I hadn't considered a Certified Acceptance Agent. Is there any downside to using one compared to submitting directly? Does it take longer to process when going through an agent?

There's really no downside in terms of processing time - in fact, it can be faster because CAAs reduce the likelihood of rejections due to documentation errors. The IRS processes the application the same way regardless of submission method. The only real downside is the cost. Most CAAs charge between $200-300 for their service, which includes document verification and submission. But considering the hassle of potentially having to resubmit if something goes wrong (plus the risk of sending original documents through the mail), many find it worthwhile. In my experience, using a CAA actually shaved weeks off the process because everything was submitted correctly the first time.

From my understanding, you need the current year's Form 1098, not the previous year's. That's what my tax preparer told me. Maybe that's why it was rejected?

You actually need the most recently issued Form 1098, which would typically be from the previous tax year. When applying early in the year (like now for 2025 filing season), you'd use the 2024 mortgage interest statement since the 2025 one wouldn't be available yet. The IRS specifically wants to see that you have an ongoing mortgage interest situation that creates a tax need. If you're applying mid-year, you might also include recent mortgage statements showing continued interest payments. The key point is demonstrating a continued tax purpose for needing the ITIN, not just a one-time situation.

What's the ballpark cost difference between having someone prepare my taxes vs just reviewing what I've done myself? I'm trying to save money but also don't want to miss deductions.

For simple returns like yours, full preparation might run $200-400 depending on your location and the professional's credentials (CPAs charge more than enrolled agents or tax preparers). A review service typically costs $50-150. The review can be really valuable - they'll look for obvious errors, missed deductions, and red flags that might trigger an audit. They can also advise on adjusting your withholding so you don't end up owing again next year. Many people find this middle ground approach gives them peace of mind without the full expense of preparation.

This is so true! I used TurboTax for years and then got audited over a home office deduction. Their "audit defense" was basically just a PDF explaining what I should do. Ended up hiring a professional anyway to help me respond properly. Wish I'd just gone to them in the first place.

That's actually really reassuring. I've been losing sleep over this! So you think filing amended returns is the way to go? About how much should I expect to pay in penalties if I come forward voluntarily?

Filing amended returns is definitely the right approach. For voluntary corrections, you'll likely just pay the additional tax you would have owed originally, plus interest on that amount from the original due date. The interest rates change quarterly but have been around 5-7% recently. If the IRS assesses penalties, the most common one would be an accuracy-related penalty of 20% of the unpaid tax amount. However, these are often waived or reduced when you voluntarily come forward to fix honest mistakes, especially for relatively small amounts. You can also include a letter explaining your misunderstanding of the rules when you file the amended returns, which can help your case further.

Do you think the 100% business use claim could push this into fraud territory though? That seems like a pretty obvious misrepresentation, especially for a college student who would clearly need the car for personal stuff too.

Does CashApp Taxes handle cryptocurrency transactions? I did a bit of trading last year along with my regular job and some freelance work, so I need something that can deal with all of that.

CashApp Taxes has basic support for cryptocurrency transactions, but it's somewhat limited. You'll need to enter your transactions manually or import a summary from your exchange. For more complex crypto situations with lots of trades, you might want a more specialized solution. For your combination of W-2, freelance, and crypto income, TaxAct might actually be the better choice. Their crypto reporting tools are more robust and they integrate with several popular crypto exchanges for easier importing. They've really improved their crypto support over the last couple years as it's become more common.

Have you ever had your return audited using OLT? I'm always worried the cheap options might miss something or not be as thorough.

Just checked out OLT - that price is insane! But their website looks super dated. Does it handle Schedule C for self-employed people well? And how's the user experience? I don't mind basic interface if it works properly.

Thanks for this! I didn't track my miles super carefully since I only drove for those couple days. Is there any way to reconstruct this after the fact or am I just out of luck?

You can try to reconstruct your mileage based on records you might have. Lyft should have records of the actual rides and miles driven with passengers, but that doesn't include the miles driven between rides or positioning yourself. If you have a general idea of the areas you worked and approximately how much "dead" mileage you had between rides, you can make a reasonable estimate. Some tax pros recommend using a 1.2x to 1.3x multiplier on your actual ride miles to account for the between-ride miles, though this varies based on your market.

Is there a way to calculate approximately how much I should set aside? I just started doing Instacart as a side gig.