I actually found a middle-ground approach that might work for you. While there's no free e-filing option for Form 1065, some of the paid e-file providers have partnership return options starting around $150-200, which might still be cheaper than hiring a full-service tax professional. I used TaxAct Business last year for my rental property LLC and found their interface pretty user-friendly for DIY filers. They walk you through the depreciation calculations and have good validation checks to catch errors before submission. FreeTaxUSA also has a business version that's reasonably priced. If you do go the paper route, definitely send it certified mail so you have proof of delivery. The IRS processing times for paper returns have gotten better recently, but it's still good to have that tracking confirmation. Also make sure you're using the most current forms from IRS.gov - I made that mistake one year and had to refile.

One thing I haven't seen mentioned yet is that if you do decide to paper file, make sure you're aware of the signature requirements. For Form 1065, at least one general partner needs to sign and date the return. Since you mentioned it's an LLC with you and your spouse, you'll need to determine who is designated as the tax matters partner (or partnership representative under current rules) to sign the return. Also, don't forget about state filing requirements! Depending on your state, you may need to file a separate partnership return at the state level, and some states do offer e-filing options even when the federal return has to be paper filed. The state filing deadlines and requirements can be different from federal, so it's worth checking your state's tax authority website early in the process. If you're in a state with no state income tax, obviously this won't apply, but for most states you'll have additional paperwork beyond just the federal Form 1065.

Has anyone considered the flipside? If the tenant pays utilities directly, does that mean the TENANT can deduct those utilities somehow? Like as a home office deduction if they work from home? Just curious if there's any benefit to the tenant for paying utilities directly vs having them included in rent.

I went through this exact same situation with my duplex rental last year. The bottom line is definitely no - you cannot deduct utilities that your tenant pays directly to the utility companies. The IRS is very clear that you can only deduct expenses that you actually paid out of pocket. However, don't let this discourage you from the tenant-pays-utilities arrangement! There are actually some advantages to this setup. You don't have to worry about tenants leaving lights on or cranking up the heat since they're paying the bill. Plus, you avoid the hassle of having to collect utility reimbursements or dealing with seasonal fluctuations in your cash flow. Just make sure you're capturing all the deductions you ARE entitled to - property management fees, repairs, maintenance, insurance, property taxes, depreciation, etc. Those can add up to significant savings even without the utility deductions.

Does anyone know if summer camps qualify for the Dependent Care FSA? My kids will be in day camp for 8 weeks this summer while we work.

I went through this exact same confusion last year! Here's what I wish someone had told me upfront: The process is: You pay daycare/nanny out of pocket → Submit receipts to your FSA administrator (through their website/app) → Get reimbursed to your bank account. Your employer sets up the FSA but a third-party company usually administers it. For your nanny situation - they absolutely qualify! No special license needed, just make sure you: 1. Get their SSN (you'll need it for receipts and tax forms) 2. Pay them legally (issue a W-2, pay employment taxes) 3. Keep detailed receipts with dates of service The money flows as you earn it through payroll deductions, so if you're putting in $5,000 over 12 months, you'll only have about $416 available after your first paycheck. Plan accordingly! One gotcha: Make sure your receipts include the provider's tax ID, specific service dates, and description of care. I had several claims rejected initially because my nanny's handwritten receipts were missing these details. The tax savings are real though - between federal, state, and FICA taxes, you'll likely save 25-30% on your childcare costs.

Did anyone see if the IRS has specific guidance on this? I looked at Publication 550 and it says interest on CDs is taxable in the year actually or constructively received. I think what's happening with the OP's CD is that the interest is being accrued daily (calculated) but only credited (paid) in January. You're only taxed when it's credited, not as it accrues.

Just to add another perspective - I'm a tax preparer and see this confusion every tax season. The key thing to understand is that CD interest timing can vary significantly even within the same bank depending on the specific product. For your situation, since your balance didn't change until January 2025, you likely won't owe any taxes for 2024 on this CD. The bank will send you a 1099-INT that shows exactly what's taxable for each year. One tip for future CD purchases: always ask specifically about the "interest crediting schedule" before you buy. Some banks will let you choose between monthly, quarterly, or annual crediting, which can help with tax planning. Also, keep in mind that online CD rates often come with different crediting schedules than branch CDs, so don't assume they're the same. For your estimated tax payments as a self-employed person, I'd recommend waiting until you receive your 1099-INT forms in January to know exactly how much CD interest you'll need to account for in your quarterly payments.

Guys - this is all overthinking it. If you're making under 100k, the amount of interest you'll earn on the withheld taxes is minimal compared to the hassle. Let's say you would get a $3000 refund and could instead earn 5% on that money throughout the year. That's only $150 before taxes. Is it really worth the stress of potentially miscalculating and owing penalties? Sometimes the peace of mind of knowing your taxes are handled is worth more than squeezing out every last dollar.

I've been doing this strategy for about 3 years now and wanted to share my experience. The key is finding the right balance - you don't want to underwithhold so much that you trigger penalties, but you also don't want to be too conservative and miss out on potential earnings. Here's what I learned: Start small your first year. I reduced my withholdings by about 15% and put that money into a high-yield savings account. I tracked everything carefully and made sure I still hit the safe harbor threshold. The second year, I got more aggressive and reduced by about 25%, investing the difference in a mix of CDs and money market accounts. The psychological aspect is huge though. You have to be disciplined enough to actually save/invest that money and not spend it. I set up automatic transfers to a separate "tax payment" account so I wouldn't be tempted to touch it. Last year I earned about $480 in interest that would have otherwise gone to the government as an interest-free loan. One tip: keep really good records of your calculations and payments. If you ever get questioned by the IRS, you want to be able to show you were following the rules intentionally, not just trying to avoid paying taxes.