Quick question for those with more experience - does anyone know if you can switch between standard mileage deduction and actual expenses year to year? I'm getting a newer car soon specifically for Uber and wondering what's best.

Great discussion everyone! As someone who's been doing rideshare driving for 2 years, I wanted to add a few practical points that might help the original poster. First, regarding the LLC question - you're right that it doesn't change your tax situation for deductions, but one thing to consider is that some insurance companies offer better commercial auto rates to LLCs versus individual drivers. It's worth shopping around. Second, about the "100% business use" claim - be really careful here. The IRS scrutinizes this heavily. Even driving to get gas, going to the car wash, or driving to your first pickup of the day can count as personal use in their eyes. Most tax professionals recommend being conservative and claiming something like 90-95% business use to avoid audit triggers. Finally, don't forget about other deductions beyond the vehicle! Phone bills (business portion), toll fees, parking costs, and even roadside assistance memberships are all deductible. These can add up to significant savings even if you're taking the standard mileage deduction.

What nobody's mentioned yet is that having multiple Schedule Cs can actually be beneficial for the qualified business income deduction (Section 199A). If one business is operating at a loss, you might still qualify for the deduction on your profitable business. Also, if you're worried about audit risk from multiple Schedule Cs, don't be. The IRS is used to seeing freelancers with multiple income streams. Just make sure your expenses match the appropriate business!

Great question! I went through this exact same confusion last year with my multiple income streams. Here's what I learned from my tax preparer: The key is whether your activities are related or unrelated. Your graphic design and social media management are both marketing services, so you can definitely combine those on one Schedule C under something like "Marketing Consulting" or "Digital Marketing Services." DoorDash is completely different - that's transportation/delivery services and needs its own Schedule C. The business expenses are totally different (mileage vs design software), and the IRS expects you to separate unrelated business activities. Don't overthink the number of clients - I had 8 different graphic design clients last year and they all went on the same Schedule C. It's about the TYPE of work, not how many people pay you for it. One tip: keep really good records of which expenses belong to which business. I use separate folders (physical and digital) for receipts from each business type. Makes tax time so much easier! TurboTax handles multiple Schedule Cs just fine - you'll just go through the self-employment section twice. It's not as complicated as it seems once you get started.

Quick question about timing for the Dependent Care FSA - do you have to use it within the calendar year or can you roll it over? I'm trying to decide if I should max it out during open enrollment but worried about losing the money if we don't use it all.

Great question about the FSA timing! To add to what LongPeri mentioned, most Dependent Care FSA plans do follow the "use it or lose it" rule, but there are a few important nuances to consider: 1. **Grace Period**: Some employers offer a 2.5 month grace period (through March 15th of the following year) to use remaining funds. Check with your HR department about this. 2. **Runout Period**: Even without a grace period, you typically have 90 days after the plan year ends to submit claims for expenses incurred during the plan year. So if you paid for December daycare in January, you can still get reimbursed. 3. **Conservative Approach**: Since you're spending $2,200/month ($26,400/year), you're well above the $5,000 FSA limit, so you shouldn't have trouble using the full amount. But if you're worried, you could start with a lower contribution this year and increase it next year once you're comfortable with the process. The tax savings from the pre-tax contribution usually make it worth maxing out, especially at your spending level. Just keep good records and submit reimbursements promptly!

The codes on your transcript tell the whole story! Code 971 entries from March and July show you had amended returns being processed, which probably contributed to the complexity. When you requested the trace on 10/07 (another Code 971), the IRS had to cancel your original 09/16 refund (Code 841) and remove the interest (Code 777). The September codes 290/291 show some tax adjustments happened right before your original refund too. November 4th shows your fresh refund (Code 846) with new interest (Code 776). The 7-week gap is typical - they need time to verify the original check wasn't deposited before issuing a replacement. Your account balance is clean at $0 so you should be all set once that November check arrives!

I went through something similar last year! The transcript codes can be overwhelming but they actually tell a clear story once you understand them. Your Code 971 entries show you had amended returns in March and July, which definitely complicates processing. When you requested the trace in October, the IRS had to go through their standard verification process - they can't just reissue immediately because they need Treasury to confirm the original check wasn't cashed somewhere. The 7-week gap between cancellation and reissue is actually on the faster side from what I've seen. Some people wait 3+ months! The good news is your account shows a clean $0 balance with no penalties, and the November 4th codes (846 and 776) show everything processed correctly. Make sure your address is current in their system and consider setting up informed delivery with USPS to track when it actually arrives. You should be getting that check soon!

One important thing nobody's mentioned yet - make sure you check your state's requirements for ongoing LLC compliance! In my state (California), you have to pay an $800 annual franchise tax just to maintain your LLC, regardless of whether you make any money. I learned this the hard way and got hit with penalties because I thought "no income = no taxes." Keep in mind there might be: - Annual state fees/franchise taxes - Annual reports/statements of information - Business license renewals - Registered agent fees These costs exist even when you're pre-revenue, so factor them into your startup budget. Each state is different, so check your specific location.

Don't overthink this! I formed my LLC 2 years before I made a single dollar. Just keep your business and personal finances separate from day one (separate bank account is a must), track all expenses meticulously, and save receipts for everything. For accounting software, check out Wave - it's completely free for basic accounting and receipt tracking. You can connect your business bank account and it'll pull in all transactions automatically. When you start making money, I'd recommend getting professional help around the $5k revenue mark. Before that, most accountants will charge you more than they're saving you.