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I just called the IRS Practitioner Priority Service about this exact question last week! The agent confirmed that Form 8809 doesn't require a 2848 for preparers to sign. They explained that information return extensions are considered "ministerial acts" that don't require formal representation authorization.
For what it's worth, I've been filing 8809 extensions for clients for years without a 2848 and never had an issue. The IRS is mostly concerned that the extension gets filed on time. Just make sure you have your EFIN or PTIN on the form as required. Also, remember that Form 8809 gives an automatic 30-day extension for 1099-NEC now - you don't even need to provide a reason for the extension request!
Thanks everyone for the helpful responses! This definitely clears things up for me. I'll go ahead and file the 8809 without the 2848 since I already have a service agreement with this client. And I'll look into getting 2848 forms for all my clients going forward as a best practice. Really appreciate all the insights!
Have you tried looking at FreeTaxUSA's help articles? They have a whole section dedicated to self-employment and 1099 income. I found it super helpful last year when I was filing as a freelancer for the first time. Just click the question mark icons throughout the software or search their knowledge base.
I tried looking at their help articles but they're not very detailed about my specific situation with multiple 1099s. Did you have multiple income sources? Also, did you find their interface for business expenses intuitive?
I had three different 1099s last year from different clients. Their help articles on combining multiple 1099 forms on Schedule C were really helpful. You just need to enter each 1099 separately, and the software combines them correctly. For business expenses, I wouldn't call it super intuitive, but it's organized by categories that match the Schedule C form. The trick is to pre-categorize your expenses before you start (office supplies, software, equipment, etc.). Make a spreadsheet first with everything sorted, then the data entry goes much faster.
FreeTaxUSA has been my go-to for years and I'm a freelancer too. One tip - don't overthink the business expenses. Just create general categories like "office supplies" ($345), "software subscriptions" ($1,290), etc. You don't need to enter every single receipt unless you want to. For quarterly taxes, after you finish this year's return, it will generate vouchers with suggested payment amounts. Just make sure to calendar the due dates (April 15, June 15, Sept 15, Jan 15). I set reminders on my phone 2 weeks before each one.
Do you pay the quarterly estimates online or mail in the vouchers? I've been confused about which is better.
Another option is to file for an extension! Form 4868 gives you until October 15th to file. Just remember that it's only an extension to file, not an extension to pay what you owe. You still need to estimate and pay your taxes by the April deadline to avoid penalties. This could give you time to find a good accountant without the last-minute rush prices.
If they file an extension, do they miss out on getting their refund until October? I'm confused about how that works with the payment vs. filing distinction.
If you're expecting a refund, you won't get it until after you file your complete tax return. So yes, filing an extension would delay your refund until whenever you actually submit your completed return (which could be anytime between now and October 15th). The distinction is important for people who owe taxes. The extension gives you more time to complete the paperwork, but you still need to pay what you estimate you owe by the original deadline to avoid penalties and interest. But since you mentioned having a new child and home purchase, there's a good chance you qualify for additional credits and deductions that might result in a refund.
Has anyone used FreeTaxUSA for a situation like this? Their deluxe version is only like $7 and claims to handle homeowner and dependent situations. I'm wondering if it's too good to be true for complicated returns.
I used FreeTaxUSA last year when we bought our house! It was actually pretty good for the price. The interface isn't as slick as TurboTax, but it walks you through everything step by step. The only thing is you have to know what forms you need - it doesn't really give advice about your specific situation like a human preparer would. But for $7 it was totally worth it.
I'm curious - why not just formalize the partnership and make it official? Even with an undocumented partner, you can have a legit partnership with an ITIN holder. You'd both be protected that way.
Creating a formal partnership with an undocumented person doesn't magically solve immigration issues. There are complicated legal implications beyond just taxes. Some business structures could create bigger problems.
Honestly, this whole situation sounds really risky. The undocumented partner could end up with serious problems if this isn't handled right. I'd suggest talking to an immigration attorney BEFORE a tax professional.
Not really helpful. People in mixed-status partnerships still need to handle their taxes properly. Tax compliance is separate from immigration issues, and staying tax compliant is actually important regardless of status.
You're right, my comment wasn't very helpful. I was coming from a place of concern but didn't express it well. Tax compliance is definitely important and separate from immigration matters. The IRS has specifically created systems like ITINs to ensure everyone can meet their tax obligations regardless of status.
Yara Khalil
The W-4 change in 2020 really messed a lot of people up. My wife and I had a similar issue last year. What fixed it for us was: 1) We both checked the box in Step 2(c) on our W-4s that says "If there are only two jobs total, you can check this box" 2) We each put an extra $75 per paycheck in Step 4(c) as additional withholding After making those changes mid-year, our tax situation evened out. This year we're getting a small refund of about $200, which is perfect. The IRS withholding calculator is helpful but honestly kind of confusing to use.
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Keisha Brown
ā¢Did both of you need to check the box in Step 2, or just one of you? I've read conflicting things about this and don't want to withhold too much either.
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Yara Khalil
ā¢We both checked the box, but I've since learned that was actually withholding too much. The correct approach is for only one spouse to check the box, not both. We ended up over-withholding a bit which is why we got that small refund. The safest approach is to use the IRS Tax Withholding Estimator online. It will give you specific instructions for each spouse's W-4. Usually it tells one person to check the box and the other not to, plus suggests additional withholding amounts if needed.
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Paolo Esposito
Has anyone used TurboTax's W-4 withholding calculator? My tax preparer recommended it over the IRS one but I'm not sure if its worth paying for when the IRS one is free.
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Amina Toure
ā¢I've used both and honestly the IRS one is better. The TurboTax one tries to upsell you on their paid tax prep services and doesn't give you as detailed instructions for filling out the W-4. Save your money and just use the free IRS Tax Withholding Estimator.
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