This is such a thorough and helpful discussion! I'm new to the community and just starting to research launching my own 3D printing side business, so this thread is incredibly valuable. I wanted to ask about something I haven't seen mentioned yet - what about the costs for post-processing supplies? I'm planning to make miniatures and decorative items that will need sanding, priming, and painting. Would items like sandpaper, primer, paints, and brushes go under line 22 "Supplies" or would they be considered materials that become part of the finished product and belong in COGS? Also, I'm curious about 3D printer maintenance costs. Things like replacement hot ends, thermistors, and stepper motors - are these considered repairs (which I believe go on line 21) or supplies? Since 3D printers require fairly regular maintenance and part replacement, I want to make sure I'm categorizing these correctly from the start. One more question - if I'm using free design files from sites like Thingiverse but making modifications in CAD software, do I need to track any costs associated with those designs, or are they just considered free materials with no COGS impact? Thanks for all the great information everyone has shared. This thread is going to be my reference guide as I set up my business tracking systems!

This thread has been incredibly helpful for understanding Schedule C requirements for 3D printing businesses! I'm just getting started with my own setup and have been overwhelmed trying to figure out all the different expense categories. One thing I'd like to add based on my research is about the business use percentage for equipment. Even though you mentioned your computer is 100% business use, make sure you can genuinely document this if questioned. The IRS can be strict about equipment that could reasonably have personal use. I'd recommend keeping a simple log showing business activities on that computer, especially since it's a general-purpose device rather than specialized equipment like your 3D printer. Also, regarding your domain registration question - I've seen it handled both ways (line 17 vs line 25), but I lean toward line 25 "Office expenses" since it's more about maintaining your business presence rather than paying for professional services. It's similar to business phone or internet costs. For anyone else following this discussion, I found it helpful to create a simple spreadsheet with columns for date, vendor, amount, description, and tax category. This makes it much easier to sort expenses into the right Schedule C lines when tax time comes around. Thanks to everyone who shared their experiences - this community is such a great resource for small business owners navigating these tax complexities!

Sorry to jump in, but everyone seems to be missing a CRUCIAL detail. Is this vehicle over 6,000 pounds GVWR (gross vehicle weight rating)? If not, there are strict luxury auto depreciation limits that apply regardless of Section 179. For vehicles under 6,000 pounds, the maximum first-year deduction is MUCH lower - around $11,200 for 2023 (probably similar for 2024). Doesn't matter if you use Section 179, bonus depreciation, or regular depreciation. If it IS over 6,000 pounds (like many larger SUVs, trucks), then different limits apply, and you can potentially deduct much more.

This is exactly the kind of situation where getting professional guidance upfront can save you thousands. I made a similar mistake with equipment purchases early in my business - assumed I could deduct everything immediately without understanding the income limitations. One thing that hasn't been mentioned yet is the potential tax planning opportunity here. If your business income is growing, you might actually benefit from timing the purchase strategically. For example, if you expect your landscaping business to generate more income next year, you could potentially delay the purchase or structure it differently to maximize your deductions. Also consider that if this truck will significantly help grow your business (allowing you to take on bigger jobs, serve more clients), the increased future income might make the deduction timing less critical than the business growth itself. Sometimes we get so focused on the tax benefits that we lose sight of the bigger business picture. Whatever route you choose, definitely keep detailed records of everything - purchase documents, business use percentages, maintenance records. The IRS loves to scrutinize vehicle deductions, especially for expensive trucks.

Is anyone using QuickBooks for their 1099 reporting? I'm wondering if it's worth switching to. Our current accounting software makes the 1099 process really cumbersome.

This is such a common issue - you're definitely not alone! I went through something similar when I took over our AP process. One thing that helped me was creating a simple vendor audit spreadsheet to track everything systematically. I listed all vendors who received over $600, their entity type from W-9s, service vs. goods classification, and payment methods. What really surprised me was how many "corporations" in our system were actually LLCs or sole proprietorships when I actually looked at their W-9s. The previous person had just assumed anything with "Inc." in the name was a corporation, but several were actually LLCs doing business as something else. For your immediate situation, I'd prioritize getting current year compliance right first, then work backwards on previous years. The IRS is generally more understanding when you're proactively fixing mistakes rather than waiting for them to find them during an audit. Document everything you're doing to correct the process - it shows good faith effort if questions come up later. Also, don't forget about the de minimis threshold - it's $600 per year, not per payment. So if you paid a vendor $400 in March and $300 in October, they still need a 1099 even though each individual payment was under $600.

Just wanted to add a quick note about something that caught me off guard when I filed my late returns - make sure you're using the correct standard deduction amounts for each tax year! The standard deduction changes annually, so don't accidentally use the 2023 amounts on your 2021 or 2022 forms. For 2021: Single filers had a $12,550 standard deduction, married filing jointly was $25,100 For 2022: Single was $12,950, married filing jointly was $25,900 I almost made this mistake and would have either overpaid or underpaid my taxes. The IRS forms for each year should have the correct amounts printed on them, but it's worth double-checking since you're working with multiple years of forms at once. Also, if you moved between states during any of those years, make sure you're filing part-year resident returns for the correct states. I had to file returns in both Maryland and Virginia for 2022 since I moved mid-year, and figuring out the income allocation was trickier than I expected.

This is such a helpful thread! I'm in a similar boat with unfiled returns for 2021 and 2022. One thing I want to add that might help others - if you're missing any of your tax documents (like W-2s or 1099s from previous years), you can request transcripts from the IRS that show what income was reported to them. You can get these transcripts online through the IRS website if you can verify your identity, or you can mail Form 4506-T to request them. This saved me when I realized I was missing a 1099-INT from a bank account I'd forgotten about for 2021. The transcript showed exactly what income the IRS had on file for me, so I could make sure my return matched their records. Also, don't panic if you owe money on those back returns - the IRS has payment plan options even for prior year taxes. You can set up an installment agreement online if you owe less than $50,000. The key is just getting those returns filed ASAP, especially for 2021 with that April 2025 deadline approaching fast!

Has anyone used TurboTax for claiming a non-traditional dependent like this? I'm trying to claim my step-brother's son who lives with me but the software seems confused every time I try to enter the relationship.

I'm dealing with a similar situation but with my adult sister who became disabled and moved in with me. From what I've learned through this process, the key thing to understand is that the IRS has very specific rules about who qualifies as a "qualifying child" versus a "qualifying relative." For your cousin situation, since she's only 16 and you're providing most of her support, you're definitely on the right track claiming her as a qualifying relative. Make sure you have documentation showing you provided more than half her support throughout the year - keep records of housing costs, food, clothing, medical expenses, etc. One additional thing to consider: if your cousin has any income from a part-time job, make sure it's under the $4,500 threshold for qualifying relatives. If she earned more than that, it could disqualify her entirely as a dependent. The loss of the EIC definitely stings, but claiming her as a dependent is still worthwhile financially. Plus, as others mentioned, check if you qualify for Head of Household status - that alone can save you several hundred dollars compared to filing as single.