Oh wow, I didn't realize that! So if I take Section 179 on my equipment now, but sell it in a couple years to upgrade, I'll have to pay some tax on that sale? Is there a way to calculate how much that would be?

Yes, it's called depreciation recapture. Basically, you'll pay taxes on the difference between the depreciated value (which would be very low since you took Section 179) and what you sell it for. For example, if you deducted $3,800 for equipment using Section 179, then sell it two years later for $2,000, you'd report that $2,000 as income. If you had used regular depreciation instead, you would have only reported the difference between the sale price and remaining book value as income. There's no simple calculation because it depends on your specific situation, but your tax software should handle it when you report the sale.

Yes, there are special rules for vehicles! If your truck is truly over 6,000 lbs GVWR (gross vehicle weight rating - check the driver's side door jamb), it qualifies for the full Section 179 deduction if used more than 50% for business. Vehicles under 6,000 lbs face much stricter limits - only around $19,200 for 2025 tax year. So those heavier trucks and SUVs get much better tax treatment, which is why you see so many business owners driving larger vehicles.

Did you have to file an amended return or did they just request the verification and then process your original return once they had the correct information?

I didn't have to file an amended return. The IRS just sent a notice requesting verification documentation, and once I provided copies of my son's social security card and birth certificate, they continued processing my original return with the correct information. They actually handled it pretty efficiently once I sent in the documents. I just had to wait about 6 weeks longer for my refund than I would have normally. The key was responding to their notice immediately - I've heard horror stories from people who ignored those letters and had much bigger headaches later.

I noticed you mentioned being a volunteer tax preparer. I'm curious, in cases where the first 4 letters don't match exactly but the name is still recognizably similar (like Davis/Davus), what's the approximate percentage of cases that end up requiring amendment vs. just proceeding normally?

Does the standard mileage rate usually work out better than tracking actual expenses? My car is pretty old and fuel efficient but I'm driving a TON for deliveries.

In my experience, standard mileage usually works out better for newer cars or fuel-efficient vehicles. I drive about 25,000 miles a year for deliveries in a 2018 Corolla, and the standard deduction gives me around $16,000+ in deductions which is way more than I'd get itemizing. For older vehicles that might need more repairs or gas guzzlers, tracking actual expenses could potentially be better. The key is to try calculating both ways for a month and see which gives you the bigger deduction. Just remember if you choose actual expenses in the first year, you're generally stuck with that method for the life of that vehicle.

This is actually a really good point. I worked in insurance for years and this arrangement could potentially void the insurance coverage entirely. Most policies require that the regular drivers be listed, and if there's a claim and they discover misrepresentation, they can deny everything.

Does that work if you have wash sales? Last year I imported mine but the software kept flagging errors with my wash sale calculations and I ended up having to manually fix a bunch of entries.

Yes, the import should handle wash sales correctly, but it depends on the software you're using. Some tax programs handle them better than others. TurboTax Premier and H&R Block Deluxe with investments add-on generally handle wash sales well. If you're having issues after importing, it might be worth trying a different tax program. The most common problem is when wash sales span across different years or different brokerages, which can require some manual adjustments. In those cases, you might need to enter the adjustment manually even with import.

Thanks for this! I found the summary page and it looks like I have about $2,300 in short-term capital gains and $340 in dividends. So I'm guessing I'll owe taxes on that $2,640 based on my tax bracket? Does that sound right?

Yes, that's the right approach. You'll pay taxes on those amounts based on your tax bracket. The short-term gains ($2,300) will be taxed at your ordinary income rate, same as your paycheck. The dividends might be qualified dividends (check if they are) which would be taxed at the lower long-term capital gains rate. So if you're in, say, the 22% tax bracket, you might owe around $506 for the short-term gains and perhaps $51 for the dividends (assuming 15% qualified dividend rate), totaling around $557. This is a rough estimate though - your actual situation might have more factors involved.

Is there a way to check if my withholding is correct on my pay stubs? And what form do I need to file for those quarterly payments? This is all so confusing!

You can check your pay stub - it should show federal income tax withholding, Social Security, and Medicare. Compare several pay periods to see if the withholding is consistent. If it seems too low (less than 10% of your gross pay for federal taxes if you're single), you might need to adjust your W-4. For quarterly estimated taxes, you'll use Form 1040-ES. It's pretty straightforward - you estimate your total tax liability for the year, divide by 4, and make payments by the quarterly due dates (April 15, June 15, September 15, and January 15 of the following year). You can pay online through the IRS Direct Pay system. If your income is irregular, you can use the "annualized income" method that lets you pay as you earn rather than equal payments.

The Earned Income Credit usually requires you to have kids. I'm single with no kids and make about what OP makes, and I've never qualified. But definitely check for education credits if you took any classes!