Does $128,439 seem way too high for car and truck expenses on my Schedule C?

Thanks for explaining that. Quick question - if I've been using actual expenses for the past three years, can I switch to the standard mileage rate this year? I've heard once you use actual expenses you're stuck with that method for the life of the vehicle. Also, how do you figure out which method would give the better deduction?

You're absolutely right about that restriction. If you've been using actual expenses in previous years for this same van, you cannot switch to standard mileage rate. The standard mileage rate is only available if you choose it in the first year you use the vehicle for business. To determine which method gives the better deduction, you'd need to calculate both and compare. The standard mileage rate is simpler (just multiply business miles by the IRS rate), while actual expenses require tracking all costs (gas, maintenance, insurance, depreciation, etc.) and multiplying by your business use percentage. For low-mileage but expensive vehicles, actual expenses often win. For high-mileage but economical vehicles, standard mileage often wins.

How does that work exactly? I'm trying to finalize my taxes this weekend and I'm getting paranoid about making mistakes like this. Does it actually look at your full return or just answer questions? Can it help with Schedule C specifically?

Sounds too good to be true. My accountant charges me $350 to review my return and even he misses stuff sometimes. How accurate is this AI thing really? And can it handle complicated business returns with multiple Schedule Cs?

It's actually really straightforward - you just upload your draft tax return PDF (from whatever software you're using) and it analyzes the whole thing looking for errors, missing deductions, and audit risks. It definitely handles Schedule C forms - that's where it found my vehicle error. For complicated returns, it works surprisingly well. The system compares your specific situation against IRS regulations and identifies inconsistencies. It's not just answering general questions - it's actually reviewing YOUR specific tax return line by line. I found it caught things my previous accountant missed, especially in those Schedule C calculations where it's easy to make mistakes.

Wait, so this actually gets you through to a real IRS person? How does that even work? I've literally spent HOURS on hold before giving up.

Sounds like BS honestly. Nobody can "skip the line" with the IRS. They're notoriously understaffed and I've never gotten through in less than 2 hours when I've called. How could some random service possibly change that?

Yes, it connects you with an actual IRS representative! The way it works is they use an automated system that continuously calls the IRS and navigates the phone tree for you. When they finally get through to a human, you get a call back and are connected directly. It's definitely not skipping any lines - they're just handling the frustrating hold time for you so you don't have to sit there listening to the hold music for hours. The IRS doesn't know or care how you got through - once you're connected, you're just talking to an agent like normal. I was skeptical too until I tried it. I got my call back in about 15 minutes when I had previously wasted an entire afternoon trying to get through.

That's a really good point - I did buy this van new for around $67,000 last year. Maybe I entered the purchase price somewhere I shouldn't have and then the software added depreciation or something on top of it? I'm going to go back and look for that. Maybe it's also accounting for future depreciation in some weird way? Thanks for the suggestion!

You're welcome! Yeah, that's almost certainly what happened. The purchase price should only be entered in the asset/depreciation section, not as a direct expense. The software will then calculate the correct amount you can deduct each year based on depreciation rules. If you bought a $67k van, the software is probably trying to depreciate it plus adding your maintenance costs plus calculating mileage. Triple counting! Once you fix where you entered the purchase price, everything should look more normal.

Is that 65.5 cents still accurate for 2024 taxes? I thought I saw somewhere that the IRS changed the rate again.