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My sister went through something similar last year. Her "tax guy" claimed she'd get a $4K refund compared to the $300 she usually gets. When she asked questions, he kept saying stuff like "I know special deductions most people don't know about." Turns out he was claiming she had a home-based craft business (she doesn't) with just enough expenses to generate a big refund. She reported him to the IRS and filed correctly herself. The problem is these fraudsters know exactly how much they can claim without triggering automatic audits. Definitely trust your gut on this one. You already know the answer - this person is committing fraud and trying to involve you in it. The fact they added a business you don't have is 100% proof of fraud.
Did your sister face any consequences for almost filing a fraudulent return? I'm in a similar situation where I think my preparer did something sketchy but I already filed. Now I'm freaking out about what to do.
My sister didn't face any consequences because she caught it before filing. She immediately cut ties with the fraudulent preparer and submitted a correct return on her own. If you've already filed a return that you believe contains false information, you should file an amended return (Form 1040-X) as soon as possible to correct the errors. Be completely truthful on the amended return. The IRS generally looks more favorably on taxpayers who voluntarily correct mistakes before being caught in an audit. You might still face penalties and interest on any additional taxes owed, but coming forward voluntarily is always better than waiting for them to discover it.
So I'm not a tax expert but here's what I think - the IRS isn't stupid. They have sophisticated systems that flag unusual items, especially sudden business losses with no prior history. When I worked retail, a coworker got busted for claiming a fake business loss of $7k. The IRS matched his W-2 income against his tax return, saw the suspicious deduction and audited him. He ended up having to pay back the fraudulent refund PLUS a 20% accuracy penalty PLUS interest. It took him years to pay it off and he couldn't get approved for a mortgage because of the tax lien. Even if you don't get caught immediately, the IRS can audit returns from the past 3-6 years (or unlimited time in cases of fraud). Not worth risking your financial future for a temporary $2k boost.
Pro tip for figuring out line 11: The standard calculation is built into most free tax filing websites like FreeTaxUSA or Cash App Taxes (formerly Credit Karma Tax). Even if you want to file on paper, you can use these sites to check your math. I personally use the Tax Computation Worksheet from the 1040 instructions (it's a few pages after the tax tables) to double-check the software's calculations. For income around $44k, the tax should be approximately $5,095 if you're single, but check the exact tables to be sure.
Thanks for the suggestion! I actually tried Free File Fillable Forms but got confused on some of the calculations. Do you think FreeTaxUSA or Cash App Taxes would be more user-friendly for a first-time filer? I'd rather just e-file at this point and be done with it.
FreeTaxUSA is definitely more user-friendly for first-time filers. It walks you through everything step by step with explanations, and the free version covers most basic tax situations including W-2 income and HSA distributions. It also lets you see a preview of all forms being filled out as you go, so you can understand what's happening on your 1040. Cash App Taxes is also good and completely free for federal and state, but some users find the interface less intuitive. Either one would save you a lot of headache compared to filling out forms manually, especially for a first-timer.
Has anyone else noticed that the tax tables in the 2024 instructions (for 2025 filing) are slightly different than previous years? The brackets were adjusted for inflation. Make sure you're using the current year's tables!
Yes! This is super important. The IRS adjusts the tax brackets, standard deduction, and many other figures each year for inflation. For 2024 taxes (filed in 2025), the standard deduction increased to $13,850 for single filers, up from $13,200 in 2023. The tax bracket thresholds increased too.
I'm a bookkeeper for small businesses and here's my practical advice: create a separate Amazon account for business purchases. I do this for all my clients and it makes tracking SO much easier. Most office supply deduction issues happen because people mix personal and business shopping. Having dedicated accounts creates a clear separation. Same goes for having a business credit card used ONLY for business expenses. For physical stores, take a photo of the receipt immediately and note what it was for. Apps like Receipt Bank or even just Google Drive can organize these for you. Remember that consistency matters more than perfection. The IRS is primarily looking for people who are deliberately abusing the system, not honest business owners who occasionally buy a pack of pens that might be used for both business and personal use.
What about stuff that's definitely dual-purpose? I bought a nice printer that I use maybe 70% for my business and 30% for kids' homework. Can I still deduct the whole thing or just part of it?
For dual-purpose equipment like your printer, you should only deduct the business percentage. So if it's genuinely 70% business use, you'd deduct 70% of the cost. For higher-value items like printers, computers, or tablets, it's especially important to be accurate with business-use percentages since these are more likely to be questioned in an audit. Keep a log for a few weeks showing how often you use it for business versus personal to support your percentage. Some of my clients even keep separate user profiles on their computers to help demonstrate the split use.
guys dont overthink this. the irs isnt checking if every single pen you bought was used for business. as long as the amount is reasonable for your business type, your fine. I've been deducting office supplies for 15 yrs and never had an issue. just dont go crazy and deduct $5000 in "office supplies" for a small etsy shop or something. use common sense. keep your receipts in case of audit but seriously i've never heard of anyone getting audited over pens and paper lol.
This is terrible advice. My friend got audited specifically over office supplies because they were deducting things without proper documentation. They ended up having to pay back taxes plus penalties. Just because YOU haven't been audited doesn't mean it doesn't happen.
Just some additional info - I'm a tax preparer and this comes up all the time. You're looking at two separate questions: 1) Head of Household - Need a qualifying person (child or relative who qualifies as your dependent) 2) Claiming girlfriend as dependent - Possible IF her income is under $4,700 for the year AND you provide more than half her support But important note: if you claim her as your dependent, she cannot claim herself on her own return, and she would be ineligible for stimulus payments. Most couples in your situation do better filing separately unless one person has very low/no income.
Thanks for breaking this down! One follow up question - does my girlfriend's income from last year affect whether I can claim her as a dependent? She made about $4,500 in 2024 but expects to make more this year.
For dependency purposes, what matters is her income in the actual tax year you're filing for. So if you're filing 2024 taxes, it's her 2024 income that counts. If she made $4,500 in 2024, that's under the threshold ($4,700), so that part of the dependency test would be met. What would affect your 2025 taxes would be her income during 2025. If she expects to make more than the threshold in 2025, then you likely wouldn't be able to claim her as a dependent when you file your 2025 taxes next year.
Has anyone considered the Married Filing Separately option? My partner and I did that last year and it worked better than trying to claim HOH or dependent status.
You can only file as Married Filing Separately if you're legally married. OP specifically said they're unmarried and living with a girlfriend, so that's not an option for them.
Darren Brooks
I think the real issue is that there's a huge difference between tax preparers vs tax planners. A lot of CPAs just focus on completing forms accurately based on what you give them (preparation) rather than actively looking for ways to optimize your tax situation (planning). When interviewing a new tax person, I'd specifically ask: "Do you provide proactive tax planning advice or just tax preparation?" A good tax planner should be having conversations with you throughout the year, not just at tax time.
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Darcy Moore
β’That's a really helpful distinction. Do you think it's reasonable to expect both services from the same person? Or should I be looking for two separate professionals - one for planning and one for preparation?
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Darren Brooks
β’Most comprehensive CPAs should be able to provide both services, but you may need to specifically request and possibly pay extra for the planning component. Many tax professionals offer tiered service packages - basic preparation at one price point and more comprehensive planning at a higher price. For someone in your situation with increasing income, business activities, and life changes like marriage, I'd definitely recommend finding one person who can handle both aspects. Just be clear about your expectations upfront and make sure they explicitly offer tax planning as part of their services.
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Rosie Harper
Honestly, I ditched CPAs years ago and just use H&R Block premium online. It walks you through everything step by step and actually prompts you about stuff like HSA contribution limits, IRA opportunities, etc. It's way cheaper than a CPA and I've found it catches most of the same stuff.
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Elliott luviBorBatman
β’Tax software is fine for simple situations but it misses a lot for complex cases. I tried this approach with my small business and rental properties and ended up getting audited because the software didn't properly handle some depreciation calculations. A good CPA is worth every penny for complicated tax situations.
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Rosie Harper
β’You're right that it's not for everyone. I should have mentioned my situation is pretty straightforward - W2 income, mortgage, some investments. For folks with businesses, rental properties or more complex situations, a CPA probably makes more sense. I still think tax software has gotten much better at prompting for common deductions and credits though. Mine specifically asked about HDHP coverage and whether it was individual or family, then calculated the maximum HSA contribution automatically.
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