Does anyone know if all tax software handles this correctly? I'm using TurboTax and it keeps prompting me to enter the clean vehicle credit information. When I try to indicate I transferred the credit, it still wants to put it on Schedule 3.

This thread has been incredibly helpful! I was in the exact same situation with my 2024 clean vehicle credit transfer and was getting completely confused by the Form 8936 instructions. Just to summarize what I'm understanding from everyone's responses: - If you transferred the credit to the dealer, skip Form 8936 entirely - Don't report anything on Schedule 3 either - The dealer files their own Form 8936 with the IRS - Keep your dealer documentation and IRS notice for your records - Tax software might prompt you about the credit, but you should skip those sections completely I'm feeling much better about this now. It really seems like the IRS needs to update their instructions to be clearer about the transfer process. The fact that multiple tax professionals in this thread are seeing the same confusion suggests this is a widespread issue. Thanks to everyone who shared their experiences and solutions!

Have you checked if your income composition changed? For example, if more of your income this year was from capital gains, dividends, or self-employment, it could be taxed differently than regular employment income. Line 16 tax comes straight from the tax tables based on your taxable income (Line 15), but Line 23 includes things like: - Self-employment tax - Unreported social security/Medicare tax - Additional tax on IRAs or retirement plans - Household employment taxes - Repayment of credits I'd bet something triggered one of these additional taxes this year that wasn't there last year.

I had a very similar situation last year where my taxable income was lower but I ended up owing taxes instead of getting a refund. The culprit turned out to be a combination of factors that weren't immediately obvious. First, definitely double-check that Box 12 parser issue you mentioned. I've seen parsers misread codes like "D" (401k contributions) as "DD" (employer-sponsored health coverage), which can dramatically affect your taxable income calculation. Second, when you changed jobs mid-year, did your new employer know about your previous year-to-date earnings? Often they don't, so they calculate withholding as if your new job salary is your only income for the entire year. This frequently results in under-withholding. Also check if you had any life changes that affected your tax situation: got married/divorced, had a child, moved states, or changed health insurance. Even small changes in pre-tax deductions like health insurance premiums or 401k contributions between employers can shift your taxable income enough to change your tax bracket. For Line 23, look specifically at whether you did any gig work, sold investments, or withdrew money from retirement accounts this year that you didn't do last year.

Something no one has mentioned yet - even though these miscellaneous deductions are suspended federally, many STATES still allow them! I'm in California and was able to deduct my unreimbursed employee expenses on my state return even though I couldn't on my federal. Each state has different rules, but several states haven't conformed to the TCJA changes. Check your state's department of revenue website or tax instructions to see if you can still claim these deductions at the state level!

Another option worth considering if you have substantial unreimbursed business expenses: talk to your employer about either reimbursing these costs or offering an "accountable plan" for expenses. My company initially wasn't covering our WFH equipment either when we went hybrid, but several of us pointed out the tax disadvantages to employees. They ended up creating a formal expense reimbursement plan that follows IRS "accountable plan" rules. This way, the company gets the deduction and employees receive tax-free reimbursements. Might be worth bringing this up to your HR department with some research on accountable plans. Many employers aren't aware of how these plans benefit both the company and employees.

Don't overlook ATX! It's way more affordable than the big names (around $1,200 for their mid-tier package that handles everything you mentioned) and has a really user-friendly interface for beginners. I switched from TaxAct Pro to ATX last year and found the learning curve really manageable. The interview-style preparation makes it easy when you're just starting out, and the bank product options are decent too if you want to offer those services.

As someone who just finished their first tax season, I can't stress enough how important it is to factor in the learning curve when choosing software. I went with ProSeries because of all the recommendations, but honestly wish I had started with something simpler. The interface is powerful but can be overwhelming when you're trying to learn both tax prep AND new software simultaneously. I probably spent 30% more time per return in my first month just figuring out where everything was located. Based on what you've described - 40-50 returns with mostly straightforward situations - I'd actually recommend starting with TaxAct Pro or Drake like others mentioned. You can always upgrade to more robust software once you've built your confidence and client base. The money you save in year one can go toward better training or marketing to grow your practice. Also, whatever you choose, invest in their training materials or webinars. That upfront time investment will save you hours during busy season when you're under pressure to get returns done quickly.

Has anyone tried using the IRS Transcript service instead? You can request a Wage and Income Transcript as the executor which would show all info reported to the IRS including the SSA benefits. Might be easier than going through SSA directly.

I went through this exact situation with my grandmother's estate two years ago. The IRS Transcript route that Ana mentioned is actually one of the most reliable options - Form 4506-T as the executor will get you a Wage and Income Transcript that includes all the SSA benefit information reported to the IRS. But if you need something faster, I'd recommend the in-person SSA office visit that Victoria suggested. Call ahead to make an appointment and bring your death certificate, letters testamentary, and your ID. They can often print the benefit verification letter on the spot. One thing to keep in mind - if your father received both Social Security retirement benefits AND Medicare premium deductions, make sure whatever document you get shows the net amount actually received, not just the gross benefit amount. The Medicare premiums are deducted before the check is issued, so you want to make sure you're reporting the right taxable amount. Also, don't stress too much about getting the exact form. The IRS is generally understanding about estate situations where original documents aren't available, as long as you can document your efforts to obtain them and use reasonable estimates based on available records.