Don't forget you'll need to file Form 8606 with your taxes to report the non-deductible Traditional IRA contribution and the conversion! This is super important for tracking your basis and avoiding double taxation. I messed this up the first time I did a backdoor Roth and had a nightmare sorting it out later.

Great question! You're absolutely right that the backdoor Roth can help you get that remaining $2800 into a Roth account. The process is exactly as you described - contribute the $2800 to a Traditional IRA (as a non-deductible contribution since you're over the income limits for deductible contributions), then convert it to Roth. A few key points to keep in mind: 1. **Timing flexibility**: Yes, you can make both your direct Roth contribution ($4200) and your Traditional IRA contribution ($2800) up until the tax filing deadline in April 2026 for the 2025 tax year. The conversion itself can happen anytime and will be reported in the year you actually do it. 2. **Pro-rata rule**: If you have any existing pre-tax money in Traditional, SEP, or SIMPLE IRAs, this will complicate things. The IRS will treat part of your conversion as taxable based on the ratio of pre-tax to after-tax money across all your Traditional IRA accounts. 3. **Documentation**: Make sure to file Form 8606 to properly report the non-deductible Traditional IRA contribution and track your basis. This prevents you from being taxed twice on the same money. The backdoor Roth has become a widely accepted strategy, even though it technically wasn't explicitly designed by Congress. Many people in your situation use this exact approach to maximize their Roth contributions despite the income limits.

Hey there! I totally get your anxiety about this - I went through the same exact worry when I started freelancing last year. The good news is that everyone here is spot on: the 2018 W-9 is absolutely still current and valid! I actually had a similar panic moment and ended up calling the IRS directly (after waiting on hold forever) just to confirm. The agent told me that the October 2018 revision is still the most current version they have, and there haven't been any updates since then because the core information requirements haven't changed. What really helped calm my nerves was realizing that the W-9 is just an information-gathering form - you're not actually filing your taxes with it. Your client needs it to issue you a 1099 at year-end, but any mistakes can easily be corrected by submitting a new form marked "CORRECTED" if needed. Since you're new to freelancing like I was, here's what I wish someone had told me: focus on filling it out accurately rather than worrying about the form version. Make sure your legal name matches exactly what's on your tax return, double-check your SSN, and keep a copy for your own records. You're showing exactly the right instincts by being careful about tax matters - that attention to detail will definitely serve you well as you grow your freelancing business. But in this case, you can confidently fill out that 2018 form without any worries!

I just want to echo what everyone else has said here - you're absolutely fine using that 2018 W-9! As a fellow newcomer to freelancing (I've been at it for about a year now), I completely understand the anxiety that comes with tax forms. Every single form feels like it could potentially cause major problems if you mess something up. What really helped me was learning that the IRS website actually shows the current revision date for all their forms. If you go to the official W-9 page, you'll see it still shows October 2018 as the most recent version. That gave me so much peace of mind when I was in your exact situation. One thing I'd add to all the great advice here: don't be afraid to ask your client questions if anything on the form seems unclear. I was initially worried that asking questions would make me seem unprofessional, but I've found that most clients actually appreciate it when you're thorough and want to get things right. Your instinct to double-check rather than just assume is exactly the kind of attention to detail that will help you succeed in freelancing. You've got this!

Watch out with the whole "not reporting income" thing! I got audited last year for not reporting rental income from my cousin even though I was charging way below market (like $400 for a place worth $1200). The IRS said I still needed to report the income, I just couldn't claim losses beyond the income amount. Ended up paying penalties!

Based on the experiences shared here, it sounds like there's some conflicting information about how to handle below-market family rentals. The audit story from Ahooker-Equator is particularly concerning since it contradicts what Eve Freeman explained about not needing to report the income. I think the safest approach might be to document everything carefully and consider getting professional help. Has anyone actually consulted with a CPA or tax attorney about this specific situation? It seems like the rules might be more complex than what we can figure out from IRS publications alone, especially given the potential for audits. Also wondering if the relationship matters - like is renting to your father-in-law treated differently than renting to your own parent or sibling? The IRS definitions of "related party" can be pretty specific.

One thing nobody's mentioned - if you use a credit card, your payment is considered "processed" on the day you submit it, even if it takes a couple days to actually hit your account. This saved me from a late payment penalty last year when I submitted my payment on April 15th though it didn't fully process until April 17th. The IRS uses the submission timestamp as your official payment date as long as the payment eventually clears.

I've been using credit cards for tax payments for the past 3 years and wanted to share some additional tips based on my experience: 1. Set up account alerts on your credit card before making the payment - some processors can take 24-48 hours to show the pending charge, which can be nerve-wracking if you're not expecting it. 2. If you're using this strategy primarily for a welcome bonus (like your Amex), consider timing your payment earlier in the tax season rather than waiting until the deadline. This gives you more buffer time to resolve any potential issues. 3. Keep a copy of your tax return along with the payment confirmation - I had one year where the IRS applied my payment to the wrong tax period, and having both documents made it much easier to get corrected. For your specific situation with the Blue Cash Everyday, that's a great card for this strategy since it has no annual fee. Just make sure the processing fee doesn't eat into too much of your welcome bonus value. In my calculations, as long as the welcome bonus is worth more than about 3x the processing fee, it's usually worth doing. Good luck with whichever processor you choose!

Connor, congratulations on your first job! The movie theater is a great place to start - I worked at one in high school and loved it. You've gotten some really solid advice here. Based on your expected earnings of $7,800-$10,400 annually, you should qualify to claim exempt from federal withholding since you're under the $13,850 threshold as a dependent. A few additional things to keep in mind: - Make sure you understand the difference between claiming "exempt" and claiming "0" allowances. Exempt means NO federal income tax is withheld, while 0 allowances means maximum withholding. - Your employer should provide you with both the federal W-4 and Illinois IL-W-4 forms since you mentioned you're in Illinois - Don't forget that movie theaters often get really busy during summer blockbuster season and holidays - if you end up working way more hours than expected, you can always submit a new W-4 to start having taxes withheld The most important thing is that you're asking the right questions before filling out the forms. That shows you're being responsible about this! Even if you make a mistake, it's easily correctable, and based on your projected income, you're unlikely to face any major tax issues. Good luck with the new job!

Isaac, great questions! Yes, you'll need to file both federal and state tax returns if you have Illinois income, but it's not as complicated as it sounds. Most tax software (like TurboTax, H&R Block, or even free options like IRS Free File) will handle both returns together - you enter your information once and it prepares both forms. Since you'll likely have simple tax situations (just W-2 income, standard deduction), it should be pretty straightforward. Regarding the saving question that both you and AstroAlpha asked - I'd recommend the "pay yourself first" approach. Try to save at least 20% of each paycheck if possible, split between: - Emergency fund (even $500-1000 is a great start) - Car fund (since you mentioned wanting one) - "Fun money" for things you want So if you're making around $200/week, try to save $40 ($20 for car, $15 for emergency fund, $5 for fun purchases). It might seem like a lot at first, but starting this habit early will pay off huge later. Plus, having some money set aside means you won't stress if your hours get cut or if you do end up owing a small amount in taxes. The key is finding a balance that doesn't make you feel deprived but still builds good financial habits. Your future self will thank you!