Something nobody mentioned: these billionaires sometimes intentionally take salaries of $1 for PR purposes, claiming they're not taking compensation, while using the loan strategy behind the scenes. It's basically a marketing tactic to appear selfless while actually using more tax-efficient methods.

There's also another strategy that works alongside "buy, borrow, die" - charitable remainder trusts. Billionaires will donate appreciated stock to a trust, get an immediate tax deduction, and then the trust sells the stock without paying capital gains taxes. They can then receive payments from the trust for life while appearing philanthropic. The kicker is they often retain some control over how the money is invested within the trust, and their family members sometimes end up running the charitable foundation that eventually receives the remainder. So they get tax benefits, maintain influence over the assets, and create a legacy vehicle for their heirs - all while reducing their taxable estate. It's another layer of the wealth preservation puzzle that works especially well when combined with the borrowing strategies everyone's been discussing.

I appreciate seeing all this detailed advice! As someone who's been through a similar situation, I want to emphasize one crucial point that hasn't been mentioned yet - make sure you're tracking your odometer readings at the beginning and end of each tax year. The IRS wants to see your total annual mileage broken down into business and personal use. So even if you have perfect records of your business trips, you'll still need to know your total mileage for the year to calculate the business use percentage. I learned this the hard way when I realized I had great business trip records but no way to prove what percentage of my total driving was business-related. A simple solution is to take a photo of your odometer on January 1st and December 31st each year, and maybe once mid-year as a backup. This gives you the total annual mileage baseline that the IRS expects to see on your Schedule C. Also, since you mentioned using Excel to organize everything - consider adding a column for cumulative business miles. This makes it easy to see patterns and ensures your claimed deduction matches your calculated total. Having that internal consistency in your records goes a long way toward demonstrating credibility if you're ever questioned.

This is exactly the kind of thorough advice I was hoping for! Reading through everyone's experiences and suggestions has given me much more confidence in setting up proper mileage documentation. I'm particularly grateful for the clarification about home-based businesses and the "principal place of business" rule. I was genuinely worried that having only one client might somehow disqualify my trips as legitimate business miles, but understanding Revenue Ruling 99-7 puts that concern to rest. The Excel spreadsheet structure that Douglas outlined is perfect - I'm going to implement that format right away. I especially appreciate the tip about taking odometer photos at the beginning and end of each year. It's such a simple step that I completely overlooked, but it's clearly essential for demonstrating the business use percentage. For my immediate situation, I think I'll go with the standard mileage rate since my trips are consistent and straightforward. I'll use Google Maps to calculate the exact distance for my standard route and document that methodology in my records. One follow-up question: since I sometimes make multiple trips in a single day (pickup in the morning, delivery in the afternoon), should I log these as separate entries in my spreadsheet, or can I combine them into a single entry for the day's total business miles?

I'm currently going through this exact same situation - my Michigan return went under review 4 days ago and I was immediately concerned I'd made an error somewhere. This thread has been incredibly helpful and reassuring to find! Like so many others here, I also have medical expenses coming up (some dental work that can't be delayed much longer) and was really counting on that refund timeline being consistent with previous years. The complete absence of any estimated timeframe from Michigan Treasury is really frustrating when you're trying to plan around healthcare costs. From reading everyone's experiences here, it sounds like that 2-3 week window is pretty typical for these reviews, and most seem to resolve on their own without needing any additional documentation. The randomness factor that several people mentioned actually gives me some peace of mind - knowing it's likely just standard verification rather than something I did wrong on my return. I'm going to try to be patient and wait at least 2 weeks before calling, but it's comforting to know that when people do call, they typically get useful information about what triggered the review. Thanks to everyone for sharing their timelines and outcomes - this thread has been a huge help for managing the anxiety that comes with waiting on money you need for medical expenses. I'll definitely update with my progress to help others who are starting this waiting period. It's reassuring to know we're all navigating this uncertainty together!

I'm going through the exact same situation right now! My Michigan return went under review 6 days ago and I was starting to panic thinking I'd made some kind of mistake on my filing. This thread has been such a lifesaver - it's incredible to see how many people are experiencing this identical situation this tax season. Like so many others here, I also have upcoming medical expenses (some follow-up appointments after a recent injury) and was really counting on that refund timeline being predictable like it's been in previous years. The complete lack of any estimated timeframe from Michigan Treasury is so frustrating when you're trying to budget for healthcare needs. From reading everyone's shared experiences, it sounds like that 14-21 day window is pretty standard for these reviews, and the vast majority resolve automatically without requiring any additional documentation from us. The randomness factor that several people mentioned actually gives me some comfort - knowing it's likely just routine verification rather than an error I made. I'm going to try to be patient and wait at least 2 weeks before calling, but it's reassuring to know that when people do reach out, they usually get helpful context about what triggered the review. Thanks to everyone for sharing your timelines and outcomes here - this thread has been incredibly helpful for managing the stress that comes with waiting on money you need for medical expenses. I'll definitely update with my progress to help others who are just starting this waiting period. It's comforting to know we're all navigating this uncertainty together!

Something I don't see mentioned yet - you'll also need to make quarterly estimated tax payments going forward if you continue getting 1099 income! The IRS expects you to pay taxes throughout the year, not just at filing time.

As someone who went through this exact same confusion last year, I feel your pain! One thing that really helped me was understanding that the 1099-NEC doesn't get "attached" anywhere - it's just your record of income that you need to report. Here's what worked for me: In your tax software, look for sections labeled "Business Income," "Self-Employment," or "Freelance Work" rather than looking for "1099-NEC" specifically. The software will ask you to enter the income amount from Box 1 of your 1099-NEC, then it automatically generates Schedule C and Schedule SE for you. Don't panic about the additional taxes - yes, you'll owe more than usual since nothing was withheld, but you can also deduct legitimate business expenses like software, equipment, and even a portion of your home internet if you use it for work. Keep all your receipts! If you're really stuck, consider upgrading your tax software or switching to one that includes self-employment features. It's worth the extra cost to avoid mistakes on your first year with 1099 income.

Has anyone successfully dealt with excess contributions through TurboTax? I'm confused about how to report this correctly in the software.

I went through something very similar last year and can relate to the stress you're feeling! The good news is this is definitely fixable, but you'll need to be persistent with Fidelity to get it handled correctly. First, call Fidelity back and ask to speak with someone in their IRA department specifically - don't just talk to general customer service. Tell them you need to "recharacterize" your withdrawal as a "return of excess contribution" for 2024. They should be able to do this since you're still in the same tax year. Make sure they understand you're correcting an excess contribution, not just making a regular withdrawal. Once they process this correctly, you'll get a 1099-R form that properly shows the distribution as a return of excess contribution. Any earnings that were generated on that excess contribution will be taxable income for 2024 and potentially subject to the 10% early withdrawal penalty if you're under 59½. Since you've already filed, you'll likely need to file an amended return (Form 1040-X) once you get the corrected documentation from Fidelity. The timing actually works in your favor since you caught this so quickly - there probably weren't significant earnings on the excess contribution during that short time period. Don't panic about the penalties - if Fidelity processes this as a proper excess contribution removal, you should be able to avoid the 6% excise tax. Just make sure you get the right paperwork from them showing it was handled correctly.