Ugh, I feel even worse now knowing they saw me coming! Was there anything specific that made them charge me so much? I thought maybe it was the EIC calculations that were complicated, but you're saying that's actually simple?

The EIC and child tax credit calculations are completely automated in their software system. It's literally just clicking a few buttons and the computer does all the work. What they did was charge you their "deluxe" or "premium" package rates because you had tax credits. These places train their preparers to identify clients who might have refundable credits because those clients are often less price-sensitive (they're focused on the refund amount, not the preparation fee). They know you're getting a larger refund with those credits, so they take a bigger cut. Next year, remember that your return is actually quite straightforward and any of the major tax software options could handle it for a fraction of the cost.

Try Cash App Taxes next year (used to be Credit Karma Tax). Completely free for federal AND state, no income limits or hidden fees. I've used it for 3 years with W-2s, 1099s, and child credits with no issues.

My health insurance is still through my employer, same plan as last year. But you know what, I'm going to go back and check those health insurance questions again to make sure I answered them the same way. I honestly tend to click through those sections pretty quickly since nothing changed, but maybe I did check something different. Thanks for the suggestion!

Not OP but this happened to me! I had 8 weeks of unemployment and had NO idea they barely withhold any taxes. Got absolutely wrecked at tax time. Now I always select the maximum withholding on unemployment.

No unemployment for me - been at the same job the whole time. But that's good to know about unemployment withholding being low. I actually might have some temporary layoffs coming up later this year, so I'll definitely remember to adjust the withholding if that happens. Thanks for the heads up!

Thanks for bringing this up! My situation is exactly like that - main GC but with subcontractors for electrical, windows, and HVAC. Should I be asking each sub directly for their documentation or should everything go through my general contractor?

Ideally everything should go through your general contractor - that's part of what you're paying them for. They should collect all the proper documentation from their subs and provide it to you in an organized way. Make sure to specify exactly what you need (itemized receipts, model numbers, Energy Star certifications). If your GC is resistant or doesn't seem to understand what you need, then you might need to speak directly with the subcontractors. But start by giving your GC a specific list of what documentation you need from each aspect of the project. Most good contractors have dealt with this before and should know what to provide.

What app or system do you use to organize all your digital tax documents? I've got a renovation coming up and want to be prepared.

That's a really good point about banking. Did you have any issues with payment processors too? We'll be using Stripe and PayPal for most client payments, and I'm wondering if there are any special considerations with a foreign co-owner.

Stripe was actually fairly straightforward for us. They required identity verification for both owners, but having a US-registered business with a US bank account made it workable. My foreign partner had to upload his passport and proof of address, but no major hurdles. PayPal was a bit trickier because they wanted a US phone number for verification for both owners. We ended up using my phone for business purposes and adding him as an authorized user rather than setting him up with full owner access. Not ideal, but it worked. Just make sure your operating agreement covers how payment processors are handled so there's no confusion about who has access to what.

Do you use any specific tools for managing the partnership agreement and financial distributions? We're setting up with a partner in Malaysia and realized we need better tracking for partner draws and tax withholding.

Do you use the same LLC for multiple properties or create a new one for each property? I'm looking at getting into real estate investment and wondering what the best approach is.

I use separate LLCs for each property. This creates the strongest liability barrier between properties. If there's a lawsuit at Property A that exceeds insurance coverage, they can only go after that specific LLC's assets (that property), not Property B or C. Some people use one LLC for multiple properties to reduce fees and paperwork, but that defeats much of the purpose - if there's an issue with one property, all properties in that LLC are exposed. The extra cost and paperwork is my insurance beyond insurance.

Both handle single member LLCs fine. For federal taxes it's actually super simple - you just file Schedule C with your personal return, exactly like a sole proprietorship. There's no separate tax return for a single-member LLC unless you elect to be taxed as a corporation.