Don't forget you need to answer the crypto question on Form 1040! Even if you just HELD crypto and didn't sell any, you need to check "Yes" to the question asking if you had any transactions involving digital assets. The IRS added this a few years ago and they're using it to track who has crypto.

Thanks everyone for all this detailed info! @Ellie Kim - you're definitely not alone in feeling overwhelmed by crypto taxes. I went through the same thing last year and it's way more manageable once you break it down. A few additional tips that helped me: - Keep detailed records throughout the year, don't wait until tax time. I use a simple spreadsheet to track each transaction as it happens. - If you're using multiple exchanges, download ALL your transaction histories as CSV files before you start. Some exchanges only keep records for a limited time. - Don't forget about any crypto you might have earned through things like Coinbase Learn rewards, airdrops, or referral bonuses - those count as income at fair market value when received. The specialized crypto tax software really is worth it if you have more than just a few simple buy/sell transactions. I tried doing it manually my first year and made so many errors I had to file an amended return. The peace of mind alone makes the software cost worthwhile. Good luck with your filing!

the irs website is literally the most confusing thing ever invented istg

Code 806 is definitely a good sign! It means the IRS has your withholding info from your W-2s. I was in the same boat last year - first time checking transcripts and felt like I needed a decoder ring 😅 The key is looking at all your codes together, not just individual ones. 806 by itself just shows your tax withholdings, but you'll want to look for things like 150 (tax return filed) and 846 (refund issued) to get the full picture of where your refund stands.

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.