I totally missed the Savers Credit last year when I filed with FreeTaxUSA. Would it be worth filing an amended return? I put about $1,800 into my Roth IRA last year and my income was around $32,000.

This is such an important reminder! I work in HR and see this all the time - employees contributing to their 401k through payroll deduction but completely unaware they could be getting additional tax credits for it. What's really frustrating is that many tax prep services don't always catch this either, especially the cheaper online options. I've started mentioning the Savers Credit during our annual benefits enrollment meetings because so many of our lower-income employees qualify but never claim it. One thing to add - if you're married and both spouses contribute to retirement accounts, you can potentially get the credit for both contributions (up to the annual limits). And remember, even small contributions count! You don't need to max out your retirement account to benefit from this credit.

This is a great question and I can see why it's confusing! I went through something very similar with my dental practice setup. One crucial thing to double-check is the timing for 2024 tax benefits. While the plan needs to be established by December 31, 2024, you actually have until your S Corp's tax filing deadline (including extensions, so potentially October 15, 2025) to make the actual contributions and still get the 2024 tax deduction. Also, don't feel embarrassed about asking your accountant again! This stuff is genuinely complex, and even tax professionals sometimes need to research the specifics. I'd recommend framing it as "I want to make sure I understand the implementation steps correctly" rather than asking for the explanation again. One practical tip: when you do set this up, make sure your S Corp payroll system can handle the timing of the profit sharing contributions. Some payroll providers need advance notice to process these correctly, especially if you're making the contribution near the filing deadline. I learned this the hard way when my payroll company needed three weeks to set up the proper coding! The separate entity approach really does work well for situations like yours - it gives you much more control over your retirement planning without getting tangled up in the LLC's existing arrangements.

This is such a helpful discussion! I'm actually an enrolled agent who works with a lot of medical professionals in similar situations, and I wanted to add a few key points that might help clarify things: First, regarding the controlled group rules that several people mentioned - this is absolutely critical to get right. Since your husband has 50% ownership in the LLC through his S Corp, you'll definitely need to consider the aggregation rules for contribution limits. The good news is that profit sharing contributions are calculated separately from 401(k) deferrals, but the total combined contributions across all plans are still subject to the annual limits. Second, I'd strongly recommend getting a formal plan document review before implementing anything. While the concept is straightforward (S Corp establishes profit sharing plan for its employee), the execution involves specific language around eligibility, vesting schedules, and distribution rules that need to comply with ERISA requirements. One thing I haven't seen mentioned is the potential impact on your husband's Social Security benefits calculation. Since profit sharing contributions reduce current W-2 income, there could be a long-term trade-off between current tax savings and future Social Security benefits. For most people the current tax savings win out, but it's worth considering especially for younger professionals. Also, make sure to factor in the ongoing administrative costs - annual Form 5500 filing, potential audits if assets exceed $250k, and TPA fees. These costs are usually worth it for the tax savings, but good to budget for them upfront. Feel free to reach out if you need any clarification on the compliance aspects!

Make sure you're setting aside money for taxes! I made the mistake of not saving enough when I first started self-employment and got hit with a HUGE tax bill plus penalties. I now transfer 30% of every payment into a separate savings account immediately. Also, look into making quarterly estimated tax payments (Form 1040-ES) to avoid underpayment penalties. The IRS wants you to pay taxes throughout the year, not just at tax time!

Great question about tax software! I switched from TurboTax to FreeTaxUSA when I became self-employed and it's been much better for my situation. It handles Schedule C (business income/expenses) really well and costs way less than TurboTax's Self-Employed version. For more complex situations, I've heard good things about TaxAct and H&R Block's self-employed software. The key is finding one that makes it easy to track business deductions throughout the year, not just at tax time. Pro tip: Whatever software you choose, keep detailed records of ALL business expenses. I use a simple spreadsheet to track everything monthly - mileage, office supplies, professional development, etc. Come tax time, you'll be so glad you did this instead of trying to reconstruct everything from receipts! Also consider whether you need quarterly tax payment reminders built into the software. Some of the better ones will calculate and remind you when estimated payments are due, which has saved me from penalties.

For international students on F-1 visas, tax filing requirements can be complex but manageable with the right approach. You'll definitely need to file taxes on that photography income - even $300-400/month puts you well over the $400 threshold for self-employment income reporting. A few key points to address your concerns: **Privacy Protection**: The IRS will only send correspondence to the address you provide on your tax return. Always use your current US address, and consider setting up an IRS online account for electronic notifications. No tax documents will automatically go to your home country. **Required Forms**: As a nonresident alien (which you likely are in your first 5 years), you'll file Form 1040-NR with Schedule C for your self-employment income. You'll need either an SSN or ITIN. **Deductions**: Keep detailed records of business expenses - camera equipment, editing software, travel costs for photo shoots, etc. These can significantly reduce your taxable income. **Critical Warning**: Before proceeding, definitely check with your university's international student office about visa compliance. F-1 students have strict limitations on off-campus work, and online sales might require CPT or OPT authorization to be legal under immigration law. The tax part is straightforward once you understand the requirements, but visa compliance should be your first priority. Getting this wrong could jeopardize your student status regardless of proper tax filing.

Great question about expense tracking and the IRS online account! For business expenses, yes - you can deduct reasonable business-related portions of your phone bill if you use it to communicate with photography clients, costs for maintaining portfolio websites, online marketplace fees, cloud storage for your photos, and even a portion of your internet bill if you use it primarily for your photography business. The key is keeping detailed records and ensuring the expenses are "ordinary and necessary" for your photography business. However, be conservative with mixed-use expenses like your phone or internet - the IRS expects you to only deduct the business portion. Keep a log of business vs. personal usage to support your deductions. Regarding the IRS online account - yes, nonresident aliens can absolutely create accounts on irs.gov! You'll need either your SSN or ITIN, and it's actually one of the best ways to manage your tax communications electronically. This helps with your privacy concerns since you can receive most notices online instead of through mail. You're absolutely making the right call prioritizing visa compliance first. Many international students get this backwards and end up with immigration issues that are much more serious than tax problems. Your international student office should be able to guide you on whether your photography work needs CPT authorization or if there are other compliant pathways. Once you get the immigration side sorted out, the tax filing process is much more straightforward, especially with all the digital tools available now for tracking expenses and preparing returns.

Don't forget about state tax implications! My accountant reminded me that some states have different rules about deducting these seller financing expenses than the federal government does. In my state, I was able to deduct the loan origination fees against my state income even though they weren't deductible on my federal return due to the suspension of miscellaneous itemized deductions. Check your state's specific rules or talk to a local tax professional.

Great question about the tax software! Most mainstream tax programs like TurboTax, TaxAct, and H&R Block do handle basic state conformity differences automatically, but they often miss the nuanced situations like seller financing expenses. For example, my state (California) doesn't conform to the federal suspension of miscellaneous itemized deductions, so I was able to deduct my loan setup costs on my state return even though they weren't deductible federally. However, my tax software initially missed this and I had to manually override it. I'd recommend checking your state's department of revenue website or publication on itemized deductions. Look specifically for any mentions of "federal conformity" or "miscellaneous itemized deductions." If your state doesn't conform to the federal suspension (like California, New York, and several others), you may be able to deduct those amortized loan origination costs on your state return. Also keep in mind that some states treat interest income differently than the federal government, which could affect how you report the offsetting servicing fee deductions.