Something nobody mentioned yet - what kind of 1099 work are you doing? If the supplies are directly related to your specific work, you're in better shape even with limited documentation. Like if you're a tutor and buy educational materials, that's clearly business-related. But if you're a delivery driver buying office supplies, that might get more scrutiny.

Since you're doing online tutoring, your office supplies are clearly legitimate business expenses! The fact that you can directly tie each type of supply to your tutoring activities (notebooks for student organization, printer supplies for worksheets, pens for visual aids) actually strengthens your position significantly. For the $375 in supplies you've already purchased, your spreadsheet tracking combined with bank/credit card statements should provide adequate documentation for most of those expenses. The IRS understands that small, frequent purchases don't always come with perfect receipt management. Going forward, I'd suggest implementing a simple system: take quick phone photos of receipts when you remember, and don't stress about the ones you miss. Your spreadsheet plus electronic payment records create a reasonable paper trail. The key is showing a clear business purpose for the expenses, which you definitely have as a tutor. One tip: consider setting up a dedicated business checking account or credit card for 2025 - it makes tracking so much cleaner and gives you automatic documentation for every purchase.

To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c

Hang in there! The 151 code after ID verification is actually pretty normal - it just means they're doing their final review now that they've confirmed you are who you say you are. The fact that you got the 766 code on the same day is actually a good sign that things are moving along. From what I've seen in this community, most people with your timeline (ID verification on 3/06) are seeing their refunds release within 2-4 weeks after the 151 appears. Keep checking your transcripts for updates and try not to stress too much - you're in the final stretch!

Has anyone tried just asking this tax lady straight up how she gets such big refunds? I mean, there are legitimate tax strategies that many people miss. Before assuming fraud, maybe find out what she's actually doing?

Speaking from experience as someone who works in tax compliance, I'd strongly advise staying away from this preparer. The pattern you're describing - dramatic increases in refunds with vague explanations - is textbook fraudulent tax preparation. What's particularly concerning is your coworker's mention of suddenly qualifying for the Earned Income Credit at a $75k income level. That's mathematically impossible under current tax law and suggests the preparer is likely falsifying income or dependents on returns. Here's what I'd recommend: First, ask any coworker who used this preparer to show you their actual tax return (with sensitive info redacted). Look for things like Schedule C business losses they don't actually have, dependents they can't legally claim, or education credits for expenses they didn't pay. Second, if you want to maximize your legitimate refund, consider using one of the analysis tools mentioned here or consulting with a CPA who can explain exactly what they're doing and why. Remember, when the IRS audits these fraudulent returns (and they will), your coworkers will be personally liable for all back taxes, penalties, and interest - potentially thousands of dollars. The temporary windfall isn't worth years of financial headaches.

One thing nobody's mentioned yet is the mileage deduction! When my wife and I did Uber, we found tracking mileage gave us WAY bigger deductions than tracking actual expenses like repairs, gas, etc. For 2024 it's like 67 cents per mile which adds up crazy fast. So if you drive 20,000 miles for Lyft, that's a $13,400 deduction without needing any receipts except your mileage log. We use an app to track automatically whenever we're online with Uber. You can't do both though - either track all actual expenses OR do the mileage deduction. We found mileage usually works out better unless you have a gas guzzler.

I lost thousands in deductions my first year bc my "tax guy" didn't know rideshare stuff well! Make sure whoever does your taxes understands gig work specifically. They should ask about: - Cell phone percentage used for business - Home office if you do any admin work at home - Car insurance, registration fees - Dash cams, phone mounts, cleaning supplies - Health insurance premiums (can be deductible for self-employed) - Any roadside assistance plans Get a mileage tracking app NOW even if its mid-year. The standard mileage rate is usually better than actual expenses unless u have a really expensive vehicle.

Since no one's mentioned it yet, you could also look into buying put options to hedge those concentrated stock positions without selling immediately. This would protect against significant downside risk while you implement a multi-year selling strategy to minimize taxes. Depending on how long your family member has held these stocks, you might also want to chat with them about future gifting strategy. Instead of gifting appreciated stock to the UTMA, they could gift cash which you could then invest in a diversified portfolio from the start, avoiding this problem in the future.

Most brokerages will provide detailed tax lot information if you request it, though the format varies. You can usually find this in your online account under "tax documents" or "cost basis reporting," or call and ask for a "detailed position report" that shows each lot's purchase date, shares, and cost basis. For concentration risk, a common rule of thumb is to limit individual stock positions to 5-10% of the total portfolio each. If your son's account has grown to where individual positions exceed this, that's when diversification becomes more critical than tax optimization. Regarding the 529 strategy - you cannot directly transfer securities from a UTMA to a 529. You'd need to sell the stocks (triggering capital gains), then make cash contributions to a 529 plan. While the 529 would get better financial aid treatment, you'd lose the "step-up in basis" that occurs when your son inherits the UTMA at majority age. A middle-ground approach might be to gradually sell portions of the UTMA over several years, paying the kiddie tax, then contributing the after-tax proceeds to a 529. This spreads the tax impact while improving the financial aid profile. You could also consider keeping some funds in the UTMA for non-education expenses since 529s have penalties for non-qualified withdrawals. The key is modeling different scenarios with actual numbers to see which approach saves the most money long-term considering taxes, financial aid impact, and your family's specific college/career plans.