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My tax guy told me that if you're using the simplified home office deduction ($5 per square foot, up to 300 sq ft), you can't also separately deduct utilities like internet. But if you use the regular method where you calculate actual expenses, then you can deduct the business percentage of your internet. Worth considering which method gives you the better deduction.
Wait, does that mean if I take the $5/sqft deduction, I shouldn't be deducting my business internet separately? I've been doing both for the past 3 years...
Correct - if you're taking the simplified home office deduction (the $5 per square foot method), that's supposed to cover all your home office expenses including utilities, rent/mortgage interest, repairs, etc. You don't get to deduct any of those things separately. If you want to deduct specific expenses like internet, you need to use the regular method where you calculate the actual costs and the business percentage. You'd need to compare both methods to see which gives you the better deduction. In many cases, especially if you have significant specific expenses like a higher internet bill for business, the regular method might be more beneficial.
As a videographer myself, I've found that tracking data usage is actually pretty easy. Most routers have tools to see which devices use how much data. My business computer uses about 85% of our total household data with those big video file uploads, so that's what I deduct. I also keep a spreadsheet showing file sizes of work uploads vs estimated personal usage to back up my claim if needed.
This is really smart! What router or app do you use to track this? I'm a photographer with similar large file uploads and would love to be able to document my usage more accurately.
I use a Netgear Nighthawk router that has built-in usage monitoring through the Netgear app. It breaks down data usage by device and even by time periods, so I can see exactly how much my work computer uses versus our phones, streaming devices, etc. You can also try apps like GlassWire on your computer to track just your work machine's usage if your router doesn't have these features. The key is having some kind of documented basis for your percentage - even a simple month-long tracking log would probably satisfy the IRS if questioned.
One more suggestion - use the IRS Withholding Calculator (Google it) and run your numbers there. It's a bit clunky but will give you a decent starting point. In my experience though, you might want to withhold a bit MORE than it suggests if you really want to avoid owing.
The IRS calculator is TERRIBLE for any slightly complicated situation. It doesn't handle multiple income sources well or irregular income like bonuses. I used it and still ended up owing $2,300!
I've been dealing with this exact same issue for years! One thing that finally worked for us was using the "Tax Withholding Estimator" on the IRS website, but with a twist - I always add an extra $50-75 per paycheck beyond what it recommends. The problem with most W-4 calculators (including the IRS one) is they assume everything stays constant throughout the year. But if either of you gets bonuses, overtime, or any irregular income, you'll end up short. Since you owed $3,200 last year, here's what I'd suggest: 1. Use the IRS estimator as a baseline 2. Add at least $130 extra per paycheck (that's $3,200 รท 24 paychecks if paid bi-weekly) 3. Consider checking "Married filing separately" on the W-4 like you mentioned - it really does increase withholding Also, don't stress too much about over-withholding. Getting a refund is way better than scrambling to find $3,200 at tax time! You can always adjust mid-year if the withholding seems too high.
I was in a similar situation a few years back - missed 2 years and was stressed about it. The good news is you can absolutely file your 2024 return first if you need to, but definitely prioritize getting those back years filed ASAP. One thing that helped me was setting up a payment plan with the IRS for any penalties/interest owed on the missed years. They're surprisingly reasonable to work with if you're proactive about it. Don't let the anxiety keep you from taking action - you've got this!
I remember when amended returns took like 12 weeks max. Now we're all out here waiting half a year+ like clowns ๐คก
Same here - filed amended return in October and still waiting. The "adjustments pending" status is actually progress though! I've been tracking mine on the IRS website and once it moved to that stage, I got my refund about 6 weeks later. Hang in there, sounds like you're getting close! ๐ค
Liam Brown
One thing thats worth noting - im seeing TONS of 971/570 codes this year compared to previous years. The IRS got extra funding to do more compliance checks. They're reviewing returns more carefully but also processing them faster once the review is complete. So while more people are seeing these codes, the resolution time is actually improved from last year.
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Olivia Garcia
โขtrue. i work at a tax prep office and we've seen way more verification letters this year, but once clients respond, the processing is much faster than it was in 2023-2024.
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Victoria Charity
I know how stressful this is! I went through the exact same thing last year with codes 971 and 570. In my case, it turned out they were just verifying my dependent information since I had claimed my daughter for the first time after a custody change. The whole process took about 5 weeks from when the codes first appeared - I got a CP05 letter asking for documentation, sent it back within a week, and then got my refund about 3 weeks later. The key is to respond immediately when you get their letter and send everything they ask for via certified mail so you have proof of delivery. Also, don't stress too much - the vast majority of these reviews result in the full refund being released once they verify everything checks out. Hang in there! ๐ค
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