Wait seriously? You can actually write off pedicures as a business expense for feet pics? That seems too good to be true lol

Absolutely! If the pedicures are specifically for your photoshoots and business purposes, they're a legitimate business expense. Think of it like this - if a hand model gets manicures for photo shoots, that's a business expense. Same principle applies to foot modeling/pics. Just make sure you're being honest about the business purpose and keep good records. I keep a separate calendar where I note when I got pedicures specifically for photo sessions versus personal ones. Same with any special foot care products or accessories I buy exclusively for shoots. The key is that these expenses must be "ordinary and necessary" for your specific business - which in the case of foot content, professional foot care definitely qualifies!

Are the costs for copyright registration and protection software tax deductible? Seems like they would be but just checking.

Whoa, I had no idea about the sunset provision! That could be a huge deal for my uncle. He's in Massachusetts if that makes a difference for state-level taxes. Would you recommend he talk to a specialized estate planning attorney rather than his regular attorney who handles his other legal matters?

Massachusetts has a state estate tax threshold of only $1 million with tax rates ranging from 0.8% to 16%, so yes, this is definitely something your uncle needs to address regardless of federal exemption amounts. Absolutely recommend a specialized estate planning attorney rather than a general practitioner. Estate planning, particularly with estates approaching the federal exemption and in states with their own estate taxes, requires specific expertise. The right attorney can potentially save your uncle's estate hundreds of thousands or even millions in taxes with proper planning. The fee for specialized advice will be well worth it given the potential tax savings.

This is such an important point. My mother did something similar and it was a nightmare. Are there any types of trusts that offer tax benefits but still maintain some flexibility?

I don't think I received any special credits last year - I don't have kids and didn't qualify for most of those pandemic-related things. My income did go up slightly (about $1,500 more than last year), but I didn't think that would make such a big difference. One thing I'm wondering about - I did start contributing to my company's 401k this past September. Would that affect my refund in any way? I'm putting in about 4% of my paycheck.

Your 401k contributions actually should have helped your tax situation, not hurt it. Those contributions reduce your taxable income, which typically means less tax overall. Since you started in September, you might not see the full annual benefit, but it definitely wouldn't cause your refund to decrease. Given all the information you've shared, it really does sound like the withholding change is the primary factor. The good news is that you didn't actually lose money - you just received it gradually throughout the year instead of in one lump sum. For next year, definitely submit a new W-4 requesting additional withholding if you prefer the larger refund approach to saving.

This is exactly right. A tax refund is just the government giving back money they took too much of during the year. Ideally, your refund should be close to zero - that means you paid exactly what you owed, no more no less.

Thanks for mentioning documentation! I think I have all my 1098-Ts from school but not sure about textbook receipts from 3 years ago. Will the IRS reject my amendment if I'm missing some of the receipts?

The IRS won't automatically reject your amendment if you're missing some receipts, but you should be prepared to substantiate your claims if they ask questions. For textbooks, if you don't have the original receipts, look for credit card statements, bank statements, or emails confirming your purchases. For education credits, the 1098-T is the most important document, as it shows your enrollment and amounts paid to the institution. The IRS is more likely to focus on verifying that information rather than every individual book purchase. Do your best to create a reasonable estimate of your textbook costs if you can't find all receipts, and keep notes on how you calculated those amounts.

Does the IRS automatically add the interest or do you have to request it specifically? And do you know what the current interest rate is?

Thanks for this info! I did file Form 1120-S for 2021 and issued myself W-2s, so sounds like I've been operating consistent with S-corp status. I was just confused about whether I could put January 1 as the effective date when my LLC wasn't technically formed until March. I'll definitely check Box D1 and explain the situation in Part III as you suggested. Do you think I should attach anything else to the form when I send it in? Like copies of my 2021 tax filings to prove I've been operating as an S-corp?

Yes, you should absolutely attach copies of your 2021 Form 1120-S and any W-2s you issued yourself as supporting documentation. This demonstrates to the IRS that you've been operating consistently as an S-corporation. Also consider attaching a brief cover letter referencing the IRS notice you received and explaining your intention to address this with the late-filed election. I'd also recommend sending it certified mail so you have proof of submission. The IRS can be slow to process these, so having documentation of when you submitted everything can be important if they follow up again before processing your election.

Good point! I made this mistake last year and they rejected my filing, adding another 2 months to the process. You can download the current version directly from irs.gov rather than using any forms that might be outdated on tax preparation websites.