I didn't even think about state taxes! Do you know if most states follow the federal rules for the $250k exclusion or do they have their own systems?

Most states do follow the federal capital gains exclusion rules, but there are definitely exceptions. For example, Massachusetts has its own rules that sometimes differ from federal treatment. It's also worth checking if your state has any special forms for reporting real estate transactions. My state required an additional form that wasn't part of the federal return. Your state's tax department website should have information specific to your location.

Yes, if you claimed a home office deduction, it can affect your capital gains exclusion. When you take a home office deduction, that portion of your home is considered business use, not personal use. If you claimed a home office deduction for part of your home, you may have to pay taxes on the gain allocated to that portion of your home, even if the gain on the residential portion is excluded. It's proportional - so if 10% of your home was used as an office, 10% of the gain might be taxable regardless of the exclusion.

Thanks for explaining that. I only used about 8% of the house as my office, so it sounds like a small portion might be taxable. I'll make sure to track that separately when I file.

Is a paper log still acceptable? I'm old school and keep a notebook in my glove compartment where I write down all my business trips.

Yes, a paper log is absolutely acceptable! The IRS doesn't require any specific format as long as you're capturing all the necessary information (date, starting point, destination, purpose, and miles driven). Your glove compartment notebook works perfectly fine as long as you're consistent with recording your trips. Some people actually prefer paper logs because they can't be altered as easily as digital records, which can sometimes be an advantage if you're ever questioned. Just make sure you're keeping up with it in real-time rather than trying to reconstruct it at tax time. The IRS is particularly suspicious of logs that appear to have been created all at once.

Absolutely you can! It doesn't matter if you're part-time or full-time - what matters is the business use percentage. If you use your SUV 30% of the time for DoorDash, you can deduct 30% of your actual expenses (including depreciation) OR use the standard mileage rate for the business miles. Just make sure you're tracking your delivery miles separately from personal use. Most delivery drivers I know use the standard mileage method since it's simpler, but you should run the numbers both ways to see which gives you a better deduction.

Do you know if Texas requires a separate form? I've got an LLC there but can't figure out if I need to do anything special for the state since they don't have personal income tax, but do have that franchise tax thing.

Texas is a bit different since they don't have personal income tax. For a single member LLC in Texas, you're right about the franchise tax. If your LLC's revenue is over the threshold (currently $1,230,000), you need to file a franchise tax report by the due date or request an extension. For the extension in Texas, you'd file Form 05-164 and make any required payment. Even if you're below the no-tax-due threshold, you may still need to file a "No Tax Due Report" by the deadline or request an extension. The Texas Comptroller's website has detailed information specific to your situation.

I tried TurboSelf last year for my LLC extension and it was okay but not great. It handled the basic Form 4868 fine, but wasn't very helpful with calculating a good estimated payment amount. I ended up overpaying by almost $2,000 because it used a very conservative calculation method. Their support was also really slow to respond when I had questions about how to properly categorize some business expenses that would affect my payment amount. I think there are better options out there specifically for small business owners.

Doesn't that mean you're overwithholding though? Wouldn't you end up with a massive refund? I'm trying to get mine as close to zero as possible.

You're right that it might result in slightly overwithholding, but in my experience it wasn't a massive refund - just enough to feel safe. The reason is that not all your income is taxed at your highest bracket rate because of how tax brackets work. Only the portion above each threshold gets taxed at the higher rate. So while it's not perfectly calibrated, it's a simple approach that errs on the side of caution. I'd rather get a small refund than owe money and potentially face penalties.

I tried it and it worked pretty well! The key is you ONLY fill out that worksheet and put the extra withholding amount on your highest-paying job's W4 (Step 4c). For your other jobs, you just fill out the basic info but don't do any adjustments. The worksheet basically calculates the additional tax you need to withhold to make up for having multiple jobs, then concentrates it all on one paycheck. It seems weird at first but makes sense when you think about it.

Why does tracking home improvements matter for taxes? I thought those weren't deductible?

Home improvements aren't deductible yearly, but they increase your home's "cost basis." When you eventually sell your home, you'll pay capital gains tax on the difference between your selling price and your basis. Your basis is your purchase price PLUS the cost of substantial improvements. So tracking those improvements could save you thousands in capital gains tax when you sell. For example, if you buy at $400K, add $50K in improvements, then sell for $600K, you're only taxed on $150K of gain instead of $200K.

This is good advice but I thought there were income limits for taking the IRA deduction if you have a workplace 401k?