Has anyone figured out if there's a better way to handle client reimbursements that DOESN'T result in them showing up on your 1099? I'm in the same boat and it creates so much extra work at tax time.

Another approach that's worked well for me is setting up an "accountable plan" arrangement with clients. This requires the client to agree in writing that you'll only be reimbursed for actual business expenses with proper receipts, and you have to return any excess advances. Under an accountable plan, reimbursements aren't considered income to you and shouldn't appear on your 1099-NEC at all. The key requirements are: (1) expenses must have a business connection, (2) you must substantiate expenses with receipts within 60 days, and (3) you must return any excess reimbursement within 120 days. This eliminates the whole "report as income then deduct" dance entirely. I've found most professional clients are willing to set this up once you explain it reduces paperwork for both parties. Just make sure to document the arrangement properly - a simple email agreement outlining the accountable plan rules is usually sufficient. For existing clients where this isn't feasible, the advice others have given about meticulous record-keeping is spot on. But for new client relationships, definitely consider proposing an accountable plan structure from the start.

Might be too late for this year, but for future reference - identity theft protection with your tax software is actually worth it for situations like this. I had a similar issue and the protection service included having a tax pro work directly with the IRS to resolve the mismatch. Saved me so much headache for like $40.

This is such a frustrating situation! I went through something similar after my divorce and name change back to my maiden name. What finally worked for me was getting a letter from the SSA called a "Social Security Number Verification Letter" (SSNVL) that shows exactly how your name appears in their system. You can request this online through your my Social Security account at ssa.gov, and it's free. The letter shows the exact spelling, punctuation, and formatting of your name as it appears in the SSA database. Then make sure you file your return using the EXACT same format - including middle initials, hyphens, spaces, everything. The key is that both systems need to match character-for-character. Even something as small as "Mary J. Smith" vs "Mary Smith" can cause a rejection. Once I got that verification letter and matched the formatting exactly, my return went through without any issues. Also, if you're still having trouble, you might want to file a paper return this year with a copy of your SSA verification letter attached. That usually forces a manual review and gets your information updated in the IRS system for future years.

Somethng else to consider - you should look into FSA options too. If your plan offers an FSA and his offers an HSA, you can actually use both in the same year (with some limitations). might give you more tax-free dollars for medical stuff especially with a pregnacy coming!

Great question! I went through this exact situation when my wife and I got married. The key thing to remember is that HSA eligibility for spouse expenses is tied to your tax filing status, not your insurance coverage. Since you're keeping separate employer plans, your husband can absolutely use his HSA funds for your pregnancy and birth expenses - but only if you file your taxes as married filing jointly. Here's what I learned: if you file jointly, the IRS treats HSA funds as available for qualified medical expenses for both spouses, regardless of who has which insurance plan. But if you file separately, each person's HSA can only cover their own expenses. For your specific situation with potential pregnancy costs, I'd strongly recommend running the numbers on both filing scenarios before you need to use the HSA funds. Most couples save more money filing jointly anyway, especially when you factor in the HSA benefits. Just make sure you're confident about your filing choice before using his HSA for your medical expenses, because if you change your mind and file separately later, those distributions would be considered non-qualified and subject to taxes plus penalties. The separate insurance plans won't be an issue at all - it's really just about that tax filing status decision.

Back in 2022, I had a similar situation with Chime. Was denied their advance but still got my deposit 2 days before the official date. If you're concerned about timing, I'd recommend checking your transcript every Tuesday and Friday morning (when they typically update) once the PATH hold lifts. When you see an 846 code with a date, you'll know your official DDD. Then subtract 2-4 days for Credit Karma's early deposit feature. That's been the most reliable method in my experience.

I've been using Credit Karma Money for two years now and can confirm that the early deposit feature works independently of their advance program. Last year I was also denied the advance but still received my refund 3 days before my DDD. The key thing to understand is that Credit Karma receives the ACH file from the Treasury before your official deposit date, and they choose to release those funds immediately rather than holding them until the scheduled date like traditional banks do. Just keep monitoring your transcript for the 846 code - that's when you'll know your official timeline and can expect Credit Karma to deposit 2-4 days earlier depending on how the weekend falls.

Has anyone noticed that tax software handles the Foreign Tax Credit Simplified Limitation for AMT differently? I used TurboTax last year and H&R Block this year, and they gave me completely different results for basically identical situations. TurboTax recommended filing Form 1116 while H&R Block said to take the simplified election.

I've been dealing with this exact situation for the past three years and wanted to share what I've learned through trial and error. The Foreign Tax Credit Simplified Limitation for AMT is one of those areas where the IRS instructions are particularly unclear. Here's what I wish someone had told me earlier: even though you qualify for the simplified election (under $300), it's worth calculating both methods if you're subject to AMT. The reason is that AMT has different income calculations, and sometimes the foreign source income limitation works out differently. For your specific situation with $290 in foreign taxes and $4,200 in dividend income, I'd recommend running the numbers both ways. The simplified election is definitely easier, but if you're already close to AMT territory, filing Form 1116 might give you a better result. The key is that Form 1116 lets you use the actual foreign source income calculations, which can be more favorable than the simplified approach when AMT is involved. One practical tip: if you decide to file Form 1116, make sure you elect the simplified limitation on Form 6251 line 6. This saves you from having to do separate AMT foreign source income calculations, which is where things get really complicated. Also, keep good records of your foreign taxes paid - even if you take the simplified election this year, you might want to switch to Form 1116 next year if your foreign investments grow.