Don't overthink this. I've been selling vintage toys for years and what I do is just track total inventory purchases vs total sales. I take my total purchase cost for the year, subtract the value of stuff I still have on hand, and that's my COGS. Easy peasy. Never had an issue with the IRS. Just keep your receipts in case they ever ask questions.

As someone who's dealt with similar inventory tracking issues in my small business, I'd recommend going with the retail inventory method that Camila mentioned - it's specifically designed for situations like yours where you have purchase records but can't match specific items to sales. Here's what worked for me: Calculate your average cost per item from all your Korean receipts (total spent ÷ total items purchased), then use that to value your ending inventory. The IRS accepts this approach for small businesses, and it's much more defensible than guessing or ignoring COGS entirely. Also, for future reference, consider using a simple spreadsheet or app to track inventory as you purchase it. Even basic descriptions in English will help enormously next year. You don't want to miss out on legitimate COGS deductions - they can significantly reduce your tax burden compared to just reporting everything as other income.

So if I'm e-filing do I still need to sign anything physically? This is my first time using tax software instead of paper forms and I'm confused about the whole signature process when it's all online.

Don't feel embarrassed about asking this question! I went through the exact same confusion when I filed my first US tax return a few years ago. Those arrow stickers are just guides - you sign directly on the actual signature line on the form, not on the stickers themselves. Your normal signature that you use for bank documents, contracts, etc. is perfectly fine. The IRS isn't looking for calligraphy - they just need a consistent signature that matches what you'd use on other official documents. One thing that helped me was to practice signing my name a few times on scrap paper first, just to make sure I was comfortable with how it looked. And yes, make sure to date it too! The IRS is pretty reasonable about signature variations - they're mainly concerned that you're acknowledging responsibility for the accuracy of your return. You've got this! First-time filing is always nerve-wracking, but you're being smart by asking questions beforehand.

Quick question about Schedule C and business startup - do I have to wait until I make my first sale to start deducting expenses? I'm spending money now on equipment and supplies but won't have any income for probably 2-3 months.

Great question! I went through this exact same confusion when I started my consulting business. The key thing to understand is that Schedule C business deductions and your personal standard deduction are completely independent of each other. Think of it this way: Schedule C calculates your business profit (income minus expenses), and that NET profit then becomes part of your personal income on Form 1040. Then separately, you decide whether to take the standard deduction or itemize your PERSONAL deductions (like mortgage interest, charitable donations, etc.). For your photography equipment - absolutely deductible on Schedule C if it's used for business! The $1,200 camera, editing software, props, backdrops, lighting equipment, memory cards, etc. are all legitimate business expenses. You can either expense smaller items immediately or depreciate larger equipment over several years. One thing to watch out for: make sure you can demonstrate this is a business and not just a hobby. The IRS has a "hobby loss rule" that can disallow deductions if they think you're not trying to make a profit. Keep good records, have a business plan, and try to show profit in at least 3 of 5 years. Also consider setting up a separate business bank account and credit card from day one - it makes tracking expenses so much easier come tax time!

I was in almost exactly your situation last year! 29 years old, hadn't filed since 2018, and felt completely overwhelmed. Here's what I wish someone had told me: First, don't panic about the 2019 deadline - while you might not be able to claim a refund for 2019 anymore (3-year rule), you should still file it if you owed taxes to avoid penalties piling up. For documents, start simple: create an IRS online account at irs.gov and request your wage transcripts. This will show you all the W-2 income that was reported to the IRS for each year, even if you don't have the physical forms. You can also request transcripts of any 1098-T education forms. The stimulus payments are HUGE - don't miss out on this! I got back over $3,000 in missed stimulus money when I finally filed my 2020 and 2021 returns. You claim them as the "Recovery Rebate Credit" on those tax returns. Since you were likely a dependent during college years, double-check if your parents claimed you. If so, you might not have been required to file for years when you made under ~$12,400, BUT you should still file if any taxes were withheld from your paychecks - that's money you can get back. For software, I personally used TaxAct for prior year returns (way cheaper than TurboTax for multiple years) and it walked me through everything including the stimulus credits. The whole process took me a weekend once I had my documents. You've got this! The hardest part is just starting.

I completely understand the overwhelm you're feeling - I was in almost the exact same situation two years ago! Here's my advice as someone who successfully navigated this mess: **Start with the IRS online account first** - create one at irs.gov and request wage and income transcripts for each year. This will show you exactly what income was reported to the IRS, even if you've lost your W-2s. The identity verification can be tricky online, but it's worth trying first before mailing forms. **Don't stress about the filing order** - you can file your returns in any order. I actually started with 2021 first because I knew I'd get the biggest refund (stimulus money + withholdings), which gave me motivation to continue. **You're likely owed significant money** - between missed stimulus payments (potentially $3,200 total) and any tax withholdings from your part-time jobs, you could be looking at a substantial refund rather than owing money. **For the Pell Grants** - these are generally not taxable income as long as you used them for qualified education expenses (tuition, required books/supplies). Room and board portions would be taxable, but many students don't realize this distinction. **Consider your dependency status carefully** - if your parents claimed you as a dependent during those college years, it affects your filing requirements and eligibility for certain credits. The hardest part really is just getting started. Once you request those transcripts and see what income was actually reported, the path forward becomes much clearer!

As a CPA who specializes in small business taxation, I want to emphasize a few key points that haven't been fully addressed: 1. The Tesla Model S will definitely fall under the luxury auto depreciation limits since it weighs under 6,000 lbs. For 2023, you're looking at a maximum first-year deduction of $20,200 (assuming 100% business use and the vehicle qualifies for bonus depreciation). 2. However, there's an important consideration specific to landscaping businesses: if you're hauling equipment or materials, make sure the Model S actually meets your business needs. The IRS expects a reasonable business purpose for the vehicle choice. 3. Consider the Section 179 vs. bonus depreciation election carefully. Sometimes it's better to spread the deduction over multiple years depending on your income situation. 4. Don't forget about the commercial clean vehicle credit (up to $7,500) that might apply to your business purchase of an electric vehicle, which is separate from the consumer EV credit. I'd strongly recommend consulting with a tax professional who can model different scenarios based on your specific business income and projections. The depreciation choice you make in year one affects your taxes for the next 5+ years.

I appreciate all the detailed responses here! As someone who's been through several business vehicle purchases, I'd like to add a practical perspective that might help @aaee9b14873f. Before getting too deep into the tax implications, consider whether a Tesla Model S truly makes sense for a landscaping business. While the tax benefits are important, the practicality matters too. A Model S has limited cargo space and relatively low ground clearance compared to trucks or SUVs that most landscaping businesses rely on. If you're set on electric, you might want to look at the Ford F-150 Lightning or upcoming electric trucks that would qualify for the heavy vehicle exception (over 6,000 lbs GVWR). These would allow you to potentially expense the full purchase price in year one under Section 179, assuming your business income supports it. That said, if the Model S genuinely fits your business needs - perhaps you do high-end residential consulting or primarily handle business development rather than hands-on landscaping - then the luxury auto limits everyone mentioned are accurate. Just make sure you can justify the business purpose if the IRS ever asks. Also, don't forget about your state's specific rules. Some states have additional incentives or different depreciation schedules that could affect your decision.