Is there a good app you recommend for tracking business miles? I always forget to log them and probably lost out on hundreds in deductions last year.

I use MileIQ and it's been super helpful. It automatically tracks when you're driving and then you just swipe right for business trips and left for personal. Takes like 2 seconds per trip. Stride is another good one that's free, but I find it misses some trips since you have to manually start tracking. Either way, the standard mileage deduction is 65.5 cents per mile for 2023, so it adds up crazy fast especially for renovation work where you're going to different job sites!

In my experience it's worth checking! I amended my 2022 return after ignoring that message for months and got an additional $1200 refund. I had missed some legit business expenses my first year. Different software sometimes finds different deductions.

How did you find your tax attorney? I'm in a somewhat similar situation (owe about $30k from business losses) and have been getting bombarded with ads from tax resolution companies that sound super scammy with their "we can settle for pennies on the dollar" promises.

I found our attorney through the state bar association's referral service. I specifically asked for attorneys specializing in tax controversy and resolution. This approach was much better than responding to those "pennies on the dollar" ads, which are usually misleading. The bar association gave me three names, and I interviewed all of them. I asked about their experience with cases similar to ours, their success rate with Offers in Compromise, and their fee structure. Our attorney charged a flat fee for the initial analysis of our situation, then another flat fee for preparing and submitting the Offer in Compromise. This was much more transparent than the percentage-based fees some places charge.

Thanks for mentioning this! Do you know what the income limits are to qualify for these clinics? And do they help with state taxes too or just federal?

It depends entirely on your state and your income situation. If you earned income in the state, then yes, you generally need to file a state return. If you received only fellowship/scholarship money and none of it was for services (like teaching or research), then some states don't require a return. I learned this the hard way when I skipped filing a state return my first year, and got a letter from the state tax department the next year. Not worth the stress!

Thanks for clearing that up! So if I worked on-campus in the university bookstore last year, I definitely need to file a state return, right? My W-2 shows state taxes were already withheld.

I used Glacier last year and it was pretty straightforward for the federal return. The interface isn't as fancy as Sprintax but it gets the job done. For state returns, I ended up just filing directly through my state's department of revenue website since my situation was simple. Saved about $35 that way.

Do they have a good interface though? I tried using some of the free options before and got frustrated because they weren't as user-friendly as TurboTax. I'm willing to pay a little for convenience but not the outrageous prices they're charging now.

The interface isn't quite as polished as TurboTax, but it's definitely user-friendly and guides you through everything step by step. They have all the same interview-style questions and explanations, just without the fancy animations and marketing fluff. It took me maybe an extra 15 minutes the first year compared to TurboTax, but I saved $80, so totally worth it. They also save your info from previous years, so each year gets faster. The help section is actually better than TurboTax in my experience - more straightforward explanations of tax concepts without trying to scare you into upgrades. Honestly, after the first year, I prefer their simpler approach.

This!! The regular "free" version on TurboTax's website is NOT the same as the Free File version. They create these confusing names on purpose. I got tricked last year and ended up paying $89 for something that should have been completely free. The tax software companies are so predatory it's ridiculous.

Thanks for bringing up the Child Tax Credit - I hadn't even thought about that! Do you know if there are income limits for claiming it? And are there any other tax benefits I should look into as a new parent?

Yes, there are income limits for the full Child Tax Credit. For 2023, the credit begins to phase out at $200,000 for single filers and heads of household. If you earn more than that, the credit amount reduces by $50 for each $1,000 above the threshold. As for other benefits, definitely look into the Dependent Care Credit if you're paying for childcare so you can work. Also, check if your employer offers a Dependent Care FSA, which lets you set aside pre-tax money for childcare expenses. North Carolina may have additional state-level credits or deductions for dependents, so check your state tax forms too.

Do formula and diapers count as medical expenses too? I've been spending a fortune on those.