Whatever software you choose, don't forget that you'll need clients to sign Form 8879 (e-file authorization) for each return you submit. Some of the professional software packages include client portal options that make this easier, but it's something to consider in your workflow.

One thing I haven't seen mentioned yet is liability protection. Since you're charging for tax prep services, you might want to consider getting some basic professional liability insurance. Even for simple returns, mistakes can happen and the IRS can impose penalties on both you and your clients. Also, make sure you understand the difference between being a "tax preparer" vs just "helping friends." Once you start charging, you're officially in business territory and need to follow all the rules - PTIN registration, proper record keeping, continuing education requirements if you do more than a few returns, etc. The IRS has pretty clear guidelines on their website about when you cross from casual help to professional services. I'd recommend starting small this year to get a feel for the workload and responsibilities before taking on more clients next season.

Has anyone used the cost segregation strategy for their rental? My accountant mentioned it could increase my deductions in the early years by breaking down the property into components with shorter depreciation periods, but it sounds complicated and expensive to get the analysis done.

Great question! As others have mentioned, you don't need to enter anything for carryover depreciation in your first year - that field is for situations where someone had unused depreciation from prior years that they couldn't claim. For your $275,000 rental property, here's what you need to focus on: 1. Separate the land value from the building value (only the building is depreciable) 2. Calculate depreciation from March when you started renting it out - you'll get partial year depreciation for 2024 3. Use the mid-month convention, which means you treat the property as placed in service in the middle of March Since you started renting in March, you'll be able to claim about 9.5 months of depreciation for your first year. Keep good records of your basis calculation because you'll need this information every year going forward. One tip: take photos and document the condition of appliances, flooring, and fixtures when you first put the property in service. These items often have shorter depreciation periods than the 27.5-year building depreciation, and good documentation will help if you ever need to justify separate depreciation schedules for these components.

I'm in the exact same situation! Filed April 1st, accepted April 2nd, WMR shows approved for deposit by May 18th but still nothing in my Chime account as of today. I've been checking obsessively too - it's so stressful when you're counting on that money. From what I'm reading here, it sounds like there might be holds or reviews that don't show up on the Where's My Refund tool. I'm going to try accessing my transcript tonight, and if that doesn't work, maybe try one of those services people mentioned to get through to an actual IRS person. It's frustrating that Chime is usually so fast with deposits but we're still waiting. Hoping we both get our money soon! Keep us posted on what you find out.

I feel your frustration! I'm also with Chime and filed around the same time as you. From everything I'm reading in this thread, it sounds like there are often holds or reviews happening that don't show up on the Where's My Refund tool - which is honestly pretty ridiculous that we have to play detective with our own money. Since you mentioned you claimed the Child Tax Credit, that could definitely be causing additional review time. The IRS has been extra cautious with child-related credits lately. A few suggestions based on what others have shared: - Try accessing your transcript one more time, maybe during off-peak hours when their system is less busy - If you can't get through online, those calling services people mentioned (like Claimyr) seem to actually work for getting to a real person - That taxr.ai tool several people recommended sounds like it could give you the real story about what's happening I know it's stressful when you're counting on that money for bills. Hang in there - from what I'm seeing, most people are eventually getting their refunds, just with more delays than usual this year. The IRS really needs to fix their communication issues!

Just wanted to add one more thing that might help - since your husband's inheritance came from his mother who was a Chilean resident, make sure you keep all the documentation from the Chilean inheritance process. This includes the death certificate, will documents, bank transfer records, and any tax withholding certificates from Chile. You'll need these documents if the IRS ever questions the source of the funds, and they're also important for calculating your foreign tax credit if Chilean taxes were withheld. I learned this the hard way when I couldn't find my grandmother's Italian inheritance paperwork years later during an audit. Also, even though you don't need Form 3520 for this inheritance, if your husband ever receives additional gifts or inheritances from foreign sources in future years, those amounts could be cumulative for reporting purposes in some situations. Good to establish a paper trail now.

One thing I haven't seen mentioned yet is the timing of when you need to file these forms. Since your husband received the inheritance in March 2024, you'll need to report the foreign account on your 2024 FBAR (due April 15, 2025, with automatic extension to October 15, 2025). Also, be aware that even though the inheritance itself doesn't require Form 3520, if that Chilean account generates more than $10 in interest during 2024, you'll need to report that interest income on your 2024 tax return. The interest is taxable to the US even if it stays in the Chilean account. If you're unsure about any of the requirements, consider consulting with a tax professional who specializes in international tax issues. The penalties for not filing FBAR or incorrectly reporting foreign income can be substantial, so it's worth getting it right the first time. Better to spend a few hundred on professional advice than face potential penalties later.

I went through this exact same situation last year with a tech company that included about $800 in travel reimbursements on my 1099-MISC. What worked for me was sending a polite but detailed email to their accounts payable department explaining the tax implications for both parties. I included references to IRS Publication 15 which clearly states that reimbursements under an accountable plan shouldn't be reported as nonemployee compensation. I also mentioned that incorrectly reporting reimbursements could potentially create issues for them during their own tax filings or audits. Within two weeks, they sent me a corrected 1099-MISC. The key was being educational rather than demanding - I framed it as "helping them comply with IRS guidelines" rather than "you made a mistake." Sometimes companies genuinely don't know the rules and appreciate being informed professionally. If they still refuse, definitely go with the approach others mentioned of reporting the full amount and deducting the expenses. Just make sure you categorize those deductions correctly on your Schedule C!

This is such a frustrating but common issue! I'm a tax preparer and see this mistake constantly. Your instinct is absolutely correct - expense reimbursements shouldn't be included as income on your 1099-MISC if they were legitimate business expenses you incurred on behalf of the client. Here's what I typically recommend to my clients in your situation: First, try the polite approach that others mentioned. Send your client a brief email explaining that reimbursements for documented business expenses shouldn't be reported as nonemployee compensation per IRS guidelines. Include copies of your receipts and any emails showing they approved these expenses beforehand. If they won't budge, don't stress too much. Report the full 1099-MISC amount on your Schedule C Line 1, then deduct those same expenses in the appropriate categories (travel, materials, etc.) on the expense section. Your net income will be the same either way - you're just grossing up both sides of the equation. The key is documentation. Keep every receipt, email approval, and record showing these were legitimate business expenses they asked you to cover. That way you're fully protected if there are ever any questions down the road.