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Have you considered meal prepping? I'm a mobile massage therapist and I just bring food with me in a cooler. Not deductible either way but saves a ton of money. I keep it in the car with some ice packs and eat between appointments. Saves me at least $2000 a year compared to buying food out.
That's actually a really smart idea! Do you have any tips for foods that work well for car-based meal prepping? I'd be worried about things getting soggy or spoiling throughout the day, especially in summer.
Definitely go for foods that are stable at various temperatures. I keep a good insulated lunch bag with ice packs. Wraps work better than sandwiches because they don't get soggy as quickly. Pasta salads, grain bowls, and hearty salads (hold the dressing until eating time) all work great. I also keep a bunch of shelf-stable snacks in the car - nuts, granola bars, dried fruit, etc. These are perfect for shorter breaks between clients. If you invest in a good thermos, you can also keep soups or hot meals that stay warm for 4-5 hours.
Music teacher here too! Just wanted to mention that while meals between lessons probably aren't deductible, don't forget about other expenses that definitely ARE. I just learned you can deduct: - Streaming service subscriptions IF used mainly for teaching/demonstration - Instrument repairs and maintenance - Sheet music and teaching materials - Portion of home internet if you do any virtual lessons - Professional society memberships - Continuing education Made a big difference on my taxes this year!
11 Don't forget about quarterly estimated tax payments if your wife's business grows! My husband and I got hit with an underpayment penalty our first year running our Etsy shop because we didn't realize we needed to pay quarterly when self-employed. Also look into self-employment tax (Schedule SE) - that surprised us too.
19 How do you know how much to pay for those quarterly payments? Is there a minimum amount your business needs to make before you have to start doing that?
11 The general rule is you should make quarterly estimated payments if you expect to owe $1,000 or more in taxes for the year. The amount depends on your projected income, but there's a "safe harbor" provision - if you pay 100% of last year's tax liability (or 110% if your AGI was over $150,000), you won't face penalties even if you end up owing more. You can use Form 1040-ES to calculate your estimated payments. Alternatively, you can increase withholding from a W-2 job if either of you has one, which accomplishes the same goal. The IRS treats withholding as if it happened evenly throughout the year, even if it's all at the end.
16 Something that really helped me with my side business was using expense tracking apps like QuickBooks Self-Employed or even just a dedicated credit card for business expenses. Makes it so much easier at tax time to separate business vs personal expenses. Whatever you do, start tracking EVERYTHING now - it's a nightmare to reconstruct expenses after the fact!
This happened to my brother too. He just kept the money and never heard anything about it. The IRS is dealing with millions of these cases so they probably won't come after you for it. But technically you should return it if you were claimed as a dependent.
Thanks for sharing your brother's experience. I'm really torn about what to do here. Did your brother just keep it and not file any forms or make any reports about it? Did he just pretend he never got it?
He literally just kept it and did nothing. It's been over a year and he hasn't heard anything from the IRS. Not saying that's what you should do, just sharing what happened in his case. I think the IRS is so swamped that small individual cases like this aren't high priority for them to track down. But of course, the right thing to do would be to return it according to their procedures.
Has anyone checked if the rules changed for the latest stimulus? The eligibility requirements have been different for each round of payments. I thought I read somewhere that adult dependents were included in the most recent one. Might be worth checking if the payment is actually correct before going through the hassle of returning it.
This is actually a good point. The American Rescue Plan expanded eligibility for adult dependents for the third stimulus payment. College students who are dependents didn't qualify for the first two stimulus payments but might qualify for the third one. Double-check which payment this is before returning anything.
Have you tried contacting the Taxpayer Advocate Service? They're an independent organization within the IRS that helps taxpayers resolve problems. This seems like exactly the kind of situation they'd be able to help with - especially since your CPA filed an amendment without your approval.
I hadn't thought of the Taxpayer Advocate Service. Do you know how I would contact them or if there's a long wait time to get help? My CPA hasn't mentioned this as an option.
You can call them directly at 877-777-4778 or find your local office through the IRS website. Wait times vary depending on the time of year - right now during tax season they're busier than usual, but still worth contacting. Start by explaining that your CPA filed an amended return without your authorization before your original refund was processed. Be sure to mention the significant amount of money involved ($13,500) as they prioritize cases involving financial hardship. They may not be able to speed up processing dramatically, but they can often give you accurate information about what's happening with your return and make sure it doesn't fall through the cracks.
Your CPA messed up twice - first with the incorrect SEP deduction and then by filing an amendment without your approval. I'd seriously consider finding a new tax professional next year...
Aileen Rodriguez
One thing nobody's mentioned yet - have you considered just waiting until you're 24 to start school? FAFSA automatically considers you independent at 24 regardless of your situation. Might be worth delaying a semester or two if your birthday is coming up soon. Also, don't make major life decisions like marriage just for financial aid! That could be a recipe for disaster in the long run.
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Natalia Stone
ā¢I've definitely considered waiting until I turn 24, but that's still about 11 months away. Starting school is pretty time-sensitive for me since there's a specific program I want to get into that only accepts students in the fall semester. If I wait until I'm 24, I'd basically be delaying my education (and future career) by a full year. As for the marriage thing - we were already planning to get married eventually, this would just change the timing. Definitely wouldn't make that decision ONLY for financial reasons, but it seems like it might be beneficial on multiple fronts.
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Aileen Rodriguez
ā¢That makes sense if the program only starts once a year. Just wanted to make sure you'd considered that option since so many people don't realize the age 24 cutoff can make such a big difference. If you were already planning to get married anyway, then the timing adjustment might be worthwhile. Just make sure you're both on the same page about doing it sooner than originally planned. Good luck with school and congrats on the home purchase!
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Zane Gray
Just a heads up that there are other ways to qualify as independent for FAFSA besides marriage or age! If you have a child who receives more than half their support from you, are a veteran, were in foster care, are emancipated, or have dependent parents you support, you can be considered independent. The FAFSA website has a detailed questionnaire that determines your status: https://studentaid.gov/apply-for-aid/fafsa/filling-out/dependency
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Maggie Martinez
ā¢Also worth mentioning that if you have unusual circumstances, financial aid offices can sometimes do a "dependency override." It's rare, but if you can document unusual family situations, it's worth asking. Parents refusing to provide info usually doesn't qualify though.
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Natalia Stone
ā¢I looked through all those independence qualifiers already and unfortunately don't meet any of them. No kids, not a veteran, wasn't in foster care, not emancipated, and don't have dependent parents I'm supporting. I also asked about the dependency override at the financial aid office, but they said they only do those in extreme circumstances like documented abandonment or abuse. My situation with my parents is fine - we just don't have a financial relationship anymore since I support myself.
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