Another approach: if you've already paid enough in Q1 to cover 25% of last year's tax liability, you might already be meeting the safe harbor for Q2 even without an additional payment. The safe harbor rule states you won't face a penalty if you pay at least 100% of last year's tax (or 110% if your AGI was over $150k) in equal quarterly installments.

Fyi for anyone confused about when freelancers actually "receive" income - it's when the money is available to you, not when you invoice or do the work. I learned this the hard way! If client pays you July 2, that's Q3 income even if the work was done in April/May.

Would salon capes and towels fall under De Minimis or regular supplies? Each towel is like $8 but I buy them in bulk orders of $200-300. And what about things like a new salon software subscription? FYI I also use freetaxusa and its been so confusing trying to categorize everything correctly!

Great thread! As someone who's been doing taxes for small businesses for over 10 years, I wanted to add a few clarifications that might help Carmen and others in similar situations. First, you're absolutely right that consumable salon supplies (shampoo, hair color, etc.) are regular business expenses and don't need the De Minimis election. However, I've seen many salon owners miss deductions by not properly categorizing mixed-use items. Here's a practical tip for FreeTaxUSA users: Instead of trying to fit everything into "Other Expenses," use the main expense categories first. Put your consumable supplies under "Supplies," equipment repairs under "Repairs and Maintenance," and software subscriptions under "Office Expenses." Only use "Other Expenses" for truly unique items that don't fit elsewhere. Also, for record-keeping, I always recommend my salon clients take photos of their major supply deliveries and keep a simple monthly log of what they purchased. It doesn't need to be fancy - just enough detail that you can defend your deductions if questioned. The IRS loves to see organized, consistent record-keeping, especially for cash-heavy businesses like salons.

The IRS systems are so broken rn. My return from 2022 just got processed last week 💀

I had a similar situation last year with multiple 570 codes and no communication from the IRS. The key thing is that the August 2024 date doesn't necessarily mean they'll hold everything until then - it's more like a system placeholder. When I had this happen, my advocate told me that future-dated 570 codes often get resolved much earlier, especially if you stay on top of it. I'd definitely reach out to your tax advocate again since they have better access to what's actually happening behind the scenes. The fact that you got a small refund in April suggests they're processing parts of your return, which is actually a good sign that things are moving forward even if slowly.

I think I'm the only one who puts these under "Utilities" on my Schedule C! My reasoning is that internet-based services are similar to other utilities like phone and internet service. My CPA hasn't flagged it as an issue for 3 years now. The category matters less than making sure you're only deducting the business portion and have documentation to back it up. Either "Office Expenses" or "Utilities" is fine - the IRS cares more about whether they're legitimate business expenses.

Great question! I've been dealing with this same issue as a freelance consultant. Based on my experience and research, these digital subscriptions typically fall under "Office Expenses" on Schedule C, Line 18. Here's how I categorize similar subscriptions: - Gmail premium storage: Office Expenses (it's a business communication tool) - Dropbox: Office Expenses (file storage/sharing for business) - LinkedIn Premium: Office Expenses (networking and client acquisition tool) The key is documenting your business use percentage. I keep a simple log for a few months each year to establish patterns. For example, if you use Gmail 70% for business emails, you can only deduct 70% of the cost. Some tax preparers might put these under "Utilities" or "Other Expenses" instead, but the IRS generally accepts any reasonable categorization as long as they're legitimate business expenses and you're only deducting the business portion. Keep all your subscription receipts and document how you calculated the business use percentage - this will be important if you're ever audited.

Hey just throwing this out there - have you considered tracking ALL vehicle-related expenses instead of using the standard mileage rate? My tax guy told me that you can choose either the standard mileage rate OR actual expenses (gas, maintenance, insurance, depreciation, etc). If you drive a truck, especially an older one that's less fuel efficient, sometimes the actual expenses method gives you a bigger deduction IF you qualify for any deductions at all. Just a thought.

I feel your pain on this one! I'm a field service technician and was in almost the exact same situation last year - driving about 25,000 miles annually with my company only reimbursing at $0.45/mile. The unfortunate reality is that the H&R Block preparer was right about Form 2106 being essentially eliminated for most employees. I spent way too much time researching this and even consulted with a CPA who confirmed that regular W-2 employees can no longer deduct unreimbursed business expenses. What actually worked for me was taking the advice about negotiating with my employer. I put together a simple spreadsheet showing: - My annual work mileage - Current company rate vs IRS standard rate - Total out-of-pocket cost to me ($4,600 in my case) - How this affects my take-home pay I presented it during my annual review and got a $2,400 annual raise specifically to help offset vehicle costs. Not the full amount, but way better than nothing! The key was framing it as a retention issue - they'd rather give me a raise than train someone new who might quit over the same problem. Also started keeping detailed records of actual vehicle expenses (maintenance, tires, etc.) to show the real impact of all that driving. Even though I can't deduct them, it helped make my case to management.