What happens if you e-file but can't pay anything at all when you file? I'm in a really tight spot financially right now, but expect to be in a better position in about 2 months. Should I still file now?

This is exactly the kind of advice that needs to be shared more widely! I'm a tax preparer and I see this panic response every single year - people get scared by a big tax bill and think not filing will somehow make it go away. It never does, and it always makes things so much worse. One thing I always tell my clients is that the IRS is actually pretty reasonable to work with if you're proactive and honest about your situation. They'd much rather have you file on time and work out a payment plan than chase you down later for penalties and interest that have compounded for months. Also wanted to mention - if you're self-employed or have significant 1099 income, definitely look into making quarterly estimated payments next year. It's so much easier to manage four smaller payments than one big shock in April. The IRS has a safe harbor rule where you generally won't owe penalties if you pay at least 100% of last year's tax liability (or 110% if your prior year AGI was over $150K) through withholding and estimated payments. Beth, thank you for posting this - hopefully it saves some people from making a very expensive mistake!

Has anyone tried the alternative of using the individual QBI worksheet for each business but then going into the calculation worksheet form and manually overriding the QBI amount? That's what I've been doing, but I'm not sure if it's the "official" approach that ProSeries recommends.

I've been dealing with this same QBI aggregation headache in ProSeries for the past two seasons. What's worked best for me is a hybrid approach combining several of the methods mentioned here. First, I complete each business activity separately in their respective forms (Schedule C, E, etc.) to get the base QBI calculations. Then I use the QBI calculation worksheet override feature to input the aggregated amount, but I also create a comprehensive supporting statement that includes: - The specific election under Reg. 1.199A-4(b)(1) - Detailed business descriptions and how they meet common control/ownership tests - A reconciliation table showing individual vs. aggregated QBI amounts - Clear documentation that this is a software limitation workaround, not a substantive tax position The key insight I've learned is that the IRS doesn't care how your software handles the calculation as long as your tax position is correct and well-documented. I attach this as a PDF statement through the Forms menu, and it e-files without issues. I've had about 15 clients use this approach over two years with zero problems. The documentation takes maybe 30 minutes to prepare once you have a template, which beats the alternative of paper filing or switching software entirely.

Can the substantial presence test be affected by COVID exceptions? i was stuck in the US for 4 extra months in 2020 when borders closed. now im back for work and worried those extra days might affect my current status calculation.

The substantial presence test can definitely be tricky to navigate, especially with all the different scenarios people face! One thing I'd add to the great advice already given here is to keep detailed records of your travel dates - entry and exit stamps, flight receipts, hotel bookings, etc. I learned this the hard way when the IRS questioned my substantial presence calculation during an audit a few years back. Having proper documentation made all the difference in proving exactly how many days I was physically present in the US versus traveling for business. Also, @Javier Hernandez, since you mentioned you're on an E-3 visa and have been here about 8 months continuously, you'll almost certainly be filing as a resident alien this year. Make sure to understand the implications - you'll need to report your worldwide income, including any Australian bank account interest, rental income from properties back home, etc. It's not just about US-source income anymore once you pass that test.

5 Another thing to check - are you including your quarterly estimated tax payments correctly in your calculations? I found that was throwing off my estimates by a similar amount to what you're describing.

Another major issue I've noticed with online tax calculators is that they don't properly handle the nuances of business expense categories for self-employed individuals. As a freelancer myself, I discovered that many calculators either don't account for all the legitimate business deductions we can take, or they oversimplify how these deductions interact with self-employment tax calculations. For example, some expenses reduce both your income tax AND self-employment tax, while others only reduce income tax. Also, if you're claiming a home office deduction, that can significantly impact your tax liability in ways that basic calculators miss. The simplified method vs. actual expense method can result in hundreds of dollars difference, and most online calculators either don't offer both options or don't calculate them accurately. I'd recommend keeping detailed records of all your business expenses and maybe consulting with a tax professional who specializes in self-employment taxes, at least for the first year or two until you get a better handle on all the deductions available to you.

I had a very similar issue with FreetaxUSA last year! The problem is that the software sometimes doesn't properly link the retirement plan coverage between spouses when calculating IRA deductions. Here's what worked for me: Go to the "Personal Info" section first and make sure your filing status is correctly set to "Married Filing Jointly." Then, in the "Income" section, look for "Retirement Plans" and make sure you've indicated that YOU are covered by an employer plan. The key step I was missing was in the IRA contribution section itself - there should be a question that asks something like "Is your spouse covered by a retirement plan at work?" Even though you already indicated your own coverage, the software needs this information entered separately for the spouse's IRA calculations. If you still can't find it, try starting the IRA section completely over. Delete any IRA entries you've made, then re-enter them step by step. The software should ask about both your coverage AND your spouse's coverage during the interview process. Sometimes the questions get skipped if you jump around between sections too much.

I've dealt with this exact FreetaxUSA bug before! The issue is that the software has separate logic flows for "your" retirement plan coverage versus "spouse's" retirement plan coverage, and they don't always communicate properly. Here's the fix that worked for me: Go to the IRA section and look for a question that asks "Are you OR your spouse covered by an employer retirement plan?" - not just "Are you covered." This is usually buried in the middle of the IRA contribution interview, not at the beginning. If you can't find that question, try this workaround: temporarily change your filing status to "Single," complete the retirement plan questions for yourself, then change back to "Married Filing Jointly." This forces the software to re-ask all the spouse-related questions and usually fixes the calculation. Also, double-check that you're entering the IRA contributions in the right place. Rollover contributions should go in a different section than regular contributions, and mixing them up can cause the deduction calculations to go haywire.