Can you use a Solo 401k if you already have a 401k through your full-time employer but also have a side business? I've been wanting to shelter more of my side income from taxes.

Yes, you can have both a 401k through your employer and a Solo 401k for your side business. The $23,000 employee contribution limit applies across ALL of your 401k accounts combined. So if you've already maxed out your employer 401k, you can't make additional employee contributions to your Solo 401k. However - and this is the great part - you can still make the employer contribution to your Solo 401k, which is up to 25% of your business net income. This is completely separate from anything happening in your day job's 401k. Just make sure your side business is legitimate with actual income, not just a hobby.

Defined Benefit Plans can be amazing for high-income self-employed professionals like yourself. They allow contributions well beyond 401k limits - potentially $300k+ annually depending on your age, income, and years until retirement.

This is so important! The tax prep companies are super sneaky about this. They advertise "free" filing everywhere but then hit you with fees at the very end. I almost fell for this too until someone told me about going through the IRS site directly. Does anyone know if there's an income limit for the Free File options? And does unemployment income count toward that limit?

The income limit for most IRS Free File options is $73,000 in Adjusted Gross Income (AGI). And yes, unemployment benefits do count toward that limit since they're considered taxable income. However, even if your income is above that threshold, the IRS still offers Free Fillable Forms which are electronic versions of paper forms - though they provide no guidance, so they're best if you're comfortable doing taxes yourself. Also worth noting that some Free File providers have lower income limits or age restrictions, so you need to check each one's specific requirements through the IRS portal to find your best option.

I used Cash App Taxes this year and it was surprisingly good for being completely free! It handled my unemployment and some freelance work without issues. The interface isn't as polished as TurboTax, but it asks all the same questions and I got the same refund amount when I compared them. Only downside is that it doesn't import as many forms directly - I had to manually enter some information. But for literally saving $100+ compared to TurboTax, I can spend an extra 15 minutes typing.

Thanks for the feedback! That's really helpful - I don't mind spending a little extra time if it saves that much money. As long as it handles everything correctly, that's my main concern. Did you have any issues with state filing? That's where I usually run into problems.

The home energy efficiency credits (like for your mini splits) are non-refundable but can be carried forward for up to 5 years if you can't use the full amount in the installation year. So you don't lose it! But be careful - the rules are different for the clean vehicle credit. The used EV credit that OP mentioned ($4,000) cannot be carried forward, so if you don't have enough tax liability to use it all in the purchase year, you lose the remainder.

Thanks for that info! That's a relief - we only got to use about half of our mini split credit last year, so good to know we can apply the rest to this year's taxes. I didn't realize the EV credits work differently though. That's important for anyone planning to claim both in the same year to consider which one to prioritize if they won't have enough tax liability for both.

I actually did get documentation from the installer, but it doesn't specifically say anything about meeting IRS requirements or efficiency standards. It's just the invoice with model numbers and installation details. Is that going to be a problem? Should I be requesting something more specific from either the manufacturer or the installer?

How do you handle items that are partially personal and partially for business? Like if I get a pedicure and use it both for content but also just for personal reasons?

You need to calculate a reasonable business-use percentage. For example, if you get a pedicure primarily for content creation but also enjoy it personally, you might deduct 70-80% as a business expense. The key is being reasonable and consistent with your approach. If you're using something like a cell phone for both business and personal, you'd calculate what percentage is business use. Same with internet, clothing items, or beauty treatments. Just be prepared to explain your calculation method if ever questioned. And always keep good records showing the business purpose of each expense.

Yes! I use an independent CPA (not one my family knows) and just say I'm a "digital content creator" or "online media producer." They know what questions to ask about expenses and deductions without needing specific details about the content. Just find someone who works with a lot of social media people and online businesses.

Did you just call TurboTax customer service to get the refund for the early feature? I want to try this too since I'm in the same boat - paid for early refund but still waiting because of Child Tax Credit.

I used their chat support on the website and explained that I felt the feature was misleadingly advertised since it didn't disclose the PATH Act restrictions for Child Tax Credit claims. I was polite but firm that I wouldn't have purchased it had I known it wouldn't actually get my refund any earlier due to the mandatory IRS hold. The first agent tried to explain how the feature works, but I asked to escalate to a supervisor who approved the refund. Just be persistent - they know it's a bit deceptive for CTC filers!

Do you know if this also applies to the Additional Child Tax Credit or just the regular Child Tax Credit? I claimed both and wondering if that makes the wait even longer.