Thanks! I hadn't even thought about deducting expenses. I definitely buy my own cleaning supplies and drive about 15 miles round trip to her house each time. How do I calculate the phone deduction though? I do text with her about scheduling.

For mileage, keep a log of each trip with the date and miles driven. The deduction for 2023 was 65.5 cents per mile, which adds up quickly. So your 15-mile round trip would be worth about $9.83 in deductions each time. For the phone, you need to figure out what percentage you use it for business. If about 20% of your phone use is for coordinating cleaning jobs, you can deduct 20% of your phone bill. Just be reasonable with the estimate and keep your bills as documentation.

This is exactly what I was thinking! The aunt is definitely trying to write off personal home cleaning as a business expense. I had a client try to do this with me for babysitting her kids at her home office.

This is super helpful! I didn't even think about contacting my employer directly. Would a PDF copy be considered an official document for tax filing purposes? I always assumed the IRS needed the original paper copy with all those special markings.

A PDF copy from your employer is absolutely valid for tax filing purposes! The IRS accepts electronic copies of W-2s, and you don't need to submit the actual physical form unless specifically requested (which is rare). Most people file electronically now anyway, so you'd just enter the information from your W-2 into whatever tax software you're using. The physical form with special markings is mostly a security feature to prevent forgery, but when you're getting it directly from your employer electronically, that's not a concern for the IRS.

I use Earth Class Mail for this exact purpose! They give you a mailing address, collect your mail, scan the outside of each envelope, and then you decide whether they should open and scan the contents, forward the mail, or shred it. Super useful for traveling. The only downside is cost - it's like $20-30/month depending on the plan. But for a 4-month trip during tax season when you need important documents, it could be worth it.

Do you think it's better to use Section 179 or regular depreciation for something like a $3,000 computer? I've heard mixed advice about this.

It really depends on your overall business situation. If you're profitable this year and could use the deduction now, Section 179 gives you the immediate write-off which is great for cash flow. If you expect to make more money in future years, regular depreciation might make more sense to spread the deductions across years when you might be in a higher tax bracket. For a $3,000 computer, the difference might not be huge unless you're right on the edge of a tax bracket. I usually recommend taking the deduction now if your business can use it, since the time value of money means a deduction today is worth more than the same deduction spread over 5 years.

Unfortunately, no. You can only begin depreciation or take Section 179 when the equipment is "placed in service" - meaning it's in your possession and ready for use in your business. Paying a deposit doesn't count.

Does the 5-year rule apply differently to contributions vs. the first-time homebuyer exception? I thought the 5-year rule only affected whether earnings were tax-free for qualified distributions after 59.5, not for the special exceptions?

You're asking about a somewhat confusing aspect of Roth IRAs. There are actually two different 5-year rules. The first applies to earnings in general - for earnings to be completely tax-free, your first Roth contribution must have been made at least 5 years before withdrawal, AND you must be 59½ or meet another exception. For the first-time homebuyer exception specifically, if your Roth has been open for 5+ years, then up to $10,000 of earnings used for a first-time home purchase can be both penalty-free AND tax-free. If your Roth hasn't been open 5+ years, the $10,000 of earnings is still penalty-free but would be subject to income tax.

What counts as valid proof? I have my tax returns but they don't show the specific Roth contributions since they're not deductible. Would bank statements showing transfers to the brokerage work?

STAY AWAY from those tax relief companies! My brother paid one $4,000 and they did literally nothing he couldn't have done himself for free. Those "pennies on the dollar" settlements (called Offers in Compromise) are extremely rare and most people don't qualify. They just take your money and submit basic paperwork.