Great question! I was in almost the exact same situation a few years ago. My partner and I did a ton of research on this, and here's what we found: The biggest factor is your income levels. If you have similar incomes (especially if both are on the higher side), staying unmarried might actually save you money due to the marriage penalty. But if there's a significant income gap, marriage usually wins out. One thing that really surprised me: the Earned Income Tax Credit (EITC) can be much better for single filers in certain income ranges. If one of you qualifies for EITC as a single parent, that alone could make staying unmarried worth thousands. Also consider timing - you don't have to make this decision permanently. Some couples I know got legally married after their second kid when the math clearly favored it, or when one partner's income changed significantly. My advice: use one of those tax comparison tools mentioned earlier to run your specific numbers, but also think about the non-tax factors. We ended up getting legally married because the peace of mind around medical decisions and automatic inheritance rights was worth more to us than the potential tax savings. Every situation is different, but you're smart to think about this ahead of time rather than just assuming marriage is always better financially!

This whole thread has been incredibly helpful! As someone who's been lurking here for a while but never posted, I really appreciate how thorough everyone's been with the advice. One angle I haven't seen mentioned yet is how this decision might affect your ability to contribute to retirement accounts. If one of you doesn't work (or works part-time) after having kids, being married opens up spousal IRA contributions that can be really valuable long-term. The non-working spouse can contribute up to $6,500 (or $7,500 if over 50) to an IRA even with no earned income, as long as the working spouse has enough earned income to cover both contributions. Also, from a practical standpoint - I've watched friends go through this decision-making process, and one thing that helped them was actually talking to a tax professional for an hour consultation. Yeah, it costs a couple hundred bucks upfront, but they were able to get personalized advice based on their exact situation rather than trying to piece together general advice from online calculators and forums (though those tools mentioned earlier sound really useful too!). The timing point about when you actually get legally married affecting the whole tax year is so important - I had no idea about that rule!

Have you tried clearing your browser cache and cookies? Sometimes the IRS website gets stuck with old session data. Also make sure you're using the refund amount from line 35a of your 1040 (not what you expect to get after withholdings). I had this exact issue last year and it turned out I was using the wrong amount from my return.

@Amaya Watson have you tried accessing the tool at different times of day? I noticed the IRS system tends to be less glitchy early morning (like 6-8 AM) or late evening after 10 PM when there's less traffic. Also, if you're still having issues, you can call the refund hotline at 1-800-829-1954 - it's automated but sometimes gives you info when the online tool won't work. Just have your SSN and exact refund amount ready!

I'm dealing with this exact same situation right now! Got my EIN a few months ago and checked the box saying I might hire employees, but my freelance business isn't at that point yet. The IRS sent me the same 940/944 notices and I've been stressed about it. Based on all the advice here, it sounds like the key is updating your information with the IRS rather than just ignoring it or filing zero returns. I'm going to try that Claimyr service since I've had zero luck getting through their phone lines myself. Thanks everyone for sharing your experiences - this thread has been way more helpful than anything I could find on the IRS website!

I was in almost the exact same boat with my consulting LLC about 6 months ago. Got the EIN, optimistically said I might hire employees, then reality hit and I realized I wasn't ready for that step yet. What worked for me was calling the IRS Business line (800-829-4933) super early in the morning - like right at 7 AM Eastern. Still took about 45 minutes to get through, but way better than the multiple hours I was waiting when calling later in the day. The agent was actually really helpful once I got connected. She explained that since I indicated potential employees on my SS-4 form, their system automatically enrolled me for employment tax filings. She was able to update my account status to show no employees and removed the filing requirements for Forms 940 and 944. The key thing she told me was to call back when I actually do hire my first employee so they can reactivate the employment tax requirements. Don't want to deal with this headache again when that time comes! Definitely don't ignore the notices - the IRS systems will keep generating them and could eventually lead to penalties even if you don't owe anything.

I've been tracking EV charging expenses for my consulting business for over a year now, and wanted to share what I've learned. The key is finding the right balance between accuracy and practicality. I started with the actual expense method using my car's built-in energy tracking. Most modern EVs show you exactly how many kWh you've used, so I'd note the reading before and after business trips, then multiply by my electricity rate. This gave me precise numbers, but became tedious after a few months. What I found is that for most independent contractors, the standard mileage deduction of 67¢/mile often comes out ahead anyway. EVs have lower maintenance costs than the rate assumes, so you're essentially getting "credit" for repairs and maintenance you're not actually paying for. My advice: try both methods for a month or two if you want to be thorough, but don't overthink it. Keep detailed mileage logs either way (that's required regardless), and unless you're driving huge miles or have unusually cheap electricity, the standard rate will probably serve you well while keeping your bookkeeping simple.

As someone who just went through this exact situation during my first year as an independent contractor with an EV, I wanted to add a few practical tips that might help. First, if you do decide to track actual expenses, many EVs (including Teslas, newer Chevy Bolts, and most other models) have mobile apps that show detailed charging history with dates, times, and energy amounts. This makes tracking much easier than manually recording meter readings. Second, consider your local electricity rates when making the decision. I'm in an area with relatively high electricity costs (about 18¢/kWh), so my actual charging expenses were pretty significant. But if you're in a region with cheaper power, the standard mileage rate might be more generous. One thing I learned the hard way - if you choose actual expenses, you need to be consistent for the entire tax year. You can't switch between methods partway through. So it's worth doing some quick math upfront based on your expected business miles and local rates to see which approach makes more sense. Also, don't forget that if you go the actual expense route, you can deduct the business portion of your home charger installation costs too, not just the ongoing electricity. That was a nice surprise on my taxes last year.

One thing to consider that hasn't been mentioned is your business expenses. Are you actually netting $54k, or is that your gross income? If it's gross, then you need to subtract all your legitimate business expenses before calculating any taxes. Common deductions for self-employed people: - Home office (if used regularly and exclusively for business) - Business portion of internet and phone - Mileage for business trips (58.5 cents per mile in 2024) - Software, equipment, supplies - Professional development and subscriptions - Health insurance premiums - Retirement plan contributions These can significantly reduce your taxable income. I thought I made about $65k last year but after properly tracking expenses, my taxable business income was closer to $48k.

As someone who went through this exact panic last year, I feel your pain! The good news is you're definitely overthinking the numbers. The other commenters have given you solid advice about the self-employment tax calculation and deductions. One thing I'd add - don't forget about business expenses that are specific to photography. You can deduct: - Camera equipment and lens purchases/repairs - Photography software subscriptions (Lightroom, Photoshop, etc.) - Props, backdrops, lighting equipment - Travel to shoot locations - Client meetings (including meals at 50%) - Photography workshops and education - Website hosting and domain costs - Business cards and marketing materials I was shocked at how much my taxable income dropped once I properly tracked all my photography-related expenses. Also, definitely look into that QBI deduction - it's a game changer for self-employed folks. The 25-30% rule for setting aside taxes is spot on. I learned that lesson the hard way! Consider opening a separate savings account just for taxes so you're not tempted to spend that money.