Thanks for mentioning the FSA! My employer does offer this but I wasn't sure how it worked with the other child credits. If I put money in the dependent care FSA, does that mean I can't claim the Child and Dependent Care Credit at all? Our childcare costs will be around $12,000 this year so it's significantly more than the $5,000 FSA limit.

You can actually use both the FSA and the Child and Dependent Care Credit, but not for the same expenses. Since your childcare costs will be around $12,000, you could put $5,000 in your FSA and then claim the Child and Dependent Care Credit for the remaining $7,000 of expenses. However, there's a $3,000 limit per child for the Child and Dependent Care Credit, so you'd only be able to claim $3,000 of that remaining $7,000 for the credit. Still, using both the FSA and the credit will maximize your tax advantages for those childcare expenses.

This! My daughter was born December 29th last year and we still got the full $2,000 Child Tax Credit. Felt like a bonus for the timing lol. But yes, waiting for that SSN card took forever. If anyone's in a rush, you can actually go to your local Social Security office with the birth certificate and get a print-out with the number before the card arrives.

That's a great tip about getting the print-out! I wish I had known that. The hospital told us it would take 2-3 weeks for the card to arrive but it took over 2 months for us. We filed our taxes late because of it and almost missed some bills waiting for that refund.

Is getting an EIN difficult? I'm concerned about making things more complicated. Does it change how you file taxes?

Getting an EIN is actually super easy - it takes about 5 minutes online through the IRS website. You get the number immediately. It doesn't complicate your taxes at all. You'll still file the same Schedule C with your personal return. It just means you can use your EIN instead of your SSN on W-9 forms and invoices, which helps protect your identity when dealing with multiple clients. Many banks also prefer seeing an EIN when you're opening a business checking account.

I've been using it for about 3 years now. It's definitely worth it for me. The mileage tracker alone saves me hundreds in deductions I would've missed, and it automatically categorizes transactions from your bank account. The quarterly tax calculator and payment reminders are super helpful too.

Thanks for the info! The mileage tracker sounds especially useful since I do a lot of driving between client sites. Do you find the automatic categorization is actually accurate or do you spend a lot of time fixing its guesses?

That actually makes me feel better! Do you think it's worth trying to do my own taxes this year with software, or should I just stick with my tax person until my situation gets more stable? Right now I just have one job and some student loans.

With just one job and student loans, you have a perfect situation to try doing it yourself! It's actually the ideal time to learn because your taxes are relatively straightforward but you'll still learn about education credits and student loan interest deductions. I strongly recommend trying it yourself with a good tax software. You can always decide not to submit if you're uncertain and go back to your tax person. But honestly, you'll probably find it much easier than you expect, and you'll learn a ton about taxes that will benefit you for years.

Any specific channels you'd recommend? I've tried looking up tax videos before but couldn't tell which ones were actually giving good info vs just trying to sell something.

Thanks for this advice. I didn't realize there was a specific order I needed to follow. So how long does it typically take to get a sales tax permit once you apply? Can I still sell during that period or do I have to pause my store?

Most states will issue permits within 2-3 weeks, though some can take longer. You can absolutely continue selling during this period - you don't need to pause your store. You'll just need to account for any sales made before you start collecting properly. Keep good records of all sales by state during this transition period so you can accurately report them when it's time to file.

This is such a good point! I got audited because I had inventory sitting in an Amazon warehouse in California but wasn't collecting California sales tax. Cost me nearly $12k in back taxes and penalties.

Do you know if having a TA position would trigger needing a 1042-S? My department gave me a TA position but I only received a W-2.

For a TA position, it depends on how your university classifies the payment. If you're being paid as an employee for services provided, then a W-2 is the correct form. If part of your compensation is classified as a scholarship/fellowship, or if you're claiming tax treaty benefits on that income, then you would also receive a 1042-S for that portion. Some universities split TA compensation - the portion for actual teaching is reported on a W-2, while any tuition remission or stipend might be on a 1042-S. I'd recommend checking with your department's administrative office or the international student office to confirm whether they should have issued both forms or if the W-2 covers everything in your case.

You probably needed to indicate in Sprintax that you didn't receive any scholarship/fellowship or treaty benefits. There should be an option to specify that you don't have a 1042-S. I had the same issue and just had to select "No" when it asked if I received any scholarships or fellowship grants.