This is such a great question and I'm glad to see so many helpful responses! I went through this exact same confusion last year as a freelance graphic designer. One thing I'd add that hasn't been mentioned yet - make sure you establish your Solo 401k by December 31st of the tax year you want to contribute for, even though you have until the tax filing deadline (plus extensions) to actually make the contributions. I almost missed this deadline thinking I could set it up when I filed my taxes. Also, if you're planning to do this strategy long-term, consider working with a fee-only financial advisor who specializes in self-employed clients. The tax savings and growth potential from properly maximizing both accounts can easily justify the cost, especially as your income grows. I wish I had started this dual approach earlier - the compound growth difference is significant over time. The backdoor Roth strategy mentioned earlier is also crucial to understand if your income fluctuates. Some years I'm under the Roth limit, other years I'm over, so having that flexibility has been a game-changer for my retirement planning.

Great question about the annual savings difference! In my early 30s, I was able to save about $30K annually by maxing both accounts versus maybe $12-15K with just a SEP-IRA or traditional IRA. That extra $15-18K per year compounding over 30+ years makes a massive difference. For example, if you're saving an extra $16K annually from age 32 to 62 (30 years) at a 7% average return, that's roughly an additional $1.5 million at retirement compared to the single-account approach. Even accounting for inflation, that's life-changing money. The complexity really isn't that bad once you get into a rhythm. I use a simple spreadsheet to track my quarterly estimated taxes and contribution limits, and most of the major brokerages (Fidelity, Schwab, Vanguard) make the actual account management pretty straightforward. The key is starting early like you are - the compound growth on those higher contribution limits is where the real magic happens. Even if you can't max both accounts right away, getting the Solo 401k established and contributing what you can to both gives you that foundation to scale up as your income grows. One tip: I always prioritize getting the full Solo 401k employer match equivalent first (the 25% of net self-employment income), then max the Roth IRA, then go back to finish maxing the Solo 401k employee contribution. This ensures you're capturing the highest tax-advantaged savings rates first.

Did anyone mention that you CAN actually "pay yourself" for labor on a business vehicle if you have the right structure? I'm a mechanic with an S-corp and I've been paying myself as an employee to work on company vehicles. Company pays me, company deducts it as an expense, I report income on my personal return. My accountant confirmed this is legit if done properly with proper documentation and reasonable rates. You need the right business structure though.

Great question! As someone who's dealt with similar situations in my own small business, I can confirm what others have said - you unfortunately can't deduct your own labor costs even when working on business vehicles. The IRS is pretty strict about this because no actual cash expense occurred. However, don't overlook some other potential deductions that might apply to your situation: - If you have a dedicated workspace at home for your business (even just for paperwork, ordering parts, etc.), you might qualify for the home office deduction - Tools and equipment used for the repairs can be deducted or depreciated - Any training or certification costs to maintain your mechanic skills - Professional subscriptions, trade publications, or software related to your work Also, keep detailed records of everything! Even though you can't deduct the labor, having documentation of the work you performed, time spent, and fair market value could be helpful if you ever get audited - it shows you're running a legitimate business operation. The $3,200 in parts is definitely deductible as you mentioned, and that's still a significant write-off. Sometimes focusing on what we CAN deduct rather than what we can't helps put things in perspective.

Non-taxable distributions can still matter in some cases even with $0 in Box 2a. For example, if the money came from a Roth IRA, it could affect your basis calculations for future distributions. Might be worth checking with wherever the money came from to understand exactly what this distribution was.

I went through something very similar with a missed 1099-R from 2022. What really helped me was calling the plan administrator who issued the form - they were able to explain exactly what the distribution was for and confirm that it was indeed non-taxable. In my case, it was also Code E for a direct rollover between retirement accounts. Since Box 2a was $0, there was no tax impact, but I did end up filing an amended return just to be safe. The process was pretty straightforward once I got my tax transcript from the IRS website. One thing to consider: even though there's no immediate tax consequence, having this properly documented could be important for future reference, especially if you have other retirement account transactions. The IRS does match 1099-R forms to returns, so while they might not penalize you for a $0 taxable amount, they could send a notice asking about it. My amended return was processed in about 12 weeks with no issues. If you're really unsure, you could always consult with a tax professional - many will do a quick consultation for situations like this.

bruh just use taxr.ai, it'll tell you exactly whats happening. stopped me from calling the MI treasury 50 times lol

Manual reviews for Michigan returns with homestead credits are super common - I went through the same thing last year. The June timeline sounds about right unfortunately. The good news is that "manual review" doesn't mean there's a problem with your return, it's just that certain credits like the homestead property tax credit trigger additional verification steps. They're basically making sure your property info matches up with county records and that you meet all the residency requirements. Just keep checking your eServices account periodically for any document requests, but otherwise there's not much you can do except wait it out. The refund will come eventually!

I've been dealing with a similar situation and wanted to share what I learned from my CPA. The most important thing is to distinguish between a true "worthless security" and a security that was acquired at a minimal value. Based on your description, it sounds like your First Republic shares likely went through the JPMorgan acquisition process rather than becoming truly worthless. Here's what you should do: 1. **Get the facts first**: Call your broker and request the "Corporate Action Notice" for First Republic Bank from May 2023. This will tell you exactly what happened - whether you received cash, JPMorgan shares, or nothing at all. 2. **If you received ANY compensation** (even pennies): This is a regular sale transaction. Use the actual acquisition date, your original cost basis, and whatever you received as proceeds on Schedule D. 3. **For the limit order problem**: Since your shares show $4 value, set your limit price at or below the current bid price (maybe $0.01 per share). This will execute immediately and create the taxable event you need. 4. **Avoid the worthless security claim** unless you truly received zero compensation. The IRS audits these heavily, and if you received even minimal payment, it doesn't qualify. The good news is that either way, you'll be able to claim most of your $5.5k as a capital loss. The documentation from your broker will make everything clear and defensible if questioned.

I went through this exact same situation with my First Republic shares last year, and after working with my tax preparer, here's what we discovered: The key is determining what actually happened during the JPMorgan acquisition. Most retail shareholders of First Republic did receive some minimal compensation - often around $0.00-$0.50 per share - rather than having truly "worthless" securities. Since your shares still show $4 value in your account, this strongly suggests you received something in the acquisition process. Here's my recommendation: 1. **Contact your broker immediately** and ask for the "Corporate Action Statement" or "Reorganization Details" for First Republic Bank from May 1, 2023. This document will show exactly what you received. 2. **For your limit order issue**: Set your limit price at $0.01 per share (or whatever minimal amount ensures execution). Since your total position is only worth $4, this will execute immediately and give you the realized loss you need. 3. **Report it as a regular sale on Schedule D**: Use May 1, 2023 as the sale date, your original $5.5k as the cost basis, and whatever minimal amount you received as proceeds. 4. **Avoid claiming "worthless securities"** unless you truly received $0. The IRS heavily audits these claims, and if you received any compensation (even pennies), it doesn't qualify. The bottom line: You'll still be able to claim nearly your entire $5.5k loss as a capital loss, but make sure you have proper documentation from your broker first. Don't let the complexity paralyze you - this is actually a fairly straightforward transaction once you get the right paperwork.