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Next time just use FreeTaxUSA. It's like $15 for federal and state and super easy to use. I've been using it for years and even with a W-2 and multiple 1099s it's simple. H&R Block and those places are complete ripoffs for simple tax situations.
Does FreeTaxUSA have good support if you have questions? I'm always nervous about doing it myself in case I mess something up.
Their support is pretty decent - you can email them questions and they usually respond within a day. If you need immediate help, their knowledge base is really comprehensive and has answers to most common questions. For basic stuff like W-2s and simple 1099 work, it's very straightforward. The software walks you through everything step by step. I've been using it for 5 years with no issues, even when my tax situation got more complicated with rental property.
I used to work at a tax prep place (not saying which one but it rhymes with Shmackson Shmuitt) and $349 is absolutely a ripoff for your situation. They train us to upsell and add fees that aren't necessary. The self-employment thing is their favorite excuse to jack up prices, even for tiny amounts. Get a refund and do it yourself next year!
Thank you for confirming what I suspected! I actually called H&R Block's customer service line and complained about the lack of upfront pricing, and they agreed to reduce my fee to $199. Still more than I wanted to pay, but better than $349. Definitely doing it myself next year with one of the options you all suggested.
Don't forget about social security taxes! Even if you're eligible for foreign tax credits or exclusions, you might still owe US Social Security and Medicare taxes on your foreign earnings if you're employed by a US company. The rules are different for self-employed people working abroad. If Kenya and the US have a totalization agreement (social security agreement), the rules might be different, but I don't think they do. Worth looking into though!
I completely forgot about social security taxes, thank you! Do you know if there's a minimum threshold for this? Like if I'm only there for 8 months, would that change anything about Social Security obligations?
For Social Security taxes, the duration of your stay doesn't typically create a minimum threshold. If you're employed by a US company, they'll generally continue to withhold Social Security and Medicare taxes from your paychecks regardless of where you're physically working, unless there's a totalization agreement with that country. As far as I know, the US and Kenya don't have a totalization agreement, so you'd continue paying into the US Social Security system. The good news is this means you'll continue earning credits toward your eventual US Social Security benefits, even while working abroad.
Anyone know how the Kenya situation specifically works? I spent 3 months there last year working remotely and honestly just didn't bother figuring out the tax situation... Did I mess up? Should I file something retroactively??
I'm not a tax expert, but from what I understand, Kenya typically doesn't consider you a tax resident unless you're there for 183+ days in a year. Since you were only there for 3 months (presumably less than 90 days), you likely weren't subject to Kenyan income tax. If you did everything correctly with your US taxes and reported all your income there, you probably don't need to worry about filing anything retroactively for Kenya. But if you're concerned, it might be worth consulting with a tax professional who knows the Kenyan tax system.
That's a relief! Yes I was there for exactly 89 days and did report everything on my US taxes. Was worried I might have some surprise tax bill waiting for me from the Kenyan government. Thanks for the info!
One thing to keep in mind - many tax prep places charge "per form" but that's THEIR fee structure, not the IRS charging them (or you). When I worked briefly at H&R Block years ago, we had different pricing tiers based on how many forms were needed. But we NEVER told customers it was an "IRS fee" because that would be completely false.
That makes so much more sense. The way they broke it down made it sound like they were just passing along IRS charges to me, which seemed really high. I'll definitely be switching back to online filing next year...or maybe even trying the IRS Free File options. Do you know if those work well for simple tax situations like mine?
For a simple tax situation like yours with just a couple of W-2s and education credits, the IRS Free File options would work perfectly. Most of the major tax software companies participate in the Free File program if your income is below certain thresholds (usually around $73,000). I'd recommend checking out the IRS Free File site directly rather than going through a tax prep company's website, as sometimes the companies hide their free options. With your straightforward tax situation, you should be able to file completely free of charge.
Just to add another data point, I paid $65 total this year to file through TaxSlayer with 3 W-2s and student loan interest. That included federal AND state filing. No "processing fees" whatsoever because, as others have mentioned, the IRS doesn't charge for that. Liberty Tax was definitely misleading you.
Yep same here! I had 2 W-2s, student loan interest, and a 1099-INT from my bank and paid $49 with TaxAct. These big tax prep chains are really taking advantage of people who don't know any better.
Am i the only one who just estimates mileage? I've been running my business for 5 years and just guesstimate based on appointments and google maps. Never had issues. Feel like ppl overthink this stuff lol.
You're playing with fire. The IRS specifically requires contemporaneous mileage logs with exact details. If you get audited, they'll disallow ALL of your mileage deductions without proper documentation. I know because it happened to my brother-in-law's business last year. Cost him thousands in back taxes plus penalties.
Just wanna add that you should be careful about "reimbursing" yourself too much at once if you do it in 2025. I made this mistake - had a ton of 2023 miles I didn't reimburse until January 2024, then tried to take it all at once along with my regular 2024 mileage. My accountant warned me that large, unusual reimbursements can trigger extra scrutiny. Might be worth spreading it out over a few months if the amount is significant.
Keisha Jackson
Another option might be to talk to your boss about using a company credit card to purchase the laptop instead of buying it yourself. That way it's clearly company property but you'd have dedicated equipment. My company does this - we use the company CC but we're the "custodian" of that specific device. Worth asking about!
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NightOwl42
ā¢Thanks for the suggestion! I actually tried something similar - asked if I could use the company purchasing system but have it assigned to me permanently. They said no because of some asset tracking policy. It's frustrating because they acknowledge we need more laptops but won't approve the budget for them. Might be time to dust off the resume...
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Keisha Jackson
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Paolo Romano
Has anyone actually gotten audited for claiming unreimbursed work expenses? I've been deducting my work laptop for years and never had an issue. The IRS doesn't check every return, right?
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Amina Diop
ā¢Dude, that's literally tax fraud if you're a W-2 employee claiming those expenses after 2018. The law changed. The IRS has been ramping up audits with their new funding. I wouldn't risk it for a few hundred bucks.
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