Quick question - does anyone know if this same principle applies to cash back from credit cards used for business purchases? Like if I get 2% back on all my business expenses, should I be reducing all my deductions by 2%?

This is a really common confusion for freelancers and small business owners! I dealt with something similar when I got a promotional bonus from a business credit card signup. The consensus here is spot on - you can only deduct your actual out-of-pocket expense of $40. The $200 gift card effectively reduced your cost basis for the equipment, just like if you had used a coupon or bought the items on sale. One thing to keep in mind for future reference: make sure you're keeping good records of these promotional bonuses and how you use them. The IRS likes to see clear documentation that separates business and personal use, especially when gift cards or rewards are involved. Also, since you mentioned you're a freelance videographer, don't forget you can still deduct the full $40 plus claim depreciation on the camera equipment over time (depending on the cost and type of equipment). Sometimes the depreciation deduction can be more valuable than the immediate expense deduction anyway!

Has anyone actually had to go through the amendment process with Form 8962? I'm in the same boat for 2022 and wondering how complicated it is to submit. Do I need to fill out a 1040X too?

I just went through this exact same situation a few months ago! The IRS website can be really confusing to navigate, but Olivia's link should definitely work. One thing I'd add is that if you're having trouble with the direct PDF link, you can also try going to irs.gov and searching for "Form 8962 2022" in their search bar - sometimes that brings up the prior year version more easily than navigating through all the menus. Also, just a heads up - if you're amending your 2022 return because of premium tax credit issues, make sure you have your Form 1095-A handy when you fill out the 8962. The marketplace should have sent you this form, and you'll need the information from it to complete the reconciliation correctly. Good luck getting it sorted out!

Make sure you get EVERYTHING in writing from the startup! I got burned badly last year when I did development work for equity and the company changed terms on me after 8 months of work. Had already deducted $3k in equipment on my taxes and then had nothing to show for it.

Benjamin, you're asking all the right questions! A few key points to add to the excellent advice already given: 1. **Documentation is crucial** - Keep detailed records of your equity agreement, work hours, business purpose, and all expenses. The IRS will want to see this is a legitimate business activity, not a hobby. 2. **Consider forming an LLC** - Since you're doing significant startup work, you might want to structure this properly. An LLC can provide liability protection and may make your business deductions cleaner. 3. **Track everything separately** - Keep your startup work completely separate from your W2 job. Separate bank accounts, time tracking, expense records, etc. This will help if you ever get audited. 4. **Quarterly estimated taxes** - Even though you're not getting cash now, if the startup starts generating income or your equity becomes valuable, you'll need to make quarterly payments. Plan ahead. The MacBook deduction is legitimate business expense that goes on Schedule C. Just make sure you can prove it's used primarily for the business (keep usage logs if needed). Good luck with the startup!

Has anyone dealt with Bonfire specifically for mission trip fundraising? Do they automatically check the 501(c)3 box or do you have to select it? Also wondering if they send the 1099 forms directly or if you have to request them?

I'm dealing with something similar right now! My church youth group is doing a mission trip to Honduras this summer and I also set up a Bonfire campaign. From what I've learned talking to other people who've done this, the key thing is that you personally are NOT a 501(c)3 even though your trip is through a church that is. The mistake people make is thinking that because the trip has a charitable purpose, they can claim non-profit status. But the IRS looks at who actually received the money - and that's you as an individual, not the church organization. I've been keeping detailed records of everything - not just receipts but also documentation from my church about the trip's charitable mission, photos from our preparation meetings, and a letter from the youth pastor explaining the service work we'll be doing. This way if I need to show the IRS that the expenses were for legitimate charitable work, I have proof. One thing that helped me understand this better was talking to someone at my church who handles their finances. They explained that if they had run the fundraiser through the church's accounts, it would be different - but since the money came directly to me through Bonfire, I need to report it as income and then document the trip expenses. Hope this helps and good luck with your Guatemala trip!

If you're really anxious and it doesn't show up by tonight, you can always call TurboTax directly. But honestly, calling the IRS directly is sometimes faster if there's an actual issue. I used Claimyr (https://claimyr.com) last year when my deposit was showing sent but hadn't arrived after 2 days. Got through to an agent in like 15 minutes who confirmed it was sent and helped me track it down. Turns out my bank had flagged it for review.

I totally get the anxiety! I've been waiting for TurboTax card deposits for years and it's always nerve-wracking. In my experience, they usually hit between 2-6pm Eastern, but I've seen them as late as 8pm on busy days. Since WMR shows sent today, you should definitely see it by tonight. The good news is that once it shows "sent" on WMR, TurboTax is pretty reliable about getting it to your card the same day. Try to stay busy and stop refreshing - I know it's easier said than done! 😊