What about Credit Karma Tax? I heard that's completely free even for more complicated returns. Has anyone tried it?

Credit Karma Tax (now called Cash App Taxes) is completely free and handles most tax situations well. I've used it for returns with some investments and a side gig. The interface is clean and it covers most forms. The only downsides: it doesn't support multiple state returns, certain less common situations (like foreign income), and doesn't offer as much guidance as paid options. If your return is moderately complex but doesn't have those specific issues, it's an excellent free choice. Just be aware they make money by recommending financial products to you based on your tax info - that's the tradeoff for the free service.

Just want to add that if your income is below $60,000 you might qualify for free in-person help through VITA (Volunteer Income Tax Assistance). They're IRS-certified volunteers who will prepare your return for free. Google "VITA tax help near me" to find locations.

I hadn't considered quarterly payments. Do you just divide your estimated annual interest tax by 4 and pay that amount each quarter? Are there specific deadlines I would need to remember? I'm worried I might forget and then end up with penalties anyway.

Yes, you can divide your estimated annual interest tax by 4 for equal payments. The deadlines are April 15, June 15, September 15, and January 15 of the following year. I just set calendar reminders. You don't necessarily have to make equal payments though - you can adjust each quarterly payment based on how much interest you've actually earned that quarter. This is especially helpful if your interest income is unpredictable. The IRS Form 1040-ES has worksheets to help you calculate this. The key is making sure you've paid enough throughout the year to avoid the underpayment penalty.

Not everyone can just move their money into tax-advantaged accounts though. What if you need access to your savings before retirement? Roth has penalties for early withdrawal and I-bonds have to be held for at least a year. Some of us need more liquidity than that provides.

Wow, $475 is so much more reasonable! Do you have any tips for finding someone good at that price point? Did you just Google local accountants or was it word of mouth? I'm definitely going to shop around this year.

I found my accountant through a local small business networking group in my area. Word of mouth referrals are gold for finding good accountants at reasonable rates. Check if there's a Chamber of Commerce small business group or even Facebook groups for local business owners in your area - then ask for recommendations. When interviewing potential accountants, ask specifically about their experience with pet service businesses or similar industries. Mine already had several dog walkers and pet sitters as clients, so she knew exactly which deductions to look for. Also ask about their communication style and availability throughout the year, not just at tax time.

I tried that route first and missed a bunch of deductions. Ended up hiring a pro who saved me way more than his fee. Software is fine if your business is super simple but it doesn't replace experience.

That's a really good point about unemployment. Do you know if I need to do anything special for the state tax situation? Like should I be filling out any specific forms now, or is that just something I handle when filing next year?

For the state tax situation, you don't need to do anything special right now other than making sure your employer knows you're a Wisconsin resident. When they set up your payroll, they should withhold Colorado state taxes since that's where you're working. When tax filing time comes, you'll file a resident return for Wisconsin (reporting all your income from all states) and a non-resident return for Colorado (reporting only the income earned in Colorado). Wisconsin will give you a credit for taxes paid to Colorado to avoid double taxation. Each state has different forms for this, but any decent tax software will walk you through it.

Not OP but I've dealt with this. You can maintain residency in one state while working temporarily in another. Maybe OP still has their permanent address, driver's license, voter registration, etc. in Wisconsin but is working in Colorado for a limited time. Residency definitions vary by state, but usually involve where you intend to make your permanent home.

What's this Mega Backdoor Roth thing? I've never heard of it and I'm maxing out my regular 401k already. Is this some kind of loophole?

The Mega Backdoor Roth is a completely legal strategy that allows you to contribute significantly more to Roth accounts than the standard limits. Here's how it works: after maxing out your regular 401(k) contribution ($23,000 for 2025), some employer plans allow additional after-tax contributions up to the total annual limit ($69,000 for 2025, minus employer contributions). You then immediately convert these after-tax contributions to Roth money either through an in-plan Roth conversion or by rolling them over to a Roth IRA. Not all 401(k) plans support this strategy though - you need a plan that allows both after-tax contributions (not just Roth) AND either in-plan Roth conversions or non-hardship in-service withdrawals. Worth checking with your HR department if your plan has these features. It's a game-changer if you're a high earner wanting to get more money into Roth accounts.

I did a spreadsheet calculation comparing both options. If your tax rate in retirement is exactly the same as your current rate, they're mathematically identical. But most people have lower income in retirement, which makes Traditional better in theory. But there's a strong case for Roth if: 1) You expect tax rates overall to increase in the future (likely given current deficit), 2) You expect to have other income in retirement keeping you in high brackets, or 3) You value the flexibility of Roth (no required minimum distributions, can withdraw contributions penalty-free if needed, etc).