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This is such a frustrating situation that so many remote workers are dealing with! I went through the same thing last year when my company suddenly decided that working from home 3 days a week meant I couldn't claim mileage for client visits anymore. What really helped me was putting together a clear timeline showing that my home office arrangement was officially established by my employer, not just something I decided on my own. I included emails where my manager confirmed my hybrid schedule, any home office equipment they provided, and documentation of the regular work I do from home. The IRS is pretty clear that if your employer has established your home as a regular work location (which yours has by officially allowing you to work remotely 3 days a week), then travel from there to temporary work locations like client sites is business mileage, not commuting. The key word is "temporary" - if you're visiting different client sites rather than going to the same location every day, that strengthens your case. I'd suggest creating a simple presentation for your boss showing: 1) Your official remote work arrangement, 2) The varying client locations you visit, 3) The relevant IRS guidance on home-based workplaces. Sometimes employers just need to see it laid out clearly to understand they're interpreting the rules incorrectly.
This is really great advice! I'm dealing with a similar situation where my company is being stubborn about this. How did you present the IRS guidance to your boss? Did you just print out pages from the IRS website or did you create something more formal? I'm worried that if I just send them a bunch of tax code excerpts, they'll dismiss it as too complicated or say they need to run it by legal first (which could take forever).
I created a one-page summary document that was professional but easy to understand. I avoided copying raw tax code and instead wrote it in plain business language, something like "According to IRS Publication 463, when an employee's home serves as their principal place of business or regular work location, travel from home to temporary work sites constitutes business travel rather than personal commuting." I included specific page references to IRS publications (like Pub 463 and Pub 15-B) so they could verify the information themselves if needed, but I summarized the key points in simple terms. I also added a brief section showing how this applied to my specific situation - like "Employee works from designated home office 3 days per week per company policy" and "Client visits are to varying temporary locations, not a fixed workplace." The key was making it look official enough that they'd take it seriously, but simple enough that they wouldn't need to involve legal. It worked - they approved my request within a week without escalating it further up the chain.
This thread has been incredibly helpful! I'm dealing with the exact same issue where my employer is claiming that since I work from home, any travel to client sites is considered "commuting" and not reimbursable. One thing I wanted to add that might help others - I found that documenting the *business necessity* of each client visit really strengthened my case. I started keeping a log that included not just the mileage and destination, but also the specific business purpose (client meeting, project site visit, equipment delivery, etc.) and who requested/approved each visit. When I presented this to HR along with the IRS guidance that others have mentioned, it became much harder for them to argue that these were personal commuting expenses. The documentation showed that these weren't routine trips to a fixed workplace, but legitimate business travel to serve different clients at varying locations. I think the key is showing that your situation fits the IRS definition of travel between work locations rather than home-to-office commuting. The more specific you can be about the business nature of each trip, the stronger your case becomes.
This is such excellent advice about documenting the business necessity! I'm just starting to deal with this issue and hadn't thought about tracking the specific purpose of each trip. It makes total sense that showing these are legitimate business activities rather than just "going to work" would strengthen the case. Quick question - when you say you logged who "requested/approved" each visit, do you mean you got explicit approval for each trip beforehand, or just documented that it was part of your job duties? I'm wondering if I need to start getting written approval for every client visit or if showing it's part of my regular responsibilities is enough. Also, did you include any cost comparison in your documentation? Like showing how much the company saves by having you work from home versus maintaining office space, compared to the mileage reimbursement costs? I feel like that might help show the overall value to the company.
Does anyone know if TaxAct handles the home sale exclusion the same way as TurboTax? I'm in a similar situation but using different software.
I used TaxAct last year for my home sale. It works similarly - there's a section for real estate transactions where you'll enter all your info. It will calculate if you qualify for the exclusion automatically. The interface is different but it asks all the same questions about purchase date, sale date, improvements, etc.
@Hiroshi, based on your situation, you should be in great shape! With 6+ years of primary residence and only $78k in profit, you're well under the $500k exclusion limit for married filing jointly. In TurboTax, look for the "Federal Taxes" section, then "Wages & Income," and you should see "Investment Income" or "Less Common Income." There will be a section for "Stocks, Mutual Funds, Bonds, Other" - click "Start" there and look for "Sale of Your Home" or similar wording. The software will ask you about: - Purchase date and price - Sale date and price - Any major improvements you made - How long you lived there as primary residence Don't stress about finding a separate "worksheet" - TurboTax handles all the calculations behind the scenes using Forms 8949 and Schedule D. Just answer their questions honestly and the software will automatically apply the Section 121 exclusion. One tip: gather receipts for any major home improvements you made over those 6 years (new HVAC, kitchen remodel, roof, flooring, etc.) as these increase your basis and further reduce any potential taxable gain, though you likely won't need them given your numbers. You've got this! The exclusion was designed for exactly your situation.
This is really helpful! I'm in a similar boat - sold my home after living there for 4 years and made about $65k profit. One question though: when you mention gathering receipts for major improvements, how far back should I go? I have some receipts from 2019 but others I might have lost. Will the IRS accept bank statements or credit card statements as proof if I don't have the original contractor invoices?
Don't forget to also check if your change in marital status affects your eligibility for certain tax credits and deductions! Many have income phase-out limits that differ for single vs. married filing jointly. For example: - Student loan interest deduction - IRA contribution deductions - Child tax credits - Earned Income Credit - Education credits A good tax pro or tax software can help you run the numbers both ways (filing separate vs joint) to see which is more advantageous in your specific situation.
Just wanted to add that you should also consider doing a "paycheck checkup" using the IRS withholding calculator on their website (irs.gov/W4App) once you update your status with HR. It's free and will help you determine if you need to make any additional adjustments to your withholding for the rest of the year. Since you got married in October 2023, you'll likely want to file as married for your 2023 taxes (you can choose married filing jointly or married filing separately - joint is usually better but not always). The calculator will help you figure out if you're on track for 2024 withholding too. Also, don't forget that marriage can affect other things like your FSA/HSA contribution limits if you both have accounts, and whether you're eligible for certain employer benefits. It's worth reviewing all of that while you're updating your HR records!
This is really helpful advice! I had no idea about the IRS withholding calculator - that sounds way more reliable than trying to guess if I'm withholding enough. Quick question though - when you mention FSA/HSA contribution limits being affected by marriage, does that mean the limits go up or down? My spouse and I both have HSAs through our employers and we've been maxing them out separately. Should I be worried we've over-contributed?
Great question! For HSAs specifically, the contribution limits are actually based on your health plan coverage type (self-only vs. family), not your marital status directly. So if you each have separate self-only HDHP coverage through your employers and separate HSAs, you can each contribute up to the individual limit ($4,150 for 2024, $4,300 for 2025). However, if one of you switches to family coverage that covers both spouses, then you'd be limited to one family contribution limit total ($8,300 for 2024, $8,550 for 2025) that can be split between your HSAs however you want. The IRS withholding calculator I mentioned will actually help you factor in these HSA contributions when determining your correct withholding, which is super helpful since HSA contributions reduce your taxable income. It's one of the reasons why it's more accurate than just guessing!
Just want to add that the threshold for receiving a 1099 from these platforms has changed. Underdog and PrizePicks now issue a Form 1099-MISC if you win $600 or more in a calendar year. But even if you don't receive a form, you're still legally obligated to report ALL winnings. Also, watch out for the sessions reporting requirement. Each time you log in and play could potentially be considered a separate session. So don't just report the net amount for the year - you technically need to report each winning session separately.
This session reporting thing is messing me up. I literally log in multiple times a day to check scores and sometimes place new bets. Are you saying each login is a separate "session" for tax purposes?
Not every login is a separate session - it's more about when you actually place bets and win. A "session" is typically defined as a period of gambling activity that results in winnings. So if you log in just to check scores, that's not a taxable session. But if you place multiple bets during one login and some of them win, that could be considered one session with multiple winnings that need to be reported. The key is keeping detailed records of when you placed bets and when you won. Most people just track their overall deposits and withdrawals, but the IRS wants to see the individual winning events. This is why having good documentation from the platforms themselves is so important.
One thing I haven't seen mentioned yet is the importance of keeping your account statements from these platforms for at least 3 years after filing. The IRS can audit gambling income up to 3 years after you file, and they're particularly scrutinizing fantasy sports platforms now. I'd also recommend setting aside about 25-30% of your winnings throughout the year for taxes, especially if you're not having taxes withheld from other income. Getting hit with a big tax bill plus penalties for underpayment can be brutal. Another tip: if you're consistently profitable, consider making quarterly estimated tax payments. The IRS expects you to pay as you earn, not just at the end of the year. Missing this can result in underpayment penalties even if you pay your full tax liability by April 15th.
This is really helpful advice about setting aside money for taxes. I'm new to all this and made about $1,200 profit on Underdog over the past few months. I had no idea I should be making quarterly payments or that the IRS scrutinizes fantasy sports income more heavily now. Do you know if there's a specific percentage I should set aside? You mentioned 25-30%, but I'm in a pretty low tax bracket - would it be less for someone like me? Also, when you say "consistently profitable," how do they define that? I've only been doing this for about 4 months.
PixelPrincess
I just started VITA last month! My advice - print out the main pages from Pub 4012 that cover basic filing requirements and keep them in a binder to bring with you. I tabbed mine with sticky notes for quick reference. Also, most VITA sites use TaxSlayer, which is super user-friendly and walks you through everything step by step. It won't let you make major mistakes.
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Omar Farouk
β’Which sections from Pub 4012 did you find most useful to print out? I'm about to start training too and would love to know what to focus on!
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Giovanni Gallo
Hey there! I'm a current VITA volunteer in my second year, and I completely understand your anxiety - it's totally normal! Let me share what really helped me get through that overwhelming feeling. First, you absolutely do NOT need to memorize anything. I still refer to my reference materials constantly, even after doing this for a year. The IRS provides excellent resources like Publication 4491 (VITA/TCE Training Guide) and the software itself has built-in prompts and error checks. Here's what made the biggest difference for me: focus on understanding the PROCESS rather than memorizing facts. Learn how to navigate the software, where to find information in the reference guides, and most importantly - when to ask for help. Your site coordinator would much rather have you ask questions than guess! The training is actually quite comprehensive. You'll do online modules first (Link & Learn Taxes), then attend in-person sessions where you'll practice with real scenarios. Plus, you'll be certified at different levels - Basic, Intermediate, or Advanced - based on your comfort level. Your attitude of wanting to learn and being cautious about accuracy is exactly what makes a great VITA volunteer. Don't let imposter syndrome talk you out of this - the program is specifically designed for people without tax experience. You've got this!
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