I'm in the exact same boat as all of you! Just formed my single-member LLC for my digital marketing consultancy last month and have been absolutely stressed about those automated IRS notices. I haven't made any income or hired employees, but those Form 941 letters made me think I was already behind on critical filings. This entire thread has been such a relief - I had no clue that the IRS automatically sends these notices to everyone with an EIN regardless of actual filing requirements. I've been panicking for weeks thinking I somehow botched my EIN application! I've been meticulously tracking all my startup costs (business registration fees, marketing tools, laptop, professional certifications) but wasn't sure it was worth the effort with zero revenue. Learning about that $5,000 startup expense deduction definitely validates my record-keeping efforts. Calling that IRS Business & Specialty Tax Line tomorrow to update my account and stop these scary notices. It's incredible how universal this confusion is among new single-member LLC owners. Thank you everyone for sharing your experiences - this community has been invaluable for navigating these intimidating tax waters as a first-time business owner!

I'm going through this exact same situation right now! Just set up my single-member LLC for my freelance graphic design business in January and have been absolutely panicking about those automated IRS notices I keep getting about Form 941 filings. I haven't made any income or hired anyone yet, but those letters had me convinced I was already behind on something crucial. This thread has been such a lifesaver - I had no idea that having an EIN automatically triggers these notices regardless of whether you actually need to file anything. I've been losing sleep for weeks thinking I somehow filled out my EIN application incorrectly or was missing important deadlines. I've been keeping receipts for my design software subscriptions, business cards, portfolio website hosting, and new computer equipment, but wasn't sure if tracking these expenses was worthwhile since I haven't landed any clients yet. Reading about that potential $5,000 startup expense deduction makes me feel much better about staying organized with all these records from day one. Definitely calling that IRS Business & Specialty Tax Line this week to get my account updated and stop these scary automated notices. It's incredible how many new single-member LLC owners go through this identical stress about Form 941 requirements. Thank you everyone for sharing your experiences - this community has been so helpful for understanding these confusing tax situations as a new business owner!

Has anyone used TurboTax for this? I'm filing for the first time too and wondering if it asks for exact days or gives you some kinda calculator to figure it out.

I went through this exact same situation last year! For my irregular retail schedule, I ended up creating a simple spreadsheet where I listed each month and estimated how many days I typically worked based on what I could remember. I looked at my bank account to see when I got paid (usually every two weeks) and worked backwards from there. Like if I got paid on the 15th and 30th, I knew I probably worked most days in the two weeks leading up to each payday. Also check if your employer has an online portal or app - mine had all my old schedules going back months that I completely forgot about! Even if you can't find exact records, the IRS accepts reasonable estimates as long as you're making a good faith effort. Don't stress too much about being off by a few days here and there.

This discussion has been absolutely invaluable for understanding this complex situation! As a newcomer to the community, I'm dealing with almost the identical scenario with my 20-year-old daughter who's in college and lives at home. What really resonates with me is how many families initially assume they're providing most support, only to discover through proper calculation that their student is actually more independent than expected. The consistent emphasis on student loans being counted as support the student provides for themselves is something I completely overlooked initially. My daughter has about $15,000 in student loans this year and earns roughly $6,500 from her part-time job. Reading through everyone's methodical approaches, I'm realizing I need to create that comprehensive support worksheet using IRS Publication 501 and properly calculate fair market rental value for her housing. The recurring theme throughout this thread about following actual IRS rules rather than just optimizing for tax benefits gives me confidence there's a legitimate path forward. I appreciate how this community focuses on doing things correctly while helping families understand their options within the proper guidelines. I'm planning to research comparable room rentals in our area and create a detailed monthly breakdown of all support sources. The documentation advice from those who've been through audits is particularly valuable - better to be thorough upfront than deal with complications later. Thank you to everyone who shared their experiences and practical guidance. This discussion has provided exactly the roadmap I needed to work through our situation properly!

As a newcomer to this community, I'm so grateful to have found this incredibly thorough discussion! I'm facing the exact same situation with my 19-year-old daughter who just started her sophomore year of college. Like many families here, I initially assumed I was providing most of her support since she lives at home during breaks and I pay for things like car insurance and her phone. But reading through everyone's detailed breakdowns has made me realize I need to calculate this much more systematically. My daughter has about $11,000 in student loans this year and earned around $5,800 from her campus job. She also pays for most of her personal expenses - textbooks, clothes, gas, entertainment, and food when she's at school. When I start adding it all up using the approach many of you described, it might actually put her over that 50% support threshold. What really stands out to me is the consistent emphasis throughout this thread on following the actual IRS rules correctly rather than just choosing what's most tax-beneficial. As someone new to navigating these situations, that approach gives me confidence there's a legitimate way to handle this transition properly. I'm planning to create that comprehensive support worksheet using IRS Publication 501 that everyone keeps mentioning, and I'll research fair market rental values in our area for the housing calculation. The documentation advice from those who've experienced audits is particularly valuable - clearly it's better to be thorough from the start. Thank you to this entire community for sharing such practical, honest guidance. This discussion has given me exactly the roadmap I needed to work through our situation within the proper tax guidelines!

Has anyone actually tried to submit an amendment past the 3 years just to see what happens? I'm curious if they automatically reject it or if there's some review process where they might consider special circumstances.

I'm sorry to say this, but based on everything discussed here, your mother is unfortunately outside the refund window for her 2018 medical expenses. The 3-year statute ran out in April 2022 (assuming she filed by the original due date in 2019). However, don't give up entirely on tax savings! A few things to consider: 1. **Future planning**: Make sure you're tracking all her ongoing medical expenses for current and future tax years. If she's still having significant medical costs, you don't want to miss them again. 2. **State taxes**: Some states have different amendment periods than federal. It might be worth checking if your state allows longer amendment windows. 3. **Other missed deductions**: While you're reviewing her situation, check if there are any other deductions or credits from more recent years (2021-2024) that might have been missed and are still within the amendment window. The $12K potential refund stings, but unfortunately the IRS is extremely rigid about these deadlines. Even filing the amendment now would likely just result in a rejection letter citing the statute of limitations. Better to focus that energy on making sure nothing gets missed going forward.

Has anyone here tried using accounting software like QuickBooks Self-Employed? I'm wondering if it actually helps with the tax calculations or if it's just for tracking expenses?

As someone who's been self-employed for over 5 years, I completely understand your frustration! The key thing to remember is that you're not just paying income tax on your freelance income - you're also paying self-employment tax (Social Security and Medicare) which is 15.3% on top of your regular income tax. Here's what worked for me: I set aside 30% of every payment I receive and put it in a separate high-yield savings account that I never touch except for tax payments. Yes, it might be slightly more than you need, but it's better to have a refund than owe money plus penalties. For your situation making $56K as a freelancer with a spouse earning $47K, you'll likely be in the 22% tax bracket for federal income tax, plus the 15.3% self-employment tax. Don't forget you can deduct the employer portion of SE tax (7.65%) and any business expenses like your home office, equipment, software, etc. The IRS calculator might be showing you're overpaying because it's factoring in your husband's W-2 withholdings. If he's having extra withheld or getting refunds, that can offset what you owe. You might want to adjust his withholdings to account for your self-employment income instead of making such large quarterly payments.