Has anyone actually gotten audited for small theatre production income? I'm in a similar situation and wondering how detailed the IRS actually gets with these small creative projects.

This is exactly the kind of situation where keeping meticulous records from day one makes all the difference! I learned this the hard way after my first indie film project where I had similar income/expense confusion. One thing I don't see mentioned yet - make sure you're tracking your expenses by category that align with Schedule C categories. The IRS has specific line items for things like "advertising and promotion," "contract labor," "office expenses," etc. When you're organizing your theatre expenses, try to fit them into these standard categories rather than just lumping everything together as "production costs." Also, since this was your first time producing, you might want to consider whether this was a one-time thing or if you're planning to do more productions. If it's going to be ongoing, you should think about setting up proper business record-keeping from the start. It makes everything so much easier come tax time, and it shows the IRS that you're treating this as a legitimate business rather than just a hobby. The profit-sharing arrangement with the partner theatre is definitely deductible as you've been told, but document the business purpose clearly. Keep any emails, contracts, or written agreements that show this was a legitimate business arrangement, not just splitting money with friends.

If anyone else is confused about timezones like me, I found that most tax software automatically adjusts for your timezone based on your location. I used TurboTax last year and it showed a countdown timer with my local deadline. Just make sure your address info is correct in the software!

Great question about time zones! As someone who's dealt with this exact situation before, I can confirm that Carmen is absolutely right - it's based on your current legal residence, not where your income was earned. Since you're living in Colorado, your deadline is 11:59 PM Mountain Time on October 15th. One thing I'd add is to double-check that your current address is correctly listed on your tax return, since that's what the IRS uses to determine your time zone. Also, given that you're cutting it close, I'd strongly recommend not waiting until the very last minute on Tuesday evening. The e-filing systems can get overwhelmed on deadline day, and if there are any technical issues or if your return gets rejected for any reason, you might not have time to fix it and resubmit. Maybe consider trying to wrap it up during your lunch break or earlier in the evening if possible? Better safe than sorry with the IRS!

Use TurboTax or FreeTaxUSA - they make it super easy to enter even tiny W-2s like this. Takes maybe 2 minutes and saves all the worry. I had a similar situation with a $45 W-2 last year and just entered it to avoid any headaches.

Just to add another perspective - I work in payroll and can confirm that employers are required to issue W-2s for any amount of wages paid, even if it's just $24.50. The lack of federal tax withholding is completely normal for such a small amount - the withholding tables are designed so that very low earnings don't trigger federal income tax withholding. However, as others have mentioned, you absolutely should report this income. The IRS receives copies of all W-2s electronically, and their automated matching system will flag your return if there's a discrepancy. Even though the actual tax impact might be zero (depending on your total income), omitting it could trigger correspondence that's way more hassle than just including it. Pro tip: If you're using tax software, it will automatically calculate whether this small amount actually affects your tax liability. In many cases, it won't change what you owe or your refund amount, but reporting it keeps you compliant and avoids potential issues down the road.

Great question about the QBI deduction! Since you're filing Schedule C as a sole proprietor, you likely do qualify for the 20% Qualified Business Income deduction. This applies to your net profit from the food truck business (after all deductions) and can be a significant tax saver. One thing I haven't seen mentioned yet is the importance of keeping detailed mileage logs. Since you're traveling between events, commissary kitchens, and supply runs, those business miles add up quickly. You can either deduct actual vehicle expenses (gas, maintenance, insurance) or use the standard mileage rate - whichever gives you a bigger deduction. Also, don't forget about business insurance premiums! Your food truck liability insurance, equipment coverage, and any business-related health insurance premiums are all deductible. For record-keeping, I'd strongly recommend getting a dedicated business bank account and credit card if you haven't already. It makes tracking expenses so much easier, especially during tax season when you're trying to separate personal from business expenses. The fact that you're asking these questions shows you're being proactive about your taxes, which is smart. Even without a CPA right now, keeping good records will save you time and money whether you eventually hire one or continue doing your own taxes.

One thing I haven't seen mentioned yet that could save you significant money is considering whether your food trailer qualifies for bonus depreciation. Under current tax law, you might be able to deduct 80% of the trailer and equipment costs in the first year (2024) through bonus depreciation, rather than spreading it over 5 years with regular depreciation. Also, since you mentioned using volunteers (spouse and relative), make sure you're handling this correctly. If they're truly volunteers and you're not paying them wages, that's fine. But if you start paying them regularly, you'll need to consider payroll taxes and proper documentation. For your commissary kitchen expenses (if you use one), those are fully deductible as rent. Same goes for any storage fees for your trailer. One often-overlooked deduction for food trucks is professional development - if you attend food service trade shows, take food safety courses, or join food truck associations, those costs are deductible as business education expenses. Finally, don't forget about your business license fees, health department permits, and any certifications you need to maintain. These are all ordinary and necessary business expenses that should be deducted. Keep receipts for everything and consider using a mileage tracking app on your phone - it makes documenting business travel much easier than trying to recreate logs later!

10 Has anyone calculated whether the new expanded Child Tax Credit for 2025 changes this calculation at all? I heard they increased the amount and made it more refundable, which might impact whether filing separately or jointly is better for families with multiple children.

As a tax professional, I want to emphasize that for families with 5 children and your income level ($135,000 combined), filing jointly is almost certainly your best option. The key issue is that when married filing separately, the Child Tax Credit phases out starting at $75,000 per person instead of $150,000 for joint filers. With your combined income, one or both of you would likely exceed this lower threshold, reducing your total credits significantly. Additionally, filing separately would disqualify you from the Earned Income Credit entirely, which could be worth thousands with 5 qualifying children. You'd also lose access to education credits and the Child and Dependent Care Credit. I'd strongly recommend using tax software that can calculate both scenarios side-by-side so you can see the actual dollar difference. In my experience with large families at similar income levels, filing jointly typically saves $2,000-$4,000 compared to filing separately.