I've been using Cash App Taxes for two years now and overall it's been solid for my situation. The biggest advantage is obviously that it's completely free - no hidden fees or upsells like you get with other services. The interface is pretty intuitive and it imported my W-2 and 1099 info without issues. One thing to consider is the customer support limitation that others mentioned. Last year I had a question about reporting some freelance income and it took forever to get help. The FAQ section covers basics but if you run into anything unusual, you're pretty much on your own. Also worth noting - if you're used to TurboTax's extensive error checking and advice features, Cash App is more bare-bones. It'll catch obvious mistakes but doesn't provide the same level of guidance on tax optimization strategies. For straightforward returns though, it gets the job done and saves you a good chunk of money.

I've been using Cash App Taxes for the past year after switching from TurboTax, and honestly it's been a game changer for my wallet. The free filing for both federal and state saved me about $120 compared to what I was paying before. The interface is surprisingly smooth - it walks you through everything step by step just like the paid services. I was able to handle my W-2, some 1099-MISC income from side work, and student loan interest deduction without any issues. The refund hit my account in about 10 days which was faster than I expected. My only real complaint is the limited help when you get stuck. I had a question about reporting some cryptocurrency transactions and basically had to figure it out myself since their support resources are pretty thin. If you have a complex tax situation, you might want to stick with a paid service for the extra guidance. But for most people with straightforward taxes, Cash App Taxes does exactly what you need it to do without the hefty fees. Definitely worth trying if you're looking to save money on tax prep.

I'm just curious - has anyone tried using something other than straight-line depreciation for vehicles? Maybe accelerated depreciation methods or even Section 179? I know Section 179 has those luxury auto limits, but wondering if there's any advantage to front-loading the depreciation if you know you'll convert to personal use later?

Great question about BMW M5 depreciation! One thing to consider that hasn't been fully addressed is the luxury auto depreciation limits under IRC Section 280F. For 2024, the first-year limit is $12,200 (or $20,200 with bonus depreciation), then $19,500, $11,700, and $6,960 for subsequent years. Since you're looking at an $82,000 BMW, these limits will significantly impact your depreciation schedule regardless of whether you use straight-line or accelerated methods. You won't actually be able to take $16,400 per year - you'll be limited to much lower amounts. This actually works in your favor for conversion planning! The luxury limits reduce your depreciation recapture exposure when you eventually convert to personal use. Just make sure to track your business use percentage carefully with a mileage log - the IRS is particularly strict about vehicle documentation. Also, consider the timing of your conversion. If you convert mid-year, you'll need to prorate the depreciation and carefully document the exact conversion date and vehicle condition. The Section 280F limits make the math more complex but generally reduce your overall tax risk.

Something nobody's mentioned yet - make sure you're tracking ALL your expenses for these gig jobs! Even if you're under the self-employment tax threshold, you can still deduct business expenses against that income. I do food delivery part time and deduct: - Mileage (this is the big one) - Portion of phone bill - Hot bags/delivery equipment - Phone mount for car - Portion of car insurance Don't leave money on the table by just reporting the income without the expenses!

Just wanted to add my experience as someone who's been doing multiple gig apps for 3 years now. You're absolutely right to be concerned about reporting everything correctly! A few quick tips that might help: - Keep a simple spreadsheet throughout the year tracking income from each app, even the small amounts - Take screenshots of your earnings summaries in each app before the year ends (sometimes they purge old data) - Don't forget you can also deduct things like hand sanitizer, masks, and cleaning supplies you buy specifically for delivery work One thing I learned the hard way - even though Instacart didn't send you a 1099-NEC, they still reported your earnings to the IRS if you made over $600 total across ALL their services (including tips). So they might have your income on file even without sending you paperwork. The good news is that reporting gig income gets way easier after your first year once you know what to expect. Just be thorough this first time and you'll be set up for success going forward!

Has anyone here actually compared the paperwork requirements between SEP-IRA and Solo 401(k) for an S-Corp? I keep hearing Solo 401(k) is better for contribution limits but worried about extra compliance headaches.

Great question about S-Corp retirement contributions! I went through this exact same analysis last year with my single-member S-Corp. Here's what I learned that might help: You're absolutely right that you can contribute much more than 10%. With your $85,000 salary, you could max out at about $21,250 with the SEP-IRA (25% of compensation). However, I'd strongly recommend looking into a Solo 401(k) instead - it would let you contribute around $44,250 total ($23,000 employee deferral + ~$21,250 employer contribution). One thing to consider: since you're generating $120K in profits but only taking $85K salary, you might want to evaluate if increasing your salary slightly could boost your retirement contributions. Yes, you'll pay more payroll taxes, but the additional tax-deferred savings often outweigh the extra FICA costs. Also, at 42, you're actually in a good position to catch up! You'll get catch-up contributions starting at 50 (additional $7,500 for 401k), and with your strong business income, you have time to build substantial retirement savings. The key is making sure your salary remains "reasonable compensation" for your industry. Since you mentioned graphic design, $85K sounds reasonable, but you might have room to optimize the salary/distribution split for maximum retirement contributions.

This is the transcripts

Code 150 - Tax Return Filed (Date: 08-12-2024; Amount: $1,127.00): This entry indicates that you filed and processed your tax return with a tax amount due of $1,127.00. Code 810 - Refund Freeze (Date: 02-08-2024; Amount: $0.00): This indicates that a freeze has been placed on any refund that may be due to you. This freeze could be due to various reasons such as review for accuracy, verification of information, or other compliance checks. The amount next to this code is typically $0.00 as it represents a status rather than a financial transaction. Code 766 - Credit to Your Account (Date: 04-15-2024; Amount: -$46,880.00): This is a substantial credit applied to your account. This could include withholding from wages, estimated tax payments, or other credits. The negative value indicates it's a credit to you. Code 768 - Earned Income Credit (Date: 04-15-2024; Amount: -$568.00): This shows the amount of Earned Income Credit (EIC) that was applied to your account. This credit is given to you if you are eligible and have low to moderate income from work. It is a refundable credit, meaning it can reduce the tax you owe and potentially increase your refund. Analysis and Next Steps The combination of credits listed under codes 766 and 768 significantly exceeds the tax assessed under code 150. However, the presence of the refund freeze (code 810) means that despite these credits, the IRS is not currently processing a refund for you. Since the freeze was initiated before the credits were applied, there might have been anticipation of issues with your tax return or the credits themselves that required additional scrutiny. Given the refund freeze and the lack of a code 846 (which would indicate a refund being issued), you should anticipate that the IRS may need more information or time to review the accuracy of your return or the eligibility for credits claimed. If you have not received any communication from the IRS explaining the refund freeze, it would be advisable for you to initiate contact to clarify the reasons for the hold and to understand if any additional steps are required from your side to resolve the issue. I made a video on how to bypass the usual IRS phone menu and long wait times here: https://youtu.be/UiAegRQ2Is8