This thread has been incredibly helpful! I'm dealing with this exact situation - my brother loaned me money for a house purchase with a formal mortgage agreement, and we've both been confused about the tax implications. Reading through everyone's experiences, it's clear that the key is proper documentation on both sides. My brother doesn't need to issue me a 1098 since he's not in the lending business, but he absolutely needs to report the interest income I pay him. And I can still claim the mortgage interest deduction as long as our loan is properly secured against the property. I'm definitely going to implement the substitute statement approach that several people mentioned. Having matching year-end documentation for both of us seems like the smart way to handle this, even though it's not legally required. One thing I'm curious about - has anyone dealt with this situation where the interest rate changes during the year? We have an adjustable rate tied to prime, so the monthly interest amounts vary. I assume I just need to track the actual interest paid each month rather than using any kind of standard calculation? Also, for those who've been doing this for multiple years - do you find that tax software handles the mortgage interest deduction smoothly when you don't have an official 1098, or do you typically need to work with a tax preparer?

This has been such a valuable discussion! As someone who's worked in tax preparation for over a decade, I can confirm that private mortgages between family members are one of the most commonly misunderstood areas of tax law. The key takeaways here are spot-on: individual lenders aren't required to issue 1098 forms unless they're in the business of lending, but both parties still have tax obligations. The borrower can claim the mortgage interest deduction with proper documentation, and the lender must report interest income. One additional point I'd like to emphasize - make sure your loan agreement specifies that it's a mortgage secured by the property, not just a personal loan. The IRS looks at the substance of the transaction, not just what you call it. If there's no security interest properly recorded against the property, they may reclassify it as non-deductible personal loan interest. Also, keep in mind the imputed interest rules. If you're lending at below-market rates, the IRS may impute additional interest income to the lender and additional interest deduction to the borrower based on the Applicable Federal Rates (AFR). This is particularly important for larger loan amounts. The substitute statement approach mentioned by several commenters is excellent practice and shows good faith documentation efforts.

Thanks everyone for all the detailed responses! This has been super educational. I had no idea about the direct donation requirement or the itemization issue. Based on what I'm reading here, it sounds like I can't deduct the 1-800-GOT-JUNK pickup, but I'm definitely going to look into those charity pickup services for future donations. The "donation bunching" strategy that Max mentioned is really interesting too - maybe I should plan my donations more strategically. One follow-up question: if I have items that are too worn for charity donation but still have some value, is there any tax benefit at all? Or is it just a loss either way? I'm thinking about some older electronics and appliances that work fine but have cosmetic issues.

Great question! Unfortunately, you cannot claim a tax deduction for items picked up by 1-800-GOT-JUNK, even if they eventually donate them to charity. The IRS requires that you donate directly to a qualified 501(c)(3) organization to claim any deduction - you can't use a middleman service. Here's what you need to know for future donations: - Donate directly to qualified charities like Goodwill, Salvation Army, or Habitat ReStore - Get proper documentation from the charity (written acknowledgment for donations over $250) - Items must be in "good used condition or better" - You can only deduct if you itemize deductions on Schedule A Since your furniture was in good condition, you might want to consider charity pickup services next time. Many legitimate charities offer free pickup and provide proper tax documentation. This way you'd get the same convenience as 1-800-GOT-JUNK but with the added benefit of a potential tax deduction. For your current situation, keep that receipt from 1-800-GOT-JUNK for your records, but unfortunately it won't help with your taxes.

Having dealt with several amended returns over the years, I'd strongly recommend the 866-464-2050 number that others have mentioned, but here's a specific strategy that's worked for me: Call on Tuesday or Wednesday mornings between 7:00-7:30 AM Eastern. The system seems to have shorter hold times those days compared to Mondays and Fridays. When you do get through, ask the representative to check for "TC codes" (Transaction Codes) on your account - these are internal processing indicators that can tell you exactly where your return sits in their system. Since you're at 12 weeks with just "received" status, there's likely a specific reason it's held up that won't show in WMAR. Given your educational expense timeline, also ask about Economic Impact criteria for expedited processing. If you can demonstrate that the delay is preventing you from meeting educational payment deadlines, they sometimes have discretionary authority to prioritize your case. Have documentation ready - tuition due dates, payment plan requirements, etc. One last tip: If the first agent can't help much, politely ask to speak with a "Case Resolution Specialist" - they have access to more detailed account information and processing tools than general customer service reps.

I've been through this exact situation twice now, and here's what I've learned works best: Call 866-464-2050 at exactly 7:00 AM Eastern on a Tuesday or Wednesday. Have your SSN, exact refund amount, and filing date ready. When you get through, specifically ask them to check for "freeze codes" and whether your return has been assigned to a specific examination unit. In my experience, amended returns that claim new credits (like education credits) often get flagged for additional review, which explains the "received" status staying unchanged for weeks. The agent can see exactly which department has your return and give you a realistic timeline. Since you mentioned educational expenses with deadlines, definitely ask about expedited processing due to financial hardship. I had success with this when I needed my refund for tuition payments - they moved my case to priority status and I got my refund within 3 weeks instead of the projected 16-20 weeks. Also, request a direct callback number or extension if possible. Some agents can schedule follow-up calls, which beats sitting on hold repeatedly. The key is being persistent but polite - these agents deal with frustrated taxpayers all day, so being prepared and courteous goes a long way.

This is really helpful information! I'm in a similar boat trying to optimize my ACA subsidies for 2025. One question I have - when you make traditional IRA contributions to reduce your MAGI, do you need to report those on your healthcare.gov application right away, or can you wait until tax time? I'm wondering about the timing because I might not know my exact income until later in the year, and I want to make sure I don't accidentally get too much in advance premium tax credits that I'd have to pay back. Has anyone dealt with this situation where your IRA contributions changed your subsidy eligibility after you'd already enrolled?

This is such a smart strategy for maximizing your ACA subsidies! I've been doing something similar for the past couple years. One additional tip I'd add - if you're really trying to dial in your MAGI to hit the sweet spot for subsidies, consider making your IRA contributions in smaller chunks throughout the year rather than all at once. This gives you more flexibility to adjust based on how your actual income is tracking. Also, don't forget that if you're married, both spouses can potentially make IRA contributions (up to the annual limit each), which could give you even more MAGI reduction if you're both eligible for the deduction. Just make sure you're staying within the income limits for deductibility that others mentioned. The fact that you're already maxing out your 401k shows you're thinking strategically about this. The combination of 401k + traditional IRA contributions can really help optimize both your retirement savings and your healthcare costs!

I had this same question and ended up talking to my accountant. Here's the deal: regular commuting and parking at your main workplace = not deductible. But there's a workaround my company uses. Instead of giving me a $3k raise (which would be taxable), they give me a $3k annual parking allowance as a separate line item on my paystub. It's still taxable income, but it feels better psychologically to see it earmarked for parking! The pre-tax transit benefit others mentioned is even better if your employer offers it. If they don't, show them this IRS page: https://www.irs.gov/publications/p15b#en_US_2023_publink1000193740 - it explains qualified transportation benefits that can save both you AND your employer money.

I work as a tax preparer and can confirm what everyone's saying - regular commuting parking costs are NOT deductible for W-2 employees, even if they're expensive and necessary for work. The IRS is very clear that these are personal expenses. However, there are several legitimate alternatives worth exploring: 1. **Pre-tax transportation benefits** - This is your best option! Employers can offer up to $280/month (2025 limit) in pre-tax parking benefits. You save money equal to your tax bracket. 2. **Side gig deductions** - If you do any freelance/gig work, parking for those activities IS deductible. 3. **Employer reimbursement** - Some companies will add parking allowances to compensation packages. 4. **HSA/FSA commuter benefits** - Some employers offer these through third-party administrators. The key is working WITH the tax code rather than against it. I'd strongly recommend talking to your HR department about implementing pre-tax transportation benefits - it's a win-win since it also reduces the company's payroll taxes. Keep those receipts though, just in case your work situation changes to qualify for deductions later!