One thing I haven't seen mentioned yet is the de minimis fringe benefit rule. If you're giving tickets to employees (even if it's just yourself as the sole proprietor), gifts under $75 per person might qualify as de minimis fringe benefits and could be fully deductible. Also, consider the timing of your deduction. Even if you can't deduct the season tickets as entertainment, you might be able to deduct individual tickets used for legitimate business purposes under different categories - like client development costs or business gifts (up to $25 per person per year). The key is really in how you structure and document each use. I'd strongly recommend consulting with a CPA who specializes in small business taxes before making a $4,800 investment, especially since the rules around entertainment expenses have become so complex.

Great question about the de minimis rule! You're absolutely right to be cautious - as a sole proprietor, you're generally not considered an employee for fringe benefit purposes, so the de minimis rule typically wouldn't apply to you personally. However, regarding the $25 business gift limit - it's $25 per person per tax year total, not per gift. So if you give a client a $25 ticket in January, you can't deduct any additional gifts to that same client for the rest of the year. The IRS is pretty strict about this limit. One strategy I've seen work is to focus on fewer, higher-value prospects where the $25 gift deduction makes sense, and then use the meal deduction approach mentioned earlier for your more established clients. You could take them to dinner before the game (50% deductible meal) and treat the game portion as personal entertainment (not deductible). Also worth noting - make sure you're not giving gifts to the same person in both individual and business capacities. If you give someone a $25 business gift and their spouse receives something separately, that counts toward the same $25 limit if they file jointly.

I went through this exact same frustration last year! What worked for me was using my state's direct filing website. I'm in Texas so no state income tax, but I helped my sister in New York with this same issue. The key thing is to have your federal return handy because you'll need your AGI (Adjusted Gross Income) and other key numbers to complete the state return. Most state websites have pretty straightforward online forms that walk you through it step by step. One tip: if your state's website seems confusing or keeps timing out (looking at you, California!), try filing during off-peak hours like early morning or late evening. The government sites get overwhelmed during busy times. Also, don't forget to check if you qualify for any state-specific credits or deductions that might not have been on your federal return. Some states have credits for things like college tuition, childcare, or even renter's credits that can save you money!

I actually work for the IRS and can confirm that you absolutely do NOT need to refile your federal return to file state taxes separately. This is a common misconception that tax software companies unfortunately don't always make clear. Here's what you need to do: Go directly to your state's Department of Revenue website (every state calls it something slightly different - could be Department of Taxation, Franchise Tax Board, etc.). Most states have free online filing systems that are completely separate from federal filing. You'll need your federal return information handy - specifically your Adjusted Gross Income (AGI), federal tax withheld, and any other federal numbers that carry over to state forms. But you won't be refiling or changing your federal return in any way. One thing to watch out for: some commercial tax prep sites will try to make you think you need their "state-only" packages, but these often still charge fees. Your state's official website is usually free for basic returns. If you run into technical issues with your state's website (which unfortunately happens during peak filing season), try accessing it during off-peak hours or consider calling your state tax department directly for assistance with their online system.

I'm a tax professional who has been following this thread with growing concern about the pattern of issues with Anchor Accounting and similar services. What many people don't realize is that the Self-Employment Tax Credit (often called the Employee Retention Credit for self-employed individuals) has very specific eligibility requirements that were frequently misinterpreted or exaggerated by aggressive marketing companies. The IRS has been conducting extensive reviews of these claims because fraud rates were extremely high - in many cases, preparers were claiming credits for clients who didn't actually qualify or were inflating the amounts. This is why legitimate claims are taking 6-12 months to process instead of the normal 21 days. For anyone still waiting on their refund, I strongly recommend: 1. Get your IRS transcripts immediately to see the actual status 2. Verify your eligibility independently - the credit only applies if your business was significantly impacted by COVID-19 government orders 3. Revoke any power of attorney if you're concerned about the preparer's practices 4. Consider filing an amended return if you discover errors The "advance payment" programs these companies advertise are often just loans against your expected refund at extremely high interest rates. If the IRS ultimately denies or reduces your claim, you're still responsible for repaying the advance. Document everything and consider reporting questionable preparers to help protect other taxpayers from similar situations.

I'm currently going through almost exactly what you described with Anchor Accounting! They filed my Self-Employment Tax Credit in February 2024 with the same promises about quick processing that never happened. After reading through all the advice here, I'm taking action immediately. First thing Monday morning I'm filing Form 2848 to revoke their power of attorney - several people here have confirmed this stops them from accessing your account and potentially intercepting refunds. I'm also going to try the Claimyr service that others mentioned to actually speak with an IRS agent and get real information about my refund status instead of more excuses from Anchor. What really concerns me after reading the tax professional's comment is that my credit might have been overclaimed. I'm definitely going to run my documents through taxr.ai to verify the calculations before this turns into an audit situation. Better to file an amended return now if there are errors rather than deal with penalties later. I'm also planning to file complaints with my state's Attorney General consumer protection division and the IRS Office of Professional Responsibility. It's clear from this thread that Anchor has a pattern of making unrealistic promises to get clients, then leaving them hanging with no real support. Thanks to everyone for sharing their experiences and resources - knowing I'm not alone in this mess and having concrete steps to take makes me feel like there's actually hope of resolving this nightmare. I'll update this thread once I make progress in case it helps others in similar situations.

Has anyone used TurboTax for rideshare taxes? Do they explain this "date placed in service" thing clearly? I'm trying to decide which tax software to use.

The "date placed in service" for rideshare drivers is definitely the first date you made your vehicle available for business use - so in your case, that September date when you first started driving for Uber, not when you bought the car in 2019. This is super important because it affects your depreciation calculations. Since you started mid-year, you'll likely need to use the mid-quarter convention for depreciation (if more than 40% of your depreciable property was placed in service in the last quarter of the year). Pro tip: Check your Uber driver app for your trip history - it should show your very first trip date, which would be your "placed in service" date. You can also look at your first payment from Uber as documentation. Keep records of this because the IRS can verify it through your rideshare company's records if needed. Don't stress too much about getting the exact date if you can't remember - a reasonable estimate based on when you first went online is fine, but don't try to manipulate the date to get better deductions. That's an audit red flag.

Just to clarify what everyone's saying: Form 8812 is what you use to CALCULATE the Additional Child Tax Credit amount. Form 8332 is what transfers the RIGHT to claim the child from the custodial to non-custodial parent. Sounds like you're mixing up which form is needed. The dad isn't being rejected because he needs your permission - he's being rejected because he needs your permission IN THE SPECIFIC FORMAT the IRS requires (Form 8332).

I went through this exact same frustration two years ago! The IRS rejection system is automated and looks for specific documentation - it doesn't matter how logical your situation seems or even if you have verbal permission. Here's what worked for me: 1) Get Form 8332 from the IRS website (not Form 8812), 2) Have the custodial parent (sounds like you) fill it out completely and sign it, 3) Give the signed form to the dad to attach to his amended return. The whole process took about 6 weeks once we got the paperwork right, but we got the full credit plus interest on the delayed refund. Don't let the government bureaucracy get you down - once you jump through their hoops correctly, it works! 💪