Tax Season Experts Ready to Answer Your Filing Questions - Ask Us Anything!

Thanks for the info! Question - I started doing some freelance photography last year alongside my regular job. Made about $6,500 from it. Is there a certain amount I need to make before I have to report it? And what forms do I need to fill out for this side income?

You need to report all freelance income regardless of the amount. If you earned $6,500 from photography work, you'll need to file Schedule C to report this income and any related business expenses. You'll also need to complete Schedule SE for self-employment tax (covering Social Security and Medicare). Since your freelance income exceeds $400, you're required to pay self-employment tax on these earnings. Make sure to track all legitimate business expenses like equipment, software, travel to photoshoots, marketing costs, and potentially a portion of your home if you use it regularly and exclusively for your business. Good record-keeping will help reduce your taxable income.

Does it actually work with 1099-K forms? I started selling stuff on eBay last year and got one of these forms for the first time. I'm so confused about what to do with it since most of what I sold was just old stuff from my house that I sold for less than I paid originally.

I'm a bit skeptical about tax tools that aren't the major names. Is this service secure? I'm always nervous about uploading financial documents to websites I'm not familiar with. Also, does it actually give you advice or just analyze the forms?

Yes, it absolutely works with 1099-K forms! It helps distinguish between personal items sold at a loss (which generally aren't taxable) versus actual business income. It'll guide you through determining what portion of your eBay sales might be actual taxable income versus just selling personal items for less than you paid. Regarding security concerns, I was nervous about that too. They use bank-level encryption and don't store your documents permanently after analysis. It doesn't technically give "advice" like a human accountant would - instead it analyzes your documents to explain what the numbers mean, identifies potential errors, and shows you exactly where information needs to go on your tax forms. I found it much more helpful than just having the forms analyzed without any explanations.

How does this actually work? I don't understand how they can get you through faster than just calling yourself. Seems like they'd be in the same phone queue as everyone else?

Yeah right. Nobody gets through to the IRS. This sounds like a scam to get people's financial info. I've been trying for months to talk to someone about my refund from LAST YEAR that I still haven't received. No way some random service can magically connect you when the IRS phone lines are basically a black hole.

They don't skip the line or get you through faster than anyone else. What they do is handle the waiting for you. Their system automatically dials and redials the IRS until it gets through, then navigates the phone tree, and sits on hold (sometimes for hours). You're only called when an actual IRS agent is on the line ready to talk. You don't have to waste your entire day listening to hold music and getting disconnected. I was super skeptical too. I've been trying for months to resolve my CP2000 notice with zero success. I figured it was worth trying since nothing else was working. I was genuinely shocked when they called me back about 3 hours after I signed up with an IRS agent already on the line. I just had to grab my documents and start talking. They don't ask for any financial information - they just need your phone number to call you back when an agent is available.

For 2024 taxes (filed in 2025), the Child and Dependent Care Credit allows you to claim up to $3,000 in expenses for one child or $6,000 for two or more dependents. The credit percentage ranges from 20-35% of those expenses depending on your income. The percentage decreases as your income increases, with the 35% rate applying to those with AGI below $15,000. For most middle-income families, you'll get 20% of your qualifying expenses. Since you spent $8,400, you'd be limited to claiming the $3,000 maximum for one child. At the 20% rate, that would be a $600 credit. This is a non-refundable credit, so it can only reduce taxes you owe to zero, not generate a refund beyond that.

Thank you so much for explaining! That makes way more sense now. So basically even though I spent $8,400, I can only claim $3,000 of it, and then I get 20% of that amount as an actual credit on my taxes. That's much less than I was hoping for, but at least it's something.

Check out the IRS Free File program. If your AGI is under $73,000, you can file federal taxes for free. The Free File Alliance has different providers, and some even offer free state filing too. TaxAct, TaxSlayer, and 1040Now are usually good options. Make sure you go through the IRS website (irs.gov/freefile) to access the truly free versions. If you go directly to the company websites, they often push you toward paid versions.