Wait so if I'm only doing local deliveries (never more than 30 miles from home), does that mean my lunch is never deductible? That doesn't seem right since I'm still working as an IC during that time.

You can still potentially deduct meals for local deliveries, but they fall under the regular business meal rules rather than the "away from home" travel meal rules. The key for local meal deductions is establishing that the meal had a business purpose beyond just eating because you were hungry. For example, if you're grabbing a quick meal between deliveries to maintain your delivery schedule, that could qualify as a necessary business expense. But if you're just taking a normal lunch break like any employee would, the IRS might consider that a personal expense. Document the business purpose for each meal and keep good records of your delivery schedule to show the connection.

Yep, I use TurboTax Self-Employed. When you get to the business expenses section, there's a specific category for "Meals" where you can enter the total amount. It automatically applies the 50% limitation. Make sure you're filing Schedule C (Profit or Loss from Business) as part of your return.

Does using IRS Direct Pay cost extra fees like when you pay with a credit card? I've always had my refunds direct deposited but never had to make a payment before.

No fees at all when using IRS Direct Pay! That's why I always recommend it over credit card payments which charge processing fees (usually around 2%). Direct Pay connects directly to your bank account for free. You'll get an immediate confirmation number when the payment is processed, which is super helpful for your records. Just make sure you select the correct tax year and payment type (in this case, probably "tax return" or "amount owed on return"). The system is actually pretty straightforward compared to most IRS stuff.

Did you ever find out what happens if you dont fix it? Will the irs eventually contact you or do they just mark you as not having paid?

Do you have a recommendation for a good mileage tracking app? I've been trying to remember to write everything down but honestly I forget half the time, especially after late gigs.

I personally use MileIQ which automatically detects when you're driving and lets you swipe left for personal trips or right for business. It creates nice reports for tax time. Some others in my band use Everlance or Hurdlr - both work pretty well too. All of them have free versions that let you log a limited number of trips per month, but for most musicians the paid versions are worth it. The automatic tracking is a lifesaver especially after those late-night gigs when the last thing you want to do is paperwork!

This is exactly right! The key distinction is whether you can reasonably return home at the end of the workday. Personally, I consider any venue more than 100 miles from my home as requiring an overnight stay, which makes all those expenses deductible travel expenses rather than just transportation.

Completely agree! My mortgage company does the same thing and it's so frustrating. I think they do it to cover themselves legally while still providing some info to borrowers. But it creates so much extra work for us.

Wait, that sounds exactly like what might have happened! How did you resolve it once you realized the mistake? Did you have to file an amended return or just explain it in a response to their letter?

I didn't need to file an amended return. I sent a formal response to the IRS letter that included a new correctly filled out Form 8949 with the proper checkbox marked, along with documentation showing my actual purchase prices and dates for the Doge. I also included a brief letter explaining that I made an error in checking the wrong box but that I had in fact reported all income properly. They accepted my explanation and adjusted the amount owed to match what I had originally calculated and paid. The whole process took about 2 months from when I sent my response to getting their confirmation.

Do you know if they're focusing only on the major exchanges like Robinhood and Coinbase, or are they somehow tracking DeFi transactions too? I did some swaps on Uniswap back then that I'm not sure I documented properly.