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.

14 Is that really necessary? I've been doing one annual payroll for my single-member S corp for 3 years with no issues. Seems like extra work and payroll fees for no reason.

22 While not technically required, it can definitely help establish the legitimacy of your employment relationship with the S corp. The IRS often raises eyebrows at once-a-year payments because regular employees typically don't get paid just once annually. Multiple payroll runs throughout the year can strengthen your position that you're treating the employment relationship properly. Plus, it helps with cash flow planning and can make your estimated tax payments more manageable rather than dealing with one large tax hit. My accountant specifically mentioned this was one of the factors that can help avoid unwanted IRS attention.

9 Yes! I'm in California and they required quarterly payroll tax reporting even though I was below the federal threshold. Got hit with a $250 penalty my first year. Definitely check your specific state requirements.

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.

What about if I know I need to file an extension? Does that need to be done by 11:59pm on the 15th too? And is there any downside to filing an extension?

Yes, the extension request (Form 4868) must also be filed by 11:59pm local time on April 15th. Electronic is best because you get immediate confirmation. The main downside to an extension is that it only extends the time to file your paperwork, not to pay what you owe. You still need to estimate what you might owe and pay that by April 15th to avoid penalties and interest. If you're getting a refund, there's no downside at all to filing an extension. And having an extension actually slightly reduces your audit risk according to some statistics, though that shouldn't be your main reason for filing one.

This saved me last year! My local post office has a self-service kiosk that's open until midnight, and the postmark from that counts as official. Double check your local post office hours if you're cutting it close.

Great tip about the self-service kiosk! Not all post offices have them though, so definitely check ahead of time. And remember that private delivery services like FedEx or UPS can also be used, but the IRS only accepts certain types of delivery services as "timely filed" - there's an official list on the IRS website. One more thing: if you're mailing a payment with your return or extension, use Form 1040-V for the payment. Makes processing faster and ensures your payment gets properly credited to your account.

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!