Has anyone else noticed that FreeTaxUSA sometimes gives different results from other tax software? I entered the same info in both FreeTaxUSA and TurboTax for my LLC and got different amounts. Not sure which one is right.

I had this exact same confusion last year! The key thing to understand is that FreeTaxUSA's "attach to business" feature is essentially asking whether this income should go on Schedule C (business income) or somewhere else on your return. Since you're doing freelance work through your single-member LLC, those 1099-NECs should definitely be attached to your business and reported on Schedule C - even though they have your SSN instead of your EIN. The IRS treats single-member LLCs as "disregarded entities" by default, so for tax purposes, you and your LLC are the same entity. The big jump in your tax bill when you attach them is because Schedule C income is subject to self-employment tax (15.3% for Social Security and Medicare) in addition to regular income tax. When you don't attach them, the software might be treating it as "other income" that doesn't trigger SE tax - but that would be incorrect for freelance work. Here's what I learned: Yes, you'll pay more in taxes by doing it correctly, BUT you can also deduct all your legitimate business expenses (home office, equipment, software, business meals, etc.) which will significantly reduce that taxable income. Make sure you're claiming every expense you're entitled to - it makes a huge difference!

I went through this exact scenario during the 2020 tax year with the pandemic unemployment. The key factor is determining which tax year the unemployment compensation was received. When I filed my amended return (Form 1040-X), I had to include Schedule 1 (Additional Income and Adjustments to Income) where unemployment is reported on Line 7. The process took approximately 20 weeks for the IRS to process my amended return, and I received an additional tax bill of $1,842 due to the unemployment income plus a small penalty for underpayment.

Just to clarify the timeline for everyone who might be confused - unemployment compensation follows a simple rule: report it in the tax year you actually received the payments, not when you filed your return. So if you got unemployment anytime from January 1, 2023 through December 31, 2023, it belongs on your 2023 tax return (even if you file that return in 2024). If you already filed your 2023 return without including 2023 unemployment benefits, you'll need to file Form 1040-X to amend. But if your unemployment started in 2024, you're all set - just include it on next year's return. The 1099-G form you receive will show exactly which year the benefits were paid, so that's your definitive guide.

Has anyone used an app to track mileage as you go? I tried keeping records manually and always forget. Need something automatic.

For your specific situation as an independent contractor working with one client, your recordkeeping approach sounds solid. Just make sure you're also documenting the business purpose for each trip - even though it's repetitive (like "Material pickup from [Client Name]" and "Delivery to [Client Name]"), the IRS wants to see that detail. One thing to consider: since you're doing regular round trips, you can deduct both legs of the journey. So if it's 10 miles each way, that's 20 deductible business miles per round trip. Many people forget to count the return trip home. Also, keep your odometer readings if possible. While not strictly required for the standard mileage method, having start/end odometer readings for business trips adds credibility to your records. I learned this the hard way during an audit a few years back - the agent was much more satisfied when I could show actual odometer documentation rather than just calculated distances. Your Excel approach is perfect. Just make sure to back it up regularly and maybe print a copy for your tax files. Digital records are fine, but having a paper backup never hurts!

One thing nobody's mentioned - make sure the specific EV truck model you're looking at actually qualifies for the Commercial Clean Vehicle Credit. Not all EVs qualify anymore due to battery component and mineral requirements in the Inflation Reduction Act. For the commercial credit, the rules are a bit different than the personal credit, but there are still requirements about where the vehicle is manufactured and where battery components come from. The dealer should be able to provide documentation about whether it qualifies.

Great question Emma! I went through something very similar last year with my construction business. You absolutely can claim the Commercial Clean Vehicle Credit as a sole proprietor - the IRS doesn't require you to have an LLC or corporation to qualify for business tax credits. A few key things to keep in mind: 1. **Business use documentation is critical** - Since you're claiming 100% business use, keep detailed records from day one. I use a simple app to track every trip and its business purpose. 2. **Vehicle registration** - You can register it in your personal name since that's how you operate as a sole proprietor. No need to complicate things with DBA registration for the vehicle. 3. **Form 8936** - You'll claim the credit on this form when filing your taxes, and the credit flows through to reduce your overall tax liability. 4. **Double-check vehicle eligibility** - Make sure the specific truck model you're buying actually qualifies. Some models lost eligibility due to the updated battery component requirements. One bonus tip: If you're buying the truck outright, consider how Section 179 depreciation might work alongside the credit to maximize your first-year tax benefits. With your $95K business income, you have plenty of room to work with. The fact that you're planning to form an LLC next year is smart for liability protection, but don't let that delay your truck purchase if you need it for business now!

Has anyone used Gusto for both payroll AND S-Corp compliance help? Their website says they offer S-Corp services but im not sure if that's enough or if I still need a separate tax person?

You're definitely not too late for 2024! The March 15th deadline mentioned earlier is for existing businesses, but if you're converting from an LLC to S-Corp election, you have different options. You can file Form 2553 and request late election relief if you missed the standard deadline - the IRS is pretty reasonable about this for valid business reasons. Given your $140k profit, the tax savings will be substantial. You're looking at saving around $9,800 in self-employment taxes annually (assuming you set a reasonable salary around $70k). For your existing setup, you're already ahead of most people - Gusto handles payroll perfectly for S-Corps, and Wave will work fine for bookkeeping. The main additions you'll need are: - Quarterly 941 payroll tax returns (Gusto can handle these) - Annual 1120-S business return - Reasonable salary documentation - More careful expense tracking I'd recommend finding a CPA who specializes in S-Corps for the initial setup and annual filing. You don't need monthly CPA services - quarterly check-ins during your first year should be sufficient. Look for someone who can help justify your salary choice and ensure you're maximizing the tax benefits. The complexity increase is manageable, especially with your existing systems in place. The tax savings alone will more than cover the additional professional fees.