Just a heads up, I've been doing DoorDash for 3 years now and you might not even need Form 4562 at all. If you're using the standard mileage deduction (most drivers do), you don't need to fill out 4562. Form 4562 is only required if you're taking actual expenses for your vehicle AND claiming depreciation, which is way more complicated. With standard mileage (65.5 cents/mile for 2025), depreciation is already built into that rate.

I had the exact same frustrating experience with H&R Block last tax season! The customer service rep telling you Form 4562 won't be available until January 31st is completely wrong - that form has been available since the beginning of tax season. What's actually happening is that H&R Block's software has a built-in workflow that requires you to complete certain prerequisite steps before it unlocks Form 4562. You need to fully complete your Schedule C (business income/expenses) first, including entering all your DoorDash income and selecting that you want to claim vehicle expenses. Here's the key question though: Do you actually need Form 4562? If you're planning to use the standard mileage rate (65.5 cents per mile for 2025), you DON'T need Form 4562 at all. The depreciation is already built into that rate. You only need Form 4562 if you're using actual vehicle expenses AND want to claim depreciation, which is much more complex and often not worth it for most delivery drivers. Before you switch tax software entirely, try completing your Schedule C first with the standard mileage method. You might find that solves your problem without needing Form 4562 at all!

I ran into this exact issue! The trick is to look at Schedule E (Supplemental Income and Loss) from last year's return, not Form 4562 or 8582. Look at line 18 where it says "Depreciation expense or depletion" - that shows last year's depreciation. But FreeTaxUSA wants TOTAL prior-year depreciation, so you need to add that to the prior-year amount from the year before. If you've owned the property for multiple years, you'd need to add up all previous years' depreciation to get the cumulative amount that FreeTaxUSA is asking for. It's super confusing!!

As a tax professional, I want to clarify the confusion in this thread. The "Prior-Year Depreciation" that FreeTaxUSA is asking for is indeed the CUMULATIVE total of ALL depreciation taken on the property from the time you started depreciating it through your last filed return. This amount is found on Form 4562, Part IV, Line 22 (Summary section) from your most recent tax return. This line shows the total accumulated depreciation claimed on the property over all years of ownership, not just the previous year's depreciation. For Sean's situation with $15,730 - that's the correct cumulative amount to enter. Don't add anything to it or look elsewhere. FreeTaxUSA will use this to calculate your current year's depreciation and maintain the proper depreciation records going forward. The confusion often comes from the term "Prior-Year" which sounds like it means just last year, but in tax software context, it means "all years prior to this filing year combined.

Does anyone know if you have to pay the tax immediately when you buy the instrument, or just when you file taxes next year? I'm in a similar situation with my scholarship.

Just wanted to add another perspective on keeping records - I learned the hard way that you should also save your original scholarship award letter! Mine specifically outlined what expenses were allowed, and when I got audited two years later, that letter was crucial in proving which expenses I could legitimately treat as qualified vs unqualified. Also, if your scholarship comes from an outside organization (like yours does), they might not report it to your school on Form 1098-T, which means you'll need to be extra careful about tracking and reporting it yourself. The IRS will still expect you to report the taxable portion even if it doesn't show up on any forms they receive. One more tip - if you're unsure about whether something counts as qualified, err on the side of caution and treat it as taxable. It's better to pay a little extra tax than to get hit with penalties later for underreporting!

Quick question - how would this even show up on a paystub? Would it be obvious if an employer was making you pay both halves of FICA? My paystubs are confusing and just show a bunch of different deductions.

I went through something similar at my previous job and want to share what I learned. Your employer's request is definitely illegal, but I'd also recommend checking if they've already started doing this without telling you properly. Look at your most recent paystub and calculate what your FICA withholding should be: multiply your gross pay by 0.0765 (that's 7.65% total for employee portion). If the actual withholding is close to double that amount (around 15.3%), they may have already started making you pay both portions. Also, keep in mind that if your employer does this, you'll essentially be overpaying your taxes. When you file your tax return, you should get a refund for the overpaid amount, but that doesn't make what your employer is doing legal. You shouldn't have to wait until tax season to get back money that was illegally withheld from your paychecks. Document everything - the conversation with your boss, your current and future paystubs, and any written communication about this policy. This documentation will be crucial whether you decide to confront your employer or report them to the IRS.

Has anyone else noticed that the AMT exemption amount actually phases out at higher incomes? Like it starts to reduce once you hit around $523,900 for single filers in 2023. Just mentioning because talking about being "above the exemption" can be misleading. You have to actually do the calculation to know.

You're probably overthinking this! With income in the mid-to-high 80s and what sounds like a straightforward tax situation, you're likely not going to owe AMT even though you're above the exemption threshold. The exemption amount is just where the calculation starts - being above it doesn't automatically mean you owe additional tax. AMT really kicks in when you have significant "tax preference items" like large state/local tax deductions, certain investment income, or stock option exercises. If you're using tax software, it will automatically run the AMT calculation for you and include Form 6251 if needed. You don't have to manually figure it out. Even if it turns out you do need to file the form, the software handles all the complexity. My advice? Don't stress about it too much. Let your tax software do the heavy lifting, and if you end up owing AMT, it's probably not going to be a huge amount at your income level. The IRS designed this system to catch high-income taxpayers with complex situations, not people with regular W-2 income.