Thank you so much for all this helpful info! Quick question - if I file and get a refund this year, will that affect my parents' ability to claim me as a dependent on their taxes?

You filing your own tax return won't affect your parents' ability to claim you as a dependent at all! These are completely separate issues. Your parents' ability to claim you depends on whether you meet the dependency tests (like if they provide more than half your support, if you're a full-time student under 24, etc.), not whether you file your own return. So go ahead and file to get that refund - it won't impact your parents' taxes in any way.

Absolutely do NOT pay H&R Block for a simple return! I used to work there - they charge like $150+ for returns that literally take 15 minutes to file. If you only made $8k and have a W-2, use the IRS Free File options or even the free version of TurboTax/FreeTaxUSA. Save your money!

Thanks for the advice! That's what I was worried about. I just heard the free versions try to trick you into upgrading halfway through. I'll check out the IRS Free File program that people mentioned.

Thank you for mentioning this! I had no idea this was a thing. I'll definitely ask our CPA about the Voluntary Disclosure Program. Is there anything specific we need to do to qualify for this?

You're already taking the right first step by working with a CPA to file all the past returns. The key requirements are that you're coming forward voluntarily (before the IRS contacts you about the unfiled returns) and that you're filing accurate returns for all missing years. Make sure your CPA specifically requests penalty abatement using Form 843. They should cite "reasonable cause" and explain the circumstances that led to the unfiled returns. Having professional help with this process is crucial because the specific language and approach matter a lot in how the IRS responds.

That's not entirely accurate. The IRS doesn't immediately put liens on property, especially if you're voluntarily coming forward. They typically only place liens after multiple notices and lack of response or cooperation.

Thank you for this explanation! I think this is exactly what happened - we each used our own accounts thinking TurboTax would somehow combine them. So if we amend, should we just use my wife's account since her return was already accepted?

Yes, since your wife's return was already accepted, you should use her TurboTax account to prepare the amended return. You'll log into her account, locate her accepted return, and then select the option to amend it. When amending, you'll need to add all your income information, deductions, and credits to create a complete joint return. Make sure you have all your tax documents ready, including your W-2s, 1099s, and anything else relevant to your tax situation. TurboTax will guide you through the amendment process, but just remember you're essentially creating a new joint return that includes both of your information.

This! My husband and I accidentally filed separately last year and were about to amend until we realized we'd actually save about $1800 by staying with separate returns due to his income-based student loan situation. Definitely worth checking both scenarios.

Thank you! How much should I be setting aside for those quarterly payments? Is it just a percentage of what I make each quarter?

A good rule of thumb is to set aside about 30% of your profit for taxes. This should cover both income tax and self-employment tax for most people. But it does depend on your tax bracket and what other income you have. The payments are supposed to be based on your projected annual income, not just what you made that quarter. The IRS wants relatively even payments, not payments that fluctuate wildly from quarter to quarter. You can use Form 1040-ES to calculate the recommended amount, or many tax software programs can help you estimate this after you file this year's return.

This is super helpful info - I didn't even think about the mortgage aspect. I'm going to start gathering those bank statements now to show the deposits. Did you have to get anything special from your clients or was the paper trail enough?

The paper trail was enough in my case - bank statements showing the deposits plus my QuickBooks reports that matched those deposits. For the larger clients, I also had copies of the contracts showing the agreed payment amounts. No need to get anything special from the clients themselves. The lender just wanted to verify that the income was legitimate and consistent.

I know credit card debt isn't ideal, but it happened after some medical expenses that weren't fully covered by insurance. I've actually been looking into balance transfer offers like you suggested. Do you have any recommendations for specific cards that have good 0% offers right now?

I don't want to recommend specific cards since offers change frequently, but look for cards offering at least 15 months at 0% APR on balance transfers. Pay attention to the balance transfer fee (usually 3-5% of the transferred amount) and factor that into your calculations. Credit unions often have personal loan rates significantly lower than credit card interest rates if the balance transfer doesn't cover everything. The key is to make a plan to pay off the debt during the 0% period, or you'll just end up back in the same situation when the promotional rate expires.

This is actually a really good point that I never thought about. The tax code is basically a list of things the government wants to encourage.

Exactly. Once you understand that the tax code is more about shaping behavior than being "fair," you can make more strategic financial decisions. If you're going to borrow money anyway, might as well do it in ways that come with tax advantages when possible.