I've used both! TaxSlayer has a better interface imo and I never had the AGI verification issue with them. Their deluxe version is like $40 and includes one state return which is way cheaper than TurboTax or H&R Block. FreeTaxUSA is cheaper but TaxSlayer's extra guidance was worth it for me.

Thanks for sharing your experience! The interface quality is important to me, and $40 including a state return sounds reasonable. Did you find TaxSlayer's guidance helpful for more complex tax situations? I have some investment income and a side business I need to report.

Interesting to hear you've had such a good experience! Do you think there might be something specific about certain tax situations that causes the AGI verification issues for some people? Also, have you ever had to amend a return with them, and if so, how was that process?

I think the AGI verification issues might be related to specific scenarios like amended returns or returns with unusual adjustments. Since my tax situation is complex but consistent year-to-year, that might be why I haven't had problems. I did have to amend a return once due to a late-arriving K-1 form. The amendment process with FreeTaxUSA was actually pretty straightforward. They walk you through which forms need to be updated, generate the 1040-X, and provide clear instructions for mailing the paper amendment. They don't offer e-filing for amendments, but that's true for most tax software since the IRS only recently started accepting e-filed amendments.

Do you use any specific app to track expenses or just a regular spreadsheet? I always mean to keep receipts but they end up all over the place.

I just use a basic Google Sheets spreadsheet that I created with columns for date, expense amount, category, and notes. Nothing fancy but it works! But the real game-changer was using my phone to take photos of receipts immediately and saving them to a dedicated Google Drive folder. I also started using my credit card for most business purchases which gives me a backup record in my statements.

Yep, got hit with this too. Self-employment tax is brutal. But you can deduct half of it on your tax return which helps a little.

Thanks for mentioning that! I actually didn't know about deducting half of SE tax and might have missed that. Taxes are so complicated when you have multiple income sources!

Thanks for the suggestion! I don't think I qualify for EITC since I don't have kids and my income is a bit too high for a single person. I am taking the standard deduction though. It sounds like my real issue is the self-employment taxes on that gig income that I didn't plan for. Lesson learned for next year - I'll be setting aside money each month from my gig work.

Completely agree! TurboTax kept trying to upsell me to their $120 version to "maximize self-employment deductions." FreeTaxUSA found all the same stuff for like $15. And their interface actually explains things better too.

That's good to know! I felt like I was taking crazy pills when I switched and suddenly found all these deductions TurboTax never mentioned. Their basic version is practically useless for anyone with slightly complicated taxes. FreeTaxUSA actually walks you through the self-employment section with helpful explanations instead of dangling premium features in front of you constantly.

Thanks for bringing this up. I did pay the Delaware annual franchise tax for 2023, but then stopped when I abandoned the LLC. Should I have formally dissolved it with the state? As for New Mexico, I've registered for gross receipts tax but didn't think about how using the same EIN might create confusion. Would filing state tax returns in NM using the same EIN potentially trigger Delaware to think I'm still active there?

Yes, you should have formally dissolved your Delaware LLC by filing a Certificate of Cancellation with the Delaware Division of Corporations. Without formal dissolution, Delaware will continue to consider your entity active and may assess annual franchise taxes and penalties for failure to file. For New Mexico, using the same EIN shouldn't automatically trigger issues with Delaware, as they're separate state systems. However, for clarity in your records and to prevent future confusion, I strongly recommend formally dissolving the Delaware entity. It typically costs around $200 to file the dissolution paperwork, which is much cheaper than continued annual fees or potential penalties. The good news is that most states allow late dissolutions, so you can still properly close the Delaware LLC even though it's been a while since you abandoned it. This clean break will help you avoid any state tax complications while you focus on resolving the federal filing requirements we discussed earlier.

Is there a way to check if the IRS has already assessed penalties for the unfiled 5472 forms? I'm worried they might have been sending notices to my old address.

Thank you so much for this insider perspective! I filed my 1040-X yesterday and included a letter explaining the honest mistake. Knowing this is something that happens all the time and isn't considered criminal makes me feel sooooo much better. I haven't been able to sleep for days thinking about this!

You're welcome! This is exactly the right approach - filing the amendment promptly with a brief explanation. The letter is a nice touch that shows good faith. You'll get a notice in a few weeks acknowledging the amendment and telling you what amount is due with the calculated interest. Pay that promptly and the case will be closed. For future reference, always double-check that you have all tax documents before filing. Many employers also provide electronic copies of W-2s that you can download, which helps ensure you don't miss paper copies. Sleep well knowing you're definitely not prison-bound over this!

If you received a CP2000 notice that correctly identifies the missing income, you can simply respond to that notice rather than filing an amended return. Review the notice carefully to make sure all the information is correct, then follow the instructions to pay the amount due. The IRS has already done the recalculation for you.