Does anyone know if I can write off part of my internet bill? I use my phone's hotspot sometimes while waiting for orders, plus I need internet at home to check earnings, do taxes, etc. Also, what about my Netflix subscription since I watch it while waiting for orders at restaurants? lol worth a shot

As someone who's been doing gig work for a few years, I want to emphasize something important about the home office deduction that I learned the hard way. Even if you qualify for it, you need to be really careful about documentation because gig workers get audited more frequently than W-2 employees. The IRS will want to see proof that your space is used "exclusively and regularly" for business. This means taking dated photos of your setup, keeping a log of business activities performed in that space, and being able to show that NO personal activities happen there - not watching TV, not personal computer use, nothing. Also, if you're renting, make sure your lease doesn't prohibit business use of the apartment. Some landlords have clauses about this, and technically running a business (even gig work) from a residential space could be a lease violation in some cases. Just something to check before claiming that deduction! For your specific situation driving 50-80 hours weekly, focus on the solid deductions first - mileage, phone percentage, delivery bags, etc. The home office thing is trickier and might not be worth the audit risk unless you have a really clear dedicated space.

This thread has been incredibly helpful! I'm a new Uber driver (just started 3 months ago) and I had no idea Solo 401(k)s were even an option for people like us. The breakdown of employee vs employer contributions makes so much more sense now. One follow-up question - when you're calculating that 25% employer contribution on net earnings, is that 25% of your net earnings AFTER you've already made the employee contribution? Or is it 25% of your total net earnings before any retirement contributions? For example, if I have $1000 in net weekly earnings and contribute $400 as an employee contribution, is my employer contribution calculated on the remaining $600 or the full $1000? Also, has anyone run into issues with quarterly estimated tax payments when you're making these contributions? I'm worried about underpaying if I'm not calculating everything correctly.

As someone who's been driving for Uber for 2 years and has a Solo 401(k), I wanted to add a few practical tips that might help: 1. **Track everything monthly**: I use a simple spreadsheet to track gross earnings, mileage deductions, and net income each month. This makes it much easier to estimate your contribution capacity and plan your cash flow. 2. **Start small and increase**: Don't feel like you need to max out contributions immediately. I started by contributing 10% of my net earnings and gradually increased it as I got more comfortable with the cash flow impact. 3. **Consider the timing**: Since Uber income can be seasonal (holidays, events, etc.), I tend to make larger contributions during my high-earning months and smaller ones during slower periods. The flexibility is one of the best parts of the Solo 401(k). 4. **Don't forget about catch-up contributions**: If you're 50 or older, you can contribute an additional $7,500 in 2023 ($30,000 total instead of $22,500). One thing that really helped me was setting up automatic transfers to a separate "retirement contribution" savings account. Each week I transfer my planned contribution amount there, then make larger quarterly contributions to the actual 401(k). This way I'm not scrambling to find the money at contribution time. Also, make sure to check if your Solo 401(k) provider offers loan options - it can be helpful for gig workers who might need access to funds in emergencies, though obviously it should be used sparingly.

I completely understand that panicked feeling when you get Form 9143! I went through this same situation about 4 months ago and it was so stressful until I realized how routine this actually is. In my case, the issue was that I had signed my return using a black Sharpie (I know, not my brightest moment!) which apparently doesn't work well with their scanning technology. The IRS has definitely become much stricter about signature quality - I think it's part of their fraud prevention upgrades. Here's what worked for me to get it resolved quickly: - Used a regular blue ballpoint pen (multiple people here have mentioned blue ink shows it's original, which makes sense) - Made sure to sign on my kitchen table with the form completely flat - no binders or clipboards underneath - Took my time with the signature instead of rushing through it like I usually do - Double-checked that my signature stayed within the signature box lines - Mailed it back with the Form 9143 on top as instructed The whole thing was processed in about 21 days after I resubmitted, and I got my full refund with zero penalties since I had originally filed on time. The key thing that helped my anxiety was realizing this happens to tons of people every year and it's always fixable. Your $1,230 is absolutely still coming - this is just a temporary bureaucratic speed bump that the IRS needs to clear before they can process your refund. Try not to stress too much about it!

I just wanted to add my experience since I dealt with this exact same Form 9143 issue about 3 months ago and it was honestly such a relief once I got it sorted out! In my case, the problem turned out to be that I had signed my return while traveling and used a hotel pen that was running out of ink - the signature was too faint and patchy for their scanning system to read properly. The IRS agent I eventually spoke with explained that they need consistent, dark signatures for their automated processing. Here's what I learned that might save you some stress: - Use a high-quality blue ballpoint pen (I now keep a dedicated "tax pen" just for this!) - Test the pen on a scrap paper first to make sure it's writing consistently - Sign slowly and deliberately - don't rush through it like you're signing a credit card receipt - Make sure you're sitting at a proper desk/table with good lighting so you can see what you're doing - Keep your signature within the designated box boundaries The timing worked out better than expected - I mailed back my corrected return on a Tuesday and got my refund direct deposited exactly 18 days later. No penalties, no interest charges, no drama. Just had to be patient for those few extra weeks. Your $1,230 refund is definitely coming! This is honestly one of the most routine issues the IRS deals with during tax season. Try to think of it as just a minor paperwork hiccup rather than a major problem. You've got this!

Since no one mentioned this specifically - Cash App should provide you with tax documents in their app. Go to the profile tab, then documents, and see if there's anything there. If your activity was minimal ($5 total), they probably didn't generate anything, which actually makes your life easier for tax filing. Just keep good records of your purchases and sales for when you do hit reportable thresholds.

Just to add some clarity on the thresholds - Cash App (and most brokerages) are required to send 1099-B forms if you have gross proceeds from sales of $600 or more in a tax year, OR if you had any reportable transactions regardless of amount (like certain corporate actions). Since you only have $5 total and haven't sold anything, you're well below any reporting threshold. The key thing people get confused about is the difference between having stocks worth $5 (not taxable) versus selling stocks and making $5 profit (technically taxable but practically ignorable at that level). You're in the first category, so you're good to go. Just remember that when you do eventually sell, that's when the tax clock starts ticking!

The complexity of your situation really highlights why the SECURE Act has created so much confusion for beneficiaries. You're dealing with both a "regular" inherited IRA and a double-inherited IRA, each with potentially different rules. One critical point that might affect you: if your dad had already started taking RMDs from either account before he passed (he would have been required to start at age 72), then you likely DO need to take annual RMDs during the 10-year period, not just empty the accounts by the deadline. This is a common misconception about the SECURE Act rules. Given the potential penalties involved (25% of missed distributions), I'd strongly recommend getting professional help ASAP. Look for a fee-only financial advisor who specializes in retirement account distributions - they'll typically charge a flat fee for this type of analysis rather than trying to sell you products. Also, don't panic about past penalties. The IRS has been relatively lenient with inherited IRA penalty waivers due to the widespread confusion around these rule changes. The key is addressing it now rather than continuing to wait.

This is exactly the kind of complex inherited IRA situation where getting multiple professional opinions is crucial. Your dad's advisor being vague is unfortunately common - many advisors are still catching up on the SECURE Act nuances, especially for double-inherited IRAs like yours. One immediate action you should take: contact both IRA custodians directly and ask for the complete distribution history since your dad's passing. They should be able to tell you if any RMDs were required and missed for 2022, 2023, and 2024. This will give you a clear picture of what penalties you might be facing. For the double-inherited IRA specifically, since your uncle died in 2011 (pre-SECURE Act), your dad was taking stretch distributions. When you inherited it, the 10-year rule applies to you, BUT you also need to continue the annual RMDs during that 10-year period if your dad had already started them. Don't let the financial advisor's hesitation discourage you from seeking help. Look for someone who specifically advertises expertise in inherited IRAs and SECURE Act compliance. Many charge $200-500 for a comprehensive analysis, which is far less than potential penalties. The IRS penalty relief for inherited IRA confusion is real, but you need to act proactively to take advantage of it.