That's encouraging to hear! Did you claim both EITC and CTC? And did your WMR tool show any tax topic numbers during the processing stage or just the generic "still processing" message?

I claimed EITC but not CTC this year. My WMR showed Tax Topic 152 the entire time, which I've read is actually a good sign that means your return is in normal processing. It was stuck on "still processing" with that tax topic for about 3 weeks. The only update I got was when it suddenly changed to approved, and then the money was in my account the next morning. Capital One did not hold the funds at all, it was available immediately when the deposit hit.

I've been trying to access my transcript online but the IRS verification system won't accept my phone number since it's prepaid. Any other ways to check transcripts without waiting for mail?

If you can't verify your identity online, you can also request transcripts by mail using Form 4506-T, but obviously that takes longer. Another option is to try calling the automated transcript request line at 800-908-9946, which sometimes has less stringent verification. Some people have had success verifying their identity by using a family member's non-prepaid phone number for the verification step, then changing their contact info afterward. Not officially recommended, but might work in a pinch if you're desperate for transcript updates.

Thank you for this! I didn't even think about keeping receipts for parking and other stuff related to the implant procedure. I definitely had transportation costs and also had to buy special mouthwash and some prescription pain medication. Would over-the-counter pain meds count too? I spent a lot on those during recovery.

I'm glad that was helpful! For the related expenses, prescription medications definitely count toward your medical expenses. Unfortunately, over-the-counter pain medications typically don't count unless they were specifically prescribed by your doctor (even if they're things you could normally buy without a prescription). Transportation costs absolutely count - the IRS allows you to deduct costs of transportation primarily for and essential to medical care. This includes parking fees, tolls, and mileage if you drove your own car. For 2024, the medical mileage rate was 21 cents per mile (2025 rate will be announced later), so keep track of the distance to and from all related appointments.

This is great advice! I got a bridge done at the local dental school and saved over $3000. It took a bit longer because the student had to have everything checked, but the quality was actually better than work I've had done at regular dentists.

I wish I'd known this before I got the implant done! This is really helpful advice for the future though. There's actually a dental school about 30 minutes from me that I never considered. I'll definitely look into this for any future dental work I need.

Yes, the principle is exactly the same with crypto gambling. The IRS treats cryptocurrency as property, not currency, but the issue of duplicate reporting is handled the same way. You'll report your gambling winnings from the W2-G, and you'll need documentation to show that the crypto transactions reported on your Coinbase 1099 represent the same funds. Be aware that you might also have capital gains or losses from any change in the crypto value between receiving it as winnings and transferring it to Coinbase.

Thanks for this advice! I just started a spreadsheet to track everything. Do you know if there's a specific format the IRS prefers for gambling logs? And how detailed do the session records need to be?

The IRS doesn't require a specific format for gambling logs as long as they contain complete and accurate information. The more detailed, the better in case of an audit. For session details, I include start/end times, specific games played, and bet amounts. For poker, I track each tournament separately. For sports betting, I note the specific games/events. I also save all receipts, tickets, and confirmation emails. The key is being able to match your documented activity with the amounts reported on your tax forms.

I hadn't even thought about changing my business structure! Is that process complicated? And does it make record-keeping even more strict?

The process isn't too complicated - you file Form 2553 with the IRS to elect S-Corp status. The main thing is you need to start running payroll and paying yourself a reasonable salary, which means quarterly payroll tax returns. Record-keeping is more formal, yes. You'll need better separation between personal and business finances (which you should do anyway), and you'll have to file a separate tax return for the business (Form 1120-S) in addition to your personal return. Many people use a payroll service to handle the salary part. It's more paperwork for sure, but the tax savings can be significant because only your salary is subject to self-employment tax, not the full business profit.

This! I got hit with a $1,200 penalty my first year in business because nobody told me about quarterly payments. Such a painful lesson.

I've been making some payments but probably not enough. Is there a specific form I should be using for these quarterly payments?

Do you know if you can deduct mileage if you work from home but occasionally drive to client meetings or to pick up supplies?

Absolutely you can! Any driving from your home office to client sites, suppliers, business meetings, etc. counts as deductible business mileage. Just make sure to keep a log with dates, starting/ending mileage, and purpose of each trip. The only driving that's not deductible is regular commuting to a primary workplace. But if your home is your primary workplace (home office), then driving to clients or for business purposes is generally deductible. There's a pretty generous mileage rate too - it was 65.5 cents per mile for 2023.

Which tax software do you recommend for first-time self-employed? I've used the free versions before but now I need something that handles Schedule C.