Has anyone compared Free Tax USA to TurboTax for business filers? I've been using TurboTax for years but the price keeps creeping up every year. Now they want $170 just for the basic self-employed version before adding state filing!

I've been using Free Tax USA for my consulting business for two years now and it's been solid. One thing I'd add to what others have said - if you're worried about making mistakes, their customer support is actually pretty responsive via email. I had questions about how to handle some equipment depreciation and they got back to me within a day with clear guidance. The learning curve isn't too steep if you have your records organized. I keep a simple spreadsheet throughout the year tracking income and expenses by category, so when tax time comes I just reference that while filling out the forms. Takes me about 3 hours total now, compared to the 2-hour meeting + back-and-forth with my old CPA that cost 10x more. One heads up - make sure you understand the difference between business expenses and personal deductions before you start. The software will ask about both, but it's on you to categorize things correctly. When in doubt, err on the conservative side or do a quick Google search about what's deductible for your type of business.

17 One thing nobody has mentioned yet - if you do decide to file jointly, you need to include a statement signed by both you and your spouse agreeing to be taxed on your worldwide income. This is in addition to getting the ITIN. My tax preparer missed this last year and it caused a huge headache with our return getting flagged for review.

7 Just to add a bit more info - I've been in this situation for 3 years with my Brazilian husband. If you choose Married Filing Separately, be aware that you'll lose some tax benefits like education credits, child tax credits, earned income credit, etc. You also can't contribute to a Roth IRA if your income is above $10,000. Filing jointly with the election usually results in lower taxes overall, but then you have the hassle of getting an ITIN and reporting foreign income. It's worth calculating both ways if you can.

I've been using FreeTaxUSA for 5 years now. The state returns are usually available by mid-January, sometimes earlier depending on your state. For your estimated payment, you can probably just use the same method you used for Q3 unless your income has changed significantly.

I made the switch from TurboTax to FreeTaxUSA two years ago and it was one of my best financial decisions! A few tips for your transition: 1. **State returns timing**: California forms are usually available by late January, but you're right to be concerned about the January 15th deadline. I'd recommend calculating your estimated payment based on your Q3 method or using 110% of last year's tax liability to be safe. 2. **Data entry**: Since this is your first year with FreeTaxUSA, gather all your previous tax documents beforehand. The interface is clean and intuitive, but you'll need to manually enter everything this first time. 3. **Features you might miss**: FreeTaxUSA doesn't have some of TurboTax's bells and whistles like the mobile app for document photos, but honestly, I found those features more gimmicky than useful. 4. **Import capabilities**: You can import W-2s and 1099s directly from most major employers and financial institutions, which saves a ton of time. The $15 state fee is still a steal compared to what TurboTax was charging me ($120+ for state). You'll love not being constantly upsold to premium versions you don't need!

I'm dealing with a somewhat similar situation with my elderly father, and this thread has been incredibly helpful! One thing I wanted to add based on my experience is about the support test calculation. When determining if you're providing more than half of your mom's support, make sure to include the fair market value of the housing you're providing her. Even though you're not paying rent, the IRS considers the rental value of the room/space your mom occupies as part of the support you're providing to her. So if a comparable room would rent for $800/month, that's $9,600 annually in housing support you're providing, which really adds up when calculating total support. Also, don't forget to factor in things like transportation costs if you drive her places, clothing purchases, and any entertainment or personal care items you buy for her. These all count toward the support test. The way I track it is: take all the money you spend on her behalf (including housing value) and compare it to her total living expenses for the year. If your contributions exceed 50%, you're good for the dependent claim. Your situation sounds very solid for both the dependent test and HOH qualification. Just keep those records organized!

This whole thread has been incredibly informative! I'm in a similar caregiving situation with my disabled adult brother, and I've always been uncertain about HOH eligibility since we live in my parents' old house that they're letting us use. Reading through everyone's experiences, it's clear that the IRS really does focus on who's actually maintaining the household financially rather than who holds the deed. I've been covering utilities, property taxes, groceries, and all of my brother's care expenses, so it sounds like I should have confidence in filing HOH. One thing that's given me pause is that my brother receives some disability benefits. Does anyone know if Social Security Disability payments count toward the income threshold for dependent status? His SSDI is his only income, but I want to make sure I'm not missing anything that would disqualify him as my dependent. Also, for those who mentioned keeping detailed records - do you recommend any particular apps or methods for tracking all the household and support expenses throughout the year? I tend to lose track of smaller purchases and want to be better organized going forward. Thanks to everyone who shared their experiences and advice. It's really helpful to hear from people who've navigated these complex family situations successfully!

Has anyone experienced an audit over household employee issues? I'm curious how common this is and how aggressive the IRS is about following up on situations like this.

I went through something very similar last year with our house cleaner who insisted she was an independent contractor despite working exclusively for us on a set schedule. After reading through these comments, I ended up using a combination of approaches that worked. First, I documented everything - all our text exchanges, her work schedule, photos of her using our cleaning supplies, etc. Then I clearly explained the legal distinction between household employees and independent contractors, emphasizing that this wasn't my personal preference but IRS requirements. When she still refused to cooperate, I filed the W-2 with "Applied For" in the SSN field as suggested by others here. I also sent her a certified letter explaining that I was required to report her wages and that her refusal to provide her SSN didn't change my legal obligations as an employer. The key thing I learned is that you can't let an employee dictate their own classification. The IRS has specific tests for this, and working in your home under your direction clearly makes someone a household employee. Don't let her unwillingness to understand tax law put you in a position of non-compliance. Make sure you also pay the employer portion of FICA taxes and file Schedule H with your return. Better to do everything correctly on your end even if she's being difficult about her part.