OMG thank you for mentioning this! I completely forgot about state requirements. I'm in Michigan - do you know if they have any special LLC fees I should know about? Also, do I need to collect sales tax on online sales to other states?

Michigan is much more reasonable than California! They have an annual LLC filing fee of just $25 (due February 15th each year). You'll need to file an annual statement to maintain your LLC status. For sales tax, Michigan requires you to collect sales tax on in-state sales. For out-of-state sales, it depends on your sales volume in each state and their specific economic nexus laws. If you're selling through platforms like Etsy or Amazon, they might handle this for you in many states. But if you're selling through your own website, you'll need to research each state's requirements. Generally, if you have less than $100,000 in sales or fewer than 200 transactions in a state, you might be exempt from collecting sales tax there.

Is there a good app you recommend for tracking mileage? I always forget to log my trips for my business.

That's a great idea I hadn't considered! Do you know if I need to request this in person at a state tax office or can I do it online? My state's government websites are notoriously difficult to navigate.

In my state (Washington), I was able to request it online through their Department of Revenue portal. Most states have some kind of taxpayer access portal now where you can view your tax documents. Try searching "[your state] view tax documents online" or "[your state] tax transcript." If the online option doesn't work out, most states have a taxpayer assistance phone line that's usually much less busy than the IRS line. They can direct you to the right department or form to request your wage information.

Would this help for last year's W2 though? Seems like the time for mail forwarding would have expired by now. Plus the OP already talked to the employer who seems to be avoiding helping them.

That's a really interesting approach! Did you have previous experience in the restaurant industry, or did you just decide to focus there? I'm wondering what industry I should target if I go this route.

I had worked as a server and bartender through college, so I had some familiarity, but I wasn't an expert when I started. I chose restaurants because there were many in my area and I noticed they had specific bookkeeping challenges (inventory, tips, high turnover, etc.) that general bookkeepers often handled poorly. For choosing your industry, look at your existing client base and see if you already have a concentration in one area. Otherwise, consider industries that: 1) have many businesses in your location, 2) typically struggle with financial management, and 3) you find personally interesting. Healthcare practices, construction companies, e-commerce businesses, and professional services firms are all good options with specialized bookkeeping needs.

This is brilliant! How do you structure pricing for these quarterly packages? Do you charge a flat rate or is it based on business size/complexity?

8 Do student loan interest payments count as qualified expenses for either credit? I'm getting confused about what expenses go where on my tax forms.

10 Student loan interest payments are handled separately from education tax credits. You can potentially deduct up to $2,500 in student loan interest payments using the Student Loan Interest Deduction, but this is completely different from the education credits. For the Lifetime Learning Credit, qualified expenses include tuition, required course materials (books, supplies, equipment), and required activity fees paid directly to the institution. Keep receipts for required textbooks and lab supplies even if purchased from off-campus bookstores or online retailers, as these can qualify if they're required for enrollment.

22 Wait, seriously? So if my wife and I are both in different graduate programs, we can only claim one $2,000 credit total between us? That seems really unfair compared to the AOTC where undergrads can get $2,500 each!

Thanks so much for explaining from the university side! Does this mean universities just routinely report things in a way that doesn't match how taxes are supposed to be filed? Seems like this could cause problems for tons of students.

Yes, unfortunately, it happens quite frequently. University accounting systems are designed primarily for the school's financial tracking, not for optimal tax reporting. Many schools use Banner or similar systems that allocate payments based on an internal priority list rather than student intent. This disconnect is why the IRS allows taxpayers to claim education expenses based on when they actually made payments, not necessarily what's on the 1098-T. The form is considered informational, not definitive. This is also why we always advise students to keep their payment receipts and confirmation emails. If you're ever questioned, having documentation of your actual payment dates will resolve any discrepancies.

Yes, it definitely affects the AOTC! Remember the American Opportunity Credit is based on what you PAID in the calendar year, not what was billed. So only count what you actually paid in 2023, regardless of what the 1098-T says.