Do I still qualify for child tax credits if my income was around $80k total (including the contractor work)? I thought there were phaseouts.

Yes, you should still qualify. The Child Tax Credit begins to phase out at $200,000 for single filers and $400,000 for married filing jointly. With your total income around $80k, you're well below those thresholds, so you should be eligible for the full amount for each qualifying child. The Earned Income Credit has lower income limits, so you'd need to check those specifically based on your filing status and number of qualifying children. But the Child Tax Credit should definitely be available to you based on the income information you've shared.

What app do you use for mileage? I've been trying to keep track on a notepad but I always forget.

I use MileIQ and it's been a lifesaver. It automatically tracks all your drives and then you just swipe right for business or left for personal. Super easy and creates IRS-ready reports. Some people also like Everlance or Stride. Another tip: set calendar reminders for quarterly tax payments (April 15, June 15, September 15, and January 15). The IRS doesn't send reminders and it's easy to forget, especially that weird June one that's only two months after April!

They're disputing her 2023 return (the one we filed earlier this year). And you're right about the timeline - dad passed in 2021, so she filed MFJ for 2021, then qualifying widow for 2022 and 2023. According to what others are saying, it seems the issue is definitely about my sister not being a full-time student.

Thanks for clarifying! Then yes, it does sound like the issue is about your sister's status as a qualifying child. Since she was over 19 and not a full-time student, she wouldn't meet the qualifying child definition for this purpose, even though she's still a legitimate dependent. The distinction between "qualifying child" and "qualifying relative" dependents trips up a lot of people. For the surviving spouse filing status, you specifically need a qualifying child dependent, not just any dependent.

This is good advice. I work with tax resolution cases, and the IRS will often work with taxpayers who are proactive. Even if the filing status determination is correct, there are options: 1) Payment plans (as mentioned) 2) Penalty abatement (can reduce the bill significantly) 3) In some cases, partial dispute of the assessment Don't just pay the full amount without exploring these options!

Did you end up taking legal action? I'm worried this might be headed that way and wondering what the process was like for you. Did you have to hire a forensic accountant?

We managed to avoid court, thankfully. I hired both my own CPA and an attorney specializing in shareholder disputes. The attorney sent a formal demand letter outlining the specific records we needed to inspect and the potential claims we might bring if denied. That got their attention. We did hire a forensic accountant who reviewed 5 years of bank records and identified over $175,000 in fake "loans" that never actually entered company accounts. Rather than litigation, we negotiated a settlement where the majority shareholder returned the improper payments and we restructured the company with better oversight. The threat of legal action and potential personal liability for the majority shareholder was usually enough motivation to resolve things.

This is great advice. When this happened at my company, our bylaws actually prohibited shareholder loans entirely without unanimous consent. Made it real easy to challenge the "repayments" since no vote was ever taken.

If you were claimed as a dependent on someone else's 2023 return, you won't receive the initial payment now. However, since you'll be filing as independent for 2025, you should be able to claim the recovery rebate credit when you file your 2025 taxes next year. The important thing is that no one can claim you as a dependent on their 2025 return. Your parents claiming you for 2023 affects the initial payment, but your 2025 status is what ultimately determines eligibility for the credit.

Thank you for explaining! So basically I won't get anything now, but can get it when I file next year as long as my parents don't claim me as a dependent for 2025. That makes sense.

For joint filers, the Get My Payment tool typically only shows status for one spouse - usually whoever is listed first on the tax return. If your husband is the primary filer, you'll just see his status, but the payment should include both of your portions ($2800 total if you both qualify for the full amount). If you received a partial payment that seems to only cover one person, you might want to wait a few days to see if a second payment arrives. Some couples have reported receiving their payments separately despite filing jointly.

That explains it! We did get $2800 deposited, so I guess it was for both of us even though the tracker only showed his info. Thanks for clearing that up - been worried for no reason I guess.

Do you know if you can apply for an ITIN online? Or do you have to mail in the physical form? I'm helping my cousin who just moved here and needs to get one.

Unfortunately, you cannot apply for an ITIN completely online. The IRS requires you to either mail in a physical Form W-7 along with original documents (like a passport) or certified copies, or visit an IRS Taxpayer Assistance Center or authorized Acceptance Agent in person. For your cousin, the easiest option might be to find an authorized Acceptance Agent - they can verify the original documents in person so your cousin doesn't have to mail in her actual passport. Many accounting firms and some tax preparation services are authorized agents. The IRS website has a tool to find agents near you.

I made the mistake of using my SSN on all my W-9 forms when I first started freelancing and later learned that it's actually better to get an EIN even as a sole proprietor. Keeps your SSN a bit more private since not as many people see it.