One thing to consider is audit support! I used Free Tax USA last year and got a letter from the IRS questioning some of my deductions. Free Tax USA's help section had exactly what I needed to respond correctly, but they don't provide direct representation if you get audited unless you pay extra for their "Audit Defense" add-on when you file. Not sure about Tax Slayer's audit support, but worth looking into if that's a concern for you!

I switched from TurboTax to Free Tax USA two years ago and haven't looked back! For your situation (W2, mortgage interest, student loan interest), Free Tax USA will handle everything perfectly. The interface is clean and straightforward - maybe not as hand-holdy as TurboTax, but honestly that's a good thing because you can see exactly what's happening with your return. One tip: make sure to take advantage of their free review feature before filing. It caught a small error I made entering my mortgage interest that could have delayed my refund. The state return fee ($14.99 in most states) is totally worth it compared to what you'd pay elsewhere. I've recommended it to several friends and family members, and everyone has been happy with the switch. The money you save can go toward something much more enjoyable than tax software!

PSA: Topic 152 is actually a good thing! means ur return is being processed normally

As someone who's been through this process multiple times, I can confirm that 9 days is completely normal! The IRS processing times can vary significantly based on several factors - complexity of your return, current volume they're handling, and even random system delays. I've had returns that updated on day 6, others that took the full 18-19 days before showing "Approved." The key thing is that you're seeing Tax Topic 152, which is actually reassuring - it means your return is in the normal processing queue without any red flags or holds. Try not to stress about the timeline too much. The 21-day window is their commitment, and they're pretty good about meeting it. Your return is being processed, it's just moving through their system at their pace right now.

Don't forget about self-employment taxes! Even though your LLC didn't make money yet, once you do start earning income, you'll need to pay self-employment tax (15.3%) on your profits. Might be worth setting up a good bookkeeping system now before you get busy with actual business. I use QuickBooks Self-Employed and it makes tracking everything super easy.

Great question! I was in almost the exact same situation when I started my consulting LLC. Since you're a single-member LLC, you're absolutely right that it's a disregarded entity for tax purposes. This means you'll report everything on Schedule C of your personal Form 1040, not a separate business return. Even with zero income, I'd recommend filing Schedule C to establish your business activity with the IRS. Report $0 income and list your $4,300 in expenses. For startup costs, you can typically elect to deduct up to $5,000 in your first year under Section 195, with any remainder amortized over 15 years. Since your costs are under $5,000, you should be able to deduct the full amount this year. Just make sure to keep detailed records of everything - receipts, bank statements, etc. The IRS will want to see that this is a legitimate business venture, not a hobby. Also consider getting your EIN confirmation letter and business license documented in your files as proof of when you officially established the LLC. One more tip: even though you haven't made money yet, start tracking mileage for any business-related driving. Those deductions can add up once you're operational!

I'm glad I found this thread before making a potentially costly mistake! I was actually researching this exact strategy last week after hearing a coworker mention something similar. Reading through everyone's experiences and professional advice has completely changed my perspective. The math that really convinced me was learning that underpayment penalties run around 8% annually - that means even with a decent high-yield savings account at 2.5%, you'd actually LOSE money if you triggered penalties. And that's not even accounting for the audit risk or state tax complications that several people mentioned. What I find most compelling is the alternative approach everyone's suggesting. Instead of trying to earn a couple hundred dollars in interest while risking significant penalties, I could contribute an extra $500/month to my 401(k) and get immediate tax deductions. At my 24% marginal rate, that would save me $1,440 in taxes annually - way more than any savings account strategy could ever deliver. I think the key insight from this discussion is that there's a big difference between tax optimization (using legal strategies like retirement contributions to reduce your actual tax burden) versus tax timing games (trying to earn interest on money you'll eventually owe anyway). The former builds long-term wealth, while the latter just introduces unnecessary risk for minimal gain. Thanks to everyone who shared their knowledge and experiences here - this has been incredibly valuable!

This has been such an educational thread! As someone who works in financial planning, I see clients ask about this strategy regularly, and the responses here really cover all the key points beautifully. One additional consideration I'd add: beyond the penalty and audit risks everyone's mentioned, think about the opportunity cost. While you're focused on earning 2.5% in a savings account on money you'll eventually pay in taxes anyway, you could be putting that same cash flow toward investments that compound over decades. For example, if you're thinking about keeping an extra $3,000 throughout the year in savings, consider instead bumping up your 401(k) contribution by $250/month. Over 30 years with average market returns, that additional $3,000 annual contribution could grow to over $200,000 - and you get the immediate tax deduction too. The "pay yourself first" principle applies here: max out tax-advantaged accounts before trying to optimize the timing of tax payments. You'll build real wealth while staying completely compliant with tax laws. The risk/reward calculation on withholding games just doesn't make sense when there are so many better alternatives available.

I think you might be running into a classic depreciation recapture issue, but the $5,000+ tax increase seems way too high for your situation. Here's what's likely happening: When you used the standard mileage rate for your 7,500 business miles, you effectively claimed about $2,025 in depreciation (27 cents per mile for 2024). The IRS now wants to "recapture" some of that depreciation when you sell the vehicle. However, since you had an overall loss on the vehicle ($41,000 purchase vs $38,200 sale), the recapture should be limited. The business portion of your loss would be about $504 (18% of the $2,800 total loss), but you'd still need to recapture the depreciation you claimed. A few things to double-check: 1. Make sure you're calculating business use percentage correctly across the entire ownership period, not just 2024 2. Verify that TurboTax is properly accounting for the depreciation component of your standard mileage deductions 3. Check if the software is correctly limiting recapture to the actual depreciation claimed That tax increase suggests something is being calculated incorrectly. I'd recommend running through the numbers manually or trying a different tax software to compare results before filing.

I ran into this exact same issue when I sold my delivery vehicle last year! The $5,000+ tax increase definitely seems wrong - that's way too high for your situation. Here's what I learned after going through this mess: TurboTax sometimes doesn't handle partial business use vehicle sales correctly, especially when you're using the standard mileage rate. The software can get confused about how to calculate the depreciation recapture portion. Based on your numbers, your actual taxable gain should be much smaller. You had 18% business use on a vehicle that lost value overall ($41K to $38.2K), plus you only claimed about $4,387 in total mileage deductions (7,500 miles × $0.585). The depreciation component of that would be around $2,025 (7,500 × $0.27). A few things that helped me figure it out: 1. Double-check that you entered the original purchase price correctly in the business asset section 2. Make sure the software is using 2024's depreciation rate (27 cents per mile) not 2023's rate 3. Verify it's calculating business percentage correctly I ended up having to manually override some of TurboTax's calculations after consulting with a tax pro. The actual taxable amount was less than $800, not the $5,000+ the software initially calculated. Definitely get a second opinion before filing - this could save you thousands!