Dude that's literally the opposite of punk rock. You're GIVING the government an interest-free loan of your money for a whole year! That's exactly what they want you to do! If you got that money in your paycheck instead, you could invest it all year and actually make money on it.

This is probably the best advice on here. I'll start reading up on the tax code and trying to understand it better. Any recommendations on where to start for someone who's pretty much a beginner with all this? Books, websites, etc?

For beginners, I'd avoid diving straight into the tax code itself - it's dense and will just frustrate you. Start with the IRS's own Tax Tips section on irs.gov - it's surprisingly readable. The Nolo Guide to Taxes is also good for beginners. For understanding concepts more deeply, I like the Tax Foundation's explainers. They break down complex topics without oversimplifying. Once you grasp the basics, The Wall Street Journal's Guide to Planning Your Financial Future has excellent tax chapters. J.K. Lasser's Your Income Tax is updated annually and is like a readable reference manual for practical applications. Just commit to learning consistently rather than cramming at tax time, and within a year you'll know more than 90% of taxpayers.

Does the QCD approach mean I wouldn't have to worry about whether I'm over the standard deduction threshold? I'm 72 and taking RMDs, but was going to just take standard deduction since my church donation is only $10k.

Exactly right! With a QCD, you don't have to itemize to get the tax benefit. The money goes directly from your IRA to the church and never counts as income to you in the first place. It's a much better approach for people who are taking RMDs and wouldn't otherwise itemize. Your $10k donation would reduce your taxable RMD amount by $10k, which typically saves more in taxes than itemizing would, especially if you wouldn't exceed the standard deduction threshold otherwise. Just make sure your IRA custodian sends the money directly to the church - you can't take the distribution yourself and then donate it.

Most churches automatically qualify as 501(c)(3) organizations even if they're not in the database. Churches don't actually have to apply for tax-exempt status, unlike other charities. But it's still good practice to make sure they can provide you with the proper donation acknowledgment letter.

Is there a way to see how much I've contributed to Social Security so far in my lifetime? I'm curious what my eventual benefits might look like.

Yes, you can create an account at ssa.gov (the official Social Security Administration website) and access your Social Security Statement. This shows your lifetime earnings record, FICA contributions, and provides estimates of your future benefits based on your current earnings trajectory. It's actually really interesting to see how your benefits are calculated based on your contributions. The SSA uses your highest 35 years of earnings to calculate your benefit amount, so your early career earnings will factor into what you eventually receive in retirement.

Except that Social Security might be insolvent by the time we retire...isn't that what everyone says? I feel like we're paying for current retirees but won't get anything ourselves.

How did you decide on your niche? I'm still trying to figure out what area I might want to focus on. Did you just follow what interested you, or was it more about what clients you already had?

I looked at the intersection of three things: what I found intellectually interesting, what clients were in our geographical area (lots of real estate investors), and what was profitable. You don't want to choose a niche that's so narrow you can't build a client base. I started by simply taking on more real estate clients and studying that area more deeply. I joined real estate investment groups in my city to network and learn the industry language. The more I understood their business challenges, the better tax advisor I became. Over time, I naturally started attracting more similar clients as my reputation grew.

Check out the practice management CPE from Thomson Reuters. They have some excellent practical courses on workflow efficiency and client management that go beyond just tax code updates. I also really liked the case study courses from the AICPA.

Thanks for the suggestion! I'll definitely look into those Thomson Reuters courses. The workflow efficiency ones sound especially helpful since that's where I'm struggling most.

10 Does this apply even if the business didn't make any profit? My brother put me as a 10% owner in his LLC but they operated at a loss last year. Do I still need to file something?

22 Yes, you absolutely need to file even if the business operated at a loss. In fact, reporting business losses on your K-1 can potentially reduce your overall taxable income from other sources. When you receive a K-1 showing losses, those losses may be deductible against your other income (subject to certain limitations like passive activity rules and basis limitations). This could lower your overall tax burden. But regardless of profit or loss, you must report the K-1 information on your personal return because the IRS receives this information from the business entity and expects to see it reflected on your return.

8 Omg phantom income is the WORST! My husband and I got hit with a huge tax bill from his 30% ownership in an LLC that reinvested all the profits back into the business. We had to pay taxes on money we never actually received! 😡 Make sure you look at your operating agreement to see if it requires tax distributions to cover these situations.