I've heard people recommend using crypto tax software that keeps track of your cost basis across different platforms. Do you think that's necessary, or is just keeping my own records in a spreadsheet good enough?

A spreadsheet can be sufficient if you're diligent and have relatively simple crypto activity. I started with spreadsheets myself. But they become cumbersome quickly, especially if you're dealing with multiple exchanges, token swaps, staking rewards, or DeFi transactions. The key advantage of specialized crypto tax software is that it handles complex situations like FIFO vs LIFO accounting methods, tracks cost basis across platforms, and automatically identifies which specific coins were sold from your holdings. The IRS allows different accounting methods, and your choice can significantly impact your tax liability, especially if you bought the same crypto at different price points.

I used FreeTaxUSA for my crypto last year. They handle it pretty well! You'll need to enter each transaction manually on Form 8949, but the interface makes it straightforward. Just make sure you've calculated your cost basis correctly beforehand. If you have tons of transactions, it can get tedious, but for a reasonable number it works great.

Is there any official IRS documentation we can point to that specifically states this? My husband doesn't believe me that our November baby qualifies us for the full amount.

Yes! Check IRS Publication 972 (Child Tax Credit) which states that a child who was born or died during the year is treated as having lived with you for more than half of the year if your home was the child's home for more than half the time they were alive during the year. Since your home was presumably your November baby's home for their entire life in 2024 (even if that was just 2 months), they qualify as having lived with you for more than half the year. There's also IRS Publication 501 which clarifies dependent qualifications and specifically addresses children born during the tax year.

Which tax software do you recommend for situations like this? I've been using H&R Block online but now I'm worried they might get this wrong too.

In my experience, all the major tax software programs (TurboTax, H&R Block, TaxAct, FreeTaxUSA) correctly handle newborns and the Child Tax Credit. The issue isn't usually with the software itself but with individual preparers who might be misinformed. If you're using the software yourself rather than going to a preparation office, just make sure you answer all questions about your new dependent accurately, including their date of birth and SSN. The software will automatically calculate the correct credit. If the software seems to miss the credit, double-check that you entered all information correctly, especially the child's SSN which is required for claiming the CTC.

This is such an important point. I'm in New York and was surprised to learn they have an additional tax for S corporations that I wasn't expecting. Always research your specific state requirements before making the switch.

Thanks for mentioning this! Do you know what the income limits are to qualify? My mom's on a tight budget but not sure if she'd be considered low-income enough for assistance.

The income limits vary by state since these are state-administered programs, but generally for the QMB program (most comprehensive one), income needs to be at or below 100% of the Federal Poverty Level, which is about $1,215/month for an individual in 2025. Assets typically need to be under $9,900 for an individual (excluding your primary home and car). There are other programs with higher income limits though. The SLMB program (which pays just the Part B premium) allows income up to 120% FPL, and the QI program allows up to 135% FPL. Definitely contact your state's Medicaid office or local SHIP (State Health Insurance Assistance Program) counselor - they provide free assistance with these applications.

Be careful with those Medicare Advantage plans though. They look great with the $0 premiums but then restrict which doctors you can see. My dad switched to one and then couldn't see his cardiologist anymore because they weren't in network. And the out-of-network costs were insane!

I'm definitely guilty of using my personal Amazon account to buy supplies for my business. Is that a big no-no? Should I be setting up separate accounts for everything?

Using a personal Amazon account isn't ideal, but it's not a disaster if you keep meticulous records. The best practice is to use your business card/account for all business purchases to maintain clear separation. What's more important is having a dedicated business checking account and never commingling funds. Don't deposit business income into your personal account, and don't pay personal expenses directly from your business account. If you use a personal account for a business purchase, reimburse yourself properly with documentation. The goal is maintaining a clear paper trail showing your business operates as a separate entity. Small occasional crossovers with proper documentation won't necessarily void your liability protection, but consistent mixing of finances definitely could.

Good point! Also, some places have something called a "gross receipts tax" that applies to LLCs but not sole props in certain jurisdictions. I got hit with this in my city and wasn't prepared for it.