3 I've heard QuickBooks is expensive though. Are there any free or cheaper alternatives that would work for someone just starting out with one contract?

9 There are definitely more affordable options for beginners. Wave is completely free for basic accounting and receipt tracking. Also check out Stride Tax which is free and designed specifically for tracking expenses and deductions for independent contractors. When you're just starting with one contract, these simpler tools are often enough until your business grows more complex.

1 This is really smart - I never would have thought about separate accounts. Do I need to set up an LLC first or can I just open a business account as myself?

I haven't had anyone look at the QBI angle for my business specifically. Could you explain a bit more about what makes a SaaS qualify as non-service vs service? My platform is completely automated with very little direct customer support or customization.

For SaaS businesses, the distinction between service and non-service for QBI purposes comes down to whether your business relies on the reputation or skill of its owners/employees. Fully automated platforms with minimal human intervention tend to have a stronger case for non-service classification. Key factors that help qualify as non-service: if your software operates with minimal customization, if customers use it without your direct involvement, if it's standardized rather than tailored to specific clients, and if the value comes from the technology itself rather than your expertise. Your description of an automated platform with little customer support actually sounds promising for non-service classification. I'd recommend getting a tax professional to document these aspects of your business carefully, as qualifying for QBI at your income level could mean an additional $140k deduction (20% of your profit), which is substantial.

I've been using TaxSlayer for my S-corp for 3 years now (solo consultant). It's actually not that bad once you get used to it. The first year I had an accountant set everything up, then I just copied the structure for following years. Way cheaper than paying an accountant $2k+ annually.

No self-employment at all - just a regular W-2 job. The amendment was only to claim some education expenses I forgot on the original filing (Form 8863 for education credits). Nothing business related whatsoever. I'm wondering if maybe the "8" in 8863 and the "95" from somewhere else got combined into "8895" in their system? Still doesn't really explain why they'd be asking for a form that doesn't exist though.

The combination of 8863 and some other form number accidentally creating 8895 is actually a really plausible explanation. The IRS's computer systems are ancient and glitches like this happen more often than they admit. Since your amendment involved education credits, another possibility is they might be looking for Form 8915 (which relates to retirement plan distributions, but sometimes these codes get mixed up). Or maybe even Form 8885 (Health Coverage Tax Credit). I'd definitely recommend calling back and specifically explaining you amended for education credits using Form 8863, and asking if that might be causing confusion in their system. Sometimes just mentioning the correct form can help the rep figure out what's happening.

Good point! Real IRS notices have specific security features. The paper should have a watermark visible when held up to light. Also check if the letter has your last 4 SSN digits (scammers often don't have this). And NEVER call a phone number listed in a suspicious notice - always call the official IRS number instead.

How long did that process take? I'm concerned about waiting too long and missing deadlines for filing if the company drags their feet on making corrections.

In my case, it took about 8 weeks from my initial contact until I received the corrected form. This was with a large multinational corporation that had established processes for handling these issues. If you're working with a smaller company or one that doesn't regularly deal with international payments, it might take longer or they might not know how to make the correction. I'd recommend giving them a 2-month timeline - if they haven't resolved it by then, proceed with the refund claim process to ensure you don't miss any deadlines.

Wouldn't you need a US taxpayer identification number to file these forms? I thought that was part of the complexity.

Yes, you do need either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). If you don't already have one, you'll need to apply for an ITIN using Form W-7 which you would submit simultaneously with your 1040NR. That's probably what the accounting firm meant by "US tax registration" in their quote. Getting an ITIN can be tricky as you need to provide certified copies of identification documents (passport usually). You can either mail certified copies (certified by the issuing agency) or use an IRS-authorized Acceptance Agent who can verify your original documents.

Thanks for the clear explanation. My gut was telling me this didn't sound right. I'm definitely going to get a second opinion from a tax professional before filing. Do you think I should tell my immigration lawyer about these concerns or just quietly get tax advice separately?

I would absolutely discuss your concerns with your immigration lawyer, but frame it constructively. Perhaps say something like, "I've been researching the tax implications, and I understand that dependent status vs. marital status on tax returns can be scrutinized during the immigration process. Can we discuss how to properly document our financial relationship without potentially creating inconsistencies?" This approach acknowledges your lawyer's expertise in immigration while opening the door to correcting any tax misunderstandings. Also, it would be very helpful to consult with a tax professional who has experience with immigration cases specifically. They can often provide documentation that satisfies both IRS requirements and supports your immigration case appropriately.

True, and there's also the issue of the stepson's other parent. If the biological parent is claiming the child as a dependent (which they likely have the right to do if providing support), then trying to also claim the child could trigger automatic IRS flags.