@nholdway
Writer/editor, suburbanchicagobicycling.com. Former Daily Herald (Chicago) DME/late news. Past President of ACES: The Society for Editing. Possibly obsessed with U2, and with shrimp and chowda. Opinions expressed are my own.
I thank @activetransport.bsky.social for allowing a post about my website. On Thu 12/4, noon to 1pm, you can join the Suburban Advocacy Connect call as we chat about bikeways around the suburbs. us02web.zoom.us/webinar/regi... 1/2
Relatedly, how are *you* making a living/managing to eat in the meantime? Still freelancing, etc., as you had been? (Hello! I'm a former newspaper editor, now bicycling blogger.) #ACESChat
That time last year when a 17-year cicada landed on my leg while I was bicycling and stuck with me for 7 miles, my leg rotating up and down along the way. I named him Occhi (Italian for "eyes").
The #TourdeFrance had a time trial today up to the Peyragudes ski lodge in the Pyrénées? Oh my goodness. I got to ride that airport ramp with a 16% grade once, with fans cheering me on. Here's what that looks like: youtu.be/vepEbcZiLVM
Exactly! Of course you take the discount. #ACESChat
It's also true that it's unclear where to list reference books, or any kind of research really, on tax forms. My boss and I learned that early on; the Schedule C has a section of blank lines where you can list expenses that don't fit into the neat categories on the first page. #ACESChat
I was just looking up the option to depreciate reference books, cuz I had not heard of that. I see there's debate on what to list for their "useful life," which is a thing for depreciation. Interesting. (Now we're really geeking out.) #ACESChat
A10: The IRS website is surprisingly impressive — it's the tax code that is sometimes written terribly, not IRS advice. Also, accountants’ blogs, bookkeeping software sites. Just watch the pub date to ensure against outdated info. (Congress just passed new tax code, don't you know.) #ACESChat 2/2
A10: Keepertax.com — refreshingly good blog material with accurate and clear detail. Also, hrblock.com/tax-center, TaxSlayer.com/blog, wolterskluwer.com Tax Resource Center ... #ACESChat 1/2
A9. Keep track in a notebook, on a spreadsheet or in software, or even apps. And then start doing it **now**. You don’t want to scramble for that info in March or April. In this way, this tracking is almost harder than the taxes, which can be easy if you're well-organized. #ACESChat 2/2
A9: There's no more fun thing to do in July than to get ready for taxes! (cough cough) OK, seriously, the first thing is figure out how you will keep track of your income and expenses, and categorize those expenses. #ACESChat 1/2
A8. BTW, a deduction or “write-off” does not equal a free thing for you; it’s just a tax savings. As this “Schitt’s Creek” scene explains (h/t to Crystal Shelley @redpenrabbit.bsky.social for showing me this): youtu.be/aCP27_vquxQ?... 4/4 #ACESChat
A8. Subscriptions pertaining to your field of work (say, investment newsletter if you edit financial copy, or trade pubs). Work productivity tools. Decor for your home office, however, is debated (feng shui makes me more productive?). 3/4 #ACESChat
A8. And there are seemingly odd things to consider. I was once asked, can I deduct books? Like, I edit books, so I need to research similar books. Yep, a case can be made *if* they’re in your genre/field. Reference books for sure. “Research” costs, legit. 2/4 #ACESChat
A8. No! Don’t forget business banking fees, credit card fees (related to business), training costs (including cont. education to improve skills), professional membership dues. Plus health insurance premiums *if* you don’t have access to a plan such as employer’s or spouse’s. 1/4 #ACESChat
Wow, I would not have thought to do that! Yes, save yourself! #ACESChat
A7. Also, if you suddenly have a big payday, you may not be *required* to pay estimated taxes (if you’re paying taxes at last year’s pace), but you *will* have to pay extra taxes sometime, so be aware at tax time. You *can* pay *more* estimated taxes anytime you want. 5/5 #ACESChat
A7. BTW, if your income really fluctuates, you can pay estimated taxes accordingly. You kinda have to estimate your taxes piecemeal, and will have to account for that at tax time. Tedious but can be done. 4/5 #ACESChat
A7. This is true if you’re also a W-2 worker (for a company/org); if you have self-employment income with no withholding, still may have to pay est. taxes. You *can* increase W-2 withholding to cover your self-employment taxes. Same if married-filing-jointly and spouse is W-2. 3/5 #ACESChat
A7. The estimated tax failsafe to avoid penalties: Pay 100% of last year’s taxes (or 110% if income is $75,000+ single/$150,000+ couple). Otherwise, you must have paid 90% of current year’s taxes. Former is definitely preferable — unless you’re having a down year, don’t have the funds. 2/5 #ACESChat
A7. If you know that you will owe $1,000+ in federal taxes for the year that are not withheld, you must pay estimated taxes. Then states have their own rules. Well, how do you know if you’ll owe $1,000? There’s a worksheet to estimate — it’s a lot of educated guessing. 1/5 #ACESChat
A6. The home-office deduction is intimidating like that, discouraging people, but you can do it! (There's a simplified option, too.) #ACESChat
A6: Here’s a good further explainer I found, from “Nick the CPA.” Really. youtu.be/9Win8Df_8hk?... 6/6 #ACESChat
A6. Then you must know the square footage of the space. And you *may* need to know that space’s percentage of the home’s square footage. Then you may need to know your home’s total costs. (Hint: bigger the office, likely the more you must know.) Plus costs specific to that office. 5/6 #ACESChat
A6. If you’re good with those rules, any *separate* home-office space qualifies: a room, a part of a room (clearly separate, like with a table/desk and chair), a closet, the garage, the shed. Can be in rented home or owned. Work on dining room table or couch? No, doesn’t count. 4/6 #ACESChat
A6. If you ever use that office space also for … tracking your investments, making family photo albums, doing the church newsletter, working for charity, playing video games, watching Netflix (while not working ;) ) … no home office deduction for you. 3/6 #ACESChat
A6. For a home office deduction, you must use the office *only* for your business. There’s no business-use-percentage thing here; it’s all or nothing. And it must be your *primary* place of business: where you mostly do your work, keep records, etc. 2/6 #ACESChat
A6. That’s a good question because it’s tricky. It used to be an audit trigger (the scuttlebutt said); it’s less so now. But if you qualify for it, you do, so take it! Now, how to qualify … 1/6 #ACESChat
A4: Bonus BTW, the computer deduction applies to peripherals, too -- monitors, hard drives, even mice. Please don't depreciate a $15 mouse; just expense it. #ACESChat
A5. Why would you depreciate? Maybe you have a particularly low-income year, so you should save the deductions for, hopefully, coming lucrative years. Trouble is, once you start depreciating, you're stuck with that for the 5 or 7 years. 4/4 #ACESChat