Are you sure about the free products thing? I get tons of makeup sent to me for my beauty channel. Do I really need to figure out the retail value of every single item?? That sounds like a nightmare!

Yes, I'm completely sure about the free products. The IRS considers them "payment in kind" for your services as a content creator. You need to track the fair market value (retail price) of everything you receive. It is definitely a pain, but it's better than getting audited later! I keep a spreadsheet with the product name, date received, and retail value. If the company provides a value in their documentation when they send items, use that. Otherwise, just look up the regular retail price online.

I use it! It connects to your bank accounts and automatically categorizes a lot of transactions. The quarterly tax estimate feature is super helpful too. Worth every penny for me since it saves so much time tracking everything manually.

That's a really smart approach! Do you know if there are any drawbacks to front-loading 401k contributions early in the year? My company matches 4% of each paycheck - would I lose out on matching if I max out too early?

That's an excellent question about front-loading! Many employer matching programs are designed to match per paycheck, not as a lump sum. So if you max out your 401k early in the year and stop contributing, you might miss out on matching contributions for the remaining paychecks. Some companies have what's called a "true-up" provision that will give you the full match you're entitled to at the end of the year regardless of when you made your contributions. You should definitely check with your HR department about this before front-loading. Without a true-up provision, it's usually better to spread your 401k contributions throughout the year to maximize the employer match.

HSAs don't count toward your IRA or 401k limits - they're completely separate! For 2024, HSA limits are $4,150 for individuals and $8,300 for families (plus $1,000 catch-up if you're 55+). It's actually one of the best tax-advantaged accounts because it's triple tax-advantaged.

Just adding to what the other person said - HSAs are actually BETTER than 401ks and IRAs from a tax perspective. You get tax-free contributions, tax-free growth, AND tax-free withdrawals for medical expenses. If you can afford to max it out, definitely do it before worrying about maxing your IRA!

1 That's interesting! I've never heard of Opportunity Zones before. Do these need to be in specific locations? And does the investment have to be through some special fund or can I just buy property directly in these areas?

3 Yes, Opportunity Zones are specific census tracts designated by the government as economically distressed communities. You can find maps online showing exactly where they're located in each state. You generally need to invest through a Qualified Opportunity Fund rather than buying property directly. The fund then invests in property or businesses within the Opportunity Zones. The main tax benefits are deferring your current capital gains tax until 2026, getting a reduction on those taxes if you hold the investment long enough, and potentially paying zero tax on the new gains from your Opportunity Zone investment if you hold it for at least 10 years.

15 This is actually a really smart question. Often people focus so much on avoiding taxes that they don't consider the overall financial picture. For capital gains tax deferral, you have to weigh several factors: the time value of money (what could you earn with those tax dollars if you defer paying them?), potential future tax rate changes (will rates be higher or lower when you eventually pay?), and the transaction costs of whatever strategy you're using to defer taxes (like setting up special entities or funds). For many investors with moderate gains, simply paying the tax and maintaining flexibility in your investments often works out better than complex deferral strategies. Complex tax strategies usually make the most sense for very high-value transactions where the savings outweigh the costs and complications.

Do you have a template for this spreadsheet you could share? I'm just starting to get PR packages and want to be prepared.

I don't have a shareable template, but it's pretty simple to create. Just make columns for all the info I mentioned. I also add columns for: - Percentage of business use vs. personal use - Photos of the item (I link to a Google Photos folder) - Email documentation from the company - Shipping/customs documentation The most important thing is consistency. Update it immediately whenever you receive something new. I learned this the hard way after trying to reconstruct a year's worth of product receipts from memory and email searches. Now I have a dedicated "unboxing station" where I photograph everything, record the details, and don't touch the product until it's properly documented.

Yes! I had this issue with a camera company. They 1099'd me for a $1900 camera that was actually selling for $1100 everywhere. I gathered screenshots of the actual market price from multiple retailers on the date I received it, then contacted their accounting department directly (not PR team). They issued a corrected 1099-NEC with the accurate value.

I tried disputing values and the company refused to change anything. They said they use MSRP regardless of sales or market value. I ended up just having to pay taxes on the inflated amount.

Do you need to have a dedicated space for a home office deduction, or can you use your living room/kitchen table etc. for different jobs? I'm thinking about taking on freelance work but don't have a separate room I can use exclusively.

For a home office deduction, the IRS requires that the space be used "regularly and exclusively" for business. This means you need a dedicated space - it doesn't have to be an entire room, but it needs to be a specific area used only for work. A corner of your living room can qualify, but only if that specific section is used solely for business and nothing else. If you're tight on space, even a dedicated desk that's never used for personal activities could potentially qualify. Just be aware that home office deductions can be a red flag for audits, so make sure you take photos of your setup and keep excellent records of your business use of the space.

What's the minimum income level where this S-corp approach makes sense? I'm making about $65k from various gigs and wondering if it's worth the hassle.