Florida repealed their intangible tax in 2007. There's no Florida state tax on interest income anymore. Been a Florida resident for 20+ years and a tax preparer for 15.

Thanks for the correction! I was confusing it with documentary stamp taxes on other financial instruments. That's why I should check my facts before posting. Good to know Florida residents truly don't have to worry about state taxes on interest income.

I hadn't considered that! Is it too late to do that for this tax year or can I still make a contribution that would count for this filing?

You're in luck! You can still make IRA contributions for the previous tax year until the tax filing deadline (usually April 15th). So you absolutely still have time to make a contribution and have it count for this filing. Just make sure when you make the contribution you specifically tell your financial institution it's for tax year 2024 (assuming that's the year you're filing for). They'll know how to code it properly. Then you can include that deduction in your tax return and it should reduce what you owe.

Do you need to attach the actual adoption papers/court documents, or just receipts for the expenses? Our adoption isn't finalized yet but we've paid most of the fees already.

You'll need to provide documentation proving both the adoption expenses and the status of the adoption. If your adoption isn't finalized yet, you'll need to include receipts for qualified expenses and documentation showing the adoption is in process (like an approved home study, placement agreement, or court documents). For foreign adoptions, the requirements are slightly different, so make sure you check that specific section of the instructions if applicable. The key is providing enough documentation to prove the adoption is legitimate and the expenses qualify.

Did you use TurboTax or another tax software? Even though you had to paper file, could you still prepare everything electronically and then just print it out? I'm in a similar situation.

Thanks for pointing that out about the child support. I didn't think it was deductible but wasn't 100% sure. Do you know if there are any tax benefits I can still get even with the married filing separately status? I'm worried my tax bill is going to be much higher now.

While married filing separately does limit many tax benefits, you can still claim some deductions. You can take your portion of mortgage interest and property taxes if you itemize (though remember you can only deduct what you actually paid). You can still contribute to retirement accounts like 401(k)s and IRAs, though income limits for deductible IRA contributions are much lower when filing separately. You might still qualify for the child and dependent care credit if you're the custodial parent, but the income limits are lower. And don't forget that you can still take your standard deduction - it's just half of what joint filers get. Your tax professional can run scenarios to see whether itemizing or taking the standard deduction benefits you more in your specific situation.

Just want to add to this - if you're losing health insurance coverage because of divorce, that counts as a qualifying life event that lets you enroll in a marketplace plan outside of open enrollment. You have 60 days from when you lose coverage to enroll. Don't wait until the divorce is final if your coverage will end before then!

You definitely want to include specific language about how uncovered medical expenses will be split (like 50/50 or proportional to income). Make sure it clearly defines what counts as a medical expense - does it include just doctor visits and prescriptions, or also dental, vision, therapy, and orthodontics? Also include details about who needs to approve non-emergency medical treatments, how information about health issues will be shared between parents, and how reimbursement will work (timeframes for providing receipts and making payments). The more specific you can make these provisions, the fewer conflicts you'll have later. And remember that medical expense arrangements for the children can be modified in the future if circumstances change significantly.

You make a really good point about the regulatory compliance stuff. I hadn't even thought about the FDA labeling requirements. I'm going to ask him specifically about packaging, shipping supplies, and the labels since those definitely couldn't have been "gifted years ago" - they would be ongoing expenses. I've been trying to give him the benefit of the doubt, but the more I think about it, the more impossible it seems to run any business with zero expenses. I'm going to have a more direct conversation with him and explain that I'm trying to help him avoid unnecessary IRS scrutiny.

Glad I could help! The FDA requires supplements to have specific labeling including ingredients, nutrition facts, serving sizes, and various disclaimers. He's definitely paying something for compliant labels unless he's operating completely under the table (which would be a whole different problem). Also consider asking about things like shipping costs, payment processing fees (Venmo might charge business accounts), any social media or advertising costs, and home office expenses if he's producing these at home. Sometimes clients don't realize these all count as legitimate business expenses that would actually reduce his tax liability.

Do business Venmo fees show up separately somewhere? I've been paying them but haven't been tracking them for my small business.

Your accountant is correct. Even frequent trading typically goes on Schedule D as capital gains/losses, not Schedule C. The only exception might be if you're a professional trader who has made a special tax election. Most day traders, even active ones, don't qualify for trader tax status. The requirements are super strict.

That's definitely concerning. Can I ask what happened specifically that made them determine it wasn't a real business? Did you have clients and actual business operations? I'm planning to have legitimate clients and services, proper accounting, a business license, etc.

I did have a few clients and made some revenue, but the IRS found several problems with my approach. First, I wasn't keeping good business records or tracking expenses properly. Second, I never created a formal business plan or showed evidence of trying to make the business profitable. Third, I continued with the same approach for 3 years despite consistent losses. The big red flag was that my expenses were all things I would have bought anyway for my hobby (camera equipment, travel to scenic locations, etc.), and most of my "clients" were friends and family. The IRS is looking for real efforts to operate profitably. Since your background is in IT consulting, with actual expertise and a clear market for services, you'll have a much stronger case than I did. Just make sure you run it like a serious business from day one.