14 Something nobody's mentioned yet - your work-study income of $3500 IS earned income already! Work-study is treated as employment income because the student has to work for it. So that portion is definitely earned income and counts toward the earned income requirements for tax credits. Only the $2000 scholarship/grant would potentially be unearned income if it's taxable. Just wanted to make sure that was clear since it affects your calculations.

3 Just a heads up - for 2025 the filing threshold for dependents with unearned income is actually $1,300, not $1,250 like someone mentioned above. But the point still stands - if you make the $2000 scholarship taxable, your son would need to file. Another thing to think about - if your son doesn't need to file but you're considering having him file anyway to get some withholding back, that ALSO makes his income count toward the household income for Premium Tax Credit. The rule is that household income includes income of anyone REQUIRED to file a return, not just anyone who does file.

Former tax preparer here - one thing nobody's mentioned yet is that if you're operating short-term rentals, you need to be really careful about material participation requirements. This affects whether your rental activities are considered passive or active, which impacts how losses can be deducted. Short-term rentals (average stay less than 7 days) are generally considered a business rather than a passive rental activity, which changes the tax treatment significantly. You'll want to track your hours spent managing the properties, advertising, communicating with guests, etc. Also, regarding travel expenses - a mistake I saw clients make all the time was trying to deduct trips that were 90% vacation and 10% "looking at properties." The IRS isn't stupid. The primary purpose needs to be business, or you need to clearly allocate which days/expenses were business vs. personal.

Is anyone using TurboTax for their rental properties? I'm trying to figure out if I need to upgrade to their premium version or if the deluxe is enough to handle my two rental rooms situation similar to OP.

Don't forget about the Qualified Business Income deduction! It's a huge tax break for self-employed people that lets you deduct up to 20% of your net business income. Also look into setting up a SEP IRA or Solo 401k - you can contribute WAY more than a regular employee 401k and the tax savings are amazing. I'm a contractor too and I put away almost 25% of my income tax-free this way.

random but important tip: save like 30% of everything u make for taxes!!! i learned this the hard way my first year as a contractor and ended up owing $8,400 i didn't have. now i auto-transfer 30% of every payment to a separate savings account so i don't touch it. also track ur phone bill if u use it for work calls! and any apps/software u buy for work. easy to forget those smaller things.

just wanna add that CP2000s often have a "respond by" date that's usually 30 days from when they sent it. make sure you don't miss this deadline!!! if u need more time u can call and ask for an extension but they're not required to give u one. speaking from experience, trust me u don't want the headache of dealing with an expired notice 😩

Don't overlook the possibility that this could be a scam. Real IRS notices have a notice number, info about your rights as a taxpayer, and never ask for gift cards or wire transfers. The IRS also doesn't initiate contact through email, text or social media. If you're unsure if it's legitimate, you can call the IRS directly at 800-829-1040 to verify.

Whatever you do, don't ignore the IRS notices or miss deadlines for responding. That's the fastest way to make the situation worse. Even if you can't pay right away, always respond to notices and requests for information. Something else to consider - you may want to file separately going forward if you have any current year income. This prevents any new tax issues from getting mixed in with resolving the past problems.

So sorry about your situation. I'd recommend getting a free consultation with a tax resolution attorney before making any financial decisions. Many offer free initial consultations, and they can give you a realistic assessment of your options. With your health situation and age, you likely qualify for special consideration. If your husband truly handled all the finances without your knowledge, innocent spouse relief might significantly reduce your liability. Don't drain your retirement accounts before exploring this option fully. The IRS has specific provisions to protect retirement funds for seniors, especially those with health issues. Whatever you do, don't ignore the notices. Responding shows good faith even if you can't pay immediately.