Just FYI, I claimed my kid living in Japan with my ex and got audited last year. Had to prove I provided more than 50% of his total support. Make sure you have: - Receipts for all money transfers - School tuition receipts if you pay them - A signed statement from the other parent about what they contribute (if possible) - Bills you pay directly (medical, etc) Without good records it's really hard to defend your claim when the IRS comes asking!

This is such a helpful thread! I'm in a similar situation with my son who lives with his grandmother in the Philippines. From what I'm reading here, it sounds like the key is proving I provide more than half his total support as a "qualifying relative" rather than trying to meet the residency test for "qualifying child." I've been sending money monthly for his school, food, and clothing, but I never thought to document everything properly. After reading about Sofia's audit experience, I'm definitely going to start keeping better records of all my transfers and any direct payments I make. Does anyone know if there's a specific dollar threshold for the support test, or is it purely based on the percentage of total expenses? Also, has anyone dealt with getting documentation from family members overseas about what they contribute? My son's grandmother helps with some expenses but I'm not sure how to account for that in the calculation.

Has anyone looked into coworking spaces as an alternative? I'm in the same boat (W-2 remote worker) and my company gives us a $250/month stipend that I use for a local coworking space 2-3 days a week. The membership is 100% tax free since my company pays it directly, and I get out of the house which helps with my sanity lol.

I've been in a similar situation and wanted to share what worked for me. While it's true that W-2 employees can't claim the home office deduction right now, I found a few workarounds that helped: 1. **Equipment purchases**: If you buy office equipment that your employer doesn't provide (monitor, ergonomic chair, etc.), keep receipts. Some employers will reimburse these after the fact if you make a good case. 2. **State tax differences**: Depending on your state, there might still be some remote work deductions available at the state level even if federal doesn't allow them. Worth checking your state's tax code. 3. **Document everything anyway**: Start keeping detailed records of your home office expenses now. If the tax laws change after 2025 (when current restrictions expire), you'll be ready. Plus if you ever do freelance work on the side, those records become valuable. The employer reimbursement route that others mentioned is definitely the best current option. Frame it as a business expense for them rather than asking for a "favor" - most companies save money on office space when employees work remote, so a home office stipend is still cheaper for them than maintaining physical office space.

As someone who's been through the food truck startup process recently, I want to emphasize that you should also consider the timing of when you place the truck "in service" for tax purposes. Since you mentioned you've been operating since August, that's your placed-in-service date - not when you bought it if those dates are different. Also, keep detailed records of any modifications or improvements you make to the truck after purchase. Things like additional cooking equipment, POS system installations, or structural modifications to the kitchen area can often be depreciated separately and sometimes more favorably than the base vehicle. One thing I learned the hard way - if you're planning to expand to multiple trucks in the future, the depreciation strategy you choose now can impact your options later. Section 179 has annual limits that apply across all your business equipment, so if you're thinking about rapid expansion, you might want to discuss with a tax pro whether spreading some depreciation over time makes sense for your long-term plans. Good luck with the empanada business - the food truck industry is challenging but incredibly rewarding when you find your groove!

The Section 179 limit does reset each tax year, so you get the full $1,160,000 limit again in 2026! However, your strategy about potentially saving some depreciation for future years isn't a bad idea from a cash flow perspective. Here's what I'd consider: if your empanada business is profitable this year and you expect to be in a similar or higher tax bracket next year, taking the full Section 179 deduction now makes sense. But if you're just breaking even or expect much higher profits next year when you expand, you might want to use regular MACRS depreciation on the current truck and save your Section 179 capacity for the second truck. One thing to keep in mind - you can't retroactively change your depreciation method once you file, so it's worth running some projections. If you're thinking about a second truck next year, consider what that total equipment cost might be and how much deduction you'll want to take in that year. Also, since you mentioned catering events, make sure you're tracking mileage to and from those events separately from your regular route operations. The IRS likes to see detailed records for mobile businesses, and catering miles can really add up to significant deductions! Your grandmother's authentic recipes sound amazing - there's nothing like family tradition to set you apart in the food truck world!

Maria, I went through something very similar last year when I had to withdraw $6,000 from my Roth for an emergency car repair. The good news is it's much more straightforward than it initially seems! A few practical tips from my experience: First, when you contact your brokerage to make the withdrawal, specifically tell them you want to withdraw "contributions only" - while technically all withdrawals come from contributions first anyway, having this documented in their records can be helpful later. Second, ask them to email you a confirmation of the withdrawal details for your records. When tax time comes, you'll get that 1099-R form that shows the total withdrawal amount. Don't panic when you see it - it will likely show the full amount as a "distribution" without specifying it's penalty-free contributions. That's totally normal. Form 8606 Part III is where you tell the IRS the real story. One thing I wish I had known: keep a simple spreadsheet or document tracking your total Roth contributions by year. It makes filling out Form 8606 so much easier. I had to dig through three years of tax returns to reconstruct my contribution history, which was stressful during an already stressful time. TurboTax walked me through the whole process pretty smoothly once I had all my paperwork together. You've got this!

Maria, I completely understand your stress about this situation! I've been through a similar withdrawal process myself and want to reassure you that withdrawing Roth contributions is actually one of the more straightforward tax situations, even though it can feel overwhelming at first. Since you're only withdrawing $7,500 from your $18,000 in contributions, you're well within safe territory - no taxes, no penalties. The key thing to remember is that your brokerage's 1099-R will just show the withdrawal amount without distinguishing contributions from earnings, so you'll need Form 8606 Part III to tell the IRS this was a contribution withdrawal. For documentation, I'd suggest creating a simple folder (physical or digital) with: your last 3 years of tax returns showing your Roth contributions, any year-end brokerage statements, and the 1099-R you'll receive for this withdrawal. This gives you a complete paper trail if you ever need it. One practical tip: when you call your brokerage to initiate the withdrawal, ask them to note in your account that you're specifically requesting a "contribution withdrawal." While all withdrawals technically come from contributions first anyway, having this documented can provide extra peace of mind. You're making the right choice by only touching contributions and leaving your earnings to continue growing. The paperwork might seem intimidating, but TurboTax should handle most of the heavy lifting once you have your 1099-R in hand. You've got this!

A practical consideration for the piano situation - make sure the donors understand that what the church ultimately sells it for may be very different from the appraised value they deduct. We had a wealthy member donate artwork that was appraised at $18,000 but when our church tried to sell it, the best offer we got was $7,500. The donor was upset because they felt we didn't try hard enough or "gave it away" too cheaply, even though we worked with two different art dealers. The reality is that appraisals often reflect retail replacement value, not what you'll get in a quick sale. This created tension when the donor saw the Form 8282 showing the much lower sale price. Make sure expectations are managed upfront about this possibility!

As someone who's handled several large asset donations at our church, I'd add one more important consideration - transportation and storage logistics. A grand piano isn't something you can just pick up in a pickup truck! Make sure you have a plan for how the piano will be moved from the donors' home to either your church or directly to the buyer. Professional piano movers can cost $300-800 depending on distance and difficulty of the move. Also consider where you'll store it if it doesn't sell immediately - pianos need climate-controlled environments to maintain their condition and value. We learned this lesson when we accepted a donated organ that required professional rigging equipment to remove from a second-floor location. The moving costs ate into our fundraising proceeds significantly. It might be worth getting quotes for piano moving services before finalizing the donation, so you can factor those costs into your fundraising projections. The tax advice others have given is spot-on - just wanted to add this practical element since it can impact the actual benefit to your youth mission fund!