Does financial aid count as support? I have loans in my name that help pay for school and living expenses. Would those count as "my support" or not? The whole support test thing is super confusing.

Student loans in your name generally count as YOUR support (not your parents'), even though you're not repaying them yet. This is because you're the one legally obligated to repay them. Grants and scholarships are trickier. If they're used for qualified education expenses (tuition, books, required fees), they're not considered anyone's support. But if they're used for living expenses (room and board), they generally count as support that you provide for yourself. It is confusing! That's why it's important to calculate all sources of support carefully and determine who provided the majority of your total support for the year.

Yes! TurboTax is super annoying with that. I found that sometimes if you go back and review your answers to previous questions, you might find something you answered wrong that's triggering unnecessary forms. Double-check your answers about dependency status and support.

That's a good tip! I'll look back through my answers again. I'm wondering if I misunderstood something about the scholarship questions, since that seems to be what might be triggering this Form 8615 requirement.

This is really helpful context - thank you! She definitely uses my equipment (camera, lights, props) and I do direct how and when she works. She doesn't work exclusively for me though - she has her own separate job too. Does that mix of factors still lean more toward employee classification? I'm worried about the complexity of setting up payroll for just one part-time person.

Based on what you're describing, it does sound like she leans more toward being an employee than a contractor. Using your equipment and you controlling how/when she works are big factors the IRS looks at. The fact that she has another job doesn't automatically make her a contractor for your business - plenty of people have multiple employers. What matters is the nature of her relationship with YOUR business specifically. I totally understand the payroll setup concern - it felt like overkill for my situation too. But there are affordable payroll services like Gusto or Square Payroll that make it pretty simple and handle all the tax filings for you. They're designed for small businesses with just a few employees. The peace of mind knowing I'm compliant has been worth the extra cost for me. Some of these services are only $35-45/month for your first employee.

This is dangerously incorrect advice. The IRS has very specific tests for determining contractor vs employee status, and "being family" or "small business" doesn't exempt you from those rules. Misclassification can result in back taxes, penalties, and interest. The IRS looks at behavioral control, financial control, and relationship factors - not how convenient it is for the business owner. Please don't spread information that could get people in trouble.

Thanks for mentioning this! I do have a full-time job in marketing, so offsetting some income would be amazing. What's the best way to prove that my Instagram page is a legitimate business and not just a hobby? I'm definitely approaching it as a business, but want to make sure I have the right documentation.

The best way to prove business intent is to treat your Instagram venture like a professional business from day one. Create a separate business bank account for all transactions, develop a formal business plan showing your path to profitability, keep meticulous records of all expenses, and document your marketing strategies and partnership outreach. Start tracking metrics that show growth and progress toward monetization - follower growth, engagement rates, partnership inquiries, etc. Keep records of all communications with potential business partners or sponsors. Consider getting an EIN (Employer Identification Number) from the IRS even if you don't have employees, as it demonstrates business formality. The key is showing that you're approaching this with a serious profit motive and not just as a passion project.

I think you're confusing tax concepts. QBI deduction only applies once you're profitable, and if OP is spending $13k with no revenue, they're not going to benefit from this at all. Also, they'd need to be filing as a sole proprietorship, partnership, or S-corp to qualify, not just randomly spending money on Instagram.

I'm a payroll specialist and while this technically works, most HR departments hate when employees do this because it creates extra work. Plus with the new W-4 form, there aren't "allowances" anymore - you'd need to specify an additional withholding amount.

Thanks for the clarification about the new W-4 - I didn't realize they changed the form. I guess I won't bother my HR department then. Just doesn't seem worth creating drama over one paycheck even if it is frustrating to see so much withheld.

Quick follow-up question - I'm in a similar situation and wondering about home internet. My tax person wants my entire internet bill even though I only use it part-time for business. Is that normal too?

Yes, that's completely normal. Your tax preparer needs your entire internet bill because they'll calculate the business portion based on a reasonable allocation method. This might be based on time used for business vs. personal, the percentage of your home used for business, or another reasonable method. They need the full bill to document both the total cost and to show how they calculated the business portion. This is important documentation if you're ever audited. The IRS wants to see that you're only deducting the legitimate business portion of mixed-use expenses.

I learned this the hard way! Got audited because I claimed our spare bedroom as a home office, but it had a futon we occasionally used for guests. Cost me thousands in back taxes, penalties and interest. Now I have a dedicated office space that's only for business.