I've filed as an independent contractor for 8 years now. According to IRS Publication 535, business expenses must be both ordinary and necessary to be deductible. Both software options apply identical IRS regulations, but TurboTax does have better explanations of these rules embedded in their interface. Last year I compared results by entering identical information in both systems and received the exact same refund amount.

I sort of had a bad experience with TaxAct last year, possibly just bad luck though. I had maybe 5 different 1099s and it seemed to get confused with some of my business expenses. Customer support was kind of limited compared to what my friends said about TurboTax. But I saved around $40 or so, which was worth it for me at the time.

Have you checked your daughter's account status through the online portal? Could your application already be processed but you haven't received notification? Is it possible the PIN was generated but sent to an outdated address? The most reliable solution is to log into the IRS online account associated with your daughter's SSN. Navigate to the "Get an IP PIN" tool under the Identity Protection section. If the application was successful, you'll see either a status update or the actual PIN displayed there. If nothing appears, your application is still being processed, which is normal if you only submitted on January 15th. The IRS typically takes 3-4 weeks during tax season for these requests.

The situation you're describing is different from how the IP PIN system actually works. Unlike other IRS programs like the Child Tax Credit rollout or the Economic Impact Payments where there were specific batches, the IP PIN system processes applications continuously. I've compared this to passport applications - you don't need to time your application with any specific government batch processing date. The January 21st date is simply when they start issuing the annual PINs to people who already had them in previous years, not a cutoff for new applications. Your daughter's application from January 15th is already in their queue and will be processed normally.

Did the IRS tell you specifically what caused the issue last year? I'm wondering if it was a simple oversight or something more significant that might trigger a pattern?

The IRS utilizes what's called the Discriminant Function System (DIF) to score returns for audit potential. While previous compliance issues can influence your DIF score, a single resolved issue typically doesn't significantly impact future filings. However, the IRS does maintain a Compliance Research Database that tracks patterns over multiple years. If you're concerned, ensure meticulous documentation for any areas similar to your previous adjustment. For immigrants specifically, the IRS recognizes there's a learning curve with U.S. tax law and generally doesn't penalize good-faith efforts to comply, even with occasional errors.

File Form 911 Taxpayer Advocate Service request right away. It's for emergencies like yours. Being homeless with children qualifies as hardship. They can help stop the offset. Do this tomorrow morning. Don't wait. Call your local taxpayer advocate office directly. They'll walk you through it. This worked for me last year.

Back in 2022, I had an unemployment overpayment of $4,200 that was going to be offset from my taxes. I found out that Texas has specific exemptions for people experiencing homelessness with dependents. I had to provide a letter from the shelter I was staying at and copies of my children's documentation. They reduced my overpayment by 80% and set up a $25/month payment plan for the rest. The key was getting it all submitted before the Treasury Offset Program certification date, which happens in early February for most states.

Did anyone else notice how confusing TurboTax made this whole situation? I specifically remember when filing my 2022 return last year, TurboTax had a clear section asking "Did you receive advance Child Tax Credit payments in 2022?" but the correct answer was NO because advances only went out in 2021. Now for 2023 returns, they've finally removed that confusing question altogether. Wouldn't it have been more helpful if they'd explained this change somewhere in the interface?

I filed on February 15th this year and had the exact same concern. The advance Child Tax Credit reconciliation was a major part of filing for tax year 2021 (filed in 2022), but was already less prominent for tax year 2022 (filed in 2023). For this year's filing (tax year 2023), there's no question because there were no advances paid during 2023. The Child Tax Credit itself is still there at $2,000 per qualifying child, but without the advance payment component that existed only in 2021.