That's actually brilliant - I never thought about finding potential business opportunities in Albuquerque! I work in software development consulting and there might actually be some tech companies there I could connect with. How detailed do my records need to be for this to count? Would emails setting up meetings be sufficient documentation?

Emails setting up meetings would be excellent documentation. You want to establish both your intention to conduct business and that actual business activities took place. Save those emails, take notes during the meetings, keep any business cards you collect, and record all mileage specifically related to these business activities. If you end up gaining any clients or doing future work based on these connections, that strengthens your case even more. Just remember that the primary purpose of the Albuquerque portion still needs to be business for those miles to count, so make sure you're spending more time on business activities than personal ones while there.

The 30-mile detour to see a tourist attraction would be personal miles and not deductible. However, the direct business route from Sacramento to San Diego would still be fully deductible. Think of it as drawing a line on the map - the most direct reasonable route for business is deductible, any detours for personal reasons are not. Stopping for meals during business travel doesn't disqualify your miles though - that's considered a necessary part of business travel.

Ok this is at least some good news! Do you know roughly how much the stimulus payments were? And do I need any special documentation to claim them now?

The stimulus payments totaled $3,200 per eligible adult - $1,200 for the first payment, $600 for the second payment, and $1,400 for the third payment. There were additional amounts for dependents too. You don't need any special documentation beyond what you'd normally include with your tax return. When you file, you'll just need to complete the Recovery Rebate Credit section where you'll indicate that you didn't receive the payments previously. Most tax software will walk you through this with a series of questions about which payments you received.

This is good advice, but I don't think there's any penalty for filing a $0 balance or refund due return after the statute of limitations has expired. The IRS won't process the refund, but it helps complete your record.

This is super helpful, thank you! I didn't even know I could check what my employer reported to the IRS. Do these transcripts become available pretty quickly after employers submit them, or is there a delay? If my W2 just got generated recently, would it even show up there yet?

The wage and income transcripts are usually available by late May or June for the previous tax year, but there can be some lag time. If your employer truly just submitted your information recently, it might not show up yet. However, most employers submit their W2 information by the end of January, even if they're slow in getting the actual forms to employees. It's always worth checking - you might be surprised to find your information has been there all along, which could potentially strengthen your case about employer negligence for the penalty abatement request.

I don't think this advice is correct. Form 4852 is only if you NEVER received your W-2 or if it's incorrect. Since OP has the W-2 now, even though it's late, they should use the actual W-2 for filing, not the substitute form.

Do you have a specific mileage tracking app you recommend? And for the home office thing - is that still beneficial if we have an LLC? Does each partner get to claim their own home office or just one of us?

I personally use MileIQ, but there are several good ones like Everlance or Stride. Just make sure it logs your starting/ending points and lets you categorize trips. For the home office deduction, yes, it's still beneficial with an LLC since the LLC income passes through to your personal returns. Each partner can potentially claim their own home office deduction if they each use space in their respective homes exclusively for managing the rental business. The key word is "exclusively" - the space can't be used for anything else. The deduction would be proportional to your ownership percentage in the LLC.

Honestly, TurboTax is awful for complex situations like rental properties with partners. I switched to H&R Block's premium version and it walks you through the partnership stuff MUCH better. You'll enter the partnership info on Form 1065, which generates K-1s, then each partner enters their K-1 info on their personal returns.

Thanks for that advice! My settlement papers do actually specify that the entire amount is for "emotional distress damages" and not for lost wages or punitive damages, so that's helpful. I hadn't thought about keeping extra documentation from my attorney though. Would it be helpful to get a specific letter about the tax treatment, or is the settlement agreement itself sufficient?

The settlement agreement should be sufficient if it clearly states the damages are for emotional distress. However, having a supplementary letter from your attorney that specifically addresses the tax treatment can be helpful if you're ever audited. I'd recommend asking your attorney for a brief letter confirming that the settlement represents compensation for emotional distress and not for lost wages or punitive damages. If possible, have them reference any relevant tax code sections that apply to your situation. Keep this letter with your tax records for at least seven years (the typical IRS audit window for most situations).

This is bad advice. Different types of settlements have very different tax treatments. Personal physical injury settlements are tax-free. Emotional distress settlements are taxable but not subject to self-employment tax. Lost wages are taxable as regular income. Punitive damages are taxable as ordinary income. Just putting it on "other income" without properly documenting and reporting each component could lead to paying too much in taxes or, worse, an audit. The specific instructions from the expert in Comment 1 are much more accurate.

You're right that different settlements have different tax treatments. I should have been clearer - I meant the OP should report it as "other income" and specifically label it as "emotional distress settlement" as the expert suggested, not just lump it in with random miscellaneous income. My main point was that tax software can be helpful for situations like this. TurboTax Premium, for example, has specific sections for reporting legal settlements and will guide you through the correct forms and line items based on the type of settlement. It also helps you properly deduct attorney fees in these situations. I didn't mean to suggest taking a casual approach to the documentation - keeping all records is absolutely essential.