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.

This is interesting! How much does this arrangement cost you annually, if you don't mind sharing? I'm trying to budget for these services but have no idea what's reasonable.

I pay my CPA about $3,500 annually for tax planning and preparation, including quarterly check-ins. The estate attorney was more of a one-time expense (about $5,000 to set everything up), with smaller fees for updates ($500-1,000 when needed). The bookkeeper costs me around $300/month to handle all the rental property accounting and documentation. So all in, it's roughly $12-15K per year, which seems like a lot but has actually saved me more than that in tax efficiency and better property management. Plus the peace of mind is worth a lot - I was making costly mistakes trying to handle everything myself.

What specific questions would you recommend asking? I always feel so unprepared when interviewing financial professionals and end up just nodding along to whatever they say lol

I'd ask scenario-based questions rather than general ones. For example: "If I wanted to transfer rental property to my children's trusts, how would you approach that to minimize tax implications?" or "How would you handle depreciation recapture if I wanted to sell one of my properties and use a 1031 exchange?" Watch how they explain complex concepts - a good accountant will make things clear without talking down to you. Also ask about their communication throughout the year - will they proactively contact you about tax law changes that affect your situation or just see you at tax time?

I actually tried that first! The financial aid office told me they only issue 1098-Ts for degree-seeking students, not for certificate programs like the pharmacy tech one. When I pressed them on it, they said something about certificate programs not meeting the federal requirements for the form, but that I could still claim the expenses on my taxes without it. That's exactly why I'm so confused - they won't give me the form but say I can still claim the expenses somehow. Was hoping someone here had been through something similar.

Ah, that makes sense. I wasn't aware that certificate programs were treated differently. After some research, it seems schools actually aren't required to provide 1098-Ts for non-degree programs, even though the expenses might still qualify for education credits. In your case, I'd go with the advice others have given about manually entering the expenses. Keep all your receipts and course enrollment documents handy in case of questions later. The Lifetime Learning Credit should work perfectly for your situation.

This is really important! I claimed expenses for a certificate program that turned out not to be from an eligible institution, and I got a notice from the IRS later. Had to repay the credit plus a small penalty. Definitely check the Federal School Code first!

That's really helpful! Is there specific wording you found works best for digital advertising design services? I'm trying to be as clear as possible on my contracts and invoices.

I found that "Professional advertising design services" works well as a consistent description. It emphasizes the service aspect rather than the deliverable. My lawyer suggested avoiding terms like "digital products," "digital goods," or anything that implies you're selling a product rather than a service. On invoices, I break down the work as "Professional advertising design and consulting services for social media campaigns" rather than just "Social media ads" or "Digital content." The more you emphasize the custom service nature of your work, the stronger your position that you're providing a professional service rather than selling digital goods.

Do you have to file sales tax returns even if you collect $0 in sales tax? That seems like a waste of time.

Oh wow I had no idea about quarterly taxes. How do you know if you need to pay them? And what happens if you haven't been paying them all year?

Generally, you need to pay quarterly taxes if you expect to owe $1,000 or more when you file your return. It's basically a pay-as-you-go system for income that doesn't have taxes automatically withheld like your W2 jobs do. If you haven't been paying them, you might face an underpayment penalty when you file. The good news is that if this is your first year with 1099 income, you might qualify for a waiver of the penalty. Moving forward, you'll want to make estimated payments every quarter (April 15, June 15, September 15, and January 15) based on what you expect to earn.

You can offset some of this though! You can deduct business expenses against your 1099 income, which lowers your taxable income. Things like software subscriptions, equipment, home office, internet, phone, professional development, etc. can all potentially be deductible if you use them for your freelance work.