Just make sure your parents write "GIFT" in the memo line of the check they give you and keep good records. My uncle is an accountant and says that's important for documentation if the IRS ever questions it.

Great question! I went through the exact same situation last year when my parents helped with my down payment. The good news is that as the gift recipient, you won't owe any taxes on the $45,000 - that's the giver's responsibility, not yours. Here's what you need to know: For 2025, each parent can give you up to $18,000 without any reporting requirements. So together, they could give you $36,000 with zero paperwork. Since you're receiving $45,000, they'll need to file Form 709 (gift tax return) to report the $9,000 excess, but they almost certainly won't owe any actual tax unless they've already given away millions in their lifetime. You can use the full amount for your down payment! Just make sure to get a proper gift letter from your parents for your mortgage lender - they'll require documentation that it's truly a gift and not a loan. Your lender will probably have their own template for this. Don't stress about setting aside money for taxes - you're completely in the clear as the recipient!

This is such a timely question - I'm dealing with the exact same situation with my gaming channel! Based on what I've learned from my accountant, you're absolutely right to start deducting those expenses now even without monetization. The key thing the IRS looks for is "profit motive" - which sounds like you clearly have with your business plan and serious approach. You don't need formal business registration to claim these deductions on Schedule C of your personal return as a sole proprietor. One crucial tip: start documenting EVERYTHING now. I created a simple spreadsheet tracking every expense with date, amount, business purpose, and receipt photo. For those monthly subscriptions like Canva Pro and TubeBuddy, they're perfect examples of "ordinary and necessary" business expenses since they're directly related to content creation. Also consider tracking your time investment - hours spent on video creation, research, learning new skills, etc. This helps demonstrate the business nature of your activity versus just a hobby. The IRS wants to see consistent, profit-directed effort even before revenue starts flowing. The 3-out-of-5-years profit rule others mentioned is real, but don't let it scare you. Many legitimate businesses take time to become profitable, especially in content creation. Your business plan showing the path to monetization through sponsorships will be valuable documentation if ever questioned.

This is such great advice from everyone! I'm in a very similar situation with my DIY home improvement channel - been investing in tools, editing software, and even some basic lighting equipment while building up content before applying for monetization. One thing I'd add that really helped me get organized: I created a dedicated Google Drive folder structure for all my YouTube business documents. I have separate folders for receipts, business planning documents, usage logs for shared equipment, and even screenshots of my analytics showing growth metrics. This makes it super easy to find everything if I ever need to provide documentation. Also, don't forget about mileage if you travel for content! I've been tracking trips to hardware stores for project supplies, driving to filming locations, even trips to pick up equipment. At the current IRS rate of 65.5 cents per mile, those trips add up quickly. I use a simple phone app to track business-related driving. The key thing I've learned is to err on the side of over-documenting rather than under-documenting. Better to have too much supporting evidence than not enough if questions ever come up. Your business plan idea is spot-on - even a simple document showing you've thought through your monetization strategy demonstrates this isn't just an expensive hobby.

Everyone here is focusing on federal taxes, but don't forget to check your state tax rules too. Some states have different rules for casualty and theft losses than the federal government. I live in California and was able to deduct some of my crypto losses on my state return even though I couldn't on federal.

Sorry to hear about your loss - phishing scams are unfortunately way too common in the crypto space. I went through something similar with a fake DeFi protocol last year. One thing that hasn't been mentioned yet is the importance of properly documenting the theft for your records, even if you can't deduct it this year. Keep screenshots of the scam messages, blockchain transaction records showing where your crypto went, any police reports you filed, and timestamps of when everything happened. While current tax law doesn't allow the deduction, tax rules around crypto are still evolving rapidly. Having solid documentation could be valuable if the rules change in the future or if you need to prove the theft occurred for other purposes. Also, make sure you're not accidentally reporting phantom gains on crypto you no longer own when you file - that's a mistake I almost made before my accountant caught it. The suggestions about consulting a crypto tax specialist are spot on. This stuff is complicated enough that generic tax advice often doesn't cover all the nuances.

I'm dealing with a very similar situation helping my nephew with college expenses while living abroad, and I've learned a few important things that might help you navigate this successfully. Since your cousin is reimbursing you through his home country bank, you're absolutely right that this isn't a gift situation - you're acting as a financial intermediary. The key is establishing and maintaining clear documentation from the very beginning. **Practical steps I'd recommend:** - Set up a simple tracking spreadsheet now matching each Zelle transfer to corresponding reimbursements - Send your cousin a brief email outlining the arrangement before you start (creates written evidence of the agreement) - Check your bank's specific Zelle limits - mine are $3,000 daily/$15,000 monthly, so your $25,000 will likely need to be spread over 2-3 months anyway - Consider mixing direct tuition payments with Zelle transfers for living expenses, as direct school payments are completely exempt from any gift tax considerations **International considerations:** Since you're abroad but using US banks, verify if your home country requires reporting large outbound transfers. Some countries flag transfers over certain thresholds regardless of reimbursement arrangements. Also, I found it helpful to give my US bank a heads-up call explaining I'd be making family education transfers. They noted it on my account, which prevented any fraud alerts when the transfers started. The amounts you're describing are very manageable within normal banking operations as long as you maintain good documentation showing the reimbursement pattern. The intermediary nature of your arrangement should keep you clear of any tax complications.

This is exactly the kind of situation where proper planning and documentation make all the difference! Since you're being reimbursed by your cousin, you're acting as a financial intermediary rather than making gifts, which should keep you clear of gift tax issues. A few key points based on similar situations I've navigated: **Bank limits will likely dictate your timeline** - Most banks cap Zelle at $2,000-$5,000 daily and $10,000-$20,000 monthly, so your $25,000 will probably need to be spread over 2-3 months anyway. Check your specific bank's limits first to plan accordingly. **Documentation strategy** - Start a simple tracking system now matching each Zelle transfer with the corresponding reimbursement from your cousin. Include dates, amounts, and purposes. Screenshots of confirmations and even emails with your cousin about the arrangement create a solid paper trail. **International reporting** - Since you're abroad but using US banks, verify any reporting requirements in both countries for these fund movements. Some nations require reporting large outbound transfers regardless of reimbursement arrangements. **Consider mixed approach** - Direct tuition payments to the college are completely exempt from gift tax considerations, so you could handle tuition directly and use Zelle for living expenses and other costs. **Proactive banking communication** - Give your US bank a heads-up about the upcoming education-related transfers. They can note it on your account to prevent fraud alerts. The intermediary nature of your arrangement should keep you out of tax trouble as long as you maintain clear documentation showing the reimbursement pattern!

If you're comfortable doing a bit more work yourself, you could try using the Free Fillable Forms directly from the IRS. It's not as user-friendly as the guided options like TurboTax, but it's completely free and handles all forms including 1099-NEC. You just need to know which forms to fill out and how to do the calculations yourself.

Another option worth considering is TaxSlayer's Simply Free edition - it handles both W-2 and 1099-NEC forms without any upgrade fees for federal filing. I used it last year when I had a similar contractor-to-employee situation and it walked me through everything step by step. The interface is pretty straightforward and they don't hit you with surprise charges at the end like some other services do. State filing does cost extra (around $30) but federal is genuinely free even with 1099 income. Just make sure you're using the "Simply Free" version and not their regular free trial which does have limitations.