Just a heads up - if you're claiming a home office deduction too (which it sounds like you might be since you work from home), make sure your mileage claims are consistent with that. The IRS may cross-check these deductions. Also, some tax software doesn't explain the vehicle questions very well on Schedule C. Where it asks if the vehicle is "available for personal use" - the answer is almost always "yes" unless you have a dedicated business vehicle that you NEVER use personally. And you should answer "yes" to "Do you have evidence to support the business use?" if you have that Excel spreadsheet you mentioned.

Great question! As someone who's dealt with mileage deductions for my freelance work, I'd recommend keeping more detailed records than just trip dates and mileage. The IRS prefers contemporaneous records, so ideally you'd track: - Date of each trip - Starting point and destination - Business purpose (e.g., "pickup materials from Client X" or "deliver finished project to Client X") - Odometer readings or calculated mileage - Any tolls or parking fees Your Excel spreadsheet approach is perfect for organizing this. Just make sure to back it up! For Part IV on Schedule C, you're absolutely right that trips from your home office to pick up/deliver materials are business miles, not commuting. The "other" mileage category should include all personal driving - grocery runs, doctor visits, vacations, etc. This helps the IRS see that you're reporting total vehicle usage accurately. One more tip: keep gas receipts and maintenance records even if you're using the standard mileage rate. While you can't deduct these expenses when using the standard rate, having them shows you're maintaining good business records overall.

Make sure you understand exactly what "exempt" means in the ADP system! There are different kinds of exemptions and selecting wrong can get you in trouble. "Exempt from withholding" means you expect NO federal income tax liability for the entire year (very rare). "Exempt due to tax treaty" is for specific nonresident alien benefits. If you're truly a resident alien now, you usually shouldn't be selecting either exemption option - you should just fill out the W-4 with your appropriate filing status, adjustments, deductions, etc.

As someone who went through this exact transition two years ago, I want to emphasize how important it is to get this right from the start! The substantial presence test calculation can be tricky - make sure you're counting the actual days correctly and not just assuming based on years. One thing that helped me was creating a timeline of all my entries/exits from the US and calculating the weighted days for each year (current year = full days, previous year = 1/3 of days, year before that = 1/6 of days). Don't forget to exclude days when you were an exempt individual (like your first year as an F-1 student). Also, since you're doing a co-op, double-check whether your work authorization affects anything. CPT vs OPT can have different implications, and some employers handle the transition differently. My co-op employer initially kept treating me as a nonresident alien even after I met the substantial presence test, which created issues. The good news is that once you figure out your correct status, the W-4 process is actually much simpler than the treaty exemption forms you're used to! Just make sure your HR updates their records properly - some payroll systems don't automatically switch you from nonresident to resident processing.

Have you considered TurboTax Self-Employed instead of H&R Block? I've used both for my photography business, and I found TurboTax more intuitive for small business stuff. It imports from Quickbooks really smoothly too. The biggest difference I noticed was that TurboTax asked more detailed questions about my specific industry that led to deductions H&R Block didn't catch. Though both are WAY cheaper than paying $450+ per form!

Don't sleep on finding a good local CPA. I was in your exact situation 2 years ago - small business with my husband, fed up with huge fees. Found a local CPA who specializes in small businesses and she only charges $275 for everything, including unlimited questions throughout the year. H&R Block employees usually aren't CPAs and may miss small business deductions. And I personally had a TERRIBLE experience with them losing some of my documents and filing late without telling me. Not saying all locations are bad, but definitely check reviews for the specific office!

Don't waste your time with the 1099-C as an individual. The IRS will most likely reject it since you're not a financial institution. I went down this rabbit hole last year with a tenant who bailed owing rent. The most straightforward approach is claiming a non-business bad debt deduction on Schedule D. You'll need to attach a statement explaining the nature of the debt, when it became worthless, and your efforts to collect. It gets reported as a short-term capital loss regardless of how long the debt was outstanding. One important thing - make sure you claim it in the year the debt actually became worthless. If the moving company is still technically in business, even if they're not responsive, the IRS might argue the debt hasn't become completely worthless yet.

I've been through a similar situation with a contractor who disappeared after doing subpar work. Based on my research and experience, the bad debt deduction route on Schedule D is definitely the way to go rather than trying to issue a 1099-C as an individual. The key documentation you'll need includes: the original agreement showing the movers acknowledged liability for the damage, receipts for the repair work, records of the partial payment they made, and most importantly - evidence of your collection efforts (emails, certified letters, phone call logs, etc.). Since they've made partial payment, you have strong evidence that they acknowledged the debt. For the remaining $1,075, you'll need to establish when the debt became "wholly worthless." If the company is truly defunct, gather evidence of that - check if their business license was revoked, if their phone/email bounces back, or if their office is closed. One thing to consider: you mentioned they might still file taxes this year. If there's any chance they're still operating or could pay in the future, the IRS might not consider the debt completely worthless yet. The timing of when you claim this deduction matters for audit purposes. Also remember this will be treated as a non-business bad debt, so it's limited to $3,000 per year against ordinary income, but you can carry forward any excess.

Has anyone used a private loan structure instead of a gift? My parents "sold" me their house but provided private financing at the minimum IRS-allowed interest rate (AFR rate). I make small payments that satisfy the IRS requirements, and they gift me back most of the payment each year using the annual gift exclusion.

This is exactly the kind of complex family transfer situation where getting professional guidance upfront can save you thousands later. A few additional considerations beyond what others have mentioned: 1. **Timing matters**: Since you're closing next week, make sure your parents understand they'll need to file Form 709 by April 15, 2026 if this exceeds the annual exclusion amounts. Don't wait until tax season to figure this out. 2. **Documentation is critical**: Even if this is structured as a gift, document everything clearly. Write a gift letter stating the parents' intent, keep records of the wire transfer, and make sure the deed transfer language is unambiguous about it being a gift. 3. **Consider your state's laws**: Some states have additional gift taxes or different property transfer rules that could affect your situation. 4. **Future planning**: This large gift will use up a significant portion of your parents' lifetime exemption. If they have substantial estates, this could affect future inheritance planning. Since you're so close to closing, I'd strongly recommend getting a quick consultation with a tax attorney or CPA who specializes in family transfers before finalizing the structure. The cost of an hour consultation is minimal compared to potential tax complications down the road.