Is there a significant difference between the old and new versions? I found one from a few years ago in my files and was planning to use that as a template.

Wait really? I didn't know they report to the IRS! Most of my payments come through PayPal and Venmo. Does that mean the IRS already knows about this income even if I haven't reported it yet?

Yes, this is a relatively recent change that's been fully implemented. If you received more than $600 total in payments for goods or services through these platforms in 2024, they'll issue a 1099-K that goes to both you and the IRS for your 2025 filing. The IRS will be able to see that you received these payments, though they won't know specifically what you sold. This is exactly why it's important to properly report the income on your Schedule C rather than ignoring it - the information is already being reported to the IRS through these third-party payment processors.

Your business deductions are completely separate from your dependent status. Even if your parents claim you as a dependent, you still file your own Schedule C for your business income and take all applicable business deductions yourself. Your parents claiming you as a dependent mainly affects personal exemptions and credits - it has no impact on how you report your business income and expenses. So you absolutely can (and should) take all legitimate business deductions on your Schedule C regardless of dependent status.

That's a good point about tax-advantaged accounts! But no, these are definitely regular taxable investment accounts they've had for years, not IRAs. The 1099s were issued by their bank and a brokerage firm for normal taxable accounts. I think at this point it's pretty clear the CPA made a mistake. Do you think this kind of oversight indicates my parents should look for a new tax preparer, or is this the kind of mistake anyone might make occasionally?

Based on your confirmation that these are regular taxable accounts, this is definitely an error that shouldn't have happened. While everyone can make an occasional mistake, missing multiple 1099 forms is concerning because it's such a fundamental part of tax preparation. I would suggest having a conversation with the CPA first. Their response will tell you a lot - a good professional will acknowledge the error, fix it promptly at no additional cost, and explain what steps they'll take to prevent similar mistakes in the future. If they're defensive or try to charge for fixing their own mistake, that's a red flag. What makes this particularly troubling is that tax software and even manual checklists that CPAs use are specifically designed to prompt for 1099 income. This suggests either carelessness or possibly that some documents were misplaced during preparation.

That's not how tax reporting works though. Interest income and dividends aren't netted against capital losses on Schedule D. They're entirely separate types of income reported on different lines of the 1040. Capital losses can offset capital gains, but not interest or dividend income.

6 How do I check what I put on my W-4? Do I need to ask HR for a copy? And if that's the problem, can I still fix my current tax return or is it too late?

9 You can ask your employer's HR or payroll department for a copy of your W-4 on file. They should be able to provide it or at least tell you what you selected. For your current tax return, if you've already filed it and the calculations are correct based on what was actually withheld, you can't change the outcome now. The tax bill is based on your actual income and withholding for the year. However, you can immediately submit a new W-4 to fix the problem for this year so you don't end up in the same situation next April.

2 The EITC is refundable too, so it could actually give you money back instead of just reducing what you owe! But I think there are age requirements if you don't have kids - you have to be at least 25 but under 65 to qualify without dependents.

We probably don't qualify for that one then, since our combined income is still around $78k even with my wife's unpaid leave. But thanks for mentioning it! Are there any other credits or deductions we should look into as new parents?

You might still qualify for the child and dependent care credit I mentioned earlier if you're paying for childcare. Also look into whether you can deduct any medical expenses related to the birth - if your total medical expenses for the year exceed 7.5% of your adjusted gross income, you can deduct the amount over that threshold if you itemize deductions. Some employers also offer dependent care FSAs which let you set aside pre-tax money for childcare expenses. It's too late for 2024, but something to consider for 2025. And start looking into 529 college savings plans - there's no federal tax deduction for contributions, but earnings grow tax-free when used for education expenses.

I used the IRS Free File system last year to claim the child tax credit for my son. It was actually pretty straightforward - it asks clear questions about dependents. If your income is under $73,000, you can use it for free. If you make more, TurboTax or H&R Block might be easier, but they'll charge you for the forms needed to claim child-related credits.