Wait really? I thought you could only count the miles when you actually have food in the car doing a delivery! This would make a huge difference. Is there a specific form or place in the tax return where you claim these miles?

You can deduct all miles driven for business purposes, not just when you have food in the car! This is a common misconception. You'll report these miles on Schedule C (Profit or Loss from Business) which is part of your personal tax return. The current deduction rate is around 67 cents per mile (for 2025), so it adds up quickly. Just make sure you have good records - either a mileage log or a tracking app that shows dates, destinations, and business purpose. The IRS can ask for proof if you get audited, but they generally don't question mileage deductions that seem reasonable for your level of business activity.

How much of your cell phone bill can you deduct? Is it just a random percentage or do you need to calculate exactly how much is used for DoorDash?

You need to calculate the business use percentage of your phone. Keep track of how many hours you use your phone for DoorDash versus personal use over a typical week or month. For example, if you spend 20 hours a week doing deliveries and use your phone 40 hours total per week, you could potentially deduct 50% of your phone bill. The IRS wants you to be reasonable and have some method behind your calculation - you can't just pick an arbitrary percentage. I usually estimate based on my active delivery hours compared to my total phone usage time.

How's their tech support though? Last thing I need is to be stuck on some complicated return with no help available during peak season.

That's actually a really interesting suggestion! Do you know if these places typically hire people without formal accounting backgrounds? And would I still need my own PTIN if I worked under them?

Many of these places absolutely hire people without accounting backgrounds - they look for people who are detail-oriented and good with customers, then provide their own training. H&R Block for example has their own tax course that runs for about 8-12 weeks before tax season starts. Yes, you would still need your own PTIN even when working under their EFIN. Every person who prepares returns for compensation needs their own PTIN - it's tied to you individually, not the business. It's a good stepping stone because you get valuable experience while using their resources, then can take that knowledge when you branch out on your own.

The AFSP is great advice. I completed it my first year and it definitely helped clients trust me more. How many hours of continuing education is required again? I remember it being reasonable but can't recall the exact number.

The AFSP requires 18 hours of continuing education annually, with at least 10 hours covering federal tax law topics. The other 8 hours can be federal tax law, ethics, or other subjects relevant to tax preparation. It's definitely manageable and the investment in education pays off in terms of credibility and knowledge. Plus once you're in the program, you get a Record of Completion that you can show potential clients.

9 Does this actually work for self-employed people too? My accountant told me the IRS is much stricter with Schedule C filers and rarely approves penalty abatements.

Yes, First Time Penalty Abatement definitely works for self-employed filers too! I'm also a Schedule C filer (freelance graphic designer) and successfully got penalties waived for three years of late returns. The key is that it's based on your compliance history, not your filing status. Your accountant might be thinking of other penalty relief programs that are more discretionary. First Time Penalty Abatement is actually pretty automatic if you meet the criteria - you just need to have filed and paid (or arranged payment) for the current period and have a clean record for the three years before the penalty period. When I called, I specifically said "I'd like to request First Time Penalty Abatement under Revenue Procedure 2017-46" and they processed it right away. The agent even told me it's one of the more straightforward requests they handle.

Yes, definitely include quarterly estimated payments in your tracking! I created columns for each quarter's payments and then researched which tax year they were actually applied to (you can find this on your IRS account transcript if you have online access). For filing order, I went chronological - earliest year first. This way each subsequent year could reference credits from the previous year being applied forward. My EA explained it creates a cleaner audit trail than filing in reverse. I did work with an Enrolled Agent, and it was absolutely worth it. Cost me $800 total for all three years, but she saved me over $3,200 in properly applied credits and penalty abatements I would have missed on my own. The key was finding someone who specialized in back tax issues rather than just regular tax prep. The EA also handled all the follow-up calls with the IRS when they had questions about the credit applications, which saved me hours of being on hold. Given what you could potentially lose by making mistakes, professional help pays for itself pretty quickly in these complex multi-year situations.

Yes, definitely include estimated quarterly payments in your spreadsheet! I created columns for each quarter's payment and tracked which year they were supposed to apply to versus where the IRS actually applied them. You can get this info from your tax transcripts if you're not sure. For filing order, I filed chronologically (earliest first) but sent them all within the same week. The key was making sure each return referenced the previous year's overpayment correctly. I filed 2016 requesting the overpayment go to 2017, then 2017 showing that credit received and requesting any remaining overpayment go to 2018, and so on. I ended up working with an Enrolled Agent who specialized in back taxes - cost me about $1,200 total but saved me over $3,000 in strategic moves I never would have known about. Things like claiming certain business deductions I'd missed and structuring the overpayment applications to maximize what could still be recovered. The professional help was worth it for the peace of mind alone. They also handled all the IRS correspondence afterward, which was huge when questions came up during processing. If you're dealing with three years like I was, I'd definitely recommend getting at least a consultation to map out your strategy before filing.

This is such great advice about including a statement with the amended return! I'm in almost the exact same boat - missed reporting about $10k in freelance web development income. The separate bank account tip is genius too, I wish I had thought of that earlier. One thing I learned from calling the IRS (after using that Claimyr service someone mentioned) is that they actually appreciate when people are proactive about fixing mistakes. The agent told me that voluntary corrections usually result in lower penalties than if they discover the issue during an audit. Setting up that separate account right now - thanks for the push to get more organized before this becomes a problem again next year!

This is exactly what I needed to hear! I'm dealing with almost the same situation - missed reporting about $8k in freelance income and just realized it last week. The fact that you got through it and the IRS was actually reasonable gives me so much hope. I had no idea about the First Time Abate policy until I started reading through this thread. Since I've never had any tax issues before, it sounds like I should definitely request that in my amendment letter. Did you have to provide any specific documentation to prove your clean compliance history, or do they just look it up in their system? Also really helpful to know about the Schedule C and Schedule SE forms - I was honestly confused about what paperwork I'd need beyond the 1040-X. The self-employment tax is definitely going to sting, but at least now I know what to expect instead of just panicking about the unknown. Thanks for sharing your experience and for the Claimyr recommendation - I've been dreading trying to call the IRS but it sounds like that service really works. Time to stop procrastinating and get this amended return filed!