less each paycheck throughout the year, which meant I had a small tax liability when filing. Then the ODC actually helped reduce what I owed instead of just disappearing.

So what's the point of the Other Dependent Credit if most low income people don't owe taxes anyway? Seems like it mainly benefits higher income folks.