I used IRS Free File with FreeTaxUSA last year with both W-2 and 1099 income. It worked pretty well and handled my Schedule C without issues. The federal filing was completely free, and I only paid like $15 for state filing. Way cheaper than TurboTax which wanted to charge me $120+ for self-employment income.

Oh no, I definitely haven't made any quarterly payments. I had no idea I needed to do that. How bad are these penalties usually? Is there any way to avoid them at this point?

Unfortunately, there's no way to completely avoid the penalties now for 2023 since those quarterly payments should have been made throughout last year (typically due in April, June, September, and January). The penalty is basically interest on the amount you should have paid. For perspective, the penalty rate is currently around 8% annually, so if you should have been paying roughly $3,000 each quarter ($12,000 total for the year), the penalty might be around $500-800 depending on how late each payment was. Not catastrophic, but definitely an unnecessary expense.

That's really helpful to know! So basically their guarantee only covers like math errors in their software, not if I make a mistake or misunderstand something? Is there any way to tell if the current calculation is actually coming from their software vs something I might have entered?

Exactly right. Their guarantee only covers errors in their mathematical calculations, not user input errors or misinterpretation of tax situations. To determine if the calculation is coming from their software versus your inputs, look for the "Tax Tools" or "Tools" section in TurboTax and find the tax summary or forms view. Compare the numbers on your actual forms with what you believe should be reported. If you see the full unemployment amount on your 1040, that's correct for 2022. The difference in refund is likely coming from somewhere else - potentially credits or deductions that changed between your draft and final version.

I've actually had them honor it once! Back in 2019 their software didn't properly apply a state credit that I was eligible for. When I got the correction notice, I submitted everything to TurboTax with their guarantee form and they paid the difference plus the interest (about $175 total). But I had to be really persistent and provide clear documentation that it was their calculation error, not my input.

Do they keep returns forever? I used TurboTax back in 2021 but I can't remember my login info. Is there another way to get copies of old returns?

Most tax software companies keep your returns accessible for about 7 years, though policies vary. If you can't remember your login info, you can usually recover your account through email verification or by contacting customer support. If that doesn't work, you can always request a transcript directly from the IRS through their website. Go to IRS.gov and search for "Get Transcript Online" - this will show you the information from your filed returns, though the format is different from the actual 1040 form.

This is super helpful! Do you know what line number shows total income before adjustments? My scholarship application is asking for that specifically.

I hadn't thought about that approach. How exactly do the quarterly payments work with regular withholding? Do I still need to adjust my W-4 or can I just make separate payments?

You can keep your W-4 as is and simply make additional quarterly estimated tax payments to fine-tune your tax situation. The IRS doesn't care where the money comes from - they just care that you've paid enough throughout the year to avoid an underpayment penalty. For someone in your situation with an uncertain EV credit, you could continue your current withholding but make smaller estimated payments early in the year. Then once you confirm whether you qualify for the credit, you can adjust your Q3/Q4 payments accordingly. Just use Form 1040-ES to submit the payments either online or by mail. It gives you much more control than relying solely on employer withholding.

Totally agree. It's almost like the complexity is by design to keep the tax prep industry in business. I lived in Denmark for 3 years and they just sent me a statement showing what I earned and what I owed. I could make adjustments if needed, but otherwise just confirmed it was correct. Took 5 minutes instead of weeks of stress and gathering documents.

Thanks for sharing your experience. I've been keeping all the transfer receipts from my ex showing the $300 monthly payments. So on Schedule 8812, should I just report that I'm claiming one child and am entitled to that portion of the credit? I'm mainly worried because the letter makes it look like I already received the full amount.

Yes, on Schedule 8812 you'll report that you're claiming one child and are entitled to the Child Tax Credit for that child. The form will ask about advanced payments received. The important part is that from the IRS perspective, the payments were issued based on your 2020 joint return. Even though the letter shows the full amount, when you file as Head of Household claiming just your daughter, you're essentially telling the IRS "I'm only claiming one child now, not all the children from the joint return." The form is designed to handle this reconciliation.

The Update Portal was pretty limited. It worked for some basic changes, but it didn't really address complex situations like divorce and split custody well. I tried using it too and ended up just having to handle everything on my actual tax return instead.