I'm curious about how the Employee Retention Credit was calculated by your first preparer. I know the rules around that were super strict - your business had to be fully or partially suspended due to government orders OR have a significant decline in gross receipts during specific quarters. Some preparers were claiming it for businesses that didn't actually qualify.

This is definitely not normal practice and honestly sounds like a huge red flag. Any reputable tax preparer should be transparent about your refund amount - that's YOUR money and YOUR tax information, after all. Given that you've already had one preparer disappear on you and now this second one is being evasive about communication AND withholding basic information about your return, I'd be very concerned about the quality of their work. The fact that they've been skeptical about the Employee Retention Credit from the start but won't show you how they've handled it is particularly worrying. I'd strongly recommend demanding to see the completed return before paying. You need to verify that the ERC calculation is legitimate and that all other aspects of your return are accurate. If they refuse, that tells you everything you need to know about their professionalism. You might be better off cutting your losses and finding a third preparer who will actually be transparent with you about your own tax return. Remember, you're the one who has to sign that return under penalty of perjury - you have every right to review what you're putting your name on before paying for the service.

Just don't do what my roommate did last year - he tried to deduct his Netflix subscription because he "watches it between deliveries while waiting for orders" lol. He got his return flagged and ended up having to pay it back plus penalties.

Thanks for all the detailed info everyone! As someone new to gig work, this is super helpful. I've been doing DoorDash for about 3 months now and was worried I was missing out on deductions, but it sounds like I'm already tracking the main one (mileage). Quick question - I bought a car phone charger specifically for deliveries since my phone dies during long shifts. That would be deductible equipment like the hot bags, right? Also, if I get my oil changed more frequently because of all the delivery miles, can I deduct that if I'm using the standard mileage rate or is that already included? Really appreciate everyone sharing their experiences here. Tax season is stressful enough without trying to figure out what's legitimate!

4 Just a friendly reminder for all small business owners - even though you don't need to file Form 940 without employees, don't forget about your state tax obligations! Some states have different requirements for business entities even without employees. When I started my business, I had to register with my state's department of revenue and file certain state-specific forms annually.

16 Question: since I just opened my small business this year (LLC, just me so far), should I be setting aside money for unemployment taxes for myself just in case? I've been putting 30% aside for regular income taxes, but not sure if I should add more for unemployment.

Has anyone tried just using the IRS tax withholding estimator online instead of the worksheet? The worksheet seems super confusing and I've heard the online tool is more accurate.

I went through this exact same situation last year when my spouse started a second job mid-year! The key thing to remember is that the W-4 multiple jobs worksheet is designed to be conservative - it often results in slightly more withholding than you actually need, but that's better than owing at tax time. Your calculation of $231 extra withholding per paycheck sounds right based on the numbers you provided. And yes, your husband will still have standard withholding from both his jobs - the extra amount you calculated is ON TOP of that standard withholding to account for the fact that your combined income puts you in higher tax brackets than what each employer's withholding tables assume. One thing I'd suggest: since your husband just started and income estimates might change, consider being slightly more conservative with the withholding for the first few months. You can always adjust later using the IRS online estimator once you have actual paystubs from all jobs. Better to get a refund than owe! Also, make sure you're both claiming the correct filing status. If you're going to file jointly, only one of you should claim that status on your W-4s to avoid under-withholding.

Does anyone know if states tax scholarships differently than the federal government? I'm in California and wondering if I need to report my scholarship on my state return too??

Hey Chloe! I totally understand your stress - I went through the exact same panic when I first learned about scholarship taxation. The good news is that it's not as scary as it initially seems once you understand the rules. For your $32,000 scholarship and $8,500 research grant, you'll want to gather all your documentation: your 1098-T form from the school, financial aid award letters, and receipts for qualified expenses like books and required supplies. The key is determining what your actual qualified educational expenses were. If your tuition was $25,000 and you spent $2,000 on required books and supplies, then $27,000 of your total $40,500 would be tax-free. The remaining $13,500 would be taxable income. Since this is a research grant, pay special attention to whether you're required to perform any services (teaching, research work, etc.) as a condition of receiving it. If so, that portion is typically fully taxable regardless of how you use the money. Don't forget to keep detailed records of all your educational expenses - the IRS may ask for documentation if they have questions about your return. And consider setting aside about 20% of any taxable portion for taxes to avoid surprises next April!