Does this student loan interest deduction phase out at certain income levels? My son makes about $75k at his new job after grad school but still has tons of student loans.

Yes, the student loan interest deduction starts phasing out at $75,000 of modified adjusted gross income for single filers ($155,000 for married filing jointly) and completely phases out at $90,000 ($185,000 for married couples). If your son is right at the $75k threshold, he might still get a partial deduction. He should definitely look into it because every bit helps with those loan payments. Also worth noting that unlike some deductions, he can take this even if he doesn't itemize, which is really helpful for younger people who typically take the standard deduction.

The Tuition and Fees deduction has been gone for a while now, but the Lifetime Learning Credit was actually expanded in recent years. It's worth up to 20% of the first $10k in qualified education expenses.

Is that really necessary? I've been combining all my gig work on one Schedule C for years and never had an issue...

Omg I didn't even think about workers comp! Do I calculate that the same way as the other payroll taxes? Is there a standard percentage for bakery workers?

You don't calculate workers comp the same way as payroll taxes. You'll need to contact an insurance provider who offers workers compensation insurance in Illinois. They'll assign classification codes based on the type of work (bakers might be code 9083) and give you a rate per $100 of payroll for each classification. The rates for bakery workers vary widely by state, but in Illinois, you might expect something around $1.50-$3.00 per $100 in payroll, depending on your claims history and other factors. So if you have $10,000 in monthly payroll, you might pay $150-$300 monthly for coverage.

I second this. I messed up some calculations and classified contractors incorrectly. Ended up with huge fines. A payroll service would have been so much cheaper!

How difficult was the NAEA content? I don't have any formal accounting background - just basic bookkeeping for my business. Would I be in over my head?

You wouldn't be in over your head with NAEA courses. They're designed to be accessible to people without accounting backgrounds, starting with fundamental concepts and building from there. Each module typically begins with basics and progressively gets more detailed. The S Corporation course specifically explains concepts like reasonable compensation and pass-through taxation in plain language before diving into the more technical aspects. They also provide plenty of real-world examples that make it easier to understand how the concepts apply to actual businesses. Most of my fellow students were business owners like yourself rather than accounting professionals.

I did their S Corporation specialist course last year. It's good info but very focused on California tax issues, so if you're in another state, just be aware of that limitation. Their materials are easy to understand though, and they explain things much better than the dry IRS publications.

Do you think this would affect different types of restaurants differently? Like would high-end places where servers make $300+ per night handle it differently than diners where tips might be way smaller?

Absolutely. High-end establishments would likely see even more dramatic effects. In fine dining where servers can make $70,000-$100,000 annually primarily through tips, the impact on lending, retirement, and benefits would be catastrophic. Their reported income would suddenly appear to be just $15,000-$20,000 on paper. Smaller diners and casual places would still see negative effects, but the dollar amount difference wouldn't be as extreme. However, servers at these establishments often rely more heavily on programs like EITC and healthcare subsidies, which are all income-based. So while the absolute numbers might be smaller, the relative impact on their financial lives could actually be worse.

I did the calculations for my situation. Last year I made about $42k total, with $35k from tips. I paid roughly $4,800 in federal taxes on that income. But I received $2,300 in EITC and child tax credits. I also qualified for a $1,200/month apartment based on that income and got approved for a car loan at 5.9% interest. If only my hourly wage counted ($7k), I'd save $4,800 in taxes but lose $2,300 in credits. Plus my apartment application would be rejected (they require income 3x rent) and my car loan interest would jump to 18.5% as a "high-risk" borrower. Not worth it at all.