One option nobody's mentioned - do you have any self-employment income at all besides your W2? Even a small consulting business or side gig could potentially allow you to utilize some of those losses depending on how it's structured.

I've been through a similar situation with high W2 income and rental losses. Unfortunately, at your income level ($670K), you're well beyond the phase-out range for rental loss deductions. The passive activity loss rules are pretty strict here. However, since you work in property management, you might want to explore whether any of your rental activities could qualify for different treatment. For example, if you're providing substantial services beyond typical landlord duties (like regular maintenance, landscaping, or other hands-on management), you might be able to argue that some portion isn't purely passive rental activity. Also consider: 1. Make sure you're maximizing current-year deductions by properly categorizing repairs vs. improvements 2. Look into cost segregation for future years to accelerate depreciation 3. Keep detailed records of all your time and activities related to the property The losses aren't "lost" - they'll carry forward and can offset future rental income or be fully deducted when you sell. Given your income level, you'll likely benefit more from these losses in the future anyway. You might want to consult with a CPA who specializes in real estate taxation to explore any nuances specific to your property management background.

I went through this exact scenario last year! Got the notification from my tax software, never received a letter, but got my refund anyway. Step by step, here's what happened: 1. Filed in February 2023 2. Got software notification about identity verification needed 3. Never received a letter 4. Refund appeared in my account anyway in March 5. Called IRS in April just to be sure 6. They confirmed everything was fine - my identity had been verified through their automated system Fast forward to this year - filed my taxes with no issues at all! Sometimes the system works in our favor!

I've been through this exact situation twice now, and both times everything worked out fine! The IRS identity verification system has gotten much more sophisticated over the past few years. What likely happened is that their automated systems were able to verify your identity using data they already have on file - things like your previous tax returns, W-2 information, and other government records. The fact that your refund was deposited is actually the best indicator that everything is legitimate. The IRS is very cautious about releasing funds, so if they processed your refund, it means they're satisfied with the verification process. That said, I'd still recommend checking your IRS account transcript online at irs.gov just for peace of mind. It will show you the processing codes and confirm that your return went through normally. Given your health situation, I totally understand wanting that financial security - but you should be able to use that refund without worry!

You should also look into tracking your business expenses better for next year. I do DoorDash too and deduct mileage (58.5 cents per mile for 2024), part of my phone bill, insulated bags, car maintenance, etc. This lowers your net self-employment income which reduces what you owe in SE tax.

This is a really common confusion for new gig workers! The key thing to understand is that there are actually TWO separate tax calculations happening: 1. **Income Tax** - This is what the standard deduction applies to. Since your AGI of $7,600 is below the $12,490 standard deduction, you owe $0 in federal income tax. 2. **Self-Employment Tax** - This is completely separate and kicks in when you have more than $400 in net self-employment earnings. It's essentially your Social Security and Medicare contributions (15.3% total) that would normally be split between you and an employer. So even though you don't owe any income tax, you still owe self-employment tax on your ~$6,500 in 1099 income. That's where your $350 tax bill is coming from. The good news is you can reduce this by tracking all your business expenses - mileage for delivery driving is usually the biggest deduction. Also definitely look into the Earned Income Tax Credit that others mentioned, as it could help offset some of what you owe!

Quick question - if we filed jointly anyway, what's the risk? Would the IRS even know or care about the difference between our ceremony date and our official license date? My cousin said they filed jointly the year before their marriage license and nothing happened.

I went through something very similar last year! We had our ceremony in November but didn't get our marriage license properly filed until February due to some bureaucratic delays with our county clerk's office. The key thing I learned is that the IRS is very strict about the legal marriage date - it has to be by December 31st of the tax year. Even though we felt married after our ceremony, we had to file separately for that year since we weren't legally married until the following February. I know it's frustrating, especially since you've been living as a married couple, but Andre's advice is spot on. The good news is that once you're legally married in January 2024, you'll be able to file jointly for the 2024 tax year. And honestly, depending on your incomes, filing separately for 2023 might not hurt you as much as you think - sometimes the difference isn't as big as people expect. Just make sure you keep all your documentation about the ceremony dates versus the legal marriage date in case you ever need to explain the timeline to the IRS later. Congratulations on your marriage, even if the paperwork timing is a hassle!

Has anyone here actually maxed out both the employee AND employer portions of their solo 401k? I'm trying to figure out if I can really contribute up to $66,000 for 2025 (I'm under 50) between both parts. My CPA says my employer contribution is limited by my net business profit and I'm trying to calculate exactly how much income I need to earn to max out the entire thing.

Great thread! I want to add one important detail that hasn't been mentioned yet - if you're using payroll software to process your solo 401k employee contributions (which some people do to maintain proper documentation), make sure your payroll is processed and the contribution is actually deducted from your pay by December 31st, not just scheduled. I learned this the hard way last year when I scheduled my December payroll to run on January 2nd thinking it would still count for the prior tax year. The IRS considers the contribution made when it's actually deducted from compensation, not when you schedule it or when the funds hit the 401k account. Also, for anyone using a solo 401k loan feature - loan repayments don't count toward your annual contribution limits, but they do need to be made on schedule to avoid being treated as taxable distributions. The loan repayment schedule isn't affected by the December 31st deadline since it's not a new contribution.