Do these VITA places have actual tax pros or just volunteers? I'm nervous about having someone who doesn't really know what they're doing handle my taxes, even if it's free.

They're volunteers but they're all IRS-certified and have to pass tax law training. Many are accounting students, retired tax professionals, or people who work in finance who volunteer their time. Each return also gets quality reviewed by a second volunteer before it's submitted. They're especially good with straightforward tax situations like W2 income. I volunteered with them for two years and the training was really comprehensive. For complex situations involving businesses or complicated investments, you might want a paid professional, but for basic W2 filing, they're absolutely qualified.

TurboTax is notorious for advertising "free" but then charging for almost everything. I've used FreeTaxUSA for the past 4 years including for a late 2022 W2 filing and it's actually free for federal (like $15 for state). Way more honest than TurboTax.

TurboTax is the WORST for this! They've been sued multiple times for their deceptive "free" marketing. They have a truly free version that's hard to find on their site, and they'll try to upsell you at every step. For basic W2 filing, use FreeTaxUSA or Cash App Taxes instead - they're actually free unlike TurboTax.

Do you know if the age requirements are changing too? Currently it's under 17, but I've heard rumors they might extend it for older dependents like they did during COVID.

The age requirement is staying the same under the current proposal - children must be under 17 at the end of the tax year to qualify for the Child Tax Credit. The temporary expansion during COVID that included 17-year-olds is not part of this new legislation. What's staying consistent is the income phase-out thresholds - $200,000 for single filers and $400,000 for married filing jointly. The credit begins to reduce by $50 for each $1,000 of income above these thresholds.

Thank you! This is exactly what I was trying to figure out. So my ex who didn't work in 2023 won't be able to claim the CTC for the kids for the 2023 tax year, even with these new changes coming? But potentially for 2024 taxes she could use her 2023 income (if she had any) to qualify?

That's exactly right. For the 2023 tax return that your ex will file in the coming months, she would need earned income in 2023 to benefit from the refundable portion of the CTC. The new changes won't help for this coming tax season. For the 2024 tax year (which will be filed in early 2025), the new rules would take effect. At that point, she could potentially use either her 2023 income OR her 2024 income to qualify for the CTC, whichever is more beneficial. But for the return she's about to file for 2023, the current rules still apply.

Wait, I thought electronics like phones and computers (and I'm assuming watches?) were 3-year property, not 5-year? Now I'm confused about how I've been depreciating my business tech.

You're right to be confused because the rules aren't always intuitive. Computer equipment (including peripherals like tablets and smartphones) is actually 5-year property under MACRS, not 3-year as many people assume. This includes smartwatches when they're used as computer peripherals. The IRS classifies most technology and office equipment as 5-year property. The 3-year property class is more limited and generally includes things like tractor units and racehorses. It's a common misconception, so don't worry if you've been using the wrong recovery period - you can correct it going forward.

I've done this in TurboTax. You need to go to the Business section, then look for "Business assets, depreciation & section 179." There's a section specifically for entering assets purchased during the year. You'll enter the watch, its cost, business use percentage, and then it will walk you through options for Section 179, bonus depreciation, or regular depreciation. Don't enter it as a simple expense - that's definitely not correct for something that has a useful life of more than one year. The software should help calculate everything correctly once you enter it as a depreciable asset.

That's a good suggestion about adding a buffer. I hadn't considered that. How do you handle the timing of your Roth conversions throughout the year? Do you do them all at once, or spread them out quarterly to match when you're making the estimated payments?

I spread my conversions throughout the year rather than doing them all at once. This gives me more control and helps with cash flow since I'm making estimated tax payments quarterly anyway. I usually do slightly larger conversions in the first half of the year, especially if the market is down. This gives those converted amounts more time to potentially grow tax-free in the Roth. By December, I have a clearer picture of my exact tax situation and can make a final conversion that precisely hits my target bracket maximum.

Most tax software isn't designed for future year planning like this. I've had good luck with Excel spreadsheets that you can update with the new tax brackets each year. The IRS usually announces inflation adjustments for the upcoming year around October/November.

Thanks for confirming what I suspected! The tax software just isn't built for this kind of forward planning. I guess I'll need to build my own spreadsheet or look into some of the dedicated retirement planning tools mentioned in this thread.

Thank you for this suggestion! I had no idea states might have their own free filing options. I'm in California - does anyone know if they offer something similar?

Yes, California absolutely has a free filing option! It's called CalFile and it's available directly through the California Franchise Tax Board website. It's completely free for eligible California taxpayers and handles most common tax situations. Just go to ftb.ca.gov and search for CalFile. Many other states have similar programs - Illinois has MyTax Illinois, New York has their own free filing options too. It's definitely worth checking your state's tax department website before paying for state filing through a third-party service.

This is super important advice. I switched from TurboTax last year and forgot to download my previous returns first. Made things way more complicated when I needed to reference something. Get those PDFs saved somewhere safe before you cancel!