Be careful with amendments for removing children from tax returns! My sister did this last year and it triggered an audit. When she removed her son from her return after initially claiming him, the IRS wanted proof of why she was making the change. Make sure your ex kept copies of EVERYTHING for her amendment explaining why she removed your child. And when you paper file, include a detailed letter explaining the situation.

I went through this exact same situation two years ago with my daughter's EIC claim. The SEIC-F1040-506 error is incredibly frustrating because even though the amendment has been filed and accepted, the IRS systems don't communicate with each other in real time. What really helped me was calling the IRS Taxpayer Advocate Service (TAS) at 1-877-777-4778. They can sometimes expedite the processing of your return when there's a clear documentation trail showing the other parent filed an amendment to correct the duplicate claim. You'll need to have your ex's amendment confirmation number and be able to explain the timeline of events. Also, when you do paper file, make sure to write "DUPLICATE SSN - AMENDMENT FILED" in red ink at the top of your Form 1040. This helps the processing center understand immediately what's happening instead of your return sitting in a pile for weeks while they figure out the issue. The whole process is a nightmare, but with proper documentation and following up with TAS if needed, you should get it resolved within 8-10 weeks instead of the usual 16+ weeks for complicated amendments.

Has anyone had this issue with H&R Block software specifically? Mine keeps giving me an error when I try to enter both companies, saying the name doesn't match the EIN in their database. I'm wondering if I should just go with a tax professional at this point.

I went through this exact same situation with my PEO W-2 from Insperity last year. The key thing to remember is that the IRS matching system is looking for the EIN to match the primary employer name listed first on the W-2. In your case, "PEO Services LP" should go in the employer name field exactly as shown, because that's what matches their EIN in the IRS database. Your actual workplace "Acme Industries LLC" is listed underneath as additional information, but it's not what the IRS system uses for verification. I made the mistake of trying to "correct" it the first time and got a rejection notice. Once I re-filed with the PEO as the primary employer name (exactly matching the W-2), it went through without any issues. The tax software warnings are there for a reason - they're trying to prevent mismatches with the IRS database. Don't overthink it - just enter it exactly as it appears on your W-2 and you'll be fine!

Great thread with lots of solid advice! I'm also a stagehand who went through this transition recently. One thing I'd add that hasn't been fully covered - consider the timing of your LLC formation based on when you switched to 1099 status. If you're already partway through the tax year, you might want to consult with a tax pro about whether to form the LLC now or wait until January. Sometimes it's cleaner to finish out the current year as a sole proprietor and start fresh with the LLC structure next year, especially if you're still figuring out your quarterly payment schedule. Also, regarding equipment deductions - keep detailed records of what you buy versus what you already owned before becoming a contractor. The IRS distinguishes between business assets you purchase after starting your business versus personal items you convert to business use. For converted items, you can only deduct the fair market value at the time of conversion, not what you originally paid. One last tip: if you're doing multi-day events or festivals, look into the per diem rules for meals and lodging. Entertainment industry workers can often deduct meal costs at the federal per diem rate even without receipts, which can add up significantly during festival season. The LLC route has definitely been worth it for me - the peace of mind on liability protection alone makes the minimal paperwork worthwhile.

As someone who's been through this exact transition in the entertainment industry, I'd recommend starting with the LLC formation sooner rather than later, even mid-year. The liability protection kicks in immediately, which is crucial in our line of work. For the mid-year timing concern, you can actually form the LLC now and elect to have it "disregarded" for tax purposes this year (meaning you'd still file as sole proprietor for 2025), then start fresh with business tax filing in 2026. This gives you the liability protection immediately while keeping your first-year taxes simple. A few practical steps to get started: 1. File your Articles of Organization online with your state (usually $100-200) 2. Get an EIN from the IRS (free, takes 5 minutes online) 3. Open a dedicated business checking account 4. Set up a system to track ALL business expenses from day one The key is treating it like a real business from the start. Keep detailed mileage logs for travel between gigs, save receipts for everything work-related, and consider getting QuickBooks Self-Employed or similar to automate the tracking. One often-overlooked deduction for stagehands: if you have a dedicated workspace at home for storing gear, planning routes, or doing administrative work, you can claim the home office deduction. Even a corner of a room counts if it's used exclusively for business purposes. The peace of mind from liability protection alone is worth the minimal extra paperwork, especially when you're working around expensive equipment and in potentially hazardous environments.

Did anyone address the OPs question about changing withholdings to "deduct mortgage interest month by month"? My understanding is you can adjust your W-4 to have less tax withheld based on ANTICIPATED deductions, but you're taking a risk if you end up not itemizing.

Great question! I went through this exact same confusion when I bought my first home last year. Here's what I learned after making some mistakes: The key thing everyone's touching on is that you need to compare your TOTAL itemized deductions against the standard deduction ($27,700 for married filing jointly in 2023). With your $425k mortgage, you'll probably pay around $20,000-25,000 in interest the first year (depending on your rate), plus property taxes, but that might still not exceed the standard deduction. Regarding withholding adjustments - yes, you can reduce your withholdings through your W-4 if you anticipate itemizing, but I'd be conservative. Maybe adjust for only 75% of what you think you'll save, because if you end up taking the standard deduction instead, you could owe money at tax time. My advice: Run the numbers with a tax calculator first, then make any withholding adjustments gradually. Better to get a refund than owe penalties!

I've been following this discussion and wanted to address the audit question since I went through this exact situation two years ago with my husband's medical expenses. From what my tax professional told me, medical expense deductions don't automatically trigger audits, but they do increase your audit risk if they're disproportionately large compared to your income. In our case, the medical expenses exceeded our AGI, and we did get selected for examination. However, because we had meticulously documented everything - direct payments to providers, receipts, insurance statements, and detailed support calculations - the audit went smoothly. The IRS examiner was actually quite reasonable and seemed to appreciate that we had organized everything clearly. She mainly wanted to verify that we had actually paid the expenses (not reimbursed our family member) and that we could substantiate the support test calculations. One thing that helped tremendously was having a summary sheet that showed our total payments by category with supporting documentation attached. The examiner spent maybe 30 minutes reviewing everything and accepted our deductions without any adjustments. To answer the earlier question about payment methods - credit card, check, or phone payments all work equally well as long as the payment comes directly from your account to the provider. The key is having clear documentation showing YOU made the payment, not your daughter. The stress of potentially being audited was honestly worse than the actual audit itself. If you keep good records and follow the rules correctly, these deductions are completely legitimate and the IRS recognizes that families often have to support adult children with medical needs.

I wanted to add some perspective as someone who works in tax preparation and has seen many cases like yours. The good news is that the medical expense deduction for non-dependents who fail only the income test is a well-established provision, though it's often overlooked. A few additional points that might help: 1. **Income timing consideration**: Since your daughter made $13,500 in 2024, if there's any possibility of her reducing her 2024 income below $4,850 (maybe through retirement plan contributions if she's eligible, or by deferring some year-end income to 2025), she could actually qualify as your dependent, which would make the medical expense deduction much more straightforward. 2. **State tax implications**: Don't forget to check your state's rules - some states have different thresholds for medical expense deductions or may not conform to the federal rules about non-dependent medical expenses. This could affect your overall tax benefit. 3. **Estimated tax considerations**: If these deductions are going to significantly reduce your tax liability, you might want to adjust your estimated tax payments for 2025 to avoid overpaying throughout the year. The key documentation the IRS typically wants to see includes: direct payment records to providers, insurance EOBs showing what wasn't covered, a statement from your daughter that she's not claiming these expenses on her return, and detailed support calculations showing you provided more than 50% of her total support. Given the complexity and amounts involved, I'd strongly recommend having a tax professional review your situation before filing. The rules are nuanced and the stakes are high enough that professional guidance could save you significant money and stress.