What's the difference between refundable and non-refundable credits? And can you really get more money back than you paid in taxes??

A refundable credit means you can receive the full amount of the credit even if it's more than what you owe in taxes. So yes, you can absolutely get back more money than you paid in! For example, the Earned Income Tax Credit (EITC) is refundable, so even if you owe zero taxes, you could still get money back if you qualify. Non-refundable credits can only reduce your tax liability to zero, but not below zero. So if you have $500 in tax liability and a $1,000 non-refundable credit, your tax bill goes to $0, but you don't get the extra $500 back.

Yes, that's exactly right! If you make $5,000, you'd take the standard deduction (about $14,600 for 2025) and your taxable income would be $0. If you make $20,000, you'd take the same standard deduction and only pay taxes on $5,400 ($20,000 - $14,600). It definitely can seem complicated, but the standard deduction actually simplifies things by ensuring people with lower incomes don't have to pay income tax. Think of it as the government saying "everyone gets their first $14,600 tax-free.

omg thank you for explaining it that way!! "everyone gets their first $14,600 tax-free" makes way more sense to me than all the technical jargon. i think i finally get it now.

Direct File is only for simple personal returns right now, not for business returns or extensions. For your 7004, you'll need to either use commercial tax software, have your accountant e-file it, or mail in a paper form. I've been using FreeTaxUSA for my S Corp returns for years - they handle the 7004 extension filing too and it's pretty straightforward.

Thanks for clarifying! I'll stick with my regular tax software then. Wish the IRS would expand these services to small businesses too.

Most COVID-related tax provisions have expired now. For the 2025 filing season (2024 tax year), things have largely returned to pre-pandemic rules. Employee Retention Credits ended, PPP loan forgiveness is old news, and the special sick leave credits are gone. The only lingering effects might be if you're still carrying losses forward from the pandemic years, but the special expanded rules for those have mostly reverted to normal too.

Does VITA handle more complicated situations? I have income from my home country plus a scholarship with some taxable portions, and Sprintax seems to handle these scenarios well.

Yes, VITA volunteers get special training on nonresident returns including Form 8843 and 1040NR. They can definitely handle scholarships with taxable portions - that's actually a very common situation they deal with for students. For income from your home country, it depends on the specific tax treaty and complexity. They can handle most standard situations, but if you have something really unusual (like foreign business income or complex investments), then you might need specialized software. For the typical international student with scholarship/fellowship and maybe a campus job, VITA is perfectly capable.

Thanks for this! Just tried your suggestion about the Payment Options page and found the discount code box right away. Much easier than hunting around the checkout page.

That's actually a good point I hadn't considered. I assumed my accountant had only filed the S Corp extension, but maybe there was confusion and they filed something for my personal taxes too? Though wouldn't that have shown up when I checked my IRS account online?

An extension request for your personal return typically wouldn't appear in your online account history the same way a filed return would. The IRS online account usually shows filed returns, not extension requests. Your accountant might have e-filed your extension without your knowledge thinking they were being helpful. However, that still doesn't explain the specific error code you received, which indicates an actual return was filed, not just an extension. If your accountant had filed an extension for you, you should still be able to e-file your actual return later. The fact that you got an "already filed" rejection strongly suggests either identity theft or a significant error, such as your accountant accidentally filing a return instead of an extension.

This is a hugely important point. Unemployment fraud and tax identity theft are closely linked now. You should check with your state unemployment office to see if there are any claims filed under your SSN that you didn't submit. If there are, you'll need to report that fraud to the state as well as to the IRS.

What exactly qualifies as Section 1231 property? And does this still apply if the assets are fully depreciated?

Section 1231 property includes depreciable property used in a trade or business that's held for more than one year. So your DJ equipment would typically qualify if you've owned it for more than a year, which it sounds like you have. Even fully depreciated assets can still benefit from Section 1231 treatment. The fact that they're fully depreciated just means your basis is zero (or close to it), but the character of the gain can still benefit from potentially favorable capital gain treatment. However, be aware that depreciation recapture rules may cause some or all of the gain to be treated as ordinary income anyway, particularly with personal property like equipment.

What tax software were you using? I'm using TurboTax and wondering if it handles this situation correctly or if I need something more specialized.

I was using H&R Block online, which I normally find pretty good for my basic tax needs. The problem wasn't really the software itself - it was that I didn't understand all the forms and steps needed for proper business dissolution. I missed filing Form 4797 for reporting the sale of business assets, and didn't properly document the conversion of business assets to personal use. No tax software can really help you make the strategic decisions about WHEN to sell assets versus when to convert them - it just processes the information you give it. That's why I suggest getting professional help for at least one session to map out your strategy before you start entering things into tax software.