Has anyone had their return audited after claiming the Notice 2014-7 exclusion? I'm worried about red flags since there's a mismatch between what's reported on the 1099-NEC and what I'm including as taxable income.

I'm dealing with this exact same situation right now! I care for my disabled mother through our state's Medicaid waiver program and received a 1099-NEC for $18,000. Like you, I've been pulling my hair out trying to get tax software to recognize that this income should be exempt under Notice 2014-7. After reading through all these responses, I think I'm going to try the taxr.ai approach first since it seems specifically designed for this situation. If that doesn't work out, I'll consider the Claimyr service to get direct IRS help. One question for everyone - do the payments have to be made directly by the state Medicaid office to qualify, or can they go through a third-party agency? My payments come from a company called "Home Care Solutions" that contracts with our state's Medicaid program. I'm hoping this still qualifies under the notice since it's ultimately Medicaid funding for family care. Thanks to everyone who shared their experiences - this thread has been incredibly helpful for understanding my options!

Has anyone compared how different tax software handles this ACA premium deduction for self-employed people? I've been using TurboTax for years but I'm wondering if something like FreeTaxUSA or TaxAct might be better for this specific situation.

Just wanted to add another perspective here - I'm a CPA who works with a lot of self-employed clients in this exact situation. The confusion around ACA premium deductions is incredibly common, and you're definitely not alone in finding the IRS language confusing. For sole proprietors filing Schedule C (which includes independent contractors like yourself), your ACA marketplace premiums ARE deductible as long as you meet the basic requirements: the policy covers you (and potentially your family), you're not eligible for employer-sponsored coverage, and your business shows a net profit at least equal to the premium amount you're deducting. The "established under your business" language that's tripping you up is really aimed at other business structures. For sole props, having the policy in your personal name absolutely counts. One thing I always tell my clients: keep excellent records of your premium payments and make sure you understand how any premium tax credits affect your deduction amount. And if you're ever unsure about a significant deduction like this ($8,500 is substantial!), it's worth consulting with a tax professional for your specific situation. The peace of mind is usually worth the cost.

June, I'm so sorry you're experiencing this with MyHealth CCM. Your situation is a perfect example of what happens when these questionable tax shelter schemes prioritize collecting upfront fees over actually delivering legitimate business services. The fact that you can't get basic customer support after paying $75,000 is completely unacceptable and frankly typical of these operations. The broken video platform preventing you from completing the required 100 hours of compliance training sounds like it could be intentionally designed to create barriers - giving them excuses to avoid providing promised services or benefits. Here's what I'd recommend doing immediately: 1. **Document everything** - Screenshot the broken video platform, save all unanswered emails/calls, and create a timeline of your attempts to get help 2. **Contact your credit card company** if you used one - you may have dispute rights for services not provided 3. **File complaints** with your state Attorney General's consumer protection division and the Better Business Bureau 4. **Consult with attorneys** - both a consumer protection lawyer and a tax attorney given the IRS concerns raised throughout this thread Given all the tax shelter red flags discussed here by Miguel and others, you might actually want to proactively contact the IRS about this arrangement. If they determine it's an abusive tax shelter, that could work in your favor for getting out of this investment. Don't give up - there are likely legal remedies available. Your experience serves as a crucial warning for others considering similar schemes. Thank you for sharing this despite what must be a frustrating situation.

June, I'm absolutely appalled by what you're going through with MyHealth CCM. Your experience is the perfect real-world validation of every red flag we discussed in this thread. Paying $75k and then being completely ignored by customer service - including the owner just forwarding your complaint to the same person who's been ghosting you - shows these people have zero integrity. The broken video platform preventing you from completing the mandatory 100-hour training sounds deliberately sabotaged. I suspect they make it nearly impossible to actually complete their program so they can later claim you didn't meet requirements if you demand results or try to get your money back. This is classic predatory behavior: collect massive upfront fees, provide terrible service, create impossible compliance requirements, then blame the victim when things don't work out. Beyond the consumer protection and legal remedies others have suggested, I'd also recommend: - Posting detailed reviews on Google, Yelp, and any business rating sites - Checking if there's a class action lawsuit forming (other victims may be organizing) - Contacting local news consumer protection reporters - they love exposing these schemes Your courage in sharing this experience is invaluable. It provides concrete proof of what happens when people fall for these "too good to be true" tax shelter pitches. Thank you for potentially saving others from this same nightmare. Don't let them get away with this. Fight back through every legal avenue available.

This thread has been absolutely incredible - I've learned more about W-4s and withholding from reading through everyone's experiences than I ever did from official IRS guidance! I'm in a somewhat similar situation but with a twist - I have one regular W-2 job and also do some freelance 1099 work throughout the year. The 1099 income varies quite a bit month to month, which makes it tricky to know how to adjust my W-4 withholding at my regular job. From what I've gathered here, it sounds like the IRS withholding estimator can handle mixed W-2/1099 situations, but I'm wondering if anyone has specific experience with this scenario? Do you typically update your W-4 every time your 1099 income changes significantly, or do you try to estimate an average and stick with it? Also, I've been making quarterly estimated tax payments for the 1099 work, but I'm wondering if it would be simpler to just increase my W-4 withholding at my regular job to cover both income sources and skip the estimated payments altogether. Has anyone tried this approach? Thanks to everyone for sharing such detailed and practical advice - this community is incredibly helpful for navigating these complex tax situations!

I've dealt with a very similar W-2/1099 combination situation! The IRS withholding estimator actually handles this really well - it has specific sections for both types of income and can calculate the optimal approach for your situation. For the varying 1099 income, I found it worked best to estimate conservatively high for the year when using the estimator, then make quarterly adjustments to my W-4 if my 1099 income was tracking significantly different than projected. I usually did this review along with my quarterly estimated tax payment deadlines, so it became part of the same routine. Regarding using W-4 withholding instead of estimated payments - I actually switched to this approach last year and it's been much simpler! I increased my W-4 withholding at my regular job to cover both income sources and stopped making separate estimated payments. The key is making sure your W-2 withholding meets the safe harbor requirements (90% of current year or 100%/110% of prior year depending on your AGI). The main advantage is that W-4 withholding is treated as paid evenly throughout the year for tax purposes, even if you make the adjustment mid-year, whereas estimated payments need to be made quarterly to avoid penalties. Just make sure your regular job has enough pay periods left in the year to withhold the additional amount you need. I'd recommend running your numbers through the estimator with both approaches to see which works better for your specific income pattern!

I went through this same frustration last year with my small partnership. After trying several options, I ended up going with FreeTaxUSA for around $60. What I liked about it was that it walked me through each section step-by-step and caught a few things I would have missed if I'd tried to do it manually. One thing to consider - if your partnership is really straightforward with just basic income and standard deductions, you might want to check if your state has any free business filing programs. Some states offer free e-filing for small partnerships even when the federal doesn't. It's worth a quick search on your state's tax website. Also, don't forget that the partnership filing fee is a deductible business expense, so factor that into your actual cost calculation. The $50-80 range for software isn't too bad when you consider the time savings and reduced error risk compared to paper filing.

Another option worth considering is TaxSlayer Business - they typically charge around $47 for 1065 filing and K-1 generation. I used them for my small consulting partnership last year and found their interface pretty intuitive for basic returns. One thing that helped me save even more was timing - if you can wait until later in the filing season (like March), many of these services run promotions. TaxAct dropped their price to $35 during a spring promotion, and FreeTaxUSA had a similar deal. Also, since you mentioned you're a simple two-person partnership, make sure you're not overcomplicating things. If you don't have rental properties, multiple business activities, or complex allocations, even the basic versions of these programs should handle everything you need. Sometimes people pay for premium features they don't actually require.