Wait, self-employment tax is 15.3%?? That seems super high. Is that on top of regular income tax? I thought since I made less than $1,350 I might not even need to report it.

Yes, self-employment tax is 15.3% which covers Social Security and Medicare taxes. When you work for an employer, they pay half of this and you pay half, but as a self-employed person, you cover the entire amount. This is in addition to your regular income tax. However, there's good news - you only have to file and pay self-employment tax if your net earnings are $400 or more. So if your photography income after expenses is less than $400, you wouldn't owe self-employment tax. But you should still report the income on your tax return regardless of the amount. Those equipment deductions might actually bring your net profit below the $400 threshold, which would save you from owing the self-employment tax.

Can you write off education costs too? I took some online photography courses to improve my skills.

I actually did ask the dealer about this yesterday! They seemed open to the idea but weren't sure about the legal implications. Did you have any issues with the financing company or insurance when they delayed the official delivery date? What documentation did you end up using to prove the January delivery date to the IRS?

I didn't have any issues with financing or insurance. The dealer simply scheduled the "delivery appointment" for January 2nd, and all paperwork was dated that day - including the sale agreement, registration application, and delivery receipt. The loan wasn't finalized until that day either. For IRS documentation, I used the dated purchase agreement, the vehicle registration that showed the January date, and made sure the dealer noted "delivery date" specifically on the paperwork. I took pictures of me picking up the car on that date too, just to be safe. The key is having all official paperwork consistently show the January date.

That's not accurate advice and could potentially cause problems for the OP. The IRS is clear that "placed in service" is generally when you take possession and the vehicle is ready for use, not the registration date. Your situation may have worked out, but that doesn't mean it follows IRS guidelines. Registration timing doesn't determine the placed in service date.

Thank you! This makes so much more sense than what TurboTax was saying. One question though - if I made multiple payments for a single quarter (like I paid half of Q3 in August and half in September), do I list those as separate entries?

Thank you all SO MUCH for your help! I feel much better about this now. I'll list my payments chronologically with exact dates. And I'll definitely check out that Schedule AI option since most of my income was in the last quarter. Turns out I was overthinking this whole thing!

Isn't there something kind of predatory about charging people to get access to their own money though? Especially when the information is technically available for free?

It's definitely a fine line. The information is free, but the convenience, time savings, and expertise in navigating the claims process is what people are paying for. I don't think it's predatory if: 1) The fee is reasonable, 2) There's transparency about the fact that people could do this themselves, and 3) The service adds genuine value beyond what someone could easily do on their own. Many people genuinely don't have the time or knowledge to track down funds across multiple states and properly file claims, so they're willing to pay for that assistance.

That's a great point! Do these notification services actually check for all those different types of unclaimed assets? Or do they just focus on the easy stuff like bank accounts?

Would this work even if it's been several months since the person passed away? My grandfather died last summer and we're still trying to get his final documents from his employer.

Yes, it would still work even after several months. Most state labor departments will handle wage complaints going back at least a year, sometimes longer. The statute of limitations for wage-related claims is typically 2-3 years depending on the state. Just make sure you have the documentation showing you're authorized to act on behalf of the estate. Also bring copies of any communication you've had with the employer showing you've made reasonable attempts to get the documents.

I helped settle my cousin's estate last year who worked in both New York and New Jersey. For the employer that wouldn't provide the W-2, we ended up having to file separate state returns and use Form 4852 as others have mentioned. The most important thing was having his last pay stubs from each state to verify the state withholding amounts.