Something nobody mentioned - check if you have any UBTI (Unrelated Business Taxable Income) on your K-1s! It's usually in Box 20 with code V. If you have any amounts there and you're holding these ETFs in an IRA or other retirement account, you might owe taxes even within your tax-advantaged account. I learned this the hard way with a leveraged natural gas ETF in my Roth IRA. Had to file Form 990-T and pay taxes on the UBTI even though it was in my Roth. Most tax software doesn't warn you about this!

This is such a comprehensive thread - thank you all for sharing your experiences! I wanted to add one more consideration that might help others in similar situations. If you're trading these leveraged ETFs frequently (especially doing any wash sale transactions), make sure you're tracking the basis adjustments from your K-1s throughout the year, not just at tax time. The K-1 income/loss can affect your wash sale calculations, and if you're not accounting for the basis adjustments properly, you might be inadvertently creating more complex wash sale scenarios. I made this mistake with some triple-leveraged ETFs where I was doing tactical trades. The partnership income from the K-1s changed my effective basis, which then affected whether certain sales qualified as wash sales when I repurchased similar positions. My tax software completely missed these nuances until I manually tracked everything. Also, keep detailed records of when you receive your K-1s versus when you file your taxes. Some of these ETF partnerships are notorious for issuing amended K-1s months after the original ones, which can really mess up your filing if you've already submitted your return.

Has anybody used TurboTax Self-Employed for Uber Eats? I heard it imports all ur earnings automatically but costs like $140. Is it worth it or should I just use FreeTaxUSA?

One thing that really helped me when I started with Uber Eats was setting up a separate savings account just for taxes. I automatically transfer 25-30% of each deposit into that account so I'm not scrambling come tax time. Also, don't forget about other deductible expenses beyond just mileage! Things like car washes (to keep your delivery car clean), phone chargers, hand sanitizer, masks, and even tolls can add up. I keep all my receipts in a shoebox and it's saved me hundreds. The key is to start tracking everything NOW - don't wait until tax season. Your future self will thank you! And seriously, those quarterly payments are crucial if you're making decent money. I learned that the hard way my first year.

Has anyone tried "Income Tax Planning" by Langdon, Albrecht, and Coyle? My friend recommended it but it's expensive and I want to make sure it's worth it before buying.

For a solid foundation without getting too overwhelmed, I'd suggest starting with "Taxes Made Simple" by Mike Piper. It's specifically designed for people who want to understand the fundamentals without needing an accounting degree. The author does a great job explaining concepts like marginal tax rates, deductions vs. credits, and different types of income in really plain language. Another excellent choice is "The Tax and Legal Playbook" by Mark Kohler - it covers both personal and business taxes with lots of real-world examples. What I like about it is that it explains not just how to follow the rules, but why certain tax strategies exist in the first place. If you end up doing any freelance work or side business, definitely pick up a copy of "Tax Savvy for Small Business" by Frederick Daily. It's become my go-to reference for understanding business deductions and self-employment tax calculations. The key is starting with one book that gives you the big picture, then diving deeper into specific areas as needed. Don't try to learn everything at once - taxes are complex enough that even professionals specialize in different areas!

This thread is so helpful! I'm dealing with something similar at my new job. One thing I discovered is that sometimes companies use their own internal codes that aren't standard across all employers. For example, my paystub has "PARK" and "CAFE" deductions that turned out to be parking fees and cafeteria plan contributions that I had signed up for during orientation but completely forgot about. For the $95 jump, I'd also suggest checking if you recently changed your filing status or number of allowances on your W-4 form. Even small changes there can have a big impact on how much federal tax gets withheld. Also, if you're in a state with income tax, sometimes those calculations get updated mid-year based on new tax tables. One resource that helped me was my company's employee handbook - it usually has a section explaining all the benefit deductions and what they're for. And don't hesitate to ask a trusted coworker! I was embarrassed to ask HR but found out later that like half my team had the same questions when they started. The good news is once you understand your specific company's deduction codes, future paystubs will make way more sense. Hang in there!

I'm going through the exact same thing right now! Just hit my 3-month mark last week and suddenly my deductions jumped by like $80. Reading through all these responses is making me realize I probably got auto-enrolled in benefits without paying close attention to the costs. The acronym breakdown that Taylor provided is super helpful - I've been staring at "OASDI" on my paystub for weeks not knowing what it meant. And the suggestion about checking if you got a raise or bonus is spot on - I think I did get a small merit increase recently that I didn't connect to the higher deductions. I'm definitely going to try that spreadsheet idea to track patterns over time. It's so reassuring to know that literally everyone goes through this confusion when starting their first "real" job. I was honestly starting to think there was something wrong with me for not understanding basic payroll stuff! Going to schedule time with HR this week to go through everything line by line. Thanks everyone for making me feel less alone in this payroll maze!

Slightly different perspective - you could consider making an S-Corp election effective 1/1/24 even though it's past the deadline. The IRS allows for late S-Corp elections if you have "reasonable cause." Given that you were already operating as if you were an S-Corp (paying yourself W-2 wages), you might have a case for relief under Revenue Procedure 2013-30.

I went through almost the exact same situation last year! My SMLLC had been paying me W-2 wages for three years without S-Corp election. After panicking for weeks, I ended up working with a tax attorney who helped me file for late S-Corp election under Revenue Procedure 2013-30. The key was demonstrating that I had "reasonable cause" - specifically that I was operating in good faith as if I were an S-Corp (regular payroll, proper withholdings, etc.) but simply missed the technical filing requirement. We submitted Form 2553 with a detailed explanation letter showing my payroll records and explaining the misunderstanding. The IRS approved the retroactive election back to my original intended date, which meant I didn't have to amend any returns or deal with the Schedule C conversion. The whole process took about 6 months, but it was way less painful than I expected. Definitely worth exploring before you commit to amending multiple years of returns!