So do you just call a random CPA office and ask for a consultation? Do they offer that as a service or do you need to be an existing client?

Most CPAs are happy to do consultations - it's easy money for them with limited paperwork. I just called a few local offices and asked specifically for a tax planning consultation rather than tax preparation. I explained my situation and that I wanted advice but planned to file myself. Some do require you to be clients, but plenty of smaller firms or solo practitioners are happy to do one-off consultations, especially during their non-busy season (May-December).

FreeTaxUSA is actually really good! I've compared results between it and TurboTax for 3 years now and always get the same refund amount. TurboTax just has a prettier interface but charges 5x more. If you have investments or self-employment, make sure you're using their deluxe version though.

We don't actually have a business together though - we're just splitting household and child expenses. Does a qualified joint venture apply to our situation? I thought that was specifically for business partnerships.

You're absolutely right - I confused QJV with something else. Qualified Joint Venture is indeed only for business partnerships, not for personal tax filing situations with shared children. A better approach for your situation would be to carefully calculate who provides more than 50% of the cost of maintaining the home to determine Head of Household eligibility. Since you own the house but split expenses 50/50, you'll need to track everything carefully. My accountant recommended keeping a spreadsheet of all household and child expenses with receipts, as unmarried couples with children are statistically more likely to be questioned about their filing status and dependent claims.

But they both make six figures. EIC phases out completely around $60k even with multiple kids. They're way beyond the income limits for that credit.

You're totally right! I completely missed the part about them both making around $120k. At that income level, they're definitely over the EIC threshold. For their income level, they should focus more on optimizing the Child Tax Credit, Additional Child Tax Credit, and the Child and Dependent Care Credit. They should also carefully consider who should claim Head of Household status since that provides a more favorable tax bracket structure than filing as Single.

I've heard about these but always wondered - if you're young (like under 40), doesn't this approach lock up a TON of your money until retirement age? What if you want to access some of that cash before 59.5 years old?

You're right to consider the access limitations. With a defined benefit plan, you're committing to regular contributions that you can't easily access before retirement without penalties. However, there are some strategies to work around this. One approach is to combine it with a "cash balance plan" variation, which can provide more flexibility. Additionally, you can look into Substantially Equal Periodic Payments (SEPP) under IRS Rule 72(t) which allows penalty-free early withdrawals if structured correctly. Some business owners also balance their retirement contributions - putting enough in the defined benefit plan to get significant tax savings while keeping other funds more accessible.

Be really careful with this advice. The IRS has been cracking down HARD on offshore structures for domestic businesses. If you don't have legitimate international operations and clients, this could get you in serious trouble. I knew someone who tried something similar and ended up with massive penalties and an audit that lasted 2+ years.

I think you're right. I got a big promotion last year and our withholding never got adjusted. Is there a specific amount I should put for additional withholding on the W-4? And will I get penalized for having paid so little throughout the year?

You should use the IRS Tax Withholding Estimator on their website to calculate the exact amount for additional withholding. With your income level, you might consider putting an additional $500-700 per paycheck depending on your pay frequency. You might face an underpayment penalty if you didn't pay at least 90% of your tax liability during the year or 100% of last year's tax (110% if your income was over $150,000). The penalty isn't usually huge, but it's better to avoid it by making an estimated tax payment now if you can. You can make an estimated payment for 2025 using Form 1040-ES to help reduce any potential penalties.

I used H&R Block online and it was pretty straightforward. There's a specific section for unemployment compensation where you enter the 1099-G info. Make sure you're looking at box 1 on the form for the total unemployment amount and box 4 for any federal withholding.

Is Form 8843 filed together with the 1040NR or is it submitted separately? And what's the deadline?

Form 8843 is submitted with the 1040NR if the student is also filing a tax return. If they don't need to file a tax return (no income), then Form 8843 is sent by itself to the IRS. The deadline is the same as the regular tax deadline - April 15th (or the extended deadline if they file for an extension). Just make sure they keep copies of everything they submit since international students often need tax filing records for visa renewals or future immigration applications.

THIS. The athletic scholarship issue is so important. My university got in trouble because they weren't properly withholding on athletic scholarships for international students. The housing and meal portions are considered taxable income.