Has anyone tried H&R Block's self-employed software? My situation is similar to the original poster - about $80k income, minimal expenses. Not sure if it's worth the higher price compared to TaxAct or TurboTax Self-Employed.

I made the switch from an accountant to DIY last year and it was honestly easier than I expected! For someone at your income level with straightforward expenses, you're probably right about saving money. I ended up going with TurboTax Self-Employed because it integrates well with QuickBooks if you decide to use that for tracking during the year. The software does a good job walking you through Schedule C and catches a lot of deductions I might have missed - things like business use of home, professional subscriptions, even some travel expenses I hadn't thought about. One tip: start tracking everything now rather than trying to reconstruct it all at tax time. Even if you just use a simple spreadsheet or app to categorize expenses as you go, it'll save you hours come April. The mileage deduction alone can add up to significant savings if you drive for work at all. The peace of mind was worth way more than the software cost, and I actually learned a lot about my business finances in the process!

11 I've been filing 1099s wrong for years! I thought any business with a name (even "Joe's Plumbing") didn't need a 1099. Just found out many of these are sole proprietorships with DBAs and DO need 1099s. My tax software never flagged this!

Don't panic about past years! The IRS is generally more concerned with current compliance than going back to penalize small businesses for honest mistakes on 1099 reporting. However, if you paid the same vendors significant amounts in recent years, it might be worth consulting with a tax professional about whether amended returns make sense. The key going forward is getting those W-9s from everyone. I learned this the hard way too - "ABC Construction LLC" sounds like a corporation but could be a single-member LLC taxed as a sole proprietorship, which definitely needs a 1099. The business name alone doesn't tell you the tax classification. One thing that helped me was keeping a simple spreadsheet with vendor name, total payments for the year, business type from W-9, and whether 1099 is required. Makes January much less stressful when you're not scrambling to figure out who needs what forms.

This thread has been incredibly helpful! As a newcomer to both volunteer work and tax planning, I had no idea the rules were so nuanced. I've been considering starting some pro bono work in my field (marketing) and was definitely under the impression that I could deduct my hourly rate like the original poster thought. A few follow-up questions based on all this great information: For someone just starting out with volunteer work, would you recommend setting up a separate tracking system from day one, even if I'm not sure I'll have enough deductions to itemize? It sounds like having good records is important regardless. Also, I'm curious about the timing of expenses - if I buy supplies in December for a volunteer project that happens in January, which tax year do those expenses belong to? And what about recurring expenses like software subscriptions that I use partially for volunteer work throughout the year? Thanks to everyone who shared their experiences and knowledge here - this is exactly the kind of real-world guidance that's hard to find elsewhere!

This has been such an educational thread! As someone who does volunteer work with animal shelters, I want to add that the documentation requirements can vary depending on the type of volunteer work you do. For hands-on volunteer work like mine, I've found it helpful to keep a volunteer journal that includes not just expenses, but also photos of receipts, mileage logs with start/end locations, and even photos of the work being done (with nonprofit permission). One thing I learned the hard way - if you volunteer regularly at the same location, you can't deduct your regular commute there, but if you make special trips for volunteer purposes (like picking up supplies or attending training), those miles can be deductible. The IRS sees the regular volunteer location as a "regular place of business" for tax purposes. Also, for anyone using platforms like VolunteerMatch, I'd recommend downloading and saving all your project documentation and correspondence immediately after completing each project. I had one nonprofit's email system change, and I lost access to important documentation that would have supported my expense deductions. Having your own backup records is crucial! The complexity is definitely intimidating at first, but once you establish a good tracking system, it becomes second nature. And even if the tax benefits are small, the personal satisfaction from volunteer work makes it all worthwhile.

Just wanted to add some clarity on the record-keeping requirements if you do end up qualifying for any vehicle deductions through self-employment activities. The IRS is particularly strict about vehicle expense documentation, so you'll need to maintain contemporaneous records showing: 1. **Mileage logs** - Date, destination, business purpose, and odometer readings for each trip 2. **Total annual mileage** - Both business and personal use to calculate your business use percentage 3. **Actual expenses** - If you choose actual expense method over standard mileage rate, keep receipts for gas, maintenance, insurance, etc. For Section 179 specifically, remember that if your business use drops below 50% in any subsequent year, you'll have to "recapture" some of the deduction as income. This is why accurate ongoing record-keeping is crucial. I'd also suggest consulting with a tax professional before making a large vehicle purchase with the intent to claim Section 179. The interaction between W2 income and self-employment income for vehicle expenses can get complex, and the penalties for getting it wrong can be significant.

Based on all the discussion here, it sounds like your best immediate option as a W2 employee is to approach your employer about setting up an accountable plan for vehicle reimbursement, as Ava mentioned. This would give you tax-free reimbursement at the current 67 cents per mile rate without the complexity of trying to qualify for Section 179. However, if you're serious about the Section 179 deduction, you might want to consider whether any of your work activities could qualify as legitimate self-employment. For example, if you're doing networking events that could lead to consulting opportunities, or if you have any skills you could offer as independent services, you might be able to establish a legitimate side business that would qualify for Section 179. The key thing to remember is that the IRS looks at substance over form - you can't just call yourself self-employed to get tax benefits. You'd need genuine business activities with profit motive, separate from your W2 work. Given the record-keeping requirements and recapture risks that Hannah outlined, make sure any business use percentage you claim is well-documented and conservative. I'd definitely recommend consulting with a tax professional before making a major vehicle purchase, especially one where you're counting on Section 179 benefits to justify the decision.

Wait I'm confused - I thought home office deduction was part of itemizing? So if I take standard deduction I can't claim my home office for my sole proprietorship? I've been doing this wrong for years then!

This is such a common misconception! I went through the exact same confusion when I started my consulting business. The key thing to remember is that Schedule C business expenses and the standard deduction operate on completely different "levels" of your tax return. Think of it like this: Schedule C calculates your net business profit (gross income minus business expenses), and that net profit number flows to Line 3 of your Form 1040. Then, much later in the process, you decide whether to take the standard deduction or itemize your personal deductions. So yes, absolutely organize those receipts and track your business expenses! Every legitimate business expense reduces both your income tax AND your self-employment tax (which is 15.3% on net earnings). Even if your business has slowed down, those deductions are still valuable. For your accountant, provide everything you mentioned: all 1099s/W2s, organized business expenses by category, and your investment statements. Since you have a Solo 401k, make sure to include any contributions you made there too - those are also deductible regardless of whether you itemize or take the standard deduction.