This is such a helpful thread! I'm in a similar boat - just started freelancing and trying to figure out all the tax stuff. One thing I'm still confused about: when you say the deduction is "limited to your business profit," does that mean your gross revenue or your net profit after all business expenses? For example, if my LLC brings in $50,000 in revenue but I have $20,000 in legitimate business expenses (equipment, software, etc.), would my health insurance deduction be limited to $30,000 or $50,000? Also, does anyone know if there's a difference between buying insurance through the marketplace vs. directly from an insurance company when it comes to this deduction? I've been looking at both options and the marketplace seems more complicated with all the subsidy calculations.

I've been following this thread as someone who went through the same confusion last year! One additional consideration that hasn't been mentioned yet: timing matters for the deduction. You can only deduct premiums for months when you were actually self-employed and had no other health coverage available. So if you started your LLC mid-year or had employer coverage for part of the year, you'll need to prorate the deduction accordingly. Also, a practical tip: set up a separate business bank account if you haven't already, and pay your health insurance premiums from that account. It makes record-keeping much cleaner and provides a clear paper trail showing that your business income is what's funding the insurance. The IRS loves good documentation! One more thing - if you're planning to make estimated quarterly tax payments (which you probably should as a self-employed person), factor in the health insurance deduction when calculating those payments. It can significantly reduce what you owe, so don't overpay your quarterlies.

This has been such an educational discussion! I'm a newcomer to this community and just received my first K-1 Form 1041 with Box 11 entries, so this thread has been incredibly helpful. What really struck me reading through everyone's experiences is how the tax code, while complex, actually has logical reasons behind these rules. The distinction between Box 11A (above-the-line deductions that reduce AGI) and Box 11B (itemized deductions) isn't arbitrary - it reflects the fundamental structure of how different types of deductions work in our tax system. I appreciate everyone who shared their real-world experiences and calculations. It's clear that while it might feel frustrating to "lose" the Box 11B deduction when taking the standard deduction, the math typically works out in favor of the standard deduction anyway. The key seems to be not missing that valuable Box 11A deduction on Schedule 1, line 24k. For anyone else new to this situation, the advice to run both scenarios (itemizing vs. standard deduction) using actual numbers seems like the best approach. And as several people mentioned, keeping the bigger picture in mind - that these deductions come from what's likely a beneficial inheritance situation - helps put any "lost" deductions in proper perspective. Thanks to everyone who contributed their knowledge and experience to help others navigate this confusing area of tax law!

Welcome to everyone who's contributed to this incredibly thorough discussion! As a tax professional who specializes in trust and estate taxation, I wanted to add a few technical clarifications that might help future readers. First, the reason Box 11A and 11B are treated differently isn't just about "above-the-line" vs "itemized" deductions - it's specifically because of IRC Section 642(h). This provision governs how excess deductions are passed through to beneficiaries when a trust or estate terminates. Box 11A contains deductions that would have been deductible in arriving at adjusted gross income if paid by an individual, while Box 11B contains deductions that would only be deductible as itemized deductions. Second, for those considering the bunching strategy mentioned earlier, remember that excess deductions on termination are a one-time event. You can't carry them forward or back, so any strategic timing needs to happen in the tax year you receive the K-1. Finally, I'd strongly recommend keeping a copy of the trust's final Form 1041 if you can obtain it from the trustee. It shows exactly how these excess deductions were calculated and can be invaluable if you ever need to explain the deductions to the IRS or a future tax preparer. The consensus here is absolutely correct - claim Box 11A on Schedule 1, line 24k, and don't lose sleep over Box 11B if you're taking the standard deduction. The system is working as designed.

DETAILED EXPLANATION OF 810 FREEZES AND SOLUTIONS: An 810 freeze is basically the IRS's fraud prevention system flagging your return. Here's what you need to know: - These freezes are WAY more common in 2023-2024 due to increased identity theft - Average resolution time is 60-120 days, despite them saying 180 - Your withholding and credits look normal, so this should resolve automatically - DO NOT call multiple times, it doesn't help Pro tip: Instead of stressing daily, use taxr.ai to analyze your transcript. It'll give you a precise timeline and explanation of what's happening. It costs $1 but saves hours of research and anxiety. I've seen it predict release dates with scary accuracy. Source: Been dealing with these freezes for years as a tax consultant.

Been in the exact same situation! Filed 1/28, got the 810 freeze 2/3, and I'm sitting here 8 weeks later still waiting. My transcript looks almost identical to yours - $11,200 refund, HoH filing, clean W-2 withholdings, no penalties or interest. The waiting is brutal especially when you can see everything is correct on the transcript. I've called twice and they just repeat the same "wait for the letter" script. At least your processing date of March 13 means they've actually looked at it - mine is still showing as received but not processed. Seeing people say it cleared after 92 days gives me some hope though. Hang in there - we're all in this together! 💪

Make sure you're keeping track of your tips accurately! I was a server and got audited because I wasn't reporting tips properly. The IRS has formulas they use to estimate what your tips "should" be based on your sales, and if what you report is way off, it can trigger issues. Also, with the babysitting income, that's considered self-employment and you'll need to pay self-employment tax on it (about 15.3%) if you make over $400 in a year. But you can also deduct expenses like transportation to jobs, any supplies you buy for the kids, etc.

Just wanted to add something about timing - since you're planning to move out soon and will be paying your own rent/utilities, make sure you keep detailed records of ALL your expenses from the day you move out. Rent receipts, utility bills, grocery receipts, everything. This documentation will be crucial for calculating the support test next year. The support test looks at the entire tax year, so if you move out mid-year, you'll need to calculate what percentage of the year you supported yourself versus what percentage your parents supported you. Having good records makes this much easier and more accurate. Also, since you mentioned considering that restaurant job with tuition assistance - that benefit might be taxable income depending on how it's structured, so factor that into your calculations too. Some tuition assistance programs are tax-free up to certain limits, others aren't.

I'm a freelance photographer who does a lot of outdoor events and I've been wondering about this same issue with specialized equipment deductions. After reading through all these responses, I'm realizing I should probably be more systematic about documenting my gear usage. I have professional-grade polarized sunglasses that I only use during outdoor shoots because they help me see my camera LCD screen better in bright conditions - regular sunglasses create too much color distortion when I'm trying to check exposure and white balance. They cost about $200 and I literally keep them in my camera bag, never wear them casually. The insurance documentation angle that Connor mentioned is really interesting - my professional liability insurance actually has specific language about proper equipment use and safety protocols. I'm going to reach out to them about getting something in writing regarding protective eyewear for outdoor photography work. Thanks everyone for sharing your experiences and documentation strategies. It's clear that having detailed records and being able to demonstrate the specialized nature of the equipment is key to making these deductions stick.

As a tax preparer who's handled numerous Schedule C returns, I want to emphasize something that hasn't been fully addressed yet - the IRS Publication 535 specifically mentions that protective equipment can be deductible when it's required for your occupation and not suitable for general wear. For your situation as a fishing guide, the key factors working in your favor are: 1) You spend the majority of your work day exposed to water glare, 2) Your eye doctor specifically recommended them for occupational use, 3) You have separate personal sunglasses, and 4) The polarized feature serves a specific anti-glare function critical for water safety. I'd recommend keeping that doctor's recommendation letter, receipts for both work and personal sunglasses, and a simple log showing business use. Also consider getting a statement from your professional fishing guide association or licensing body about recommended safety equipment - this adds industry standard validation. The $175 cost is reasonable for specialized marine eyewear and shows you're not being excessive. Just make sure you can clearly articulate why these specific glasses are necessary for your business operations rather than just convenient or preferred.