How do you decide what percentage of things like internet and cell phone to deduct when you use them for both personal and business purposes? I've heard conflicting advice about this.

The general rule is to deduct the percentage that you use for business purposes. For example, if you use your cell phone about 60% of the time for business calls/emails/etc., then you can deduct 60% of your cell phone bill. It's important to have some reasonable basis for determining these percentages. Some people keep logs for a sample period (like tracking business vs. personal internet usage for a few weeks) to establish their percentage. Others base it on time spent working vs. personal time. Whatever method you choose, just be consistent and make sure you can explain your reasoning if asked.

I've used TurboSelf-Employed for the past two years and it's definitely worth it for me. It walks you through all the self-employment forms step by step and automatically calculates your quarterly estimated payments. It also helps identify deductions I would have missed on my own. The expense categorization feature saves me tons of time - it learns which categories to assign to recurring expenses. And it keeps a running estimate of what I'll owe so there are no surprises at tax time.

Thanks for the advice. I've been reading through my contract and you're right - there's an arbitration clause buried in the fine print. Did your sister have to hire a lawyer to get her money back, or was she able to handle the complaint process herself?

She handled most of it herself with just a little guidance from a lawyer friend. The key was documenting everything thoroughly - she created a timeline of all promises made, services not delivered, and every interaction with the company. For the attorney general complaint, she included copies of all contracts, recordings of phone calls (where legal), and a detailed account of the harm caused. The most effective part was when the attorney general's office started their investigation. Companies often respond quickly when an official agency gets involved. She didn't have to proceed to formal arbitration because the company offered a settlement once they realized she was serious about pursuing all available channels. Stay persistent and document everything.

The IRS does take action against fraudulent tax resolution companies, but they're more focused on practitioners who are directly misrepresenting IRS rules or filing false documents. For consumer protection issues like this, the FTC and state agencies usually have more immediate jurisdiction. That said, reporting to multiple agencies increases the chances of action.

Thanks for mentioning Section 179! I do have some shelving units and a computer system I use exclusively for the business. Would those qualify? And what's the max I can deduct this way?

Those shelving units and computer

Exactly this! I made this same mistake my first two years in business. The IRS doesn't care what you do with your profits - reinvest them, pay debt, whatever. They care about revenue minus deductible expenses. Paying down loan principal isn't a deductible expense.

Thanks for mentioning this! I had no idea this was even a thing. Do you know if there's any minimum income requirement to qualify for this deduction?

There's no minimum income requirement to qualify for the Qualified Business Income deduction, which is great news for situations like yours. As long as you have positive net income on your Schedule C (after all your deductions), you can generally claim this deduction. The calculation gets more complex if your total taxable income exceeds certain thresholds (around $170,050 for single filers in 2023), but for most interns with stipends, you'll likely qualify for the straightforward 20% deduction on your net business income. Just make sure your tax software includes this calculation - some free versions don't handle it well.

Second this! Also consider opening a SEP IRA if you can afford it - great way to reduce your taxable income and save for retirement at the same time.

Thanks for the input! That's definitely something I've been considering. Do you think there's any benefit to at least harvesting some gains to "reset" my cost basis higher in case the crypto keeps appreciating? I'm torn between letting it ride versus locking in some gains tax-free while I can.

That's a good point about resetting your cost basis. If you're confident in the crypto's long-term prospects, selling and rebuying to establish a higher cost basis could definitely help you in the future if prices continue to climb. I'd probably take a middle approach - maybe harvest enough gains to use up a portion of your losses while keeping some losses in reserve for future years. That way you're getting some tax benefit now while also positioning yourself better for future growth. It really comes down to your outlook on where crypto prices are headed and your personal cash needs.

As of the 2025 filing season, wash sale rules still don't apply to cryptocurrency. There have been proposals to change this, but they haven't been implemented yet. This is one of the few tax advantages crypto still has - you can sell at a loss and immediately repurchase to harvest the tax loss without waiting 30 days (which would be required for stocks and securities). Just make sure you're keeping detailed records of all transactions since the IRS is paying more attention to crypto reporting these days.