Omg that sounds awful! Did you have to pay any penalties for having two plans? How did you even figure out you had duplicate plans?

I only realized I had two plans when I saw double payments coming out of my account! I called the IRS (waited forever) and they explained what happened. Fortunately, they waived penalties since it was clearly a misunderstanding, but they counted the extra payment toward my principal. The most frustrating part was that it took almost 3 months to get everything straightened out. The IRS had to manually cancel one of the plans and recalculate everything. Definitely check first before creating a new plan!

I've used both TurboTax and H&R Block over the years. In my experience, H&R Block actually shows the payment plan details in your account after filing, which TurboTax doesn't seem to do. The downside is that H&R Block's interface is clunkier overall. But for payment plan visibility, they're definitely better.

Do you recommend any specific apps or methods for tracking the business vs personal usage? I tried just keeping notes but I'm terrible at staying consistent with it.

I actually keep it super simple. For my phone, I use the call log that's already on my phone and just highlight business calls once a week (takes 5 minutes). Then quarterly, I calculate the percentage. No special app needed. For internet and other utilities, I use the square footage method since it's much simpler and well-accepted by the IRS. Just calculate what percentage of your home is exclusively used for business, and apply that percentage to your utilities. Take photos of your office space and keep documentation of the square footage calculations. The key is consistency - whatever method you choose, stick with it and document your calculations.

Seconding this! QBO has saved me countless headaches with my S Corp. The payroll integration is worth every penny for handling the salary requirements properly. Just make sure you set up the chart of accounts correctly from day one.

Does the IRS actually check every single form against what they have on file? I thought they just randomly audit a small percentage of returns?

The IRS uses automated matching programs that compare what's reported on your tax return with the information they receive from employers, banks, and other institutions. It's not a manual process checking every form, but their systems will flag discrepancies. This automated matching happens for most returns, not just those selected for audit. So if the income on your missing 1099 doesn't match what you reported, you might receive a notice from the IRS later. That's why it's important to report the income accurately even if you don't have the form.

Yes! Definitely call the company directly. Most businesses can easily generate a new copy of your 1099. I had this issue with a 1099-INT from my bank and they emailed me a PDF version within an hour of calling. Some companies even have portals where you can download your tax documents yourself.

Thanks for bringing this up! Do you know what the income limits are for Roth IRA contributions? Also, for the SEP IRA, can I contribute to that even if I have a 401k through my main employer?

For 2025, you can fully contribute to a Roth IRA if your modified adjusted gross income is less than $146,000 (single) or $230,000 (married filing jointly). The contribution limit phases out above those amounts until it reaches zero. Yes, you absolutely can contribute to a SEP IRA even if you have a 401k through your employer. The SEP IRA contribution is based only on your self-employment income. The limit is 25% of your net self-employment earnings, up to $69,000 for 2025. It's a great way to reduce taxes on your freelance income while saving for retirement.

HSAs are awesome! Triple tax advantage is right - money goes in tax-free, grows tax-free, and comes out tax-free for medical expenses. For 2025, you can contribute up to $4,150 for individual coverage or $8,300 for family coverage. But you need a qualifying high-deductible health plan to be eligible. Check if your plan is HSA-eligible - the deductible needs to be at least $1,500 for individuals or $3,000 for families.

I hadn't thought of that! I'll call our bank today to check. That would be such a relief if it's just their standard procedure. Did your bank give you any trouble when you called about it?

No trouble at all when I called. The customer service rep explained it was standard procedure for deposits over a certain amount. They actually have an automated system that flags larger deposits for a brief review period. In my case, they said it was because the deposit was significantly larger than my usual direct deposits. The rep confirmed that the full amount would be available within 48 hours, and it was. Just be sure to speak with someone in their deposit operations department rather than a general customer service rep, as they'll have more specific information about how deposits are processed.

This! The processing fees for refund transfers are ridiculous. I got hit with this last year - H&R Block charged me $35 for the basic prep fee plus a $40 "refund transfer fee" for the privilege of having the fee taken from my refund. It's basically a very expensive short-term loan when you think about it.