Can you explain the home office deduction more? I work from my bedroom at my desk - does that count? Or does it need to be a separate room?

For the home office deduction to be legitimate, the space must be used "regularly and exclusively" for business. A desk in your bedroom typically wouldn't qualify because the bedroom is also used for personal purposes (sleeping, dressing, etc.). The IRS wants the space to be a separate area used only for work. It doesn't have to be a whole room - it could be a section of a room if it's clearly delineated and used exclusively for business. But if you ever use that desk for non-business activities (gaming, paying personal bills, etc.), it wouldn't qualify. This is why dedicated home offices or converted spare rooms work best for this deduction.

The IRS worksheets are accurate but super confusing. I tried using Schedule SE directly and felt like I needed an accounting degree to understand it. Ended up making an error that cost me an extra $430 in taxes last year.

Does this apply to sole proprietors too or just formal business entities like LLCs and corporations? I'm self-employed but haven't formed an LLC or anything.

If you're operating as a sole proprietor (meaning you haven't formally created an LLC, corporation, etc.), then you typically won't face these minimum taxes or franchise fees in most states. Those minimum taxes usually only kick in when you've created a formal business entity. For sole proprietors, you're generally just subject to the regular income tax rules of your state. This is actually one reason some freelancers choose to remain sole proprietors rather than forming an LLC - to avoid these minimum taxes when they're just starting out or not making much income.

How much do you have to make before you need to do the quarterly payments? Is there a threshold?

Are there any good apps you'd recommend for tracking mileage? I always forget to log my trips and end up guessing at tax time which probably isn't the best approach.

I use MileIQ, but there are several good ones like Everlance and Stride. The key is finding one that tracks automatically in the background so you don't have to remember to start/stop for each trip. They usually let you swipe left/right to categorize as business or personal which makes it super easy. Most important is consistency - even a simple notes app works if you use it religiously. The IRS wants to see a contemporaneous log, meaning you record trips as they happen, not reconstructed months later.

I tried it for a year and honestly thought it was overkill for my situation. If you're just doing basic expense tracking with a handful of clients, I think there are cheaper alternatives that work just as well. I switched to Wave which is free for basic accounting.

Thanks for this suggestion! I looked it up and there's actually a VITA site at my local library this weekend. Do you know if I need to bring anything specific with me? I have my W-2 and ID but not sure what else they might need.

Definitely bring your photo ID, social security card (or a document with your SSN), all tax documents (W-2s, 1099s, etc.), and last year's tax return if you have one. Also bring your bank account info (routing and account numbers) for direct deposit of your refund. They usually prefer if you make an appointment, so call ahead if possible. Some sites also require you to fill out an intake form before your visit to save time. Most locations can file both federal and state returns for you, and they double-check everything to make sure you're getting all the credits you qualify for.

Be careful with TurboTax "Free" Edition! They often upsell you halfway through the process. I switched to FreeTaxUSA after getting charged $40 for state filing with TurboTax when they advertised it as free.

Do you know if there's a limit to how many conferences you can attend and deduct each year? I've gone to like 4 already this year and wondering if that looks suspicious.

There's no specific limit on the number of conferences you can attend and deduct. The key test is whether they're "ordinary and necessary" for your business. If you can justify why each conference provides value to your specific business operations, then multiple conferences can be legitimate. However, if the conferences all cover very similar content, or if some seem only tangentially related to your business, that might raise questions. The IRS might look more closely if the pattern suggests the conferences are primarily for personal enjoyment rather than business development. Quality documentation of the business purpose for each one becomes even more important when you attend multiple events.

Yes, you'd need to allocate. If you would have gotten a single hotel room anyway, you can deduct the full room cost. But their flight, their meals, and any increase in room cost for double occupancy wouldn't be deductible.