I was in the exact same situation last year! As an independent contractor doing gig work, I spent way too much time worrying about Line 20 when it turned out I didn't need it at all. Here's what I learned: since you're doing Uber and delivery work as an independent contractor, pretty much all your work-related expenses (car expenses, phone, delivery equipment, etc.) go on Schedule C, not anywhere on Schedule 1. Your W-2 income just goes directly on your main 1040 form. Line 20 of Schedule 1 is really just for weird, uncommon situations that don't have their own specific lines - things like jury duty pay you had to give back to your employer, certain performing artist expenses, or repayment of unemployment benefits. For regular folks like us doing gig work, it's almost always going to be blank. Don't overthink it! If you don't have one of those unusual situations (and most people don't), just leave Line 20 empty and focus on getting your Schedule C filled out correctly. That's where your real deductions are going to be anyway, and they're actually more valuable there since they reduce your business income before it gets taxed. The tax forms seem super complicated at first, but once you realize that most lines don't apply to your specific situation, it gets much easier. You've got this!

I completely understand your confusion! Line 20 of Schedule 1 is definitely one of those areas that trips people up when they're doing their own taxes for the first time. Since you're an Uber driver and delivery person with a W-2 job, here's the good news: you'll probably leave Line 20 blank. Your gig work expenses (car costs, phone bills, delivery bags, etc.) all belong on Schedule C as business deductions, which is actually better for you since they reduce your business income directly. Line 20 is really a catch-all for unusual situations like: - Jury duty pay you had to return to your employer - Certain performing artist expenses - Repayment of previously reported income - Some very specific professional expenses for certain occupations For most independent contractors like yourself, these situations don't apply. Your Schedule C will handle all your business-related deductions, and your W-2 income goes directly on Form 1040. Don't stress about trying to find something to put on Line 20 - if you don't have one of those rare situations, it should be $0 or blank. Focus your energy on making sure your Schedule C is accurate, as that's where your real tax savings will come from. The IRS designed the forms so that common situations like yours have clear places for everything!

Has anyone tried Lacerte for trust returns? My accountant uses it for our more complicated partnership returns, and I was thinking about getting it for the trust returns I prepare personally.

I've been using UltraTax CS for my family trust returns for the past 3 years and it's been solid. It's definitely more expensive than consumer software (around $500-600 annually), but the reliability has been worth it after dealing with similar issues you described with H&R Block. What I really appreciate is how it handles the flow-through calculations from the 1041 to the K-1s automatically, and it has excellent error checking that catches common trust return mistakes before you file. The interface takes some getting used to if you're coming from consumer software, but their support team actually knows trust taxation rules, which has been helpful when I've had questions about distribution deduction calculations. One thing to note - they require you to maintain the subscription annually even if you only file during tax season, so factor that into your cost comparison. But given your bad experience with H&R Block's reliability issues, it might be worth the peace of mind to use something designed for professional preparers.

As a newcomer to this community, I find this discussion incredibly valuable! I'm dealing with a similar situation with my physical therapy practice where we offer regenerative treatments to several professional and semi-professional athletes. One thing I haven't seen mentioned yet is the importance of establishing a clear treatment protocol that distinguishes between medical necessity and performance enhancement. The IRS tends to scrutinize expenses that could be viewed as elective or cosmetic, so having documentation that shows the regenerative therapy was medically necessary to address a specific injury (rather than just general performance optimization) is crucial. Also, I'd recommend keeping detailed records of any alternative treatments that were considered and why they were rejected in favor of the regenerative approach. If surgery would have meant 6-8 months of lost income versus 2-3 months with stem cell therapy, that economic justification strengthens the business expense argument significantly. Has anyone encountered situations where the IRS challenged these deductions specifically on the grounds that the treatment was "experimental" or not FDA-approved? I'm curious how that factor might impact the business expense classification.

As a newcomer to this community, I'm finding this discussion incredibly insightful! I'm a tax preparer who recently started working with more clients in the sports and entertainment industry, and this thread has been like a masterclass in handling these specialized deductions. One question I haven't seen addressed yet: how do you handle situations where the athlete has both team insurance and personal insurance, but neither covers the regenerative treatment? I'm wondering if there's any additional documentation value in showing that multiple insurance sources reviewed and denied coverage, which could strengthen the argument that the athlete had to seek alternative treatment options for legitimate business reasons. Also, for those who have successfully claimed these deductions, do you recommend keeping any specific documentation about the facility or provider who performed the treatment? I'm thinking things like their credentials, whether they specialize in sports medicine, or if they have other professional athletes as patients. It seems like establishing the provider's legitimacy in treating performance-related injuries could be another piece of supporting evidence. The economic impact analysis mentioned by @Giovanni Gallo really resonates with me - I'm definitely going to start incorporating that approach for my athlete clients. Thank you all for sharing your expertise!

I completed my ID verification on March 16, 2024 - just 2 days after you, @Amara Eze! Reading through this entire thread has been incredibly enlightening and reassuring. Like so many others here, I'm also a joint filer claiming the Child Tax Credit for the first time, which clearly seems to be the primary trigger pattern for verification. What strikes me most about this discussion is how much more valuable these real-world timelines are compared to the generic "up to 9 weeks" guidance from the IRS. The patterns emerging from everyone's shared experiences - particularly the 4-7 week reality versus the 9-week maximum, and the emphasis on transcript monitoring over WMR checking - provide such practical insight. @Elijah Knight's breakdown of the specific processing codes (971, 977, then 846) is exactly the kind of detailed information I wish the IRS provided upfront. @Sadie Benitez's recent update about transcript movement in week 6 gives me hope that we're all approaching that critical window where activity typically begins. Based on the timelines shared here, I should expect to see transcript movement sometime in the next 2-3 weeks, potentially with refund processing in early May. The batch processing theory really explains the frustrating pattern of long quiet periods followed by sudden bursts of activity. I'm committed to updating this thread when I see any movement to contribute another data point for future community members navigating this same process. This collective sharing of experiences has transformed what felt like an isolated, anxiety-inducing wait into a much more manageable process with realistic expectations. Thank you to everyone who has shared their journey - it truly makes a difference!

I completed my ID verification on March 25, 2024, so I'm currently in week 2 of the waiting process! Like so many others in this thread, I'm also a first-time joint filer claiming the Child Tax Credit - it's fascinating to see how consistently this combination triggers verification across our community. This thread has been absolutely invaluable for setting realistic expectations. Before finding this discussion, I was relying solely on the IRS's vague "up to 9 weeks" timeline, which honestly felt overwhelming. Reading everyone's real-world experiences showing 4-7 week timelines has been so much more reassuring. I've already implemented the transcript monitoring strategy that @Elijah Knight and others have recommended - switching from obsessive daily WMR checking to focused weekly transcript reviews. The specific processing codes breakdown (971, 977, then 846) gives me something concrete to watch for rather than just hoping for generic status changes. Based on the patterns everyone is sharing, I should expect to see potential transcript activity in late April or early May. @Sadie Benitez's update about movement in week 6 and the various timelines from @Carmella Fromis, @Jace Caspullo, and others give me a realistic roadmap of what to expect. The batch processing theory really makes sense of the frustrating quiet periods followed by sudden activity bursts. I'm committed to updating this thread when I see any movement to add another data point for future community members. Thank you to everyone for creating such a supportive and informative discussion - it's transformed an anxiety-inducing wait into a much more manageable process with clear expectations!

Has anyone here actually had a late S-corp election rejected? I'm in a similar situation and wondering how strict they really are about accepting these.

I went through this exact situation last year and wanted to share my experience. I was a sole proprietor receiving 1099 income and decided to incorporate mid-year with a late S-corp election. The key thing that helped me was being very thorough with my reasonable cause statement. I explained that I was operating as a sole proprietor at the beginning of the year, formed my corporation in August, and immediately filed Form 2553 upon realizing the benefits of S-corp status. I included documentation showing when I first learned about the election deadline and why I missed it initially. My late election was approved and made retroactive to January 1st, so all my 1099 income for the year was treated as S-corp income. This saved me about $4,200 in self-employment taxes compared to staying a sole proprietor. One important detail - make sure you can show you intended to be treated as an S-corp from the beginning of the year. This means filing all your tax returns consistently with S-corp status and not taking any actions inconsistent with being an S-corp during the year. The IRS was actually pretty reasonable about it. Just be honest about your situation, file as soon as possible, and include a clear explanation of your circumstances. Good luck!