That's really interesting! I do have a small side business doing web design that brought in about $12,000 last year. Would I qualify for this SEP IRA option? And can I open one if I also have access to my employer's 401k from my main job?

Yes, you absolutely can set up a SEP IRA for your self-employment income, even while having access to an employer 401k! The two are independent of each other. The calculation gets a bit tricky though - it's not simply 25% of your gross $12,000. For self-employment income, you first need to deduct the self-employment tax deduction, then calculate 25% of that reduced amount. With $12,000 in net business income, you could probably contribute around $2,200-2,500 to a SEP IRA. That would directly reduce your taxable income for 2023 if you establish and fund the account before filing your taxes. Many brokerages like Vanguard, Fidelity, or Schwab offer SEP IRAs that you can open online pretty quickly.

The work-related educational expenses deduction was suspended until 2025, so that's unfortunately not an option for 2023 taxes. The moving expense deduction is indeed only for active duty military now too. But good call on the self-employed health insurance premiums! If OP has self-employment income as mentioned above, they might be able to deduct health insurance premiums paid.

Do you have to track personal miles separately? Or just know the total miles driven in a year and subtract business miles from that?

You need to track both. The IRS wants to see your total miles for the year (odometer readings) and your business miles specifically. The difference is your personal miles. They want documentation showing how you tracked this. Most audits of vehicle deductions focus on inadequate mileage logs. I recommend using a mileage tracking app that automatically logs your trips - much easier than trying to reconstruct it later.

Thanks for sharing your experience. I do expect to maintain high mileage (40-45k) annually for at least the next 3-4 years based on my current clients and service area. I'm leaning toward the standard mileage based on everyone's advice, especially since it seems to provide more flexibility if my situation changes.

Another thing to consider is how long you'll keep the vehicle. If you plan to sell/replace it in 2-3 years, Section 179 might be better. If you'll keep it 5+ years, mileage rate often works out better.

Thanks for this reminder about the tax treaty! I'm from Singapore and I believe there is a tax treaty. Do you know if I need to file any special forms to claim tax treaty benefits? And how exactly do I track my physical presence - is there an official way to document this?

You would need to file Form 8833 to claim tax treaty benefits. This form reports treaty-based positions that affect your tax liability. For Singapore specifically, the treaty has provisions covering business profits, but you need to determine if your income qualifies under the permanent establishment rules. For tracking physical presence, I recommend keeping a detailed log of all your international travel. Save boarding passes, entry/exit stamps in your passport, and any other travel documentation. The IRS doesn't provide an official tracking method, but during an audit, they may ask for proof of your whereabouts. Some people use apps like TravelTracker or Taxday to help with this. The important thing is to have documentation of every day you were outside the US.

This is a really important point. I have a Delaware LLC but live in California, and I got hit with a surprise $800 minimum franchise tax my first year because I didn't understand the state requirements were different. OP should definitely check Texas requirements even though they don't have state income tax.

Does FreeTaxUSA handle other complex situations well? I've got multiple W-2s, 1099s, and some investment income. Been hesitant to switch from H&R Block despite these issues.

In my experience, FreeTaxUSA handles complex returns surprisingly well. I have W-2 income, several 1099-NECs from freelance work, investment income from multiple brokerages, and even some foreign income. It walked me through everything clearly and let me review the actual forms before filing. The biggest difference I noticed is that FreeTaxUSA seems to calculate things more accurately when you have multiple income sources. The Schedule 3 excess Social Security tax was calculated correctly, and it even caught a credit H&R Block missed the year before. The interface isn't as pretty as H&R Block, but the calculations seem more reliable, especially for situations like yours with multiple income sources.

I got an adjustment letter about 6 weeks after filing. They reduced my refund by the exact amount that was incorrectly claimed as excess Social Security tax on Schedule 3, line 15. The letter was pretty clear about what they changed and why. Return was processed normally after that, just with the smaller refund amount.

What about for tax planning for the future? I've got a small business that's starting to do well, and I'm wondering if I should be talking to someone about the best way to structure things for tax purposes before it gets bigger.

For forward-looking tax planning with a growing business, I'd actually recommend starting with a CPA who specializes in small businesses. They can help with immediate tax optimization strategies and basic business structure advice. As your business grows more complex or if you're considering significant changes like bringing on investors or expanding internationally, that's when adding a tax attorney to your advisory team makes sense. The attorney can help with more sophisticated legal structures and contracts that have tax implications while ensuring you're protected legally in other ways too.

That's really good to know! I hadn't considered someone might have both credentials. Do you find that having someone with both qualifications costs more than just a regular CPA for standard tax prep?

For standard tax prep, professionals with both credentials do tend to charge more than a typical CPA - I pay about 25% more than friends who use regular CPAs. However, I don't think it's necessary to pay that premium for straightforward tax preparation. Where I've found the dual credential valuable is for ongoing tax planning throughout the year. My situation includes a small business, rental properties, and some international income, so having someone who understands both the accounting and legal implications has helped me make better strategic decisions and avoid costly mistakes. For simpler situations, a good CPA alone is probably sufficient.