Can FreeTaxUSA handle rental property income? I have a duplex I rent out and TurboTax charges me for their premium version just for that one thing. Getting tired of paying $120+ every year.

Yes, FreeTaxUSA absolutely handles rental property income! I don't personally have rentals, but my brother uses it for his duplex with no problems. You'll fill out the same Schedule E that you would with TurboTax, but without the premium pricing. The interface walks you through all the rental income, expenses, depreciation, etc. just like the expensive programs do. The help content isn't quite as extensive as TurboTax, but it covers all the basics you need for accurately reporting rental property. Definitely worth trying to save that $120+ you're currently spending.

Ugh that's awful! I had a similar experience with Liberty Tax a few years ago. Those big chains just hire seasonal people with minimal training and push them to get through as many returns as possible.

How did you find your CPA? Did you just Google or did you get a personal recommendation? I'm nervous about just picking a random person to handle my financial info.

4 Can you share which specific credits you lost? We have a similar situation with 3 kids and I'm trying to figure out what to do.

14 We lost access to several valuable credits that really added up. The Child and Dependent Care Credit was completely unavailable to us when filing separately - that alone cost us over $1,200. The Earned Income Credit was another big one we couldn't claim at all. The Child Tax Credit wasn't eliminated but the income thresholds for phaseout were much lower when filing separately, so we lost about half of what we would have qualified for filing jointly. We also couldn't take education credits for our oldest who started college classes, and the student loan interest deduction was unavailable too. The tax brackets themselves are also less favorable for separate filers in most income ranges.

5 Yes! This is exactly what I did last year with our family of 6. The TurboTax what-if tool showed us a $2,700 difference in favor of filing jointly. It was really eye-opening to see the direct comparison with our actual numbers.

Do you know if TurboTax handles this correctly if you need to amend? I used them for my original filing and now need to amend because of this Box 13 issue.

TurboTax does handle this correctly in an amended return, but you need to make sure you enter everything properly. When you start the amendment process, it will ask what's changing. Make sure you select that you're changing information related to IRA contributions. Then when you get to the W2 section, update the box 13 information to show "Retirement plan" is checked. The software should recalculate your IRA deduction and automatically generate Form 8606 for any non-deductible portion. Double-check all the numbers before filing to make sure it caught everything correctly.

I contacted Intuit customer support about this directly. They told me they're "evaluating the situation" but wouldn't commit to any reimbursement. They did offer me a discount on next year's payroll service, which seemed pretty insulting considering the hassle this has caused.

Thanks for bringing this up! I hadn't considered the basis issue. Do you recommend any specific tracking method for keeping tabs on this throughout the year? Is this something I should be having my bookkeeper monitor?

Your bookkeeper should definitely be tracking this if they're familiar with S corporations. The simplest method is to maintain a basis worksheet or schedule that gets updated with each capital contribution, income/loss allocation, and distribution. QuickBooks and other accounting software don't automatically track S corp basis, so you'll need a separate spreadsheet or basis tracking tool. Some tax preparation software includes basis worksheets that you can update throughout the year. The key is documenting everything contemporaneously rather than trying to reconstruct it at year-end.

There's no rules about timing for tax purposes since the income is passed through to you regardless of when distributions happen. But practically speaking, many accountants recommend keeping distributions somewhat proportional to your salary throughout the year rather than taking one massive distribution and small salary. Looks less suspicious if you get audited.

I don't see any attachment? Could you repost or share how you're handling the documentation retention section specifically? We're debating whether we need to keep the verification documents (IDs, etc.) or just the information.

Sorry about that! Can't believe I forgot to attach it. For document retention, we specify that we keep the FinCEN filing confirmation and basic ownership information for 7 years per our normal tax record retention policy. We explicitly state that we do NOT retain copies of government IDs, birth certificates or other verification documents provided by beneficial owners. We view these documents only to verify the information being filed and then either return or destroy them. This reduces our liability for storing sensitive personal documents while still fulfilling our professional obligations.

We've found a tiered flat fee structure works best. Basic fee for entities with 1-3 beneficial owners, then an additional fee per owner beyond that. We also charge separately for amendments and updates. This has been easier to explain to clients than hourly billing, and honestly more profitable since we've gotten efficient at the filings.