Is it too late to create a mileage log now? I kept rough track in my calendar of my routes and deliveries but didn't have a formal "mileage log" per se. Can I recreate one from my notes?

You can reconstruct a reasonable mileage log from your existing notes and calendars. The IRS doesn't require a specific format - they just need to see evidence that you tracked business vs personal miles. Include dates, starting location, destination, purpose of trip, and mileage for each business drive. Be honest about reconstructing it from your notes - don't claim it's an original contemporaneous log if it isn't. Many small business owners have to reconstruct logs during audits, and the IRS understands this as long as you have some supporting documentation like your delivery schedules, client meetings, etc.

For high-mileage, lower-cost vehicles, standard mileage rate usually wins. I've done both delivery and rideshare for years. When I tracked both methods side by side last year, standard mileage gave me a $9,850 deduction while actual expenses would have been around $7,200. But it totally depends on your vehicle and situation.

Can you explain what a Section 125 Cafeteria Plan is? Never heard of this before. Is this something I should specifically ask my HR about?

A Section 125 Cafeteria Plan (named after the section of the tax code) allows employees to pay for certain benefits with pre-tax dollars. It's essentially a menu of benefit options where you can choose between taxable benefits (like cash) and non-taxable benefits (like health insurance, FSAs, etc.). Yes, definitely ask your HR if they have this plan option. If they do, and you opt for the cash option within this plan, it might be structured in a way that reduces your tax burden. But be aware that most small to medium companies don't have this set up because it's administratively complex. Still worth asking though!

This matches my experience too. My employer gives $320/month for declining their insurance, and it's definitely taxed. Shows up as "Benefit Opt-Out Pay" on my paystub.

Thank you for mentioning those specific forms! I hadn't heard about Form 1310 yet. I'll definitely make sure to write "DECEASED" on the returns too. I've contacted his bank but they weren't very helpful without a court order or something official showing I have authority. I'm going to try again with his last bank statement to see if there are any transfers to investment accounts I can trace.

You're welcome. The Form 1310 is crucial - the IRS won't issue the refund without it when filing for a deceased taxpayer. And make sure you're using your uncle's final address on the return, which sounds like it should be the State B address where he actually lived. For the bank issues, you might need to get Letters Testamentary or Letters of Administration from the probate court, depending on your state's processes. Even for small estates, many states have a simplified probate process that gives you the legal authority you need. Without those documents, financial institutions are legally restricted in what information they can share, even with family members.

This is so true! My brother got hit with double taxation when he tried to file my dad's taxes incorrectly. Both Michigan and Indiana came after him because dad worked in one state but lived in the other. It was a complete mess to untangle.

Can you give an example of the special treatment you're talking about? I have income from Canada and want to make sure I'm not missing anything.

For Canadian income specifically, you should check the US-Canada tax treaty to see if your type of income qualifies for reduced withholding or special classification. For example, certain royalties from Canada are subject to a maximum 10% withholding rate rather than standard rates. Also important for Canadian transactions - if you have income from Canadian retirement accounts, there are specific reporting requirements and potential treaty benefits. Some Canadian investment income might not need to be on Schedule NEC at all if it meets certain treaty qualifications. Review Article XI and XII of the treaty for investment income and royalties.

TurboTax Premium with the foreign tax package can handle additional non-ECI transactions. It automatically creates the attachment when you exceed the limit. I've used it for the past two years with no issues.

How would I calculate that 100% of last year's tax liability? Is that just the total amount on my 2024 return, or some specific line number?

Look at your 2024 Form 1040, line 24. That's your "total tax" - the number you need to meet or exceed through withholding and/or estimated payments to satisfy the safe harbor provision. If that amount was $10,000, for example, then as long as you have at least $10,000 withheld or paid via estimated payments for 2025, you won't face any underpayment penalties - even if your actual 2025 tax liability ends up being much higher due to your combined income sources.

Good point! In California they're super strict about quarterly payments for self-employment income. I got hit with a penalty even though I paid everything by tax day.