I'm actually self-employed now, which is why I'm stuck with marketplace insurance. Would that QSEHRA thing apply to me still, or is there something similar for fully self-employed people?

Since you're fully self-employed, QSEHRA wouldn't apply to you as it's only for employees of small businesses. However, you should look into the self-employed health insurance deduction! As a self-employed person, you can typically deduct 100% of your health insurance premiums (including marketplace plans) as an adjustment to income on Schedule 1, without needing to meet that 7.5% AGI threshold. This is completely different from the medical expense deduction and one of the big tax advantages of self-employment. Just make sure your self-employment income is at least as much as your total premiums for the full deduction.

This is great advice but only works if you specifically choose an HSA-compatible high deductible health plan (HDHP) from the marketplace. Many marketplace plans don't qualify for HSA contributions. You'll need to check if the plan is officially designated as HSA-eligible when you enroll.

Most IRS Taxpayer Assistance Centers require appointments now - you can't just walk in. And the appointment availability can be weeks out during tax season. I tried this route last year and the earliest appointment was 3 weeks away. Just something to keep in mind!

Thanks for that info! I had no idea they required appointments now. That's really good to know, would've been frustrating to drive there only to be turned away. Do you know if there's a special procedure for emergency situations like missing W2s, or do you still have to wait for an appointment regardless? I actually ended up getting through on the phone after multiple attempts, but it took almost 2 hours of waiting. The person I spoke with was helpful though.

I second this. Had an employer with similar "payroll correction" excuses and late paychecks. Six months later they shut down with no notice and owed everyone 3 weeks of back pay. Get your resume updated now while dealing with the W2 issue.

Thanks for the clear explanation! This makes a lot more sense than what the volunteers told me. Do you know if filing the 2018 return now will hurt my OIC chances for 2017? Like, will adding more debt make them less likely to approve it?

Filing your 2018 return now won't hurt your OIC chances - in fact, it's absolutely required. When you submit an OIC, the IRS will check that you're in compliance with all filing requirements before they even consider your offer. As for the additional debt potentially affecting your offer amount, it could be factored into your "reasonable collection potential" calculation. However, this is much better than having your OIC rejected outright due to non-compliance. The IRS looks at your overall ability to pay, so while the total debt matters, your financial situation is the primary factor in determining an acceptable offer amount.

Yes, there's a 3-year deadline for claiming refunds. So for 2018 taxes, you would have needed to file by May 17, 2022 (the deadline was extended that year due to COVID) to claim any refund owed to you. After that, any refund you were entitled to is forfeited to the Treasury.

How does this work exactly? My husband has a side business (LLC) but it's just him, no employees. Would this still be an option for us? Our nanny costs are killing us tax-wise.

This gets a bit complicated, but here's how it works: If your husband's business is just him with no employees, it's trickier but still potentially viable. The key requirement is that if you offer this benefit, it needs to be available to all employees on a non-discriminatory basis. In a single-member LLC situation, you'd need to ensure the plan documents are properly drafted to show it would be available to future employees if they were hired. Some tax professionals are more comfortable with this approach than others. The benefit allows you to deduct a portion of qualifying dependent care expenses as a business expense rather than a personal deduction, which can be more valuable.

For the CDCTC, you generally report the wages you pay directly to the nanny, not including the employer taxes. The qualifying expenses are reported on Form 2441. You'll need your nanny's SSN or tax ID number, and you'll list the care provider's information (your nanny's name, address, and tax ID) in Part I of the form. Make sure you're also filing Schedule H with your tax return to report household employment taxes, and don't forget about state-level requirements like filing DE 3BHW in California. The nanny needs to receive a W-2 by January 31 showing their wages.

Thanks for explaining that! So I only include what I directly paid her, not the employer taxes. That makes sense. I've got her SSN and have been keeping good records of payments. I'm feeling a little better about figuring out this Form 2441 now.

Thanks for pointing this out! I am using the 2024 standard deduction amount ($13,850) in my calculations. And I think I'm applying the tax brackets correctly with the marginal approach - only applying the higher rate to the portion of income that falls within that bracket. I'm starting to understand that my main issue is likely how I'm treating the different pre-tax deductions for FICA vs federal income tax. That would explain the discrepancy.

Glad to hear you're using the correct standard deduction! And it sounds like you're applying the marginal tax rates correctly too. Yes, the distinction between how deductions are treated for federal income tax versus FICA is almost certainly the source of your calculation discrepancy. Once you separate those calculations in your spreadsheet - one for federal income tax (where most pre-tax deductions apply) and another for FICA (where fewer deductions apply) - you should get much closer to matching those online calculators. It's a common source of confusion even for people who are otherwise tax-savvy.

This is great advice, but keep in mind that withholding tables are just approximations based on your W-4. If you have other income sources or deductions that aren't factored into your W-4, your actual tax liability could differ significantly from what's being withheld.