


Ask the community...
Another resource worth mentioning is your local library. Many libraries offer free tax help programs during filing season. The volunteers are certified by the IRS through the VITA program and can handle returns with self-employment income up to a certain amount. They might also have hard copies of all the forms and instruction booklets you need.
This is a great suggestion, thank you! Do you know if these volunteers can handle questions about investment income too? And do I need to make an appointment or can I just walk in?
Most VITA volunteers are trained to handle basic investment income like interest, dividends, and simple capital gains. They might not be able to help with very complex investment situations though. You'll definitely want to make an appointment - these services get booked up quickly during tax season. Call your local library or check their website to see when they offer tax help and how to schedule. Some places also require you to bring specific documents, so ask about that when you call.
I've been filing paper returns for 10+ years with side income. My best advice is to look at last year's tax return if you have one, and use it as a template. The forms barely change year to year. For the new stuff, grab the specific form instructions (not the giant publications) from irs.gov. If you're doing DoorDash, just google "Schedule C example for delivery driver" and you'll find tons of examples showing exactly what expenses you can claim. Same for investments - search for examples of filled out Schedule B and Schedule D forms.
This is solid advice. I did DoorDash last year and the biggest thing was tracking mileage - you can deduct $0.67 per mile for 2023 which adds up quick! Make sure you have some kind of mileage log if you get audited.
One thing nobody mentioned yet - at 18, make sure your parents aren't still claiming you as a dependent! That changes everything about your filing requirements. If they are claiming you, talk to them first before you file anything. Also, keep good records of all your Cashapp transactions so you can explain which ones were reimbursements vs actual income if you ever get questioned. The IRS won't automatically know which is which.
Shoot I didn't even think about the dependent thing! I'll definitely ask my parents. What kind of records should I keep exactly? I don't think Cashapp gives very detailed descriptions for each payment.
For record-keeping, you should save monthly statements from Cashapp as a start. But you're right that Cashapp descriptions are often vague or just have emojis. I recommend creating a simple spreadsheet where you note each incoming payment that was income (like your moving help) versus what was reimbursement. Even just a basic note for each transaction like "Mike paying me back for concert tickets" vs "Payment for helping move furniture" helps a lot. Take screenshots of conversations if people were paying you through Cashapp for services. The better your documentation, the easier it would be if there were ever questions.
Does anyone know if Cashapp sends any tax forms? I had like $5k go through mine last year and never got anything from them.
Don't forget you can also file Form 4868 through the IRS Direct Pay system if you're making a payment. Just select "extension" as the reason for payment, and you'll get confirmation that serves as your extension filing. I've done this the last 3 years and it's super simple.
Will this work if I'm not making a payment? I don't think I'll owe anything, but still need the extension to get my paperwork together.
If you don't need to make a payment, then Direct Pay won't work for your situation. In that case, you should use one of the free filing options mentioned above - IRS Free File or one of the tax software programs. Since you don't think you'll owe, just be absolutely certain about that. If you end up owing even a small amount and didn't pay by the regular deadline, you'll face penalties and interest. Many people accidentally underestimate what they owe and get hit with unexpected charges.
Be careful with estimating what you owe when filing the extension. Last year I thought I wouldn't owe anything, filed the extension without payment, and ended up with penalties when I finally filed and discovered I did owe money. The penalties added up to about $240 on a $1,800 tax bill!
This is really good advice. Is there a calculator or something to help estimate if you'll owe? I haven't really kept good records this year.
Don't forget about retirement savings! One of the biggest tax advantages of self-employment is access to a SEP IRA or Solo 401(k) with much higher contribution limits than regular employee accounts. For 2025, you can contribute up to 25% of your net self-employment income (with caps) to these accounts and deduct the full amount from your taxes. This is one of the most powerful ways to reduce your tax bill while also building your retirement savings. Get started now even if you can only contribute a small amount. Future you will thank present you!
Thanks for mentioning this! I hadn't even thought about retirement accounts. Is one better than the other between SEP IRA and Solo 401(k)? And can I still contribute for 2024 or is it too late?
Solo 401(k) generally allows higher contributions when your income is lower because it has both an "employer" and "employee" contribution component. SEP IRAs are simpler to set up but only allow the "employer" contribution. For 2024 contributions, you can still open and fund both types until your tax filing deadline (including extensions). So if you file for an extension, you could potentially contribute all the way until October 15, 2025 for the 2024 tax year. That gives you plenty of time to figure out exactly how much you can afford to contribute once you know your full 2024 income.
Has anyone used the simplified home office deduction? Is it worth it or should I track all my actual expenses?
I've used both methods. For my small apartment office (about 100 sq ft), the simplified method gave me $500 deduction ($5 Γ 100). When I calculated actual expenses (rent percentage, utilities, etc.), it came to nearly $2,200! Definitely worth tracking real expenses if your rent/mortgage is high.
StarSurfer
Have you checked your IRS online account? Go to irs.gov and set up an account if you don't already have one. Sometimes the online system shows more up-to-date information than what phone reps can see. You should be able to see your transcripts there and confirm if your return was processed and what payments have been applied. Also, did you file electronically or by mail? If by mail, there's still a huge backlog and your return might be sitting in a pile somewhere while your payments are being processed separately.
0 coins
Mei Zhang
β’Thanks for this suggestion. I did try to check my online account before calling, but it shows the same thing - no 2023 return on file, but it does show the installment payments coming out. We filed electronically through our tax preparer, and I even have the acceptance confirmation she forwarded to us. That's what makes this so confusing!
0 coins
StarSurfer
β’That's definitely strange that you have an electronic acceptance confirmation but the return isn't showing up in their system. This sounds like it could be a case where the return was accepted for transmission but then got flagged for some reason during processing. Since you have the acceptance confirmation, that's incredibly important evidence. Make sure to have that document number ready when you call again. You might need to request that they research the specific transmission using that acceptance code, as it proves the return was at least initially received by their system.
0 coins
Ava Martinez
Make sure to check if your preparer actually e-filed your return or just prepared it! I had a similar issue where I THOUGHT my return was filed, but the preparer had only prepared it and given me a copy without actually transmitting it to the IRS. Embarrassing situation but it happens more than you'd think.
0 coins
Miguel Castro
β’This happened to my sister too! Her preparer had her sign the authorization to e-file, but then never actually submitted it. She only found out when she got a failure-to-file notice. Always get that acceptance confirmation!
0 coins
Mei Zhang
β’I'm pretty sure our preparer did file it because I have an email with the acceptance confirmation from the IRS that she forwarded to us. It has a submission ID number and everything. That's what makes this extra confusing - if the IRS accepted it, why isn't it showing up in their system now?
0 coins