As someone who went from zero tax knowledge to confidently managing my small business taxes, I'd highly recommend starting with "J.K. Lasser's Small Business Taxes" - it's updated annually and has excellent worksheets you can actually use. The book walks through real scenarios step-by-step, which sounds perfect for your note-taking style. For a landscaping business specifically, pay close attention to equipment depreciation rules and vehicle expense tracking - these are huge deductions that many new business owners miss or calculate incorrectly. The book covers both Section 179 deductions and bonus depreciation in plain language. Definitely take that community college accounting course! I did the same thing (also came from a non-business background) and it was invaluable. The structured learning helped me understand the "why" behind tax strategies, not just the "what." Plus, you'll network with other small business owners facing similar challenges. One tip: before your first meeting with your tax preparer, read through at least one of these books so you can have an informed conversation about tax planning strategies for next year, not just compliance for this year.

Great thread! I'd add "Tax Savvy for Small Business" by Frederick Daily to your reading list. What sets this book apart is how it connects day-to-day business decisions to tax implications - really helpful for someone like you who wants to understand the "why" behind tax planning. Since you mentioned you're not afraid of technical material, I'd also suggest getting familiar with IRS Publication 535 (Business Expenses) - it's dry but comprehensive, and having read it will make you much more confident when discussing deductions with your tax preparer. One thing I wish someone had told me when I started: track EVERYTHING from day one, even if you're not sure it's deductible. It's much easier to exclude questionable expenses later than to try reconstructing records. For landscaping specifically, don't forget about things like work boots, safety equipment, and even business-related cell phone usage. The community college course is definitely worth it - I took one through continuing education and the networking alone paid for itself. You'll meet other small business owners dealing with similar challenges, and many instructors are practicing CPAs who can provide real-world insights beyond what you'll find in books.

I just wanted to add my voice to everyone saying check your IRS transcript first - it really is the fastest way to get answers! I went through this same situation about 6 months ago and was terrified I'd somehow messed up my taxes or that the IRS would demand the money back later. Turned out they had automatically applied the Recovery Rebate Credit that I was eligible for but hadn't claimed on my original return. The transcript showed exactly what happened with a clear code explanation. One thing I'll add that I haven't seen mentioned - if you do end up needing to call the IRS for any reason, try calling right when they open at 7 AM. I had much better luck getting through during the first hour they're open versus trying later in the day. But honestly, the transcript check will probably give you everything you need without having to call at all. Don't stress too much about it - these automatic adjustments happen all the time and are usually good news!

This happened to me too! Got an unexpected $395 check about a month after my direct deposit refund came through. I was completely panicking thinking I'd made some huge mistake or that the IRS would come after me later demanding it back with penalties. After reading through all the great advice here, I checked my IRS account transcript online and found the answer immediately. Turns out they had made an automatic adjustment because my employer submitted a corrected W-2 that showed I had paid more state taxes than originally reported, which affected my state and local tax deduction on my federal return. The whole thing was resolved in literally 5 minutes of checking the transcript. I found a code 291 adjustment that explained exactly what happened. The IRS code lookup tool translated it into plain English so I could understand it without any confusion. I was so relieved to discover it was completely legitimate! I had worked myself up thinking this was going to be a massive headache, but it turned out to be a pleasant surprise. The IRS systems really do catch these things automatically and send corrections when they work in your favor. Definitely start with checking your transcript online - it's free, fast, and will give you peace of mind right away. Thanks to everyone in this thread for sharing their experiences and advice!

Has anyone tried using the simplified home office deduction ($5 per square foot up to 300 sq ft) vs itemizing all home expenses? I'm trying to figure out which would be better for my clothing reselling business... I use about 150 sq ft for inventory storage and photography.

For your situation with $11,500 in sales and $6,700 in expenses, you're definitely on the right track with Schedule C as a sole proprietor. That puts you at about $4,800 in profit, which means you'll owe self-employment tax on that amount (about $679). A few specific tips for clothing resellers: - You can absolutely keep purchasing receipts together rather than matching each item individually. The IRS cares about your total Cost of Goods Sold, not item-by-item tracking. - Don't forget to deduct platform fees (eBay, Poshmark, etc.), shipping supplies, storage containers, and even a portion of your internet bill if you use it for business. - Consider opening a separate business checking account - it makes tracking so much easier and looks more professional if you ever get audited. At your current profit level, sole proprietorship is definitely the most cost-effective structure. The extra complexity and costs of an LLC or S-corp wouldn't be worth it until you're making significantly more profit. Keep good records and you'll be fine!

Has anyone else noticed that retroactive pay adjustments almost never work out in the employer's favor? lol. I've received 3 retro adjustments in my career and all were because they underpaid me. Never once has a company said "oops we overpaid you, here's a negative adjustment." 🤔

I had a similar situation a few years ago when my company implemented a new payroll system and discovered they hadn't been applying my shift differential correctly for almost 8 months. The "Retro Tax" line is exactly what you described - it's the tax withholding on the back pay they owed your wife. One thing to keep in mind is that retroactive payments are sometimes subject to supplemental tax withholding rates, which can be higher than regular payroll withholding (often 22% federal). This means they might have actually over-withheld taxes on this payment, which would result in a larger refund when you file your return next year. I'd suggest keeping a copy of this paystub with your tax documents since it shows the breakdown clearly. The fact that her promotion was 4 months ago and this adjustment just appeared suggests their payroll department finally caught the error and corrected it. This is definitely money she earned and deserves to keep!

As someone who works in tax compliance, I want to reassure you that you're handling this situation perfectly. The fact that you discovered the mistake within just two months and immediately corrected it shows exactly the kind of good faith effort the IRS looks for. Here's the reality: the IRS processes millions of tax returns and deals with withholding adjustments constantly. Your situation - a new immigrant accidentally checking exempt and then quickly fixing it - is far more common than you might think. The penalties everyone worries about are really designed for people who persistently under-withhold or try to game the system. Since you've already submitted the corrected W4, my advice would be to calculate roughly what you should have had withheld (probably around $2,200-2,800 for those two months at your salary level) and then choose whichever catch-up method feels most comfortable: either increase your withholding for the rest of the year or make an estimated payment by the September 16th deadline. The most important thing is that by year-end, your total tax payments (withholding + any estimated payments) should cover at least 90% of what you'll owe. Given that you caught this in June, you have plenty of time to get there. Try not to let the anxiety consume you - you're doing everything right!

I'm a tax preparer and see this situation frequently, especially with new immigrants. The good news is that you've handled this exactly right by catching it early and immediately correcting your W4. Two months of missed withholding is very manageable compared to discovering this in December! Here's my practical advice: since you earn about $6,300 monthly, you probably should have had roughly $1,100-1,400 withheld per month for federal taxes. So you're looking at about $2,200-2,800 in missed withholding total. I'd recommend the increased withholding approach rather than estimated payments - it's simpler and ensures you don't miss any deadlines. Ask your HR to withhold an additional $230-280 per paycheck for the rest of the year (assuming you have about 12 paychecks left). This spreads the catch-up amount evenly and gets you back on track. The IRS understands that new employees make W4 mistakes. What matters is your total tax paid by year-end, not the month-to-month timing. Since you corrected this promptly and are taking steps to catch up, you're very unlikely to face any penalties. Keep documentation of when you discovered the error and submitted the corrected W4 - this shows good faith compliance. You're doing everything right, so try not to stress too much about this!