That's an excellent point about possibly getting outdated advice. She mentioned getting this information from "her tax guy" who I suspect might be someone she's been using for decades. Where can I find that IRS publication online to show her? And is there a specific section that directly addresses this gift vs income deduction issue?

You can find Publication 559 directly on the IRS website (irs.gov), but the publication that most directly addresses gift taxes is actually Publication 950 "Introduction to Estate and Gift Taxes." Look specifically at the section titled "Gift Tax" which clearly explains that gifts aren't income tax deductible. Another helpful resource is the IRS's FAQ page on gift taxes which explicitly states that gifts to individuals don't qualify as income tax deductions. Showing her these official sources should help, especially if her tax preparer is giving outdated or incorrect advice. If she's been doing this for years, she might want to consult with a different tax professional to see if amended returns are necessary.

Did your aunt have to file amended returns for all those years or did the IRS just assess the additional tax? I'm worried about my parents who might have been doing something similar.

Thanks for this breakdown! Two questions: 1) for depreciation, should I just take the current value and multiply by 15%? And 2) would you divide all these costs by total annual mileage to get the per-mile figure?

Yes, for a quick depreciation estimate, take the current value and multiply by 15% (Wranglers hold value well, so you might even use 12-13%). That gives you annual depreciation cost. You've got it exactly right for calculating the per-mile figure. Add up all your annual vehicle costs (gas, insurance, maintenance, depreciation, etc.), then divide by your total annual mileage. This gives you your true cost per mile. Most people are surprised how much higher this is than they expected - especially for vehicles with lower fuel efficiency.

Wait really?? I've been deducting my commute miles for years! Is this a new rule?

I've definitely considered waiting until I turn 24, but that's still about 11 months away. Starting school is pretty time-sensitive for me since there's a specific program I want to get into that only accepts students in the fall semester. If I wait until I'm 24, I'd basically be delaying my education (and future career) by a full year. As for the marriage thing - we were already planning to get married eventually, this would just change the timing. Definitely wouldn't make that decision ONLY for financial reasons, but it seems like it might be beneficial on multiple fronts.

That makes sense if the program only starts once a year. Just wanted to make sure you'd considered that option since so many people don't realize the age 24 cutoff can make such a big difference. If you were already planning to get married anyway, then the timing adjustment might be worthwhile. Just make sure you're both on the same page about doing it sooner than originally planned. Good luck with school and congrats on the home purchase!

Also worth mentioning that if you have unusual circumstances, financial aid offices can sometimes do a "dependency override." It's rare, but if you can document unusual family situations, it's worth asking. Parents refusing to provide info usually doesn't qualify though.

I looked through all those independence qualifiers already and unfortunately don't meet any of them. No kids, not a veteran, wasn't in foster care, not emancipated, and don't have dependent parents I'm supporting. I also asked about the dependency override at the financial aid office, but they said they only do those in extreme circumstances like documented abandonment or abuse. My situation with my parents is fine - we just don't have a financial relationship anymore since I support myself.

That's actually a really smart idea! Do you have any tips for foods that work well for car-based meal prepping? I'd be worried about things getting soggy or spoiling throughout the day, especially in summer.

Definitely go for foods that are stable at various temperatures. I keep a good insulated lunch bag with ice packs. Wraps work better than sandwiches because they don't get soggy as quickly. Pasta salads, grain bowls, and hearty salads (hold the dressing until eating time) all work great. I also keep a bunch of shelf-stable snacks in the car - nuts, granola bars, dried fruit, etc. These are perfect for shorter breaks between clients. If you invest in a good thermos, you can also keep soups or hot meals that stay warm for 4-5 hours.

Would apps like Spotify Premium or Apple Music count as deductible if you use them during lessons to demonstrate songs to students?

19 How do you know how much to pay for those quarterly payments? Is there a minimum amount your business needs to make before you have to start doing that?

11 The general rule is you should make quarterly estimated payments if you expect to owe $1,000 or more in taxes for the year. The amount depends on your projected income, but there's a "safe harbor" provision - if you pay 100% of last year's tax liability (or 110% if your AGI was over $150,000), you won't face penalties even if you end up owing more. You can use Form 1040-ES to calculate your estimated payments. Alternatively, you can increase withholding from a W-2 job if either of you has one, which accomplishes the same goal. The IRS treats withholding as if it happened evenly throughout the year, even if it's all at the end.

23 Is it ok to just use a spreadsheet instead of paying for software? I'm trying to minimize costs while the business is still small.