This is super helpful! I've been keeping receipts but wasn't sure what counts as a legit business expense. For my home office, is there a specific formula to calculate that deduction? And do I need any special documentation for these deductions?

For your home office, you can use the simplified method of $5 per square foot (up to 300 sq ft) or the regular method where you calculate the percentage of your home used for business and apply that to your housing expenses. Most freelancers find the simplified method easier unless you have a large dedicated space. As for documentation, keep all receipts and maintain a log that notes the business purpose for each expense. For things like mileage, keep a log of dates, destinations, and business purposes. Digital receipts are fine - just make sure they show what was purchased, date, and amount. The IRS doesn't require you to submit these with your return, but you'd need them if you're ever audited.

Same thing happened to me my first year. If you can show reasonable cause (like you didn't know about the requirement), sometimes you can get the penalty waived. Worth calling the IRS to ask about penalty abatement for first-time offenders.

Does the tax software ask for information about each individual bet, or just the totals from your yearly statement? Also, do you need to keep records of every single bet in case of an audit?

The software typically just asks for your totals, not each individual bet. Usually you'd enter your total winnings and total losses based on the statements from your sportsbetting platforms. As for records, yes, you should definitely keep documentation of all your bets in case of an audit. The IRS requires "adequate records" for gambling activities, which means either a betting log or statements from the platforms showing all your activity. Most tax professionals recommend keeping these records for at least 3 years after filing (the standard audit window), though some suggest 6 years to be extra safe.

That's a good point! I received a 1099-K from one platform but nothing from another, even though I definitely won money on both. Does that mean the second platform didn't report my winnings to the IRS?

How exactly do you calculate the support test? I paid rent and groceries, but my parents helped with tuition for part of the year and kept me on their health insurance. Does the insurance count as support?

Yes, health insurance premiums paid by your parents would count as support they provided. For calculating total support, you need to add up ALL expenses: housing, food, utilities, clothing, education, medical/dental care, transportation, and other necessities. If your parents paid tuition and health insurance, you'd need to get the dollar value of those benefits. For health insurance, it would be the portion of the premium attributable to your coverage. Then compare their contribution to the total support amount to see if it exceeds 50%.

That's not always true though - my tax guy said the exception does apply in some cases, especially for college students with very little income. It's not "super rare" if you actually have no tax liability.

Damn, hadn't even thought about state tax differences. I'm in Texas so I think we don't have state income tax, but I'll double check. Does anyone know if there are any other gotchas I should watch out for with crypto taxes?

You're lucky being in Texas then! No state income tax means you only need to worry about the federal side of things. Another gotcha to watch for is the wash sale rule situation. Currently, crypto isn't subject to the same 30-day wash sale rules as stocks, which means you could technically sell your altcoins for the tax loss, then immediately rebuy them if you still want to hold them long-term. The IRS could change this rule in the future, but for tax year 2025, you're still able to do this. Just make sure you actually execute the sale - moving coins between your own wallets doesn't count as a taxable event.

This is so true. Friend of mine tried to "forget" about $8k in crypto gains and got absolutely hammered with penalties. The exchanges are definitely reporting to the IRS now - this isn't the wild west anymore.

This is really helpful info I hadn't considered. The check I received was for exactly the excess amount ($1,350) minus the 10% withholding. Does that mean they didn't include any earnings, or would the earnings have been calculated into that amount? Should I specifically ask about the earnings portion?

Based on the amount you received, it sounds like they may not have calculated earnings separately, which is actually a mistake. Even a small excess contribution will generate some earnings while it was in the account. You should definitely call your 401k provider and specifically ask about the earnings on your excess contribution. Ask them how those earnings were calculated and how they'll be reported on your 1099-R. The correct procedure is to distribute both the excess contribution and its earnings. If they haven't properly accounted for the earnings, you might need to request an additional distribution specifically for those earnings. The provider should be able to calculate what those earnings were for the period the excess contribution was in your account.

That number has been impossible to get through on. I tried for weeks and never spoke to anyone. The wait times are insane or they just tell you to call back later.