One more tip for Schedule 1 - make sure you're using the 2024 version of the form! I mistakenly used the 2023 version last year and it caused all kinds of confusion because they change the line numbers sometimes. Also double check that your Schedule C profits match exactly what you enter on Schedule SE for each person. Small discrepancies can trigger automatic notices from the IRS.

As someone who went through this exact same confusion last year with my spouse, I can confirm what others have said - you absolutely need separate Schedule SE forms for each of you since they're tied to individual SSNs and calculate self-employment tax separately. But here's something that helped me get organized: create a simple checklist. For each spouse: Complete your own Schedule C (already done ✓), then your own Schedule SE using the Long version (Section B) since you're both over $400 in earnings. Make sure the net profit from Schedule C matches exactly what you put on Schedule SE. Then for your joint return: Use ONE Schedule 1 where you'll combine both of your business income totals and both of your self-employment tax deduction amounts. The key is keeping the individual calculations separate but reporting the combined totals on your joint forms. Don't feel bad about being overwhelmed - the IRS forms really aren't user-friendly! But once you get the pattern down, it's much clearer than it initially appears.

Has anyone actually filled out Form 8606 for a situation like this? I did a backdoor Roth last year with a large traditional IRA balance and honestly had no idea what I was doing on that form. My tax software kept giving me weird warnings about basis calculations.

I'm dealing with a very similar situation and the confusion is real! After reading through all these responses, it seems like the consensus is clear - your financial advisor is correct about the pro-rata rule applying. What really helped me understand this better was realizing that the IRS doesn't care which specific shares or contributions you tell your brokerage to convert. They look at ALL your traditional IRA balances (across all accounts) as one big pool when calculating the taxable portion. The math in your case would be roughly: $7,000 conversion × ($1,300,000 pre-tax ÷ $1,307,000 total) = about $6,965 would be taxable. You'd only get about $35 tax-free from your after-tax contribution. Based on what others have shared here, your best bet might be to see if your current employer's 401k accepts IRA rollovers. If you can move that $1.3M into your 401k, then you could do clean backdoor Roth conversions going forward without any pro-rata complications. I'm definitely going to look into the 401k rollover option for my own situation. Thanks to everyone who shared their experiences - this thread has been incredibly helpful!

The IRS actually addresses this exact issue in Publication 463 (Travel, Gift, and Car Expenses). The key factors are: 1) Primary purpose test - If the primary purpose of the trip is business, you can deduct business-related expenses. For a travel YouTuber, creating content IS your business. 2) Allocation requirement - You must allocate expenses between business and personal. What the first CPA said about deducting 100% of everything is definitely too aggressive. What the second CPA said about deducting nothing is flat wrong. Most importantly - DOCUMENT EVERYTHING. Keep a daily log of what you filmed and how it relates to your business model. Save all receipts. Take notes about the business purpose. The more documentation you have, the safer you'll be if audited.

Great question! As someone who's dealt with similar business expense issues, I can see why you got such conflicting advice. The reality is that both CPAs were partially wrong - it's definitely not 100% of everything, but it's also not nothing. For your travel YouTube business, you'll want to focus on the "primary purpose" test. Since creating content IS your business model, many of your travel expenses will qualify - but you need to be strategic about allocation and documentation. A few key points specific to your situation: 1) Keep a content creation log - document what you filmed each day, which videos it's for, and how it ties to your revenue streams (ads, courses, affiliate links, etc.) 2) For extended international travel (14-15 months is significant), be aware that the IRS has special rules for foreign travel that might affect your deductions differently than domestic trips 3) Consider the "but for" test - would you have incurred this expense if not for your business? For a hotel you're specifically reviewing, probably not. For extra vacation days tacked on, probably yes. 4) Set up consistent allocation methods BEFORE you travel. For example, if you typically film 4 days and take 3 personal days per week, you might allocate 4/7 of lodging costs to business. The key is being reasonable and consistent with your methodology. Document everything and be prepared to defend your allocations with clear business logic.

I kinda want to point out what nobody else has mentioned - the 55/45 split seems super high for the company portion! Most places I've worked take 10-15% max for "house fees" on tips. Might be worth checking if this arrangement is even legal in your state. Some states have strict rules about how much of tips can go to non-tipped staff/management.

This is a really concerning situation from a tax perspective. The fact that you're handling business tips through personal payment accounts creates a lot of potential IRS issues. First, you're absolutely right to be worried about the 1099-K reporting. Payment apps will likely report all those transactions as your personal income, even though you're just acting as a pass-through. This could trigger an audit or at minimum require you to file complex paperwork to show the money wasn't actually yours. Second, your employer is essentially making you their unpaid financial agent without proper documentation or protection. They should either: 1. Set up business accounts for digital tips 2. Provide you with written authorization stating you're collecting tips on their behalf 3. Take responsibility for any tax complications that arise The 55% company cut also seems unusually high - most legitimate tip pools take much less. I'd strongly recommend documenting everything you can (screenshots, spreadsheets, dates/amounts) and consider consulting with a tax professional who can help you understand your liability. Don't let your employer put their tax compliance responsibilities on you. This arrangement benefits them while putting you at financial risk.

Do you know if your tax preparer used a Refund Transfer product or similar service? That makes a big difference. If they did, your refund first went to a temporary bank account they set up, then they transferred your refund minus their fees to you. That temporary account is likely closed now, so any CTC payments sent there will definitely bounce back.

UPDATE: The IRS just announced yesterday that the Child Tax Credit Update Portal will be available starting June 21st, 2024, according to their latest press release. They're specifically urging people who had refunds processed through tax preparer bank accounts to update their information ASAP. The first monthly payments are scheduled for July 15th, and they recommend making any banking changes at least two weeks before that date to ensure proper processing. Here's the link to the official IRS page with instructions: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments