I'm actually in graduate school, so I'm past the 4-year limit for AOTC. And I file independently, so no worries about the dependent situation. Would the loan disbursement date still be the determining factor for the LLC just like it is for AOTC?

Yes, the same timing rules apply to both the LLC and AOTC - it's when the payment is made to the institution that matters. For loan proceeds, that's the disbursement date to the school. Graduate school definitely limits you to the Lifetime Learning Credit, but at least you can claim that for an unlimited number of years. One other thing to watch for: make sure you're only claiming tuition and required fees, not room and board or other expenses, as qualified education expenses. The rules are pretty strict about what qualifies.

In TurboTax, when you get to the education section, there's a screen that asks about your 1098-T. After you enter the 1098-T info, it will ask if you had additional qualified expenses not reported on the form. That's where you can add the extra qualified expenses. Just make sure you have documentation to back it up!

1 Thanks for this suggestion! I just checked my paystubs and you're absolutely right - my first employer continued to withhold for Colorado even after I moved to Washington. No wonder I owe so much! Is there any way to fix this after the fact or am I just stuck paying what I owe now?

9 Unfortunately, you generally can't fix it after the tax year has ended - you'll need to pay what you owe now. But you should immediately contact your payroll department to correct it for this year so you don't have the same problem next tax season. For this year's taxes, make sure you're filing as a part-year resident for Colorado and indicating the correct dates you lived in each state. That will at least ensure you're only paying Colorado tax on income earned while you were actually living there.

18 Colorado and Washington don't have a reciprocity agreement, but that's actually not relevant in this case anyway. Reciprocity agreements typically apply to people who live in one state but work in another. Since Washington has no income tax, there's no double taxation issue here. The problem is more about proper withholding and filing correctly as a part-year resident. The OP needs to file a part-year return for Colorado, reporting income earned while a resident there (plus any Colorado-sourced income after moving).

16 That makes sense, thanks! I was confusing reciprocity with something else. Sounds like moving to a no-income-tax state should be beneficial in the long run, even if it causes some confusion in the transition year.

Wait really? I've been driving for UberEats for 6 months and only counting miles when I have food in the car. So I can count ALL the miles when I'm logged into the app and available for deliveries?

Yes! Any miles driven while you're actively working (logged into the app and available) count as business miles, even if you don't currently have a passenger or food in the car. The IRS considers this "on the clock" time. The only miles you can't count are your personal trips or your commute to your starting point before logging in. But once you're logged in and working, those "empty" miles between rides or deliveries are absolutely deductible business miles. This is a huge thing many drivers miss! Make sure you're tracking all those miles - it can make a big difference in your tax bill.

I was worried about the same thing last year, so I asked my brother-in-law who's an accountant. He said just make sure you have good documentation for your mileage. Like a detailed log with dates and miles. The IRS knows rideshare drivers have high expenses, especially with mileage, so the low taxable income by itself isn't a red flag. Just make sure you can back up your numbers if they ask.

That's a relief to hear! I've been using MileIQ to track all my driving so I should have pretty good records. I guess I was just shocked at how much difference the deductions made. Thanks for the reassurance!

What about ETFs? Most of my investments are in broad market ETFs through Vanguard and Fidelity, with some dividend stocks. Not too exotic but definitely have capital gains distributions.

ETFs are generally more straightforward than mutual funds when it comes to tax reporting, but they can still have corrections. Broad market ETFs like total market or S&P 500 index funds tend to have fewer correction issues than sector-specific or specialty ETFs. Dividend stocks are usually less problematic since dividend payments are more straightforward. However, if you have any dividend reinvestment plans (DRIPs) or foreign stocks that pay dividends, those can sometimes generate corrections due to foreign tax withholding adjustments or reclassification of dividends as qualified vs. non-qualified.

Disagree. If you know corrections are likely coming, just wait. The few weeks you gain by filing early could turn into months of delays if you have to amend. Not worth the hassle.

Really appreciate the idea about the Chamber of Commerce - never would have thought of that! And good point about setting up systems for the future. Do you find QuickBooks easy to use for someone who's not naturally organized?

QuickBooks Self-Employed is pretty user-friendly, even for the organizationally-challenged! It connects to your bank accounts and payment apps, then automatically sorts transactions. You just need to review them occasionally to make corrections. The mobile app is super convenient - you can snap pictures of receipts on the go, and it has automatic mileage tracking. My accountant did an hour-long setup session with me to customize categories for my specific business, which made a huge difference. The key is consistent small efforts rather than trying to sort everything at tax time.

I checked out the NATP site and found three CPAs in my area who list cryptocurrency experience! Thanks for this tip - seems much more targeted than just googling "accountant near me" which is what I was doing.