This is such a common source of confusion! I went through the same thing last year when I had my kitchen remodeled. The key takeaway from all the great advice here is that for YOUR situation (personal home renovations), you don't need to issue any 1099s to your plumber, electrician, or drywall contractor - regardless of how much you paid them. The 1099 requirement only kicks in when you're paying contractors for business purposes, like rental properties or home office work. Your friend who mentioned the 1099s probably owns rental properties or runs a business from home. That's where the confusion often comes from - people mix up personal vs. business expense rules. For personal home improvements, you're just a homeowner paying for services, not a business with reporting obligations. Save yourself the headache and focus on keeping those receipts for potential tax credits or when you sell your home!

Just to add one more important point that might help future readers - timing matters too! If you DO end up needing to issue 1099s (like for rental property work), remember that 1099-NECs are due to recipients by January 31st and to the IRS by the same date if filing electronically. You also need to send Copy A to the IRS and provide copies to your contractors. For those managing multiple properties or running businesses, I'd recommend setting up a system early in the year to track contractor payments and collect W-9s upfront. It's much easier than scrambling in January to get all the paperwork together. And definitely keep detailed records of what work was done where - especially if you have both personal residence work and rental property work with the same contractors.

One thing nobody's mentioned - make sure the specific EV truck model you're looking at actually qualifies for the Commercial Clean Vehicle Credit. Not all EVs qualify anymore due to battery component and mineral requirements in the Inflation Reduction Act. For the commercial credit, the rules are a bit different than the personal credit, but there are still requirements about where the vehicle is manufactured and where battery components come from. The dealer should be able to provide documentation about whether it qualifies.

Great question Emma! I went through something very similar last year with my construction business. You absolutely can claim the Commercial Clean Vehicle Credit as a sole proprietor - the IRS doesn't require you to have an LLC or corporation to qualify for business tax credits. A few key things to keep in mind: 1. **Business use documentation is critical** - Since you're claiming 100% business use, keep detailed records from day one. I use a simple app to track every trip and its business purpose. 2. **Vehicle registration** - You can register it in your personal name since that's how you operate as a sole proprietor. No need to complicate things with DBA registration for the vehicle. 3. **Form 8936** - You'll claim the credit on this form when filing your taxes, and the credit flows through to reduce your overall tax liability. 4. **Double-check vehicle eligibility** - Make sure the specific truck model you're buying actually qualifies. Some models lost eligibility due to the updated battery component requirements. One bonus tip: If you're buying the truck outright, consider how Section 179 depreciation might work alongside the credit to maximize your first-year tax benefits. With your $95K business income, you have plenty of room to work with. The fact that you're planning to form an LLC next year is smart for liability protection, but don't let that delay your truck purchase if you need it for business now!

I'd also suggest checking your credit reports immediately to see if there's any other suspicious activity. If someone did gain access to your Uber account, they might have tried to access other accounts too. When you contact Uber, make sure to emphasize that you need this resolved BEFORE the tax filing deadline. Ask them for a specific timeline on when they can provide either a corrected 1099-NEC or detailed documentation proving the error. Get this commitment in writing via email. If you can't get it resolved in time for filing, you might want to consult with a tax professional about how to handle reporting this on your return while the dispute is ongoing. The IRS has specific procedures for situations like this, but you want to make sure you're protected if they come asking questions later. Also, change your Uber account password immediately and enable two-factor authentication if available. Even if this turns out to be a simple system error, it's better to secure your account now.

I had a very similar experience with Uber last year! Got a 1099-NEC for about $280 that I definitely never earned. After going through their support system for weeks with no resolution, I ended up having to file my taxes with a statement explaining the discrepancy. Here's what worked for me: I kept detailed records of all my attempts to contact Uber (screenshots of support tickets, dates of calls, etc.) and attached a letter to my tax return explaining that I received an erroneous 1099-NEC that I had disputed with the company. I reported the income on my return but then subtracted it as "Other Income" with the explanation attached. The IRS never questioned it, and about 6 months later Uber finally sent me a corrected 1099-NEC showing $0. Definitely frustrating, but you can work around it if Uber doesn't fix it in time for filing. Just make sure you document everything thoroughly in case you ever get audited. The key is not to ignore it - the IRS computers will flag you if they see a 1099 that doesn't match your return. But with proper documentation, you can protect yourself even if the company is slow to fix their mistake.

Has anyone used an app to track mileage as you go? I tried keeping records manually and always forget. Need something automatic.

For your specific situation as an independent contractor working with one client, your recordkeeping approach sounds solid. Just make sure you're also documenting the business purpose for each trip - even though it's repetitive (like "Material pickup from [Client Name]" and "Delivery to [Client Name]"), the IRS wants to see that detail. One thing to consider: since you're doing regular round trips, you can deduct both legs of the journey. So if it's 10 miles each way, that's 20 deductible business miles per round trip. Many people forget to count the return trip home. Also, keep your odometer readings if possible. While not strictly required for the standard mileage method, having start/end odometer readings for business trips adds credibility to your records. I learned this the hard way during an audit a few years back - the agent was much more satisfied when I could show actual odometer documentation rather than just calculated distances. Your Excel approach is perfect. Just make sure to back it up regularly and maybe print a copy for your tax files. Digital records are fine, but having a paper backup never hurts!

Sorry this happened to you. Just to add a warning - be extra careful with this. My friend tried to claim stolen crypto as a loss in 2024 and got audited. The IRS made him provide tons of documentation. They're REALLY suspicious about crypto "theft" claims since some people try to use it to avoid taxes. Make sure you have solid proof it was actually stolen!

I went through something very similar last year when my hardware wallet got compromised and $15k in crypto was stolen. Here's what I learned from working with a tax attorney: You absolutely need to report the "sale" on Form 8949 as if you disposed of the crypto on the date it was stolen, but you can also claim a theft loss. The key is having bulletproof documentation - police report, wallet provider confirmation of unauthorized access, transaction logs showing the transfer to unknown addresses, and any communication attempts with exchanges where the thief cashed out. One thing that helped my case was getting a forensic analysis from a blockchain analytics company that traced the stolen funds and showed they were mixed/tumbled, which is classic money laundering behavior thieves use. This cost me about $500 but was worth it during my audit. Also, keep in mind that theft losses are subject to a $100 floor per incident, and you can only deduct the amount that exceeds 10% of your adjusted gross income. So depending on your income, you might not be able to deduct the full loss amount. The process is stressful but doable if you have proper documentation. Don't let the fear of an audit stop you from claiming what you're legally entitled to claim.