Very confused about my tax situation, need assistance ASAP

Thanks for the info! So about the home office deduction - if I use my spare bedroom for both freelance work and occasionally as a guest room, can I still claim it? And do I need receipts for internet and electricity to claim those expenses?

To qualify for the home office deduction, the space must be used exclusively for business purposes. If you're using the spare bedroom occasionally as a guest room, you wouldn't be able to claim the entire room. You might be able to claim a portion if you can clearly define the business area that's exclusively used for work. For utilities like internet and electricity, you don't necessarily need receipts, but you do need to calculate the business percentage of these expenses. Keep records of your total bills and be prepared to show how you calculated the business portion (usually based on square footage of the office compared to your entire home).

Does it actually help with figuring out if you're eligible for deductions? My situation is similar but I also have some crypto transactions that I'm clueless about reporting.

How does it compare to TurboTax? I'm tired of paying their fees but worried about missing something if I switch to something else.

Yes, it definitely helps with deduction eligibility! It asks specific questions about your situation and explains why you do or don't qualify for certain deductions. For crypto, it has a specific module that walks you through reporting different types of transactions and even helps calculate your gains/losses. For TurboTax comparisons, I found it more transparent and educational. Instead of just asking yes/no questions, it explains the tax concepts behind each decision. I actually learned about several deductions I was missing in previous years. The interface is cleaner too, without the constant upselling that drove me crazy with TurboTax.

Wait, so this service somehow gets you through the IRS phone system? How does that even work? The IRS phone line is always "experiencing higher than normal call volume" whenever I try.

Sounds like a scam. Nobody can magically get you through to the IRS faster. They probably just connect you to some fake "agent" who gives generic advice.

It uses a technology that continuously redials and navigates the IRS phone system for you. When it finally gets through, it calls your phone and connects you directly to the IRS agent. It's basically doing what you'd do manually (repeatedly calling and working through the menu options) but automated. No, it's definitely not a scam - you're connected to the actual IRS phone line, not some third-party service. They just handle the frustrating part of getting through. Once connected, you're talking directly with official IRS representatives who can access your tax records and provide authorized guidance. I was skeptical too until I tried it and confirmed I was actually speaking with the IRS.

That makes so much more sense! I was worried my entire income would get hit with the higher rate. What about the freelance income though? Is that taxed differently than my regular job income?

Your freelance income is subject to both income tax (at the same progressive rates as your W-2 income) AND self-employment tax, which is an additional 15.3% to cover Social Security and Medicare. This is because when you're self-employed, you're paying both the employer and employee portions of these taxes. You can deduct business expenses from your freelance income though, which helps reduce both taxes. Things like supplies, software subscriptions, and potentially a portion of your home office if it's used exclusively for the freelance work. Just keep good records of everything!

This is correct! I work as a tax preparer and see this mistake ALL THE TIME. The home office deduction is only for self-employed people (Schedule C filers) or certain statutory employees. Regular W-2 employees can't take this deduction anymore after the Tax Cuts and Jobs Act.