I claimed 100% of my Spotify last year and got audited! But don't panic - the audit was for something completely unrelated, and when they reviewed my Spotify deduction, they actually had no issue with it. The auditor said digital subscriptions for content relevant to your profession are legitimate business expenses for creative professionals. The key was I had documented when and how I used Spotify professionally - had screenshots of student playlists, practice playlists organized by gig, and even some email exchanges with clients referencing specific tracks. This made it super clear it wasn't just for personal entertainment.

As someone who's been teaching music and performing for over a decade, I can confirm that Spotify Premium is absolutely a legitimate business deduction for music professionals. The IRS allows deductions for expenses that are "ordinary and necessary" for your trade or business, and having access to a comprehensive music library clearly fits that criteria for what we do. I've been claiming my streaming subscriptions (Spotify, Apple Music, and YouTube Music) at 85% business use for the past 4 years without any issues. The key is documentation - I keep a simple log of when I create playlists for students, research songs for gigs, or study arrangements for performances. Your $180 annual expense is completely reasonable and well-documented with your professional usage. Don't let your new accountant's uncertainty make you miss out on legitimate deductions. Music education and performance require staying current with repertoire across all genres, and streaming services are essential tools for that. Just make sure you can demonstrate the business purpose if ever questioned.

You need to stop checking it every day or you'll drive yourself crazy. I was in the same boat, checking 10x a day for weeks on end. Finally just forgot about it and then one day randomly got a deposit in my account. Try to forget about it - obsessing won't make it come any faster.

I'm going through the exact same thing! Filed in early March, got accepted immediately, but have been stuck on "still being processed" for about 8 weeks now. Also claimed the child tax credit for my first baby. It's so frustrating not knowing what's happening or when to expect the money. I've been checking the transcript but those codes are like reading hieroglyphics. Thanks for posting this - at least I know I'm not alone! Definitely going to try some of the suggestions people mentioned here, especially the early morning calling strategy and maybe checking out that transcript analyzer tool.

Has anyone tried turbotax self-employed for tracking expenses throughout the year? Is it worth the subscription cost?

As someone who's been doing 1099 work for about 3 years now, I'd definitely recommend using a combination approach. The 30% rule is a good starting point, but tracking your actual expenses can really help you optimize that percentage over time. For mileage tracking, I've found that consistency is key - whatever app you choose, make sure you actually use it religiously. I started with a simple spreadsheet but quickly realized I was forgetting to log trips. Now I use an automated app and it's saved me thousands in deductions. One thing I wish someone had told me when I started: keep ALL your receipts, even for small expenses. Coffee with a potential client, parking meters when visiting client sites, even a portion of your internet bill if you work from home. These little things add up significantly over the year. Also, consider setting up a separate business checking account if you haven't already. It makes tracking business expenses so much easier come tax time, and it looks more professional when dealing with clients.

Couldn't you also just submit a superseding return instead of an amended return? If it's right after filing and before the deadline, that's usually easier.

This is such a frustrating situation with your supervisor! I totally get the stress. One thing that might help while you're waiting for the acceptance notification is to document exactly what errors you've identified and gather all the supporting documentation you'll need for the amendment. That way once you get the green light, you can move quickly on the 1040-X preparation. Also, since this happened so close to filing, you might want to double-check if a superseding return would be an option instead of an amendment - it could save your client months of processing time if you're still within the filing deadline period. ProSeries should be able to handle either approach once you know which route to take.

Has anyone used the IRS Tax Tool for Education Credits to figure this out? I tried using it but got confused when it asked about "qualified expenses paid with tax-free educational assistance" versus "qualified expenses paid by me." Not sure how to split these up correctly.

I went through this exact situation with my daughter two years ago and it was definitely confusing at first! You're on the right track with your understanding. A few key points that helped me figure it out: 1. You're correct that the scholarship money covering room and board becomes taxable income that needs to be reported somewhere - either on your return or your daughter's. 2. For the American Opportunity Credit, you can still claim it for any qualified expenses you paid out-of-pocket. Since you mentioned paying $650 for textbooks, that alone could qualify you for a partial AOC (up to $650 credit in this case). 3. The decision between reporting the taxable scholarship on your return vs. having your daughter file her own really depends on your tax bracket vs. hers. If the taxable scholarship amount is under the standard deduction ($13,850 for 2025), having her file separately usually saves money. 4. Don't forget about Form 8863 - you'll need it if you're claiming the AOC, and it helps calculate exactly how much scholarship money is taxable vs. non-taxable. One thing that really helped me was getting all the documentation together first - the 1098-T from the school, all scholarship award letters, and receipts for what you paid out-of-pocket. Having everything organized made the whole process much clearer. You can definitely still claim her as a dependent regardless of which approach you take for the scholarship taxation!