Wanted to add that having a Schedule C loss is much more likely to increase audit risk than just having high expenses relative to income. If your deductions put you in a loss position for multiple years, that's when the hobby loss rules come into play. In your case with $5k income and $2.1k in mileage deductions, you're still showing a profit, so that's much less concerning from an audit risk perspective.

You're definitely overthinking this! As a fellow side business owner, I totally get the anxiety about audit risk, but the reality is that legitimate business expenses are exactly what you're supposed to deduct - regardless of the percentage. The IRS isn't sitting there calculating ratios and flagging returns that hit certain thresholds. What they care about is whether your expenses are: 1. Ordinary and necessary for your business 2. Properly documented 3. Actually business-related (not personal) Since you're already tracking everything with timestamps, locations, and business purpose, you're doing exactly what you should be doing. Don't leave money on the table by under-claiming legitimate expenses just because you're worried about some imaginary percentage rule. Your side business income is small relative to your W-2, you're showing a profit, and mileage is one of the most straightforward business deductions there is. Claim what you're entitled to!

2 Don't forget that if you take Section 179 or bonus depreciation and then sell the vehicle or reduce business use below 50% before the end of its recovery period, you'll face recapture provisions where you have to report as income a portion of the deduction you took. This bit me hard when I sold my business truck after only 3 years.

Just want to add another important consideration - make sure you're aware of the Section 280F "luxury auto" limitations that can apply even to vehicles over 6,000 lbs in certain situations. While most heavy-duty trucks escape these limits, some newer electric trucks with high-end features might still be subject to them. Also, regarding your EV credit question - you mentioned it's electric, but make sure it actually qualifies for the credit. Many electric vehicles have lost eligibility due to the new battery component and final assembly requirements that went into effect. You can check the current list of eligible vehicles on the IRS website. One more tip: consider timing. If your business income varies year to year, you might want to evaluate whether taking the full Section 179 deduction this year maximizes your tax benefit, or if spreading it out with regular depreciation might work better for your overall tax situation.

Don't forget to check if your state offers tax benefits for education expenses too! I'm in New York and was able to claim a state tax deduction for my tuition payments even after I graduated.

This is such a helpful thread! I'm in a similar boat - graduated in 2022 but still making payments on my undergrad loans through my school's payment plan. One thing I learned the hard way is to make sure you're keeping detailed records of ALL your payments throughout the year. I use a simple spreadsheet to track the date, amount, and what the payment was for (tuition vs fees vs interest). This made it so much easier when I needed to prove my qualified education expenses. Also, if you're considering the Lifetime Learning Credit vs the tuition and fees deduction, run the numbers both ways. Depending on your tax situation, sometimes the deduction can be more beneficial than the credit, especially if you're in a higher tax bracket. The deduction can reduce up to $4,000 of taxable income, while the LLC maxes out at a $2,000 credit. Good luck with your filing!

Been there, done that. TBH the early refund option is basically a scam IMO. Last yr I had the same issue - DDD was 2/22, TT promised early deposit, nada happened until exactly 2/22. Called TT customer svc and they just read from a script about "banking partners" and "processing times." This yr I skipped the early option and just had my refund direct deposited - got it exactly on my DDD date. Save ur $$ next time and don't fall for the early deposit hype!

I'm dealing with the exact same situation! Filed through TurboTax on 2/1, got accepted same day, and have a 2/24 DDD but their 5-day early option completely failed. What's really annoying is that I specifically paid extra for this feature based on their marketing promises. I've been checking my account obsessively since Monday thinking maybe it would show up, but nothing yet. Called my bank (Chase) and they confirmed no pending deposits. The frustrating part is TurboTax's website just shows "Your refund is being processed" with no real timeline or explanation for why the early deposit didn't work. Has anyone with a 2/24 DDD actually received their deposit yet today? I'm trying to figure out if this is a widespread delay or if some people are getting theirs on schedule. Really hoping it shows up by tomorrow morning since that's the actual DDD date, but this whole experience has me questioning whether I'll use TurboTax again next year.

I have been in tax hell for MONTHS trying to get my refund from last year. my transcript made no sense to me with all those random codes. I was about to give up when someone told me about taxr.ai. uploaded my transcript and it explained everything perfectly. turns out i had a simple issue that was easy to fix once i knew what was happening. definitely check it out if youre still having issues.

I've been through this exact same situation multiple times! Republic Bank typically takes 3-5 business days once they send the funds to your bank, which sounds like exactly what you're experiencing. Since they sent it on 3/15 (which was a Friday), you're looking at Monday 3/18, Tuesday 3/19, Wednesday 3/20 as your business days. Many banks process ACH deposits overnight, so definitely check your account first thing in the morning - sometimes they show up between 12am-6am. If it's not there by end of business today, I'd call your bank tomorrow to see if there's a pending deposit they can see on their end. The timing you're experiencing is totally normal, even though the stress is real when you're counting on that money!