What about for tax planning for the future? I've got a small business that's starting to do well, and I'm wondering if I should be talking to someone about the best way to structure things for tax purposes before it gets bigger.

For forward-looking tax planning with a growing business, I'd actually recommend starting with a CPA who specializes in small businesses. They can help with immediate tax optimization strategies and basic business structure advice. As your business grows more complex or if you're considering significant changes like bringing on investors or expanding internationally, that's when adding a tax attorney to your advisory team makes sense. The attorney can help with more sophisticated legal structures and contracts that have tax implications while ensuring you're protected legally in other ways too.

That's really good to know! I hadn't considered someone might have both credentials. Do you find that having someone with both qualifications costs more than just a regular CPA for standard tax prep?

For standard tax prep, professionals with both credentials do tend to charge more than a typical CPA - I pay about 25% more than friends who use regular CPAs. However, I don't think it's necessary to pay that premium for straightforward tax preparation. Where I've found the dual credential valuable is for ongoing tax planning throughout the year. My situation includes a small business, rental properties, and some international income, so having someone who understands both the accounting and legal implications has helped me make better strategic decisions and avoid costly mistakes. For simpler situations, a good CPA alone is probably sufficient.

Thank you for mentioning this! I do teach some students from my home studio. Is it only the specific room I teach in that counts, or can I include waiting areas where parents sit during lessons too?

You can include any space that's used exclusively for your business. So if you have a dedicated teaching room plus a waiting area that's only used for your students/parents, both areas count. However, if the waiting area is also your living room that you use personally, then you can only count the dedicated teaching space. The key is "exclusive use" - the IRS is pretty strict about this. Take clear measurements and photos of the space for your records too. Your CPA will appreciate having exact numbers rather than rough estimates.

I use a simple receipt book for cash payments. Write two copies - one for the student, one for me. Then I log everything in a spreadsheet once a week. Not fancy but keeps me organized and looks professional to parents!

That's really disappointing to hear but makes a lot of sense. Do you know if there's anything Virginia residents can do to push for inclusion in the program? Should we be contacting state representatives or something?

Yes, contacting your state representatives is definitely the most effective approach. Let them know you want Virginia to join the IRS Direct File program for the next tax season. Specific requests like this can gain traction, especially if many constituents express interest. Additionally, you can submit feedback directly to the IRS about your interest in having the program expanded to Virginia. While the IRS doesn't make the final decision on state participation, documented public interest helps build the case for expansion.

I used FreeTaxUSA last year and the federal was completely free, but they charged about $15 for state filing. Still way cheaper than TurboTax or H&R Block though! I think some of the other IRS Free File partners might offer free state filing if your income is under a certain amount (maybe $73k?).

Thanks for this info! My fiancée and I weren't planning to get married until after graduation, but maybe we should reconsider the timeline if it would help with financial aid. Would getting married now affect her financial aid situation too? She's currently classified as a dependent student on her parents' taxes.

Getting married would make both of you independent students for FAFSA purposes, regardless of whether your parents still claim either of you as dependents on their taxes (those are separate systems). This could be beneficial for both of you if your incomes are lower than your parents', as financial aid would be calculated based only on your finances, not your parents'. However, it could potentially reduce aid if one of you has significant income or assets that would now be counted toward both of your FAFSAs. Marriage also makes you eligible to file taxes jointly, which could have its own implications.

This is smart advice. I did the community college route too for similar reasons. Saved a ton of money and still got my teaching degree. Many community colleges also have special institutional scholarships that don't require FAFSA completion.

Our temporary orders don't actually specify who can claim Emma for taxes. The final custody agreement is still being worked out. That's really helpful info about the benefits Jess would get - or not get - with zero income. I hadn't thought about that angle. Would the grandparents benefit more from claiming Emma than either of us since they actually have income?

Yes, with zero earned income, Jess wouldn't benefit much from many of the tax credits related to having a dependent child. Some credits like the Child Tax Credit are partially refundable, but without income, she wouldn't get the full benefit. The grandparents would likely benefit more than Jess would since they presumably have income. They could potentially claim dependency exemptions and other benefits. However, that doesn't mean they have the legal right to claim Emma - they would only have that right if neither parent claims her. Since you're actively involved and supporting Emma, you should definitely try to address this in your final custody agreement. Many agreements include specific language about alternating years for tax purposes, regardless of where the child primarily lives.

This is spot on advice. And don't wait until tax time to bring this up! Send an email or text now stating your intention to claim your daughter this year. That way they can't claim they didn't know.