That's a really good point about student loans! Do you know if there are other income-based programs that might be affected by filing status? I'm wondering about healthcare subsidies too.

Yes, healthcare subsidies through the Marketplace can definitely be affected by your filing status! Filing jointly combines your income which could potentially reduce or eliminate your subsidy if it pushes you over the threshold. This is something many people overlook when deciding how to file. Other income-based programs that can be affected include certain tax credits like the Earned Income Credit, Child and Dependent Care Credit, and education credits which phase out at higher income levels. Some medical expense deductions are also affected since they're only deductible to the extent they exceed a percentage of your AGI.

You generally need to file a tax return in any state where you earned income, regardless of your federal filing status. So if you have income in Indiana and your husband has income in Illinois, you'd each need to file in your respective states.

Wait, I thought partnerships themselves don't pay tax? Don't the partners just report their share on their personal returns? Why would a partnership make estimated payments?

You're generally correct that partnerships themselves don't pay federal income tax as they're pass-through entities. However, partnerships can still be subject to making tax payments in certain situations. Some partnerships may need to make estimated payments for things like withholding for foreign partners, or for potential audit adjustments under the centralized partnership audit regime. Also, many partnerships have to pay state taxes or fees depending on their location, and those might require estimated payments.

I've filed 7004s electronically for partnerships without issues. What software are you using? Some tax programs handle the extension forms better than others. I've had good luck with ProSeries and Lacerte for partnership extensions.

I'm actually self-employed now, which is why I'm stuck with marketplace insurance. Would that QSEHRA thing apply to me still, or is there something similar for fully self-employed people?

Since you're fully self-employed, QSEHRA wouldn't apply to you as it's only for employees of small businesses. However, you should look into the self-employed health insurance deduction! As a self-employed person, you can typically deduct 100% of your health insurance premiums (including marketplace plans) as an adjustment to income on Schedule 1, without needing to meet that 7.5% AGI threshold. This is completely different from the medical expense deduction and one of the big tax advantages of self-employment. Just make sure your self-employment income is at least as much as your total premiums for the full deduction.

This is great advice but only works if you specifically choose an HSA-compatible high deductible health plan (HDHP) from the marketplace. Many marketplace plans don't qualify for HSA contributions. You'll need to check if the plan is officially designated as HSA-eligible when you enroll.

Most IRS Taxpayer Assistance Centers require appointments now - you can't just walk in. And the appointment availability can be weeks out during tax season. I tried this route last year and the earliest appointment was 3 weeks away. Just something to keep in mind!

Thanks for that info! I had no idea they required appointments now. That's really good to know, would've been frustrating to drive there only to be turned away. Do you know if there's a special procedure for emergency situations like missing W2s, or do you still have to wait for an appointment regardless? I actually ended up getting through on the phone after multiple attempts, but it took almost 2 hours of waiting. The person I spoke with was helpful though.

I second this. Had an employer with similar "payroll correction" excuses and late paychecks. Six months later they shut down with no notice and owed everyone 3 weeks of back pay. Get your resume updated now while dealing with the W2 issue.

Thanks for the clear explanation! This makes a lot more sense than what the volunteers told me. Do you know if filing the 2018 return now will hurt my OIC chances for 2017? Like, will adding more debt make them less likely to approve it?

Filing your 2018 return now won't hurt your OIC chances - in fact, it's absolutely required. When you submit an OIC, the IRS will check that you're in compliance with all filing requirements before they even consider your offer. As for the additional debt potentially affecting your offer amount, it could be factored into your "reasonable collection potential" calculation. However, this is much better than having your OIC rejected outright due to non-compliance. The IRS looks at your overall ability to pay, so while the total debt matters, your financial situation is the primary factor in determining an acceptable offer amount.

Yes, there's a 3-year deadline for claiming refunds. So for 2018 taxes, you would have needed to file by May 17, 2022 (the deadline was extended that year due to COVID) to claim any refund owed to you. After that, any refund you were entitled to is forfeited to the Treasury.