Is there an income limit on this? I've heard conflicting things about whether high earners can take this deduction.

Yes, there are income thresholds where the deduction begins to phase out. For 2023, the limits start at $182,100 for single filers and $364,200 for joint filers. Above these amounts, it gets more complicated and depends on your business type. If you're in a "specified service business" (like health, law, accounting, consulting), the deduction phases out completely between $182,100-$232,100 (single) or $364,200-$464,200 (joint). For non-service businesses, there's no complete phase-out, but limitations based on W-2 wages paid and business property.

What app do you use for tracking mileage? I've been trying to remember to write it down but I forget half the time.

I actually hadn't heard about this Qualified Joint Venture option before. Would this mean we'd need to change our LLC registration with the state too? Or is this just a tax election? Also, would we still get the liability protection of an LLC this way?

This is just a tax election, so you wouldn't need to change your state LLC registration. You'd still maintain the liability protection of the LLC. The Qualified Joint Venture election is made simply by filing your tax return as a QJV - you file a joint return, but each spouse files a separate Schedule C, Schedule SE, and any other required schedules. The main requirement is that both spouses must materially participate in the business, you must be the only owners, and you must file jointly.

In my experience, the W-2 route is more straightforward in TurboTax. The Qualified Joint Venture requires more manual manipulation in the software. TurboTax asks if you want to report a business, then you'd need to create two separate Schedule Cs manually and split everything correctly yourself. With W-2, the software handles everything through the normal employment sections.

Thanks for the tips! Do you think it's worth keeping paper records or is digital (like photos on my phone) good enough for the IRS? Also, for the separate credit card idea, do you just use a personal card that's dedicated to work expenses or do you need an actual business card?

Digital records are totally fine - just make sure they're backed up somewhere. I keep all my odometer photos in a dedicated cloud folder organized by date, and I've never had an issue during audits. For the credit card, just a regular personal card is fine as long as you ONLY use it for business expenses. I have a basic no-fee card that's exclusively for gas, car washes, repairs, etc. Makes it super easy to download the year-end statement and see all my expenses in one place. You don't need an actual business card unless you want the perks that come with those.

Absolutely! I deduct 80% of my phone bill since I'm on the delivery apps all day. As long as you can reasonably estimate what percentage is used for business, you can deduct that portion.

Did you also have to file an amended return, or was the payment enough? I'm not sure if I need to do additional paperwork or if just making the EFTPS payment takes care of everything.

Just making the payment is enough - you don't need to file an amended return for this specific situation. The deferred social security tax was always a payment timing issue, not a tax calculation issue. When you make the payment correctly through EFTPS, the system will match it with your outstanding liability. Just make sure you keep your payment confirmation for at least 3 years in case there are any questions later.

This happened to me too! Call the EFTPS customer service line at 800-555-4477 (not the regular IRS line). They can help reassign the payment to the correct tax period and type. Have your confirmation number ready. I was able to get mine fixed within a week. Don't bother with the general IRS line for this specific issue - the EFTPS folks can handle it directly.

What's considered a "clean tax record"? I filed late one year but paid everything I owed. Would that disqualify me from the first-time penalty abatement?

A clean tax record generally means you've filed all required returns and haven't had any significant penalties in the previous 3 tax years. Being late to file one year could potentially disqualify you, but it depends on whether you were assessed a failure-to-file penalty at that time. If you filed late but used an extension or weren't required to file that year, it shouldn't affect your eligibility. When in doubt, it's still worth asking the IRS about abatement - the worst they can say is no, and many people get approved even with minor issues in their history.

You got lucky with that wait time! What number did you call? I've been trying the general line and it just disconnects me after saying they're too busy.