One thing nobody mentioned - you need to get a Social Security number for your baby ASAP after birth to claim them on your taxes. The hospital will usually give you the paperwork to apply, but if not, you need to go to the Social Security office with the birth certificate. You absolutely cannot claim any child-related credits without their SSN.

Since you're expecting in July and will be working only 8 months this year, there's another important consideration - make sure you understand how your reduced income will affect your tax situation. With around $50k in actual earnings (8 months of $75k), you might qualify for the Earned Income Tax Credit (EITC) which phases out at higher incomes but could be significant with one child and lower income. Also, regarding your student loan interest - you can deduct up to $2,500 per year in student loan interest payments, and with $3,500 in payments annually, this could be a nice deduction. Just make sure you get the 1098-E form from your loan servicer. For your FSA question - you can't double-dip on medical expenses. If your FSA covered something, you can't also claim it as a medical expense deduction. But any out-of-pocket costs beyond what FSA covers could potentially be deductible if you itemize and they exceed 7.5% of your AGI. One more tip - keep detailed records of everything related to childcare payments to your aunt. You'll need her SSN, receipts, and documentation that this is legitimate childcare (not just family help) to claim the Child and Dependent Care Credit. This credit can be up to $1,050 for one child under 13.

This is a really smart way to help your mom! I've been reading through all the great advice here and wanted to add one more practical tip that helped me when I set up a similar arrangement with my father. Consider opening a separate checking account specifically for paying your mom's wages. This creates an even cleaner paper trail and makes it crystal clear that these are employment payments, not just family money transfers. I named mine "Household Employee Payroll" which made everything super obvious for record-keeping. Also, don't forget that your mom will need to pay estimated quarterly taxes on this income since you won't be withholding enough to cover her full tax liability (especially if she has other income sources). Help her set aside about 25-30% of what you pay her for taxes - this prevents any nasty surprises at tax time. The Social Security credits accumulate faster than you might think. At the current rate of $1,730 per quarter for each credit, even paying her $400-500 monthly should get her one credit per quarter. That means she could earn all 4 annual credits with just $6,920 in wages for the year - very achievable with consistent cooking work! The peace of mind knowing she'll have proper Social Security benefits is worth all the extra paperwork. You're being a great son looking out for her future like this.

This is such a thoughtful approach to help your mom! I went through a similar situation with my dad last year when he was short on Social Security credits. One thing I'd emphasize is making sure you document everything properly from day one. The IRS wants to see that this is a legitimate business arrangement, not just disguised family support. Here's what worked for us: - Created a simple written contract outlining duties (meal prep, cooking, cleanup) - Set regular work hours and pay schedule (we did $16/hour for 12 hours weekly) - Used a time tracking app so he could log his hours - Paid through direct deposit to create clear records - Had him submit simple weekly invoices listing what he cooked The key is treating it exactly like you would any other employee. We also made sure the wage was competitive with local personal chef rates by checking Care.com and local meal prep services. My dad earned all 4 Social Security credits in 8 months this way, and the IRS has never questioned it because we have solid documentation. The extra paperwork was totally worth it knowing he'll have proper benefits when he retires. One bonus tip: consider having your mom get a food handler's permit or basic food safety certification. It's usually under $50 and adds legitimacy to the professional cooking arrangement.

One thing I haven't seen mentioned yet is the timing of when you actually need the deduction. Since you mentioned you're already showing high expenses this year from expansion, you might not need the full Section 179 benefit right now. If your business is projecting significantly better profits next year, that larger deduction could be more valuable when you're in a higher tax bracket. Also, with a $130k vehicle, make sure you understand exactly what type it is for tax purposes. The Section 179 limits vary dramatically - if it's a luxury SUV under 14,000 pounds, you're capped at around $28,900 regardless of the purchase price. But if it's a heavy-duty truck or van over 14,000 pounds, you could potentially deduct the full amount. Have you considered a hybrid approach? Some dealers offer lease-to-own programs where you can start with lower monthly payments and decide later whether to purchase based on how your business performs.

Great question about the lease-to-own programs! Most legitimate lease-to-purchase agreements do allow you to apply a portion of your lease payments toward the eventual purchase price - typically around 50-70% of what you've paid in. However, you need to read the fine print carefully because some dealers market "lease-to-own" but it's really just a lease with a purchase option at predetermined residual value. Regarding timing the Section 179 deduction, you're absolutely right to be concerned about missing out. The current limits are quite generous ($1,160,000 for 2024), but tax laws can change. However, if Mei's business is already showing high expenses from expansion this year, they might actually benefit more from spreading the deduction across multiple years rather than taking it all at once when they're already reducing taxable income. One strategy to consider: if the vehicle qualifies for bonus depreciation in addition to Section 179, you might be able to optimize by taking partial Section 179 this year and using bonus depreciation next year, depending on your specific situation. This is definitely something to discuss with a tax professional who can run the numbers based on your projected income for both years.

I went through this exact same thing with my 2023 amended return! Got the "Take Action" message after waiting 9 months. The extension 623 line is specifically for amended return verifications, so you're definitely calling the right place. When I called (at 7:05am on a Wednesday), they just needed to verify some dependent information and a few deduction amounts. The rep was super patient and walked me through each item they were questioning. Had all my documents ready which made it go smoothly - took about 25 minutes total including hold time. The best part? They released my return for processing right there on the call! Got my refund direct deposited exactly 12 days later. My advice: call early (7am sharp), have both your original AND amended returns printed out, plus all supporting docs like W-2s and 1099s. Write down the rep's name and any confirmation numbers they give you. Don't stress - if it was a serious issue they would have sent you a CP notice by mail instead of just asking for a phone call. You've been waiting since June so you're definitely in the queue to get this resolved. The verification call is actually a good sign that they're finally processing the older amended returns! 🙌

I just went through this exact situation last month! Got the same "Take Action" message for my 2023 amended return after it sat since July. Extension 623 is definitely the right number - they specialize in amended return verification. When I called at 7am sharp, they just needed to verify some medical expense deductions I had claimed. The rep had me read back specific amounts from my receipts and confirm a few calculations. Whole process took about 20 minutes including a short hold. The relief was immediate - they cleared the hold right on the call and told me to expect processing within 2-3 weeks. Sure enough, got my refund 16 days later! Key things that helped: called exactly at 7am on a Tuesday, had everything spread out on my kitchen table before dialing, used speakerphone so I could easily flip through documents. Also wrote down the rep's ID number just in case I got disconnected. Don't worry - this is super routine for amended returns that have been in the system for a while. The fact they want to talk rather than send a letter actually means it's something quick they can resolve. You've got this! 💪

Something no one has mentioned yet about QBI - there are income thresholds where the calculation gets MUCH more complicated. For 2025, if your taxable income exceeds $191,550 (single) or $383,100 (married filing jointly), the QBI deduction starts to phase out for certain businesses. If your business is a "specified service trade or business" (like health, law, accounting, consulting, financial services, etc.), you could lose some or all of your QBI deduction when you hit those thresholds. For other businesses, the calculation becomes based on W-2 wages paid and property owned. Since you're building a spreadsheet, you might want to include a "warning flag" if your income approaches these thresholds so you know when you need to consult a tax professional!

Great discussion here! As someone who struggled with these exact calculations when I started freelancing, I wanted to add a few practical tips for your spreadsheet: 1. **Create separate cells for each step** - don't try to do everything in one formula. Break it down like: - Cell A: Gross Revenue ($135,000) - Cell B: Business Expenses ($25,000) - Cell C: Net Earnings (A-B = $110,000) - Cell D: SE Tax (C * 0.9235 * 0.153 = $15,543) - Cell E: Half SE Tax (D/2 = $7,771.50) - Cell F: QBI (C - E = $102,228.50) - Cell G: QBI Deduction (F * 0.20 = $20,445.70) 2. **Add validation checks** - I include formulas that flag potential errors, like if my QBI calculation seems off compared to net earnings. 3. **Build in the income thresholds** that Jamal mentioned - have your spreadsheet automatically warn you if you're approaching the phase-out limits for QBI. The key insight that took me forever to understand: retirement contributions reduce your *taxable income* but not your *QBI*. They're calculated independently and both subtracted from your income. Once I got that straight, everything else fell into place!