Thanks for bringing that up! Do you know if just working from a temporary apartment in Georgia would definitely create nexus? Or does it depend on what kinds of activities I'm doing there? I won't be meeting clients or making sales there - just doing the same online work I'd be doing from Texas.

It really depends on Georgia's specific rules, but physical presence often creates nexus regardless of what specific activities you're doing. Being physically present and working from Georgia for 6 months would likely trigger nexus in most states. However, Georgia may have thresholds based on income earned while in the state or number of days present. Some states have COVID-related exceptions that might still apply for remote workers, but these are being phased out in many places. I'd recommend checking with Georgia's Department of Revenue directly or having a tax professional review Georgia's specific nexus requirements for your situation.

What percentage of your business income did you set as salary? I've heard everything from 30% to 60% being "reasonable" depending on the industry.

This is exactly what I was worried about. I kind of estimated my business use at around 75% but I don't have perfect records. I do have all my delivery app summaries though - would those be enough to support my claim if I get audited? And how long after filing did your brother get audited?

The delivery app summaries are a good start, but they usually only show miles while actively on deliveries. They don't capture dead miles (driving to busy areas, returning home, etc.) which are still business miles. My brother got audited about 14 months after filing, and the IRS wanted to see a mileage log showing business vs. personal trips. If you don't have perfect records, reconstruct the best log you can from the app summaries, your calendar, bank statements showing gas purchases, etc. Even a reconstructed log is better than nothing. Also, in my brother's case, they only went back one year, so if your return from last year doesn't get flagged in the next 6-12 months, you're probably in the clear.

Yeah, the QBI deduction is awesome! But keep in mind it gets complicated if your income is above certain thresholds or if you have multiple businesses. For simple delivery driving below the threshold amounts, you basically get to deduct an extra 20% of your net business income, which can really help offset the self-employment tax burden.

That's exactly what I'm worried about! How do you know for sure you've got everything? I usually get a W-2 from my main job and a 1098-T for my kid's college, but sometimes random 1099s show up.

I keep a checklist of all expected documents from previous years and mark them off as they arrive. I also wait until at least February 1st even though some forms come earlier - this gives stragglers time to arrive. For unexpected 1099s, I log into any accounts where I might have earned interest or made transactions (banks, investment accounts, payment apps like PayPal or Venmo if you use them for business) and check if they're issuing forms. Most places now let you see if a tax form is being generated before they actually send it.

I second FreeTaxUSA! Used it for the first time last year and it was super straightforward. The interview process walks you through everything, and they have good support articles if you get confused.

Thanks for all these options! I just checked and I do have a refund coming, so I'm guessing I wouldn't have been penalized anyway? Also, what's the tax transcript and how would that help? Never heard of that before.

Yes, if you're getting a refund, you wouldn't face failure-to-file penalties even if the extension wasn't properly filed. The IRS only issues penalties when you owe them money, not when they owe you. A tax transcript is a document from the IRS that shows key information from your tax record, including extensions filed, payments made, and return status. You can request one for free through the IRS website. For your situation, the "account transcript" would show if an extension was filed. It's basically a timeline of all transactions and status changes related to your tax account for a specific year.

Omg I didn't even think about state taxes! I'm in California - does anyone know if they automatically extend when federal is extended?

Is there an easy way to get this information if you haven't kept good records? I'm in the same situation with an early distribution and have no idea how much I've contributed over the years.

You can contact your IRA custodian (the financial institution where your Roth IRA is held) and request statements showing your contribution history. Most major brokerages keep these records, but they might not go back indefinitely. You can also look at your previous tax returns if you kept them. While Roth contributions aren't deductible, they might be mentioned in some of your tax documents. As a last resort, you can request a transcript from the IRS of your past returns, which might have some of this information.

Yes! Same thing happened to me. I ended up calling my brokerage (Fidelity) and they gave me my "basis information" which is basically the total amount of contributions I've made. Since my withdrawal was less than my total contributions, I entered that info into TurboTax and it properly showed the distribution as non-taxable.