Our daughter lives with me about 70% of the time, and I'm the custodial parent according to our divorce decree. My ex was supposed to claim her last year because we verbally agreed to alternate years, but apparently he never did. We don't have anything formal like Form 8332 filed. Does that mean I should definitely file the amendment then?

Yes, you should definitely file the amendment. Since you're the custodial parent with the child living with you 70% of the time, and you didn't sign Form 8332 to release the claim, you have the legal right to claim your daughter as a dependent. Without Form 8332, a non-custodial parent cannot claim the child regardless of verbal agreements. The IRS follows the documentation, not verbal agreements between parents. You're potentially leaving significant money on the table by not claiming her, especially with the expanded Child Tax Credit.

I used TurboTax to amend my return last year when I forgot to claim my son's college expenses. It was surprisingly easy - you just start an amended return and it walks you through what you want to change. For something like adding a dependent, it should recalculate everything including any credits you might be eligible for.

Oh really? I have Chase but never noticed that option. Is it something I can find on the mobile app or do I need to login through the website? Also, does it cost anything extra to use it through the bank portal?

You'll need to login through the website, not the mobile app (at least that was my experience). Look under "Tax Services" or sometimes "Additional Services" in the menu. It doesn't cost anything extra - it's basically just a link that takes you to the IRS Free File service, but it sometimes will auto-fill some of your basic info which saves a step.

How do you even estimate what you owe if you haven't done your taxes yet? That's what's confusing me about the whole extension process.

Does the timing of salary changes matter? Like if I start with $60k in January but business is booming by June, should I give myself a mid-year raise or wait until the following year?

Yes, you can absolutely give yourself a mid-year raise if circumstances warrant it. Many S-Corp owners adjust their salaries as the year progresses and business performance becomes clearer. Just document your reasoning thoroughly - note the increased business performance, expanded responsibilities, or whatever factors led to the adjustment. What the IRS doesn't like to see is erratic salary patterns that appear to be manipulating payroll taxes rather than reflecting actual changes in the business. For example, artificially keeping salary low all year then taking a massive "bonus" in December looks suspicious. A clean mid-year adjustment with clear business justification is perfectly acceptable.

Is that 1/3 of profit BEFORE or AFTER your salary is deducted? Because that makes a huge difference in the calculation.

Does FreeTaxUSA handle multiple 1099s well? I have like 8 different clients who sent me 1099-NECs this year.

Absolutely! I had 12 different 1099-NECs last year and FreeTaxUSA handled them with no problem. You can enter them all individually or combine them on your Schedule C - it gives you both options. The software also lets you categorize different types of income if you have multiple business activities, which was really helpful for me since I do both consulting and some product sales.

I've actually tested three different options side by side the last two years (TurboTax, FreeTaxUSA, and TaxAct). The federal refund/amount owed was identical in all three when I entered everything correctly. But I noticed TurboTax was much better at prompting me for deductions I might have missed.

Is there any advantage to them putting themselves on actual payroll instead of just taking draws? I've heard something about S-corps saving on self-employment taxes but I'm fuzzy on the details.

There can be significant tax advantages to electing S-corporation status and putting yourself on payroll, but it comes with more complexity and costs. With an S-corp, you can pay yourself a "reasonable salary" subject to employment taxes, then take additional money as distributions that aren't subject to self-employment tax. This can save thousands in self-employment taxes depending on your profit level, but you'll have additional costs: payroll processing, employment tax filings (including Forms 940 and 941), workers' comp insurance, and additional accounting complexity. Generally, businesses making $40,000+ in profit might benefit from this structure, but it's very situation-dependent and requires professional guidance to do correctly.

Thanks for the practical advice! We're definitely keeping track of all our expenses. Is there anything specific to the cleaning business that people commonly miss as legitimate deductions? We're currently using our personal cars to get to jobs.