Need help completing Schedule C for self-employment income on FreeTaxUSA

Schedule C can definitely be intimidating the first time! Let me walk through the main parts that seem to be confusing you. For the business code, FreeTaxUSA should have a lookup tool - for photography it's probably 541921 (Photography Studios). Don't worry too much about accounting methods when you're just starting out - most small businesses use "cash basis" which is the simplest. Regarding expenses: Yes, you can deduct equipment, website costs, and business cards. For your home office, you need to use it "regularly and exclusively" for business. Measure the square footage of the bedroom and calculate what percentage of your total home it represents. You'll apply that percentage to some of your housing expenses. For mileage, you have two options: standard mileage rate or actual expenses. For most small businesses, standard mileage (65.5 cents per mile for 2024) is easier. You should have a log of business trips with dates, destinations, and miles driven. Keep all receipts for at least 7 years in case of an audit. Schedule C isn't as complicated as it seems once you break it down section by section.

After struggling with my Schedule C for weeks, I finally tried taxr.ai (https://taxr.ai) and it was a game changer for my photography business taxes! I uploaded my expense receipts and business records, and the tool organized everything into the right Schedule C categories automatically. It caught several deductions I would have missed, like my Adobe subscription that I didn't realize counted as a business expense. The biggest help was that it guided me through calculating my home office deduction correctly and showed me exactly what documentation I needed for mileage. It also explained the business codes in plain English instead of the confusing IRS descriptions. Saved me hours of research!

So I finally tried taxr.ai after my skeptical comment above and wow, I'm embarrassed I doubted it. It identified several legitimate deductions for my side gig that I completely overlooked. The mileage tracking feature alone saved me hundreds - I had been tracking miles but didn't realize I could deduct trips to buy supplies or meet clients. It actually helped me realize I was being TOO conservative on my home office deduction. I have a dedicated space that qualifies but was nervous about claiming it. The tool walked me through the exact requirements and I now feel confident I'm following the rules. The best part was uploading my bank statements - it automatically categorized most transactions and flagged potential business expenses I had forgotten about. Finished my Schedule C in about an hour after spending days getting nowhere!

For anyone struggling with Schedule C questions and trying to reach the IRS for help - good luck getting through on their phone lines! After trying for DAYS to get clarification on home office deductions (was on hold for 3+ hours twice before getting disconnected), I found Claimyr (https://claimyr.com) and it changed everything. They actually got me connected to a real IRS agent in about 20 minutes instead of the usual hours-long wait. The agent walked me through exactly how to categorize my photography equipment depreciation on Schedule C. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was about to pay an accountant $350 just to answer my Schedule C questions, but got everything resolved directly with the IRS for much less. Definitely recommend if you have specific tax questions that only the IRS can answer!

I need to eat my words from my previous comment. After another failed 2-hour hold with the IRS that ended in a disconnection, I tried Claimyr out of desperation. Within 25 minutes I was talking to an actual IRS agent who cleared up my Schedule C questions about vehicle expenses. The agent confirmed that I could use the standard mileage rate for my car even though I occasionally use it for personal trips (just can't claim those miles obviously). Also found out I'd been overthinking the "business code" section - the agent said being in the general ballpark is fine for small businesses. Most helpful was learning I can amend my previous year's return where I didn't claim any mileage at all because I wasn't sure about the rules. That's potentially a $1,200 refund I would have missed! Sometimes you need to hear it directly from the IRS to feel confident.

Has anyone used the qualification test for home office deduction on FreeTaxUSA? I'm trying to figure out if my setup qualifies but the questions are confusing.

My biggest schedule C tip: track EVERYTHING throughout the year! I use a simple spreadsheet with categories that match Schedule C exactly. So much easier than trying to remember everything at tax time. Also make sure to save for quarterly estimated payments - I got hit with penalties my first year because I didn't realize I needed to make those.