I tried the Taxpayer Advocate last year and they told me they couldn't help with identity verification cases unless there was a genuine financial hardship. Has this policy changed recently?

The policy hasn't officially changed, but in practice, it varies by office and how you present your case. Identity verification cases can qualify if you can demonstrate actual financial hardship (like facing eviction, utility shutoff, inability to pay for medications, etc.) caused by not receiving your refund. What's also changed is that some Taxpayer Advocate offices now have specialized staff just for handling identity verification backlogs. Worth calling your local office to check their current procedures, as they've been updating their approach to handle the massive backlog of these cases.

I did this last month and it worked perfectly! Called the appointment line (844-545-5640), got an appointment for the following week at my local office. Brought my ID, social security card, the IRS letter, and copies of my tax returns. The agent verified my identity on the spot and released my return for processing. Refund showed up 3 weeks later!

Thanks for the advice! Did you use any specific resources to learn about the S-corp requirements when you first started? And approximately how much extra time did it add to your tax preparation compared to just doing personal returns?

When I first started, I found the IRS's "Tax Information For S Corporations" publication really helpful, along with some YouTube videos from CPAs. The Small Business Administration website also has good resources. As for time commitment, my first year doing S-corp returns took about an extra 8-10 hours beyond my normal personal returns. There was a lot of learning and double-checking. Now I can knock it out in about 3-4 extra hours each year. The key is keeping good records throughout the year - that makes tax time so much easier! If your husband's businesses have clean bookkeeping, you're already halfway there.

I had the opposite experience! Paid an accountant $1,800 for S-corp returns that weren't very complicated. Learned how to do it myself the next year and saved a ton. Just needed to read up on the rules first.

That's a great idea about asking for a sample pay stub! I didn't even think of that. Are HSA contributions similar to 401k in how they affect taxes? And do you know if parking deductions are pre-tax or post-tax?

HSA contributions are even better than 401k contributions tax-wise. They're pre-tax when made through payroll deduction, they grow tax-free, AND withdrawals are tax-free when used for qualified medical expenses. It's the only triple tax advantage account available. Definitely max it out if you have a High Deductible Health Plan. Parking and transit benefits are typically pre-tax up to the IRS limit (around $280/month for 2025), but it depends on whether your employer has set up a qualified transportation benefit program. Some smaller employers might just provide a taxable parking stipend instead. Definitely worth asking HR about the specifics of their program.

This is good advice but your math is a bit off. 65000/26 is actually $2,500 (not $2,400). Also, federal tax will probably be lower than 15% effective rate on $65k, especially with 401k contributions reducing taxable income.

Would you recommend attaching some kind of profit projection or business plan to my return? I did have one when I started, showing how I planned to monetize once I hit certain view thresholds. Just wasn't sure if that would help or draw more attention to the loss.

I wouldn't attach the full business plan to your return as that might actually draw unnecessary attention. Instead, keep it with your tax records in case of an audit. What can be helpful is a brief statement with your return explaining the nature of your business, that you operated with an intent to profit, and mentioning that you have documentation of your business plan and efforts. This shows you're aware of the requirements without overwhelming the initial filing with extra documents.

This is actually a common misconception. Schedule C losses don't reduce your Social Security wages from W2 employment. Your W2 income is still fully reported for Social Security purposes regardless of Schedule C losses. The losses might reduce your overall income tax, but your Social Security contributions and credits remain based on your W2 earnings.

That's really helpful, thank you! My situation was exactly that - I had a side business that generated decent income in 2020-2021, but I closed it down last year. Would I just call HMRC after filing my 2021-2022 return to ask to be removed from self assessment?

Yes, that's right! Complete your 2021-2022 return first (which will show your income is below thresholds), then call HMRC and explain that you've closed your business and no longer need to be in the self assessment system. They'll ask a few questions to confirm you don't meet any of the criteria, and if they agree, they'll remove you from the system. Make sure you keep the confirmation they send you about this. Most people find it's a huge relief not having to worry about the annual self assessment deadline anymore!

Yeah this happened to me too. The interest rates aren't massive but it's still annoying. Better to be slightly conservative with your estimate if you're not 100% sure.