I totally get your frustration - it's maddening to pay tens of thousands in taxes and feel like you have zero control over how it's spent. While we can't currently direct our tax dollars to specific programs, there are actually some interesting developments happening at the local level that might give you hope. Several cities have experimented with participatory budgeting where residents vote on how to allocate portions of municipal budgets. Boston, Chicago, and New York have all tried versions of this. The results have been mixed, but it shows there's growing interest in giving taxpayers more direct input. At the federal level, you might want to look into organizations like the National Taxpayers Union or Citizens Against Government Waste - they advocate for more transparency and taxpayer control over government spending. Even if we can't choose where our money goes right now, organized advocacy can push for reforms that might give us more say in the future. In the meantime, I've found that really understanding where my money currently goes (through tools like the ones others mentioned) at least helps me feel less frustrated about the unknown aspects of it.

I completely understand your frustration - paying $42,500 and feeling like you have no visibility or control over how it's used is genuinely maddening. The lack of transparency is one of the biggest problems with our tax system. While we can't currently direct our tax dollars, I'd suggest a few things that might help: First, definitely check out some of the tracking tools others mentioned here. Even if it doesn't give you control, understanding exactly where your money goes can at least reduce the anxiety of the unknown. Second, consider getting involved in local politics where your voice actually carries more weight. Many city councils and county boards are much more responsive to individual taxpayers than federal representatives. You might not be able to influence how your federal taxes are spent, but you can have real impact on local budgets. Finally, document your concerns and send them to your representatives regularly. Even if individual letters don't change votes, patterns in constituent feedback absolutely do influence how politicians approach budget issues. The squeaky wheel gets the grease, and politicians pay attention to issues that generate consistent contact from voters. It's not a perfect solution, but it's better than feeling completely powerless about where our hard-earned money goes.

I've been using credit cards for tax payments for the past 3 years and wanted to share some additional tips based on my experience: 1. Set up account alerts on your credit card before making the payment - some processors can take 24-48 hours to show the pending charge, which can be nerve-wracking if you're not expecting it. 2. If you're using this strategy primarily for a welcome bonus (like your Amex), consider timing your payment earlier in the tax season rather than waiting until the deadline. This gives you more buffer time to resolve any potential issues. 3. Keep a copy of your tax return along with the payment confirmation - I had one year where the IRS applied my payment to the wrong tax period, and having both documents made it much easier to get corrected. For your specific situation with the Blue Cash Everyday, that's a great card for this strategy since it has no annual fee. Just make sure the processing fee doesn't eat into too much of your welcome bonus value. In my calculations, as long as the welcome bonus is worth more than about 3x the processing fee, it's usually worth doing. Good luck with whichever processor you choose!

I've been using ACI Payments for the past two years specifically with my Amex cards and haven't had any issues. While their fees are slightly higher (around 1.99% as mentioned), I've found their system to be very reliable even during peak filing season. A few things that might be helpful for your decision: 1. ACI has a really clean interface that clearly shows the total fee before you confirm the payment, so there are no surprises. 2. They send immediate email confirmations with a reference number, and I've always been able to track the payment status through their portal. 3. The payments have consistently posted to my Amex as regular purchases (not cash advances) and counted toward both my minimum spend requirements and earned normal rewards. 4. Their customer service has been responsive the one time I needed to call them about a question. Given that you're trying to hit a welcome bonus with your Blue Cash Everyday card, the slightly higher fee with ACI might be worth it for the peace of mind, especially if this is your first time using a credit card for tax payments. The difference in fees between processors is usually pretty minimal compared to the value of hitting a signup bonus. Just make sure to factor in the processing fee when calculating whether the welcome bonus makes this worthwhile overall!

Don't forget about the Qualified Business Income deduction (Section 199A)! As a self-employed rideshare driver, you can potentially deduct 20% of your net business income. This is ON TOP OF your regular business deductions like mileage or car expenses. Also, make sure you're setting aside money for self-employment taxes. The current rate is 15.3% of your net earnings (to cover Social Security and Medicare taxes that an employer would normally handle).

Something NOBODY mentioned yet - if you're making decent money with rideshare, you should be making QUARTERLY estimated tax payments! I learned this the hard way and got hit with underpayment penalties. Since you don't have an employer withholding taxes, you're supposed to send estimated payments to the IRS four times a year. The due dates are April 15, June 15, September 15, and January 15 (of the following year).

Quick question for anyone who knows - if I have capital loss carryover and also did a Roth conversion this year, can I use the capital losses to offset the income from the Roth conversion? Or does that count as ordinary income subject to the $3000 limit?

This is such a great question and the answers here are spot on! I went through something very similar last year. Had about $8,000 in carryover losses from some bad stock picks in 2021, then finally had a good year with $5,000 in capital gains. Just to add to what others have said - make sure you keep good records of your carryover losses year to year. I almost lost track of mine and had to dig through old tax returns to reconstruct the carryover worksheet. The IRS doesn't send you a reminder of what you're carrying forward, so it's on you to track it. Also, if you're using tax software, it should automatically calculate this for you once you enter your prior year carryover and current year gains/losses. But it's still good to understand how it works like you're doing. You'll use $7,000 of your carryover against your gains, then $3,000 against ordinary income, leaving you with $0 carryover going into next year. Pretty efficient way to finally clear out those old losses!

Adding to what others have said - I went through this exact decision last year for my jewelry business. Started with just the free EIN from IRS.gov as a sole proprietor and it worked perfectly for getting set up on Etsy, Amazon, and even my Square account. The IRS online application literally takes 10 minutes and you get your EIN instantly. No need to pay $425 for an LLC unless you specifically want the liability protection or plan to have employees soon. One tip: when you apply for the EIN, make sure you select "sole proprietorship" as your business type if you're not forming an LLC. The application will ask for your business name - you can just use your legal name or "Your Name DBA [Business Name]" if you want to use a different business name. You can always upgrade to an LLC later if your business grows and the liability protection becomes worth the cost. I'm actually considering it now that my revenue has grown substantially, but starting with just the EIN saved me money in those crucial first months when every dollar counted.

Just went through this exact process for my woodworking business! You definitely don't need an LLC to get an EIN - I got mine directly from the IRS website in about 15 minutes completely free. The key thing to understand is that platforms like Etsy and Amazon are asking for an EIN for tax reporting purposes, not because you need to be incorporated. As a sole proprietor, you can get an EIN and use it instead of giving out your SSN to every platform and vendor. I started with just the free EIN and have been operating successfully for 8 months now. The liability protection of an LLC is nice to have, but for most craft businesses just starting out, the $425+ cost isn't justified until you're making consistent profit. My recommendation: Get the free EIN from IRS.gov now so you can start selling on those platforms. Once your business is generating steady income (maybe $20K+ annually), then revisit whether the LLC makes financial sense for liability protection and potential tax benefits. You can always form an LLC later and transfer your EIN to it - the IRS allows you to change the business structure associated with your EIN if needed.