Just wanted to share my experience as someone who recently went through this exact same situation! I was also totally confused when my potential employer asked for a "gross income redacted tax return" - had never heard of it before either. What worked for me was creating a simple checklist of what to redact vs. what to keep visible. I redacted all the dollar amounts showing my actual income (wages, salary, AGI, taxable income) but kept visible things like my name, address, filing status, employer names and EINs, and the tax year. The key is that employers want to verify you've been filing taxes and see your employment history, but they don't need to know your exact salary. I used the PDF editor that came with my computer to add black rectangles over the income numbers, then saved it as a new file. The whole process took maybe 10 minutes once I figured out what needed to be covered. My employer accepted it without any questions and I got the job! Don't overthink it - it's really just about protecting your financial privacy while still showing you're a responsible taxpayer. Good luck with your interview!

This is such a comprehensive thread - thank you everyone for sharing your experiences! As someone who works in accounting, I just wanted to add a few professional tips that might help: 1. Always work with a COPY of your tax return, never the original. Save the original in a safe place and make multiple copies for redaction purposes. 2. If you're uncomfortable doing it yourself, many local tax preparation offices (H&R Block, etc.) will help you create a redacted version for a small fee - usually around $25-50. 3. Some employers might also accept just your W-2s with income amounts redacted instead of the full return, which can be simpler since there are fewer forms to deal with. 4. Pro tip: After you redact everything, do a final check by covering the visible parts with your hand and asking yourself "could someone figure out my income from what's still showing?" Sometimes things like tax owed/refund amounts can give away income ranges. 5. Keep a copy of what you submit for your records - some companies take a while to get back to you and you might forget exactly what you sent. Hope this helps and congrats on getting the interview! The fact that they're asking for this documentation usually means they're seriously considering you for the position.

Question for anyone who knows - I use a tip tracking app on my phone. Is there a way to use that instead of Form 4070? My manager said they'd accept reports from the app but I don't know if that's actually okay with the IRS.

As someone who's been serving for about 3 years, I totally get your confusion! I went through the exact same thing when I started. Here's what I've learned works best: First, definitely track ALL your tips - both cash and credit card. I use a simple notebook where I write down my shift date, total sales, credit card tips, and cash tips. Takes like 30 seconds at the end of each shift. For the Form 4070 question - technically yes, you're supposed to report monthly if you make over $20 in tips. But honestly, most restaurants don't make it easy. What I do is ask my manager about their preferred method. Some places have their own electronic system, others want you to use the actual Form 4070. The key thing is that you DO need to report your tips somehow - either monthly to your employer OR annually on Form 4137 when you file taxes. If you don't report monthly, you'll pay more in Social Security/Medicare taxes at the end of the year, plus potential penalties. My advice? Start tracking everything now and have a conversation with your manager about what system they prefer. Even if your coworkers are doing different things, you want to be compliant. Better to be the one person doing it right than to risk getting in trouble later! Also, keep all your tip records - the IRS can ask for them if they ever audit you.

One thing nobody's mentioned - if you're trading frequently enough to deduct expenses, the IRS might question why you haven't registered as a securities dealer and collected/paid sales taxes. Be careful about claiming too much "business" activity without proper licensing.

Great question! I made the transition to full-time trading two years ago and learned some hard lessons about tax planning. Here's what I wish I knew upfront: The expense deduction issue is tricky - you need to qualify for "trader tax status" (different from MTM election) to deduct your trading expenses on Schedule C. This requires meeting the IRS test of "substantial, regular, and continuous" trading activity. Just trading full-time isn't automatically enough - they look at frequency of trades, time spent, and whether you're seeking short-term profits. One key point many miss: even with trader status, your actual trading profits still aren't subject to self-employment tax. The SE tax only applies to other business income you might have (like teaching trading courses or selling signals). My advice: Start documenting everything now - daily trading logs, hours spent, your trading strategy, and all expenses. The IRS will want to see this pattern of business-like activity if you're audited. Also consider consulting with a tax professional who specializes in trader taxation before making the leap. The rules are complex and getting it wrong can be expensive. The MTM election is a separate decision that affects how your trades are taxed, not whether you can deduct expenses. You can have trader status without MTM, but you need trader status to properly deduct most of your trading-related expenses.

Another important consideration for nut farm investments is the potential for qualifying for like-kind exchanges (1031 exchanges) if you decide to sell and reinvest in other agricultural property later. This can help you defer capital gains taxes and continue building your agricultural investment portfolio. Also, don't overlook state-level tax benefits. Many states offer additional incentives for agricultural operations, including property tax exemptions for land in agricultural use, reduced tax rates on farm income, and sometimes even sales tax exemptions on farm equipment and supplies. The specific benefits vary significantly by state, so it's worth researching what's available in your location. One more thing - if you're planning to process and sell your nuts directly (rather than selling to processors), you may qualify for additional business deductions related to processing equipment, packaging, marketing, and direct sales activities. This can create a nice value-add opportunity while providing more tax deduction opportunities.

Don't forget about the potential for energy tax credits if you're considering adding renewable energy systems to your farm operation! Many nut farms are excellent candidates for solar installations due to their open land and high energy needs for irrigation systems. The federal Investment Tax Credit (ITC) currently allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies through 2032, then steps down gradually. Some states offer additional rebates and incentives on top of the federal credit. For farm operations, you can often qualify for both the business solar tax credit AND accelerated depreciation on the solar equipment through MACRS (Modified Accelerated Cost Recovery System). This creates a powerful combination - immediate tax credits plus accelerated depreciation deductions. Also consider that many utility companies offer net metering programs, allowing you to sell excess solar power back to the grid. This can create additional income streams for your farm operation while reducing your overall energy costs for irrigation and processing equipment. If you're planning any new construction or major renovations on farm buildings, it's worth exploring energy-efficient equipment credits as well. Things like high-efficiency HVAC systems for processing facilities or LED lighting for barns and storage areas may qualify for additional tax benefits.

Be careful about ignoring the partnership angle. I tried to treat a similar situation as just "helping a friend" and splitting profits, and ended up with an audit. Since there was a profit-sharing agreement, the IRS deemed it a partnership regardless of what we called it. Their position was that when two or more people join together to purchase/improve property with the intent to make money, that's a partnership for tax purposes - even without formal documentation. The safest approach is filing Form 1065 and issuing K-1s. If you really don't want to do that, at minimum document everything clearly and have a written explanation ready if questioned. Whatever you do, don't just have one person report everything and pay the other under the table - that's asking for trouble!

I'm dealing with a very similar situation right now - bought a property with my cousin, only my name on the deed, verbal 50/50 agreement, and we just sold it. After reading through all these responses, I'm leaning toward filing Form 1065 and issuing K-1s. One thing I haven't seen mentioned is the importance of documenting your agreement NOW if you haven't already. Even though the sale is complete, having a written record of your original 50/50 agreement (even if it's just an email or text message confirmation) will be crucial if the IRS ever questions the arrangement. Also, make sure you're both on the same page about which approach you're taking. My cousin and I initially had different ideas about how to handle this, and it could have created a mess if we'd filed inconsistent returns. The partnership route with K-1s ensures you're both reporting the same information in the same way. The Form 1065 might seem like overkill for a one-time deal, but it's actually the cleanest way to document what actually happened - two people investing together to make a profit. Better to do it right the first time than deal with complications later.