Important point everyone is missing: If you use the standard mileage deduction rate for the first year, you can switch between standard mileage and actual expenses in future years. But if you use actual expenses the first year, you're LOCKED IN to using actual expenses for the life of that vehicle. THIS IS HUGE if you're buying a car specifically for gig work. Get professional advice before making this decision because it could cost you thousands over the life of the vehicle if you choose wrong in year one. Also, keep a mileage log no matter what method you choose. IRS requires it even if you go with actual expenses. There are good apps for this - I use Stride.

Something else to consider that might affect your decision - if you're consistently making $650/week between both of you from gig work, you're looking at around $33,800 annually in self-employment income. This means you'll owe self-employment tax (15.3%) on top of regular income tax. A dedicated business vehicle can help offset some of that tax burden, but make sure you're also setting aside money quarterly for estimated tax payments. The IRS expects you to pay as you go when you're self-employed, not just at year-end. Also, don't forget about business insurance. Your personal auto policy likely won't cover you during commercial activities. You'll need either rideshare coverage or commercial insurance, which will be another deductible business expense if you go the actual expenses route. One more tip: if you do buy a dedicated gig car, consider getting it inspected and any needed repairs done before you start using it for business. Those initial repair costs could potentially be deductible as startup expenses.

My company offers $150/month for transit and they don't withhold taxes either. My accountant said as long as it's under the IRS limit and used for qualified transportation, I'm good. The 2025 limit is like $300 I think?

I've been dealing with a similar situation at my company and wanted to share what I learned after doing some research. The tax treatment really depends on HOW your employer is providing these rideshare reimbursements. If they're treating it as a "commuter benefit" under IRS Section 132(f), then up to $300/month (for 2025) can be tax-free. However, many employers mistakenly think all rideshare reimbursements automatically qualify, but the IRS has specific rules about what counts as "qualified transportation." For rideshares to qualify as tax-free, they generally need to be part of a formal commuter benefit program and used for specific purposes like getting to/from transit stations or for carpooling arrangements. Just regular Uber/Lyft rides from home to work usually don't qualify unless there are special circumstances. Since you mentioned it's showing up on your paystub without taxes withheld, I'd double-check with your HR department about how they're coding this benefit. You might also want to keep records of exactly what these rides are for, just in case you need to justify the tax treatment later.

Has anyone used the online form for 7004? I tried submitting electronically but got an error about the "consolidated return" field even though I left it unchecked. Is paper filing more reliable for partnership extensions?

I had a similar electronic filing issue with 7004 last year. The problem was that my tax software was automatically populating certain fields based on entity type detection, even when I thought I had left them blank. Try checking if your software has an "entity type" or "return type" setting that might be influencing how it handles the consolidated return question. Also, make sure you're using the correct version of Form 7004 - there are different versions for different entity types. If the electronic filing keeps giving you trouble, paper filing is definitely reliable for partnership extensions. I've never had issues with paper 7004s, and for something as straightforward as a partnership extension, it might be worth avoiding the electronic headaches altogether.

Has anyone tried using the Stride app for tracking mileage instead of manually logging it? I'm doing DoorDash part-time and wondering if the automatic tracking is accurate enough for tax purposes.

For anyone still struggling with this, I want to add that you should also make sure you're separating your business miles from personal miles correctly. I learned this the hard way when I got audited last year - the IRS wants to see that you're only claiming miles driven specifically for DoorDash deliveries, not driving to the store for groceries or personal trips. Keep detailed records showing when you started your dash, your route between deliveries, and when you ended your dash. I use a simple notebook and write down my odometer reading at the start and end of each shift, plus note any personal stops I made (which I don't include in my business miles). Also, if you drive to a specific area to start dashing (like driving from home to a busy restaurant zone), those miles to get to your "work area" can usually be deducted too. Just make sure you can justify that it was for business purposes. The key is being able to prove to the IRS that every mile you claimed was legitimately for business if they ever question it.

This thread has been an absolute goldmine of information! I'm exactly in the position you described, Zainab - wanting to learn small business tax prep but concerned about the time and money investment. Reading through everyone's experiences has completely shifted my perspective on the best path forward. The consensus is overwhelmingly clear: Jackson Hewitt's free classes are really just basic software training with minimal business tax education. What's fascinating is how the discussion evolved to reveal what seems like a much better alternative - the AFSP + VITA combination that several people described. The more I read about the VITA experience, the more convinced I am that it's superior to the chain route in almost every way. Better training quality, ongoing mentorship from experienced professionals, meaningful client work, networking opportunities with retired CPAs and EAs, and you avoid the universally disappointing pay situation at Jackson Hewitt. Plus you're actually helping people who genuinely need tax assistance. I think I'm going to follow the path that emerged from this discussion: complete the IRS Annual Filing Season Program first to build solid tax law foundation, then volunteer with VITA for practical client experience and mentorship. This seems like it would prepare someone much better for eventually handling business clients than hoping to learn complex taxation through JH's basic training. Thanks to everyone who shared such honest, detailed experiences. This thread should honestly be a resource for anyone considering getting into tax preparation - it's exactly the kind of real-world insight you can't get from company marketing materials!

I've been working as a tax preparer for about 8 years now, starting from Jackson Hewitt and eventually building my own practice. Reading through all these experiences brings back memories of my early days! The consensus here is absolutely right - JH's free training is very basic and won't give you the business tax knowledge you're seeking. However, I want to add a perspective that might be helpful: the client interaction skills you develop at chains like JH are genuinely valuable, even if the pay is terrible. What I found most beneficial about my JH experience wasn't the tax knowledge (which was minimal) but learning how to explain complex tax concepts to confused clients, handle upset people during stressful situations, and work efficiently under tight deadlines. These soft skills have been crucial in my independent practice. That said, the AFSP + VITA route that's been discussed here is brilliant and probably superior to the chain experience. You get the same client interaction benefits but with much better mentorship and actual tax education. Plus the networking opportunities with retired tax professionals could be invaluable for building your career. If you do decide to go the JH route despite everything discussed here, my advice would be to supplement heavily with self-study. I spent my off-season reading IRS publications, taking online courses, and eventually pursuing my EA license. The chain experience was just the starting point, not the education itself. For small business taxation specifically, focus on understanding the business purpose test for deductions, proper record-keeping requirements, and the difference between business and personal expenses. These fundamentals will serve you well regardless of which training path you choose.