Great question! You're definitely in a good position with the capital gains exclusion. Just wanted to add a few practical tips for when you actually sell: 1. Keep detailed records of ALL your improvements - not just the $50K in kitchen/bathroom renovations, but also things like new flooring, HVAC work, roofing, etc. Even smaller improvements can add up. 2. Don't forget about your original closing costs when you bought in 2021. Some of those (like title insurance, attorney fees, recording fees) can be added to your cost basis too. 3. When you sell, your selling expenses (realtor commissions, title fees, transfer taxes, etc.) also reduce your taxable gain, so factor those in. 4. Since you're moving for work, make sure to check if any of your moving expenses are deductible - the rules changed in recent years but there might still be some benefits available. Sounds like you'll likely walk away with most of that profit tax-free! Just make sure to keep all your documentation organized in case you ever need it down the road.

Mason, congratulations on what sounds like a great investment! Just to reinforce what others have said - you're absolutely in the clear for capital gains tax based on your situation. One thing I'd add that hasn't been mentioned yet: since you're selling in a hot market, consider getting a professional appraisal done before listing. This can help establish the fair market value for tax purposes and ensure you're not leaving money on the table. Sometimes sellers in hot markets actually end up with higher profits than expected, and while you'd still be well under the $250K exclusion limit, it's good to have that documentation. Also, since you mentioned this is your first home sale, don't forget to factor in the typical selling costs (realtor fees are usually 5-6% of sale price, plus other closing costs). On a $475K sale, that's roughly $25-30K in expenses, but the good news is these reduce your taxable gain even further. You're doing everything right by planning ahead and asking these questions before listing. Best of luck with the sale and your relocation!

Has anyone successfully deducted expenses related to skills-based volunteering? I'm a web developer who builds websites for several nonprofits, and I purchase software licenses and hosting specifically for these volunteer projects.

Just to add another perspective - I've been volunteering with a disaster relief nonprofit for 3 years and learned some nuances about volunteer deductions the hard way. One thing that caught me off guard: if you volunteer at an event where they provide meals, you generally CAN'T deduct the "value" of those meals even though you're not paying for them. The IRS doesn't consider free meals as reducing your charitable contribution. Also, if you use your personal vehicle for volunteer work, keep a detailed log! I track date, starting/ending locations, miles driven, and purpose of the trip. The 14 cents per mile adds up quickly - I deducted over $400 last year just from driving supplies to different volunteer sites. One last tip: if you're volunteering regularly at the same location, consider asking if they need any ongoing supplies. Sometimes buying things like paper towels, cleaning supplies, or office materials for the organization can be more tax-advantageous than just volunteering your time, since those are fully deductible as charitable contributions.

Check your tax transcript. Online. Might show what the original issue was. Could give you clues. Worth a look. Faster than waiting.

Ana, I understand your concern about receiving Notice 1462! As others have mentioned, this notice is essentially the IRS saying "we received your response and are working on it." Since you mentioned being recently retired, I'm curious - do you recall what the original notice was about? Given that you're dealing with new retirement income sources like pension and Social Security, the original issue might have been related to income reporting discrepancies. The good news is that Notice 1462 means they're actively reviewing your case, not that there's a new problem. Since you're so well-organized with your tax documents (love the color-coded folders!), you're already ahead of the game. I'd recommend checking your online IRS account or requesting a tax transcript as Kendrick suggested - this might give you more insight into what triggered the original notice. The waiting period can be nerve-wracking, but try not to stress. The IRS is just extremely backlogged right now. Keep doing what you're doing with your tax preparer, and you should be fine!

I've been following this discussion with great interest as someone who handles multiple retirement account distributions each year. The advice here is spot-on, and I wanted to add one practical tip that might help streamline the process for anyone dealing with multiple Fidelity 1099-Rs. When you're entering your information in FreeTaxUSA, after you input the first Fidelity 1099-R using "FIDELITY INVESTMENTS" as the payer name, the software will often remember this information for subsequent entries. This means if you have multiple distributions from different Fidelity accounts (like traditional IRA, Roth IRA, or 401k rollovers), FreeTaxUSA will auto-populate the payer name field once you start typing "FIDELITY." This feature has saved me a lot of time and helps ensure consistency across all my entries. Just make sure to verify that each EIN matches what's on your specific 1099-R form, as occasionally different account types might have slightly different EINs (though this is rare with Fidelity). The community really came through with excellent guidance on this thread - it's exactly the kind of detailed, experience-based advice that makes tax season less stressful for everyone!

I've been dealing with retirement account distributions for several years now, and this discussion really captures all the key points about handling Fidelity 1099-Rs correctly. For anyone who finds this thread in the future, I wanted to summarize the main takeaways: 1. **Use "FIDELITY INVESTMENTS" as the payer name** - This is the primary entity name that matches what Fidelity reports to the IRS 2. **The EIN is crucial** - Enter it exactly from Box 12 of your 1099-R, as this is what the IRS primarily uses for matching 3. **Ignore departmental details** - The "INSTITUTIONAL OPERATIONS CO." and similar subsidiary information isn't needed for tax reporting 4. **Double-check dollar amounts** - The IRS is stricter about monetary accuracy than minor name variations 5. **Be consistent across multiple accounts** - Use the same "FIDELITY INVESTMENTS" format for all your Fidelity retirement distributions I've successfully filed using this approach for the past three years without any issues. The key insight from this thread is understanding that the IRS matching system is designed around EINs and primary entity names, not the complex subsidiary structures that appear on the actual forms. Thanks to everyone who shared their experiences - this has become an excellent reference guide for what can be a confusing aspect of retirement tax reporting!

Side note but if you're looking at EVs, make sure you understand the new rules for the tax credit. Not all EVs qualify anymore! Has to be assembled in North America and there are battery component requirements too. Plus there are income limits ($150k for single filers). The dealer should be able to tell you if a specific model qualifies.

Just wanted to add that while you can't become truly "tax exempt" as an individual, there are some situations where people effectively pay zero federal income tax through credits and deductions. For example, if you qualify for the Earned Income Tax Credit (EITC), Child Tax Credit, and other refundable credits, you might not only eliminate your tax liability but actually get money back. However, this typically applies to lower income levels or families with children. At your $58,000 income level, you're probably past the income limits for many of these credits. The EV credit is great, but as others mentioned, it's a one-time benefit. Your best bet for long-term tax reduction is maximizing retirement contributions and taking advantage of any other credits you qualify for. Also remember that even if you eliminate federal income tax, you'll still owe Social Security and Medicare taxes (FICA) which can't be avoided.