As someone who's been doing content creation for a few years now, I can confirm that both expenses you mentioned are likely deductible if you're treating this as a legitimate business. For the pedicures/manicures: Since your feet are literally the product in your content, these fall under "ordinary and necessary" business expenses. The key is documentation - keep receipts and note which services were specifically for content creation vs. personal maintenance. I recommend creating a simple spreadsheet linking each service to specific content/photoshoots. For the Surface tablet: If you're using it exclusively (or nearly exclusively) for your business, you can deduct the full purchase price using Section 179 or depreciate it over time. Since you mentioned it's basically only used for taking photos and posting content, you're in great shape here. Pro tip: Start tracking your business expenses in a dedicated app or spreadsheet right now. Include date, amount, purpose, and how it relates to your income-generating activities. This will make tax time so much easier and give you confidence if you're ever questioned about deductions. Also consider other potential deductions you might be missing: portion of your phone bill, internet costs, props/backgrounds, lighting equipment, storage/cloud services, and even a portion of your home if you have a dedicated space for content creation.

Great question! As someone who works in tax preparation, I can tell you that both of these expenses can potentially be deductible, but the key is establishing a clear business purpose and maintaining proper documentation. For your pedicures and manicures: Since your feet are the focal point of your content and directly generate income, these treatments can qualify as ordinary and necessary business expenses. However, you'll need to distinguish between basic maintenance (personal expense) and treatments specifically for your content creation (business expense). Keep detailed records showing which services were done specifically for photoshoots or content creation. For your Surface tablet: If you're using it exclusively or primarily for your business activities (taking photos, editing, posting), you can likely deduct the full cost. You can either take the full deduction in the year of purchase using Section 179 or depreciate it over several years. Some important tips: - Keep all receipts and maintain a business log - Consider opening a separate business bank account - Track the percentage of business vs personal use for any shared items - Document your content creation schedule to show the business connection Since this is your first year with significant income, I'd also recommend consulting with a tax professional who can review your specific situation and ensure you're maximizing deductions while staying compliant.

Has anyone filed a Form 709 electronically? When I go through TurboTax or H&R Block software, they seem to handle income tax returns but not gift tax returns. Am I missing something, or do these forms still need to be filed on paper?

Great question about Form 709! I went through this exact situation last year when I sold my townhouse to my nephew for $180k when it was worth $420k. One crucial detail that hasn't been mentioned yet - make sure you understand the timing requirements. Form 709 is due by April 15th of the year following the gift (so April 15, 2025 for your 2024 transaction). However, if you request an extension for your income tax return, it automatically extends your Form 709 deadline to October 15th. Also, since your gift amount ($405k) exceeds the 2024 annual exclusion of $18,000, you'll definitely need to file Form 709 even if you don't owe any gift tax due to the lifetime exemption. The IRS wants to track these large gifts against your lifetime exclusion amount. One more tip - if this is your first Form 709, make sure to include a clear cover letter explaining the transaction. The IRS appreciates transparency, and it can help avoid follow-up questions later.

Has anyone used Drake Tax software for this situation? I'm preparing several S Corp returns with SEP contributions and Drake seems to automatically put the current year's contribution (made in the following year) on Line 17, but I want to make sure it's handling it correctly.

This is such a common source of confusion! I went through the exact same thing when I started handling my family's S Corp taxes. The key insight that finally clicked for me is that SEP contributions are one of the few exceptions to the normal cash-basis timing rules. Think of it this way: the IRS wants to encourage retirement savings, so they created special timing rules that let you make the contribution after year-end but still deduct it for the previous tax year. This gives you time to see your final numbers before deciding on the contribution amount. Just make sure when your brother makes that 2023 SEP contribution in March 2024, he tells the financial institution it's specifically for tax year 2023. They should give you some kind of documentation confirming this designation. Then that amount goes on Line 17 of the 2023 Form 1120S, even though the cash won't leave the business account until 2024. The deadline for making the contribution is the same as the filing deadline for the return (including extensions), so you have plenty of time to get it sorted out.

Just to clarify something important - TurboTax itself isn't usually making calculation errors. What typically happens is either: 1) users enter information incorrectly, 2) users misunderstand eligibility requirements, or 3) the IRS makes adjustments based on information they have that wasn't included in your return. For example, if you have unreported income that shows up on a 1099 the IRS received but you didn't include, they'll adjust your return accordingly.

I appreciate everyone sharing their experiences here. As someone who's been doing taxes for family members for years, I can confirm that most discrepancies aren't actually TurboTax errors but rather eligibility issues or data entry mistakes. That said, I always recommend using the IRS's own Interactive Tax Assistant (ITA) tool on their website to verify credit eligibility before filing. It's free and walks you through the exact same qualification questions the IRS uses. Also, for peace of mind, you can request a tax transcript after filing to see exactly what the IRS processed vs what you submitted. The key is understanding that tax software is only as accurate as the information you provide and your actual eligibility for credits.

Has anyone used the Household Employment Tax section in TurboTax? I find it super confusing because it asks for the total wages I paid my nanny, but I'm not sure if that should include the taxes I paid to Poppins or just her direct wages?

One thing that helped me was getting a copy of the actual tax deposits Poppins made on my behalf throughout the year. They should be able to provide you with a summary showing the exact dates and amounts of each federal tax deposit they made. This makes it much easier when entering the estimated tax payments in TurboTax because you can enter each payment with the correct date it was actually submitted to the IRS. Also, double-check that Poppins handled both the employer and employee portions of Social Security and Medicare taxes correctly. Sometimes there can be confusion about which taxes were withheld from your nanny's pay versus which ones you paid as the employer. The Schedule H should reconcile everything, but having that detailed breakdown from your payroll service makes the whole process much smoother.