Has anyone used FreeTaxUSA for filing with a single-member LLC and W2 income? I'm trying to avoid the higher fees from TurboTax but not sure if the cheaper options handle Schedule C well.

As someone who went through this exact transition two years ago, I'd say start with good tax software first before jumping to a CPA. With $18K in LLC income, you're definitely in manageable territory for self-filing. The key things that made my first year smooth: 1) Keep meticulous records of ALL business expenses (even small ones add up), 2) Set aside about 25-30% of your LLC profits for taxes (you'll owe self-employment tax on top of income tax), and 3) Don't forget about potential quarterly payments for next year. I used TaxAct Business which handled my Schedule C perfectly and cost way less than TurboTax. The software walked me through everything step-by-step, including home office deductions and business use of vehicle if applicable. One thing I wish someone had told me - even though you're a single-member LLC, make sure you're treating it like a real business from a record-keeping standpoint. Separate bank accounts, proper receipts, detailed mileage logs if you drive for business. The IRS scrutinizes Schedule C filers more than W2-only folks, so having everything documented properly is crucial.

As a newcomer to this community, I found this thread incredibly helpful! I'm 68 and just started receiving Social Security benefits this year, so I'll likely be in a similar situation when I file my taxes. It's reassuring to know that the 1040SR form is designed specifically for seniors and that these CP12 notices are relatively common. The explanations here about how the IRS basically "called it even" by offsetting the refund against the tax adjustment makes perfect sense. I'm definitely bookmarking some of the resources mentioned here - especially the advice about keeping the SSA-1099 form handy for reference. Better to be prepared than surprised by one of these letters next year!

As someone who's also new to this community and dealing with IRS correspondence for the first time, I really appreciate how thoroughly everyone explained this situation! I'm 66 and will be filing my first tax return that includes Social Security benefits next year, so this whole thread has been like a masterclass in what to expect. The fact that TurboTax automatically switches to the 1040SR form for seniors is something I had no idea about. And knowing that CP12 notices are common for first-time Social Security filers actually makes me feel less anxious about potentially receiving one myself. One question for those with experience - is there a way to double-check the Social Security benefits calculation before filing to avoid these adjustments? Or is it just one of those things where you have to be extra careful with data entry and hope for the best?

I'm in the same boat! I started selling my vintage toy collection on eBay and am confused about whether I need to track my original purchase price from years ago? Most of these toys I bought in the 90s and have no receipts for. How do I figure out cost of goods sold in this case?

Just went through this exact same situation last year! The confusion is totally normal for first-time Schedule C filers. Here's what I learned after consulting with a tax professional: Your $4,800 total sales (including shipping charged to buyers) is correct for Line 1 gross receipts. Then you'll deduct your business expenses - the $650 eBay fees, $900 actual shipping costs, and don't forget about other deductibles like packaging materials, printer ink for labels, gas/mileage for post office trips, and even a portion of your home if you use it for storage/photography. One thing that tripped me up initially: if you're selling personal collectibles you owned for years (not bought specifically to resell), some of those might actually be capital gains/losses rather than business income. But if you're actively sourcing and reselling as a regular activity, then Schedule C is the right form. Pro tip: Start keeping detailed records NOW for this year - every receipt, every mile driven, every supply purchased. It makes next year's filing so much easier! Also consider opening a separate business bank account to keep everything clean and organized. You've got this! The first year is always the hardest but it gets much simpler once you understand the process.

I totally feel your pain! 😅 I'm going through the exact same thing right now - my 'as of date' has been bouncing around like a ping pong ball since I filed. First it was 2/10, then 2/24, now it's sitting at 3/18 and I have no idea what any of it means! After reading through everyone's explanations here, it sounds like we've all been driving ourselves crazy over what's essentially just internal IRS bookkeeping dates. I wish they'd put a big disclaimer on the transcript page that says "THIS DATE DOES NOT PREDICT YOUR REFUND" or something! The identity verification process definitely seems to trigger these date changes - mine jumped forward by two weeks right after I completed mine too. But based on what everyone's sharing, it doesn't sound like it actually delays anything, it's just their system updating cycles. Thanks everyone for sharing your experiences! Makes me feel way less alone in this transcript-obsessing madness. Now I just need to resist the urge to check it every 6 hours... 🤦‍♀️

This whole thread has been incredibly helpful! I'm dealing with the same exact situation - filed early, went through identity verification, and now my 'as of date' has changed twice. I was definitely treating it like some kind of refund countdown timer, but after reading everyone's explanations about it being an internal processing marker for interest calculations, it makes so much more sense. What really gets me is how the IRS doesn't explain any of this clearly on their website. You'd think after decades of confused taxpayers they'd add a simple note explaining what these dates actually mean! Instead we're all here playing amateur codebreakers trying to figure out their system. I'm curious though - for those who've been through this before, do you find that checking the transcript obsessively actually helps with anything, or does it just add to the stress? I'm torn between wanting to stay informed and wanting to just forget about it until my refund shows up. Thanks to everyone who shared their experiences - this community is way more helpful than the actual IRS help pages! 😅

The IRS will absolutely NOT apply refunds from outside the statute of limitations to current debt. I learned this the hard way. Spent $800 on an accountant to amend 3 years of returns, and they only processed the ones within the 3-year window. Complete waste of money for the older ones.

I've been dealing with a similar situation for years and wanted to share what I learned from working directly with the IRS on this. The key thing everyone's touched on is correct - the 3-year statute is pretty firm, but there are a few nuances worth mentioning. First, definitely focus on any returns still within the 3-year window. The IRS will absolutely apply those refunds to outstanding balances, and it happens automatically in most cases. Second, if your dad is truly struggling with the $16,000 payment plan, don't overlook the hardship options. I ended up qualifying for Currently Not Collectible status when my income dropped, which paused my payments entirely. The IRS also has the Fresh Start program that can reduce penalties and interest significantly. One thing I wish someone had told me earlier - if he's been making consistent payments on the installment agreement, he might be able to renegotiate the terms to lower the monthly amount. The IRS is surprisingly flexible when you've shown good faith effort. The amended returns are definitely worth pursuing for the eligible years, but don't let that be the only strategy. Sometimes the bigger savings come from restructuring the existing debt rather than trying to reduce the principal balance.