Has anyone tried selling the car privately instead of donating or trading in? I know it's more work, but I sold my old Nissan for almost double what the dealer offered for trade-in. Just a thought if maximizing the money is the priority.

Great thread! I just went through this exact decision last month with my 2010 Toyota Camry. After reading all the advice here about itemizing vs standard deduction, I realized I needed to look at my whole tax picture. Turns out I was only at about $8,000 in potential itemized deductions (state taxes, small charitable donations, etc.), so even adding a $4,000 car donation wouldn't get me close to the $13,850 standard deduction threshold. That meant zero tax benefit from donating. I ended up selling privately like some folks suggested here. Got $5,800 for a car the dealer wanted to give me $3,200 for. It took about 2 weeks and maybe 6-7 test drives, but the extra $2,600 was definitely worth the hassle. Plus no complicated tax implications to worry about. The key lesson for me was that the tax "benefit" of donating only matters if you're already itemizing or the donation pushes you over the standard deduction threshold. Otherwise you're basically giving away money for no tax advantage.

Just a heads up - you might also need to amend your state tax return if you're in a state that offers tax benefits for 401k contributions. The excess amount wouldn't qualify for state tax benefits either. Also, make sure you coordinate with BOTH former employers. Sometimes when you have two jobs in one year, each employer doesn't know about the other's plan, so neither will automatically flag the excess.

One thing that hasn't been mentioned yet - make sure you understand the timing of when you need to take action. Since you haven't filed your 2023 return yet, you actually have until you file that return to get the excess contribution corrected without it being considered a "late" correction. However, the 6% excise tax on Form 5329 will still apply for 2023 since the excess remained in your account past December 31, 2023. The good news is that once you get the corrective distribution, you won't owe the 6% penalty for 2024 and beyond. Also, when working with your plan administrator, make sure they calculate the earnings (or losses) correctly using the "earnings calculation method" - they should track the performance of your specific contributions. If your account lost money during that period, the corrective distribution will actually be less than the $800 you over-contributed. Document everything carefully - keep all correspondence with your plan administrator and make sure you get the proper 1099-R when the distribution is processed. You'll need this for your tax filings.

This has been such an enlightening discussion! As someone who works in tax preparation, I want to emphasize how refreshing it is to see a community thread where people are actually getting the gift tax rules right. Too often I see confusion about this topic, with people thinking recipients owe taxes on gifts or that gifts from multiple people get combined. The advice here is spot-on: you won't owe any taxes on these gifts, and the annual exclusion applies separately to each giver. What I'd add from a professional perspective is that it's also worth understanding that even if your uncle or family friend exceeded the annual exclusion amount, they still likely wouldn't owe any actual taxes - they'd just need to file Form 709 and it would count against their lifetime exemption. One additional consideration for your situation: make sure both parties understand that this needs to be a true gift with no strings attached. If there's any expectation of repayment or conditions (like maintaining certain grades, working for the family business, etc.), it could complicate the gift characterization. You're incredibly fortunate to have this support system! Getting rid of student debt this early will compound your financial advantages for decades to come.

As someone who recently went through a similar situation with family help for student loans, I can confirm everything that's been said here is accurate! I received gifts from both my parents and my aunt to help with my loans, and it was completely tax-free for me as the recipient. What really helped me was understanding that gift taxes are designed to prevent wealthy people from avoiding estate taxes by giving away large sums - they're not meant to penalize normal family financial assistance. The annual exclusion amounts ($17k for 2024, $18k for 2025) are specifically set up to allow this kind of generous help without any tax complications. One thing I'd add is to make sure you're emotionally prepared for being debt-free so young! I know that sounds silly, but going from having monthly loan payments to suddenly having that money available for savings and investments can be overwhelming in the best way. Consider setting up automatic transfers to savings or retirement accounts so you don't accidentally lifestyle-inflate and lose the benefit of this amazing gift. You're so fortunate to have people willing to invest in your future like this. The compound effect of starting your career debt-free is going to be incredible for your long-term wealth building!

Just want to point out that the IRS can refile the Notice of Federal Tax Lien during the 10-year period, which extends the time the lien affects your aunt's credit report and encumbers the property. Also, if the IRS files suit before the CSED expires, they can get a judgment that lasts WAY longer than 10 years. My suggestion would be to at least explore an installment agreement that your aunt can afford. Even small payments show good faith and might prevent the IRS from taking more aggressive collection actions while you figure out a long-term strategy. Just be aware that some installment agreements require you to extend the CSED.

Your aunt's situation is definitely complex, and the "wait it out" strategy has both merits and serious risks that need careful consideration. While the 10-year Collection Statute Expiration Date (CSED) is real, there are several factors that could make this approach backfire. First, let me echo what others have said about tolling events - these can significantly extend the 10-year period. Since your aunt is still on the mortgage for multiple properties, the IRS has substantial leverage and may be more aggressive in their collection efforts before the CSED expires. Given that she's in her late 60s and stressed about losing her home, I'd strongly recommend getting a second opinion from a tax professional who specializes in collections. The fact that she's primarily living on 401k distributions might actually work in her favor for certain relief programs or settlement options. A few specific considerations for your aunt: - Her age and income source might make her a good candidate for Currently Not Collectible status or a partial payment installment agreement - If she can prove financial hardship, an Offer in Compromise might settle the debt for much less than $230k - The stress and uncertainty of waiting 6+ more years (assuming 2017 assessments) might not be worth it compared to resolving it now I'd suggest getting the exact CSED dates from the IRS directly and having a collections specialist review all her options before committing to the waiting strategy. Sometimes proactive resolution, even if it costs something upfront, provides better long-term financial and emotional outcomes.

Has anyone actually used the Multiple Jobs Worksheet on the W-4? I tried following it and got completely confused by step 2. Is there a simpler way to handle this?

I'm in a similar situation with multiple jobs and found that the key is understanding that each employer withholds taxes as if that's your only income. This usually results in under-withholding when you add up your total tax liability. Here's what worked for me: I used the IRS Tax Withholding Estimator (it's free on the IRS website) and entered information for both jobs. It calculated that I needed to have an additional $150 per month withheld from my higher-paying job to avoid owing at tax time. The estimator will tell you exactly what to put in each section of your W-4 forms. For most people with two jobs, you'll end up putting an extra dollar amount in Step 4(c) "Extra withholding" on one of your W-4s (usually the higher-paying job). Don't forget to update your withholding if either job's income changes significantly throughout the year. I learned this the hard way when my part-time hours increased and I ended up owing $800 at tax time!