Just to add another perspective - my wife and I were in almost this exact situation last year. She started a small craft business that made about $3,500, and we were paying about $18,000 for ACA health insurance. Our tax preparer said we could only deduct health insurance premiums up to the amount of her business profit, so we got a $3,500 deduction. Better than nothing! Make sure your wife keeps good records of all business expenses to reduce her net income for self-employment tax purposes. Also, don't forget to look into whether you qualify for the home office deduction if she's doing any of the pet sitting business administration from home. Every little bit helps when you're self-employed!

One thing to watch out for - if your MAGI is low enough that you COULD qualify for ACA subsidies but chose not to take them, I believe that can affect your ability to claim the self-employed health insurance deduction. Make sure to check out IRS Publication 535 which has all the details on business expenses including the health insurance deduction. The full rules are pretty complex but your situation sounds pretty straightforward - the deduction will be limited to her net earnings from the business.

I was in your exact position 2 years ago! My advice: it depends on the complexity beyond just your filing status change. For me, switching to a CPA was worth it because I also had some self-employment income and investment complications. The CPA found several legitimate deductions TurboTax never prompted me for and saved me about $1,700 compared to what TurboTax calculated. However, if your return is still relatively simple (W-2 income, standard deduction), the difference is probably just your filing status change. In that case, a CPA probably won't find much more than TurboTax. One thing to consider - run your taxes through TurboTax as both MFS and MFJ (before filing) and compare the difference. Sometimes it's worth combining finances just for tax purposes if the savings are significant.

One thing nobody has mentioned yet is that tax software has basically caught up to what most CPAs can do for standard tax situations. Most CPAs for individuals are basically just inputting your info into their professional tax software. Where CPAs really add value is: 1) Complex situations like business ownership, multiple rental properties, etc 2) Year-round tax PLANNING rather than just tax preparation 3) Representation if you get audited If you're just looking to maximize your refund for a relatively straightforward situation, I'd suggest trying a different tax software first. I switched from TurboTax to FreeTaxUSA and got slightly better results for a fraction of the cost. The smaller refund is almost certainly due to your MFS status rather than TurboTax missing anything.

When I was in your situation, I interviewed 3 different tax pros before finding the right one. Make sure to ask these specific questions: 1. What percentage of their clients are small businesses? (You want someone with lots of business experience) 2. Do they have experience with online/affiliate marketing specifically? 3. How proactive are they with tax planning throughout the year? 4. Do they have a system for tracking business expenses and deductions? 5. What software do they use and will they give you access? Don't just go with the cheapest option. The right tax pro will save you way more than the difference in fees. My CPA saved me over $5k compared to what I would've paid using TurboTax because she knew exactly which deductions applied to my situation and how to properly structure my business.

dont overlook asking ur network!! my best tax guy came from a random conversation with another parent at my kids soccer practice. turns out he had a small biz too and his accountant specialized in exactly what i needed. also check facebook groups for affiliate marketers. those ppl will know who understands the specific deductions for that industry. not all CPAs know the ins and outs of online biz expenses!!

One solution that worked for me was switching to making quarterly estimated payments instead of trying to get the withholding perfect. I still do some basic withholding but then make 4 payments throughout the year to cover the rest. It's actually easier for me because I can calculate exactly what I need based on our actual income as the year progresses, rather than trying to predict everything perfectly in January.

The withholding tables definitely have problems with dual high incomes. My accountant explained it's because each employer calculates withholding as if that job is your only income source. For example, if you each make $130k, each employer withholds as if you're in a lower tax bracket. But combined, your $260k pushes much more income into higher brackets. The automated withholding systems simply aren't designed to handle this scenario well.

I used to work for one of these "tax resolution" companies. 100% these letters are designed to scare people into calling. The company I worked for would buy lists of people with tax liens then send out thousands of these scary letters. When people called in panicking, sales reps would push unnecessary services with huge fees. Some signs that scream SCAM: - Urgent language about "immediate action required" - Threatening language about wage garnishment, bank levies, etc. - Mentions of "special programs" they can access - Excessive fees upfront before any work is done - Guarantees about settlement amounts The IRS does have legitimate payment plans and programs, but you can access these directly without paying thousands to a middleman.

Do NOT let your dad call that number!!! My grandfather got scammed out of $7,000 by one of these "tax resolution specialists" last year. They convinced him he was about to have his social security payments garnished and that they were his only hope to avoid it. They kept him on the phone for hours using scare tactics until he finally agreed to pay their "resolution fee" using his credit card. It was a nightmare trying to get the charges reversed.