That's really interesting - I had no idea some people had both qualifications. Would that be overkill for my situation though? I'm trying to be cost-conscious here.

For your situation with unreported business income and inheritance questions, a dual-qualified professional would likely be overkill. They typically charge $400-600 per hour because they bring both legal and accounting expertise to the table. I'd recommend starting with a regular CPA who has small business experience. They'll be more affordable (likely $200-300/hour) and can handle everything you've described. If they discover something that requires legal expertise, then they can refer you to a tax attorney for just that portion of the work. This approach gives you the right level of expertise while keeping costs manageable.

I second this! My EA charges about 30% less than CPAs in my area but knows the tax code inside and out. They focus exclusively on taxes while many CPAs do broader accounting work.

Thank you for pointing this out! I did take my employer's insurance and have been covered all year through them. I definitely checked the box on my return saying I had coverage for all 12 months. So it sounds like I'm ok from what everyone is saying?

Yes, you're fine then! If you had employer coverage all year and indicated that on your return, the 1095-C is just documentation for your records. You don't need to amend your return or do anything else. The IRS already gets this information reported to them directly from your employer. Just keep the form with your tax records in case there are ever any questions, but you're all set!

100% agree. My 1095-B comes late EVERY year. I think employers have until March to send them out, but W-2s have to be out by January 31. The deadlines don't make any sense when tax filing starts in late January!

Thanks for confirming I'm not the only one! It's so frustrating. You'd think after all these years they'd figure out how to align these deadlines better. I always end up having to decide whether to file early and get my refund sooner, or wait for all my forms and risk delaying my refund.

File early!!! Especially if you're expecting a refund. The sooner you file, the sooner you get your money back. Also, identity theft is a real problem - if someone gets your SSN they can file a fake return in your name and steal your refund. Filing early prevents this. Filing early also gives you more time to correct any mistakes if something goes wrong. Last year I waited till the last minute and realized I was missing a form, had to file an extension and it was a whole mess.

This is what I did! Our business school had accounting students doing this as part of their practical experience. They were super thorough and even found a credit I didn't know about. Definitely worth checking if your school offers this!

This is a great suggestion! I'll check with our business school to see if they offer this. Having someone walk me through it the first time would be really helpful. Thanks for the tip!

With the M-1 adjustment, should you include the full amount of the credit or only the portion received as an advance payment? One of my clients received part as an advance and claimed the rest on their quarterly 941s.

You should only include the amount that creates a book-tax difference on your M-1. If your books show the full wage expense but your tax return reflects the reduced wage expense (after applying the credit), then your M-1 adjustment would be for the full amount of the credit that affected wages in that tax year. If part was received as an advance and part was claimed on 941s, but the total impact on wage expense is the same, then the full amount would go on the M-1. The key is reconciling what's on your books versus what's on your tax return, regardless of how or when the credit was received.

That's a great question. In that case, you would treat the advance payment as a liability on the books until it's properly claimed on the tax return. When you file the 2022 return with Form 5884-A, you'd then reduce the 2022 wage expense and clear the liability.

This is interesting! Would you use Schedule D for this instead of reporting as hobby income? And do you need to keep receipts for everything to prove what you originally paid?

I do customize some of them! I repaint about 30% of the models I sell, and sometimes do minor repairs on vintage pieces. I just wasn't sure if that was enough to count as a "real business" since it's still mostly just for fun. But it sounds like that could help my case?

That definitely strengthens your case! The customization and repairs show you're adding value through your skills and labor, which is a big factor in the business vs. hobby determination. Make sure you document your work process - take before and after photos of your customizations, track the time you spend on each project, and keep receipts for all supplies. Also, consider creating a separate Instagram or Facebook page showcasing your work, even if it's just casual. Having a business presence online is another factor that supports business treatment. You might also want to look into selling at model horse shows or conventions if you don't already - participating in trade shows is another indicator the IRS looks for when determining if something is a business. The key is to show that you're making decisions with the intent to eventually be profitable, even if you're not there yet.