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Has anyone had luck filing through something besides TurboTax? This is my 3rd year with refund delays using them and im starting to wonder if its part of the problem. Maybe direct filing with the IRS is better?
I switched from TurboTax to FreeTaxUSA last year and got my refund in 2 weeks flat. TT kept having me input info that seemed to trigger reviews. Not saying it's their fault, but I definitely had a smoother experience elsewhere.
That's interesting! I hadn't considered that the tax software itself might be part of the problem. I just went with TurboTax because that's what everyone seems to use, but maybe I'll try something different next year. I've heard the IRS has a free file option now too, so maybe that would be faster since it goes straight to them? I'm definitely open to trying anything that might speed things up for next year.
I'm going through the exact same thing! Filed in early March and still nothing. One thing that really helped me was calling the Taxpayer Advocate Service (TAS) at 1-877-777-4778. They're a separate division within the IRS that helps when you've been waiting an unreasonably long time for your refund. You qualify for their help if it's been more than 21 days since you e-filed and you haven't received your refund or any communication about why it's delayed. They can actually look into your specific case and sometimes get things moving faster than the regular IRS customer service. Also, if you're experiencing financial hardship because of the delay (like you mentioned with bills), make sure to tell them that when you call. They prioritize cases where people are facing real consequences from the delay. Worth a shot before trying some of the paid services others mentioned!
Great question about bonus depreciation! Let me break this down for you since it's a common source of confusion. Bonus depreciation and Section 179 are separate elections, but they both count toward the same luxury auto limits. For passenger automobiles (like sedans), the combined first-year deduction from Section 179 + bonus depreciation + regular depreciation cannot exceed the luxury auto limit (~$20,200 for 2025 electric vehicles). So unfortunately, there's no way to get around that luxury auto ceiling for sedans, even by combining different depreciation methods. The limit applies to your total first-year depreciation, regardless of how you achieve it. However, here's where it gets interesting: if you finance the vehicle instead of purchasing outright, you might consider leasing strategies. Business lease payments are fully deductible (subject to business use percentage), and luxury auto limits don't apply to lease payments the same way they do to purchase depreciation. Another consideration for high-income earners like Hunter: if you're already hitting other tax limitation thresholds, maximizing current-year deductions might not be as critical. Sometimes spreading the deduction over multiple years through regular depreciation can be more beneficial from a cash flow perspective, especially if you expect to be in similar tax brackets in future years. The key is running the numbers for your specific situation rather than just assuming "biggest deduction now" is always best.
This leasing angle is really intriguing! I hadn't considered that approach at all. For someone in Hunter's position with that level of income, would the lease payment deductions potentially work out to be more advantageous than the depreciation limits over the long term? I'm thinking about total cost of ownership vs. tax benefits. Also, are there any gotchas with business leasing that people should be aware of? I've heard something about lease inclusion amounts but don't really understand how those work in practice.
You're asking exactly the right questions about leasing! Yes, for high-income earners like Hunter, leasing can often provide better total tax benefits than purchasing, especially for luxury vehicles. Here's the math: if Hunter leases that $190k electric sedan for, say, $2,500/month, he could potentially deduct $30,000 annually (assuming 100% business use) versus being capped at ~$20,200 in year one with purchase depreciation. Over a typical 3-year lease, that's $90,000 in deductions versus maybe $60,000 total through depreciation limits. The "lease inclusion amounts" you mentioned are the gotcha - they're designed to prevent people from avoiding luxury auto limits entirely through leasing. Basically, if you lease an expensive car, you have to add back a small amount to your income each year (it's in IRS tables based on vehicle FMV and lease term). For a $190k vehicle, this might be around $500-800 annually, so still a net benefit. The real considerations are: 1) You never own the asset, 2) Mileage restrictions, 3) Wear and tear charges, and 4) No equity building. But for someone with Hunter's income who might want to upgrade every few years anyway, leasing could definitely be the smarter play from a pure tax perspective. I'd recommend running both scenarios with actual lease terms before deciding.
This has been such an enlightening discussion! As someone who's been wrestling with similar vehicle deduction questions for my consulting practice, I really appreciate everyone sharing their experiences and expertise. One thing I'm curious about that hasn't been fully addressed - for partnerships like Hunter's law firm, how do the Section 179 limits work exactly? Sean mentioned they apply at both the partnership and partner level, but I'm not clear on the mechanics. If the partnership buys the vehicle, does that use up part of the partnership's $1,160,000 Section 179 limit for 2025? And then does it also count against Hunter's individual limit when it flows through on his K-1? Or is it one or the other? I'm asking because my business partner and I are considering a similar vehicle purchase, and we want to make sure we structure it correctly to maximize the tax benefit. Should the partnership own it, or should one of us buy it individually and lease it to the partnership? Also, has anyone dealt with the IRS documentation requirements for business vehicle purchases? I've heard they can be pretty strict about proving business necessity, especially for luxury vehicles.
Don't forget about Section 195 of the tax code! It specifically addresses business startup costs and says you can deduct up to $5k immediately in your first year, with any excess amortized over 15 years. For your band equipment, look into Section 179 deduction which might let you deduct the full cost in year 1 rather than depreciating.
Thanks! How do we determine if something falls under "startup costs" vs regular business expenses? Like we're not sure if the hotel stays during recording count as startup vs just normal band expenses since we were technically operating before even if not as an LLC.
Great question! The distinction can be tricky when you're already operating. Since your bassist was already reporting band income, those hotel stays during recording would likely be considered regular business expenses rather than startup costs - which is actually better for you because they're fully deductible in the year incurred rather than subject to the $5k startup limitation. Startup costs under Section 195 are typically for expenses before you begin operations (like legal fees to form the LLC, initial market research, etc.). But since you were already operating as a business, most of your pre-LLC expenses would be treated as regular business deductions. The equipment could still qualify for Section 179 immediate expensing regardless of when purchased, as long as it's used for business purposes.
Great thread! As someone who went through a similar transition with my freelance graphic design work, I wanted to add that you should also consider opening a separate business bank account if you haven't already. Even though you can deduct those pre-LLC expenses, having clear separation between personal and business finances moving forward will make future tax seasons much smoother. Also, don't overlook smaller expenses like music streaming services for reference/research, software subscriptions, or even mileage to and from the studio. These can add up quickly and are often forgotten when calculating deductions. Keep a detailed log of everything business-related from here on out - your future self will thank you! One last tip: consider quarterly estimated tax payments now that you're generating "actual money" as you put it. The IRS gets cranky when you owe too much at year-end, and as your income grows, you'll want to stay ahead of it.
This is such solid advice, especially about the separate business bank account! I wish someone had told me that when I was starting out. The mileage tracking tip is huge too - I probably missed out on hundreds of dollars in deductions my first year because I didn't keep a log of all those trips to venues and recording studios. Quick question about quarterly payments - is there a specific threshold where this becomes mandatory, or is it just recommended once you hit a certain income level? We're still figuring out what "actual money" means for us, but want to make sure we don't get hit with penalties if we need to start doing quarterly payments.
i think my company screwed up my w4 too. is there a way to check if they entered everything correctly? I filled it out right but maybe they input it wrong in their system?
Yes, you can ask your HR or payroll department for a copy of the W4 they have on file for you. Most companies can provide this pretty easily. Compare it to what you remember filling out. You can also look at your pay stub - it should show your filing status and any additional withholding amounts you specified. If those don't match what you requested, then there might have been a data entry error on their end.
The zero withholding issue is really common with the new W4 form! Based on your situation (Head of Household with 2 dependents), here's what likely went wrong: Most people accidentally check the "exempt from withholding" box or mess up Step 3 where you enter dependent amounts. For your situation, you should have $4,000 in Step 3 if both kids are under 17 ($2,000 each). Quick action plan: 1. Get a new W4 from HR immediately 2. Step 1: Check "Head of household" 3. Step 3: Enter $4,000 (for 2 kids under 17) 4. Step 4(c): Add extra withholding to catch up - probably around $150-200 per paycheck depending on your income Since you've had zero withholding for several months already, you definitely need that extra amount in 4(c) to avoid owing next year. The IRS withholding calculator can help you figure out the exact catch-up amount, but don't wait - get that corrected W4 to HR this week! Your smaller refund this year was because you essentially got an interest-free loan from the government instead of having taxes withheld. Better to fix it now than get hit with a big bill next April.
This is really helpful advice! I'm in a similar situation and had no idea about the $2,000 per child calculation for Step 3. Quick question - if one of my dependents is over 17 (like a college student), do I still put them in Step 3 but at $500 instead of $2,000? And does it matter if they're a full-time student? Also, when you mention adding $150-200 extra in Step 4(c), is that per paycheck or per month? Want to make sure I don't overcorrect and end up with too much withheld!
Liam Fitzgerald
I'm in a similar situation as you - just starting my EA journey and feeling overwhelmed by all the study options out there! Reading through these responses has been really helpful. One thing I'm noticing is that everyone emphasizes the importance of practice questions, which makes sense since the exam tests application of knowledge rather than just memorization. I'm leaning toward starting with the free IRS materials and publications that Dylan mentioned to build my foundation, then investing in a comprehensive course once I understand the scope better. Has anyone found certain parts of the exam significantly harder than others? I'm trying to decide if I should tackle them in order (Parts 1, 2, 3) or start with whichever might be easiest to build confidence. Also curious about timing - how far apart did people space their exam attempts? Thanks for all the detailed advice so far - this community is incredibly helpful for newcomers like us!
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ShadowHunter
ā¢Welcome to the EA journey! I'm also just getting started and have been lurking here for a while absorbing all this great advice. From what I've gathered reading through everyone's experiences, Part 1 seems to be the most straightforward since it covers individual taxation that many of us have some familiarity with from doing our own returns. I'm planning to follow a similar approach to what you mentioned - starting with the free IRS materials to get my bearings, then investing in a proper course. The consensus seems to be that while you can pass with free materials, having structured practice questions and explanations really makes a difference. One thing I'm curious about that I haven't seen addressed much - how long should we realistically plan for the entire process? If we're spacing out the three parts and allowing time for retakes if needed, are we looking at 6 months? A year? I want to set realistic expectations for myself. Good luck with your studies! Maybe we can check in with each other as we progress through this journey.
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Louisa Ramirez
As someone who recently passed all three parts of the SEE exam, I wanted to add a few thoughts to this great discussion. The advice here is spot-on, especially about the importance of practice questions and understanding the "why" behind tax rules rather than just memorizing. One thing I'd emphasize that hasn't been mentioned much is the value of creating your own study schedule and sticking to it religiously. I found that consistency was more important than intensity - studying 1-2 hours daily for 8 weeks worked better for me than cramming for 4 weeks. Regarding which part to start with, I'd actually recommend Part 1 first since it covers individual taxation concepts that form the foundation for understanding business and representation topics in Parts 2 and 3. Plus, getting that first pass under your belt builds tremendous confidence. For timing between parts, I spaced mine about 6-8 weeks apart to allow proper preparation time without losing momentum. The entire process took me about 7 months from start to finish, including one retake on Part 2. Don't get too caught up in finding the "perfect" study materials - whether it's Gleim, Surgent, or Fast Forward Academy, they're all solid. The key is picking one comprehensive system and committing to it fully rather than jumping between resources. Best of luck to everyone on this journey - becoming an EA is absolutely worth the effort!
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