Has anyone else noticed that if you e-file, state refunds almost always come faster than federal? Last year I got my state refund in like 9 days but my federal took almost a month!

This is actually a really common situation! The key thing to remember is that state and federal tax systems are completely separate - your state refund won't be held up by what you owe federally. I've been through this exact scenario before. Since you're using an online tax service, they'll typically submit both returns at the same time, but each gets processed independently. Your Michigan state refund should come through in about 10-14 days if you're e-filing with direct deposit, which sounds like it'll be perfect timing for you. One tip: even if you can't pay the full $1200 federal amount right away, make sure you still file your federal return on time to avoid the failure-to-file penalty (which is much steeper than the failure-to-pay penalty). The IRS offers payment plans that can spread out what you owe over several months with minimal interest - definitely worth looking into if that $900 state refund doesn't cover everything you need.

This is a bit off topic but have you considered just getting married? My partner and I were in this exact situation with kids, HOH status, and Obamacare headaches. Getting married simplified everything tax-wise for us. I know marriage is a huge decision for many other reasons, but just from a purely practical/financial perspective, it solved our tax/healthcare coordination issues. We actually save money now because we file jointly and still qualify for premium tax credits.

As a tax professional, I want to emphasize that this situation requires very careful planning to avoid potential issues with both the IRS and the Health Insurance Marketplace. Here's what you need to know: The ACA subsidies are reconciled on your tax return through Form 8962. If your girlfriend received advance premium tax credits for both children but doesn't claim them as dependents, she'll likely owe back a significant portion of those subsidies - potentially thousands of dollars. For Head of Household status, you CAN potentially qualify even if you don't claim the children as dependents, but only if you have another qualifying person (like a parent you support). Simply paying household expenses while living with your girlfriend doesn't automatically qualify you for HOH if you can't claim a dependent. My recommendation: Calculate the total financial impact of both scenarios. Compare the tax savings from you filing HOH and claiming dependents against the cost of losing ACA subsidies and finding alternative health insurance. Often, keeping the ACA coverage is more valuable than the tax benefits. Also consider timing - you might be able to adjust the marketplace application during the next open enrollment period to reflect whoever will be claiming the children, which could help avoid subsidy repayment issues. I'd strongly suggest consulting with both a tax professional and a certified application counselor who understands ACA rules before making any changes.

Has anyone actually been audited for fringe benefits in a small C-corp? All this theoretical advice is great but I'm wondering what happens in practice. I provide myself cell phone, internet, and occasional meals as the owner of a 3-person C-corp and deduct them as business expenses.

The key thing to remember is that C-corps don't have size restrictions for fringe benefits, but documentation becomes absolutely critical when you're a shareholder-employee. I've been through this with my own small C-corp. For meals, you need to establish that they're truly for the "convenience of the employer" - not just convenient for you personally. This means documenting business reasons like needing to work through lunch on client projects, maintaining security of confidential information, or being available for important calls during meal times. Cell phones and internet are generally easier to justify since they're clearly business tools, but you still need to document the business use percentage if there's any personal use. One practical tip: create formal corporate resolutions approving these benefit policies before you start taking them. This shows the IRS that these were deliberate business decisions, not just personal expenses run through the company. Also keep detailed records of the business purpose for each benefit. The "reasonable compensation" test is crucial too - make sure you're paying yourself a reasonable salary before taking fringe benefits, or the IRS might reclassify everything as disguised distributions.

Will you be getting any 1099 forms from the places you worked? If they filed properly, the IRS already knows about that income. You can request a "Wage and Income Transcript" from the IRS that shows all income reported under your SSN for past years. That might give you a starting point at least.

I was in almost the exact same situation as you - self-employed photographer who hadn't filed for years due to poor record keeping and cash payments. Here's what I learned from going through this process: First, don't panic about the penalties. The IRS has a "First Time Penalty Abatement" program that can waive many penalties if you haven't had filing issues before. You have to file first, then request it. For reconstructing your income without records, start with whatever bank statements you have. Even if you only deposited money for bills, those deposits plus your known living expenses can help you estimate your actual income. The IRS isn't expecting perfect records from cash-based businesses - they just want reasonable good-faith estimates. For business expenses, make a list of everything you remember buying for your photography work. Camera gear, editing software, travel costs, even a portion of your internet and phone bills. Without receipts, you can still claim reasonable amounts based on what you remember spending. Just be conservative and honest. The state issue is important - if you worked in CA, you'll likely need to file non-resident returns there for the income earned in that state, even if you live in WA. I'd strongly recommend getting help from a tax professional who specializes in self-employment issues and back taxes. The cost is usually worth it to avoid mistakes that could trigger an audit.

This whole thread just convinced me I don't know jack about my own taxes. I've always just plugged my W-2 into TurboTax and hoped for the best. Where can I learn the basics without getting a finance degree lol?

This is such a great question! I used to get confused about this too. Your W-2 Box 1 is what the IRS uses to calculate your taxes - it's your wages AFTER pre-tax deductions like 401k, health insurance premiums, and HSA contributions have already been subtracted. So you're not actually getting "taxed twice" - those pre-tax deductions never get taxed at all! Your gross salary might be $60k, but if you put $6k into your 401k, Box 1 will show $54k as your taxable wages. The reason your withholdings might seem lower is if you changed your W-4, got married/divorced, had kids, or your employer's payroll system changed. You can use the IRS withholding calculator on their website to see if you need to adjust your W-4 to avoid owing at tax time. Hope this helps ease some of that tax season brain fog! 😅