How would you verify if the company is legitimate? I got offered something similar recently and now I'm worried.

Good question! Here are some ways to verify legitimacy: Research the company name + "scam" or "reviews" online. Check for a professional website with proper contact information, physical address, and company registration details. Be suspicious if they have no online presence or very new websites. Look them up on business registries. For UK companies, you can check Companies House (the UK's official company register). If they claim to be a registered business but don't appear in official records, that's a major red flag.

Did you have to file any special forms because the company was foreign? I'm starting something similar next month.

But what if you have an irregular schedule? I work retail and my days change every week. Some weeks I work weekends and have weekdays off. Would this method still work?

For irregular retail schedules, you'd want to use a modified approach. Instead of assuming Monday-Friday, check if your paystubs show hours worked per pay period. If they do, divide total hours by your typical shift length to estimate days. Another option is checking work schedules if you have access to them through an employee portal or app. Some retail jobs keep those records for quite a while. Even an estimate based on your typical weekly pattern (like "usually 4 days a week for 30 weeks") is better than nothing. The IRS understands that not everyone has perfect records, especially for part-time or irregular work.

I used TurboTax last year and it does ask for days worked in some situations, especially if you moved between states or worked in multiple states. It doesn't have a built-in calculator, it just has a field where you input the number. I ended up counting days from my calendar where I'd marked my shifts.

I see this happening a lot actually. The coding on 1099-Cs is often wrong! Another common mistake is using Code B (insolvency) when it should be Code A (bankruptcy) or vice versa. Always double-check these forms because the codes determine how you'll need to complete Form 982.

Does this calculation change if you have other substantial deductions already? Like if I'm already itemizing because of large charitable contributions and state taxes?

If you're already itemizing due to other substantial deductions, then the mortgage interest would provide some additional tax benefit, but the math still typically doesn't favor keeping a mortgage just for tax purposes. Let's say you already have $25,000 in itemized deductions from charitable giving and state taxes. Adding $10,000 in mortgage interest would increase your itemized deductions to $35,000, which is $7,300 more than the standard deduction for married filing jointly. At your 24% tax bracket, that additional $7,300 in deductions would save you about $1,752 in taxes. But you're still paying $10,000 in interest to get that $1,752 benefit - a net loss of $8,248. The mortgage is still costing you significantly more than you're saving in taxes.

This makes so much sense when you explain it that way. My parents have always told me never to pay off the mortgage early because of taxes, but they bought their house in the 70s when everything was different! Thank u for clearing this up!

Another accountant here - can confirm this is 100% correct. I see this misconception ALL THE TIME with clients. Being debt-free is almost always better than paying interest for a partial tax deduction. The only exception might be if you're investing the difference at a higher return, but that's a risk/reward discussion, not a tax one.

Do you need to keep receipts for absolutely everything? I'm terrible at organizing that stuff and end up with a shoebox full of random papers every year.

Yes, you should keep receipts for everything business-related. The IRS recommends keeping records for at least 3 years after you file. I used to do the shoebox method too but now I just use a simple app that lets me take pictures of receipts. Also started using a separate credit card just for business purchases which makes it way easier at tax time. Digital receipts can be saved in a dedicated email folder - as long as they show the date, amount, and what was purchased, they count as valid documentation.

There's a lot of confusion about this. An LLC is just a legal structure, not a tax classification. By default, a single-member LLC is treated as a "disregarded entity" for tax purposes, meaning you still report business income on your personal tax return and pay self-employment tax. Your cousin with an S-corp is doing something different. An S-corporation allows you to be both an owner AND an employee. You pay yourself a reasonable salary (which has payroll taxes) and can take additional money as distributions (which avoid self-employment tax). But S-corps require more formalities like payroll processing, separate tax returns, etc. Usually not worth it until you're making at least $40-50k in profit.

ohh that makes sense. everyone acts like LLCs are some magic tax saving thing but sounds like they're really just for legal protection? thanks for explaining!