Thanks for bringing this up! They claim to be CPAs but now I'm wondering if all 8 preparers I've dealt with actually were. Is there a specific website where I can verify their credentials? And what kind of complaint process should I expect if I go that route?

You can verify CPA credentials through your state's Board of Accountancy website - just search "[your state] board of accountancy license verification" and you should find their database. For Enrolled Agents, you'd check with the IRS through their tax preparer directory. The complaint process typically involves submitting a formal written complaint with supporting documentation to the licensing board. They'll investigate and may hold disciplinary hearings. Sanctions can range from censures to license suspension or revocation, and in some cases, they can order restitution. The process usually takes several months, so it's not a quick solution, but it creates an official record of the issues which can be helpful if you pursue other remedies.

This is great advice. Form 14157-A saved me about $3,400 in penalties after my preparer miscalculated my estimated tax payments. The IRS actually took it seriously when I provided documentation.

Thanks for the app recommendation! I've been using a paper logbook and honestly I miss recording trips half the time. Does the app work even if I have spotty cell service in some of the rural areas I drive to for my classes?

Yes, the app works even with spotty service! It uses GPS on your phone to track the trips, and if you're in an area with no service, it stores the data locally and then syncs once you're back in range. I drive through some dead zones for my deliveries and haven't lost any trips. The only thing to watch for is battery usage - I'd recommend keeping your phone plugged in while driving because constant GPS tracking does drain the battery faster. But the peace of mind knowing all your trips are being logged automatically is totally worth it!

This is such a good point! I was in a similar situation last year teaching at two different places - one gave me a W-2 and one gave me a 1099-NEC. Confused the heck out of me when filing. The 1099 income went on Schedule C where I could deduct expenses, but the W-2 income had different rules entirely.

I haven't seen my actual pay stub, just the direct deposit amount. How do I get a copy of the detailed stub?

Most companies either provide a paper pay stub with your check (if you get a physical check), or they have an online portal where you can view and download your pay information. Ask your manager or HR person how to access your pay stubs - they're required by law to provide this information to you. Some companies use payroll services like ADP, Paycom, or Gusto where you'd need to create an account to see your info. If they haven't told you about this, definitely ask! The stub will break down exactly where every dollar is going.

The W-4 doesn't use allowances anymore. They completely changed the form in 2020. Now it's way more complicated with multiple steps and worksheets. 😫

Thanks for the advice! Do you happen to know if there's a way to look up my state's laws about refund interest? I'm in Michigan if that helps.

For Michigan, you can check the Michigan Department of Treasury website for their "Revenue Administrative Bulletins" or RABs. They usually publish the interest rates for underpayments and overpayments there. Last I checked, Michigan does pay interest on refunds but only after a certain processing period has passed (I think it's 45 days after you file for a refund). The statutory reference should be in Michigan Compiled Laws (MCL) somewhere in the 205 section which covers revenue and tax laws. The exact interest rate changes periodically based on market rates, so you'll want to look up the current rate applicable to your situation.

This is seriously good advice. I made this mistake and regretted it. If you can afford to pay now, do it while simultaneously disputing. You can always get a refund later, but you can't get rid of penalties once they attach.

Thanks for mentioning FreeTaxUSA! I've heard good things but haven't personally tried it. Does it handle cryptocurrency trading well? That's an area where I've seen some of the free options struggle.

FreeTaxUSA actually does handle crypto pretty well now. They added a much more streamlined section for it last year. It asks if you have a summary report from your exchange (like Coinbase) that you can import, or you can enter transactions manually. For mining or staking income, they have specific sections for those too, which categorize everything correctly for tax purposes. Definitely better than when I tried using TurboTax's free version for crypto a few years ago and got hit with an upgrade prompt.

For your situation with W-2 plus a single Airbnb rental, Cash App Taxes should work great - they support Schedule E for rental income at no charge. Just make sure you have all your rental income and expense records organized beforehand. FreeTaxUSA (mentioned in another comment) would also work - federal filing is free with rental income, though you'd pay $15 for state filing. The one caveat is if your rental situation is very complex (like multiple properties or partial business use), then you might still want professional help. But for a single Airbnb room, the free options should be perfectly adequate!

Thank you! That will save me a ton of money. I only have the one room I rent out so it's pretty straightforward. I'll definitely try Cash App Taxes this year instead of paying TurboTax's ridiculous fees.