💼 Two jobs, one tax bill

Only the business-use portion, and the IRS expects an actual estimate, not a round number that happens to match your whole bill.

The math is business-use percentage, not vibes. If roughly 40% of your phone time is client calls and work email, you deduct 40% of the bill. The other 60% — texting, doom-scrolling, ordering DoorDash — isn’t yours to write off just because the phone also does business.

You don’t need a separate business line. Plenty of self-employed people run everything through one number and simply track the split using a few months of call logs or a reasonable weekly estimate, applied consistently.

W-2 employees can’t claim this at all, phone or otherwise — unreimbursed employee expenses have been suspended since 2018 and stayed that way.

👉 Find out what other business expenses you can deduct

Depends on the original owner. If they’d already started required minimum distributions (RMDs) before passing, you owe annual withdrawals every year of the 10-year window, not just a lump sum at the end. Skip a year and the penalty is 25% of what should’ve come out (10% if fixed within two years).

Exceptions exist: spouses can roll it into their own IRA. Minor children, disabled beneficiaries, and people fewer than 10 years younger than the deceased can stretch withdrawals over their own life expectancy instead.

Your custodian will tell you the rules apply. They won’t calculate your annual amount for you.

👉 See which inherited IRA rules apply to you

Every Thursday, we go to work.

The TaxStache Business Edition breaks down the tax and finance topics that actually matter to business owners, from quick intros to in-depth dives. Plus book, podcast, and video recs to keep you sharp, and a weekly download you can put to use right away.

If you own a business (or you’re building one), this one’s for you.

You’ve got two options: pay quarterly estimates yourself with Form 1040-ES, or ask your W-2 job to withhold extra from your paycheck via a new W-4. The second option has a hidden perk — the IRS treats withholding as paid evenly all year, so a bump in December can cover a gap from January. An actual quarterly payment can’t do that.

Either way, calculate your side hustle’s net profit, add self-employment tax (15.3%, since there’s no employer to split it with), and aim for a safe harbor: 90% of this year’s tax or 100% of last year’s (110% if you earned over $150,000).

👉 Compare estimated payments vs. extra W-4 withholding