Slightly related but different question - do companies use the same $600 threshold for reporting to state tax agencies? I've got income from three different states and I'm confused about what might show up where...

This is such a common confusion point! Yes, you absolutely need to report that $450 even without a 1099-NEC. The threshold only applies to the company's obligation to send YOU the form, not their reporting to the IRS. I learned this the hard way when I started freelancing. I kept meticulous records using a simple spreadsheet - date, client, amount, and description. Even saved screenshots of payment notifications from PayPal/Venmo/etc. The key thing to remember is that the IRS can match payments reported by companies to what you declare, regardless of the dollar amount. So even if you think a $450 payment is "too small to matter," it could still trigger a notice if there's a mismatch. My advice: create a simple tracking system now for any future freelance work, and definitely include this $450 on your Schedule C. The peace of mind is worth way more than any small tax you'll owe on it!

don't forget about state tax issues!!! depending on which state you register the RV in and which states you work in you could end up with really weird tax situation. i work from my rv and travel between states and it's a nightmare filing in multiple states. some states have minimum time requirements before you have to file there.

I've been doing mobile office work from my converted van for about 18 months now and wanted to share some practical advice. The key is being super meticulous about documentation from day one - I wish someone had told me this earlier! Keep detailed records of: - Square footage measurements with photos showing the dedicated workspace - Business equipment permanently installed in that space - A daily log of hours worked in the mobile office vs other locations - All receipts for RV-related expenses (fuel, maintenance, insurance, etc.) One thing I learned: if you're truly using it as your primary residence AND office, make sure the business portion is genuinely exclusive. The IRS is strict about mixed-use spaces. I set up a physical barrier (folding divider) that I can document separates my office area from living space. Also consider the depreciation implications - you'll need to recapture some of that depreciation when you eventually sell the RV. A good CPA familiar with mobile businesses is worth every penny for navigating this properly.

I went through something similar last year and it was such a headache! One thing that helped me was making sure I was using the exact same browser I originally used to set up my account. Also, try accessing the IRS site directly (irs.gov) instead of going through any bookmarks or third-party links - sometimes that can cause authentication issues. If you're still stuck, you might want to try creating a completely new ID.me account with a different email address if you have one. I know it's frustrating to start over, but sometimes it's faster than trying to recover a problematic account. Good luck!

I went through this exact same situation about 6 months ago and it was absolutely maddening! What finally worked for me was actually calling the IRS Practitioner Priority Service line (855-562-5227) early in the morning around 7 AM. Even though it's technically for tax professionals, they were able to help me reset my account access. The key was being super persistent and explaining that I couldn't file my taxes because of the account lockout. They transferred me to someone who could manually verify my identity over the phone using information from my previous tax returns. It took about 45 minutes total, but I was back in my account the same day. Worth trying before you go through the whole ID.me verification process again!

This is exactly what we did last year! My husband has W2 income and I started an LLC that had losses in year one. We were able to offset his income with my business losses when filing jointly, which saved us quite a bit in taxes. A few key things that helped us stay compliant: First, I kept meticulous records of everything - separate business bank account, detailed mileage logs for the vehicle, and clear documentation of what percentage of shared expenses (like internet) were actually for business use. Second, I made sure to have a solid business plan and could show I was actively working toward profitability, not just creating deductions. For the vehicle deduction, the 80% business use sounds reasonable but make sure she's tracking actual business miles vs personal miles. The IRS loves to scrutinize vehicle deductions. Also, for the home office, it really does need to be exclusively used for business - we learned that one the hard way during our research phase. The good news is this is totally legitimate tax planning, not gaming the system. Just document everything and make sure all expenses are truly ordinary and necessary for the business. Consider meeting with a tax professional if the numbers get significant - the peace of mind is worth it.

I'm dealing with a very similar situation - my spouse has an LLC that's been operating at a loss for about 18 months now, and I've been researching how this affects our joint filing. One thing I haven't seen mentioned yet is the passive activity loss rules. Depending on what type of business your wife runs and how actively she participates, there might be additional limitations on how much of those losses you can actually use to offset your W2 income. If your wife materially participates in the business (generally 500+ hours per year or meets other IRS tests), then the losses should be fully deductible against your joint income. But if it's considered a passive activity, the losses might be limited. This is separate from the hobby loss rules others have mentioned. Also, don't forget about the Section 199A QBI deduction - even though her business is showing losses now, when it becomes profitable, you might be able to deduct up to 20% of the business income. It's worth understanding how that will work in future years as part of your overall tax planning strategy. The key is making sure you're classifying everything correctly from the start. The recordkeeping advice others have given is spot-on - documentation is everything if you ever get audited.

Is there a way to know in advance if Form 1116 would give a better result than the simplified credit? I have about $450 in foreign taxes paid across several funds, so I'm right in the middle where either might be better.

Looking at your specific numbers, I'd recommend starting with the simplified method since your foreign tax paid is only $6.28 (well under the $300 threshold). However, there's an important detail in your post that caught my attention - you mentioned the "Ordinary Dividends" shows nothing for 2024 but $765.84 paid/adjusted in 2025 for 2024. This timing difference might affect which tax year you can claim the credit. Generally, you claim the foreign tax credit in the year the foreign taxes were actually paid or accrued, not necessarily when the dividend was received. Since your foreign tax of $6.28 was likely withheld when the dividends were paid by the foreign companies, you should be able to claim it for 2024. For your situation, just take the $6.28 credit directly on Schedule 3 (Form 1040), line 1. No need to complicate things with Form 1116 unless you have other foreign investments that push your total foreign taxes over $300. The simplified method will give you the full credit amount in your case.