This entire thread makes me so angry about how misleading the "tax benefits of homeownership" talk is! When we bought our house, EVERYONE (realtor, lender, parents) told us about the amazing tax breaks. First year filing - not a penny of benefit because of the huge standard deduction. Feels like a bait and switch to convince people to buy.

I completely understand your frustration! I went through the exact same thing when I bought my first home two years ago. The "tax benefits" conversation really needs to come with a big asterisk explaining that it depends entirely on your mortgage amount, property taxes, and state. What helped me was reframing homeownership benefits beyond just taxes. Yes, the mortgage interest deduction didn't help me initially, but I was still building equity instead of paying rent, had a fixed housing payment (unlike rising rent), and gained the freedom to modify my space. The tax benefits might kick in later as your income grows, you accumulate more deductible expenses, or if tax laws change. In the meantime, you're still making a solid financial move even without the immediate tax savings. Don't let the tax disappointment overshadow the other real benefits of homeownership!

You're absolutely right to question your dad's request! When filing married filing separately (MFS), you do NOT need to report your husband's income on your return. That's the entire point of choosing this filing status - each spouse only reports their own income, deductions, and credits. The only information about your husband that needs to go on your tax return is his name and Social Security number. No W-2s, no income amounts, no other financial details. Your husband's privacy concerns are completely valid and legally supported. Your father might be confused because he's used to preparing joint returns where both spouses' income gets combined. But MFS allows you to maintain complete financial separation while still being married for tax purposes. Just remember one important rule: if either you or your husband decides to itemize deductions, the other MUST also itemize (you can't mix standard deduction with itemizing when filing MFS). You'll want to coordinate on this decision together. You can simply tell your dad "we're filing married filing separately, so I only need to provide my own tax documents." The IRS created this filing status specifically for situations like yours where couples want to keep their finances separate!

Your father is mistaken about needing your husband's income information! When filing married filing separately (MFS), you only report YOUR OWN income, deductions, and credits on your return. That's literally the core purpose of this filing status. The only information about your husband that goes on your tax return is his name and Social Security number - no W-2s, no income amounts, no other financial details whatsoever. Your husband's privacy concerns are completely reasonable and legally protected. Your dad is probably confused because he's accustomed to preparing joint returns where both spouses' income gets combined on one return. You can simply tell him "we're filing MFS, so I only need to provide my own tax documents." One important thing to coordinate with your husband: if either of you decides to itemize deductions, the other MUST also itemize. You can't have one spouse take the standard deduction while the other itemizes when filing MFS. You might want to discuss your deduction totals (without sharing specific details) to determine which approach gives you both the better tax outcome. The IRS designed MFS specifically for situations like yours where married couples want to maintain financial privacy. Stand your ground - you're doing everything correctly!

Your coworker was partially right about charitable donations but completely wrong about restaurant tips! As others have mentioned, personal dining tips are never tax deductible - they're considered personal expenses just like the meal itself. For charitable donations, they can potentially be deductible BUT only if you itemize deductions instead of taking the standard deduction. With the standard deduction being so high now ($13,900 for single filers in 2025), most people actually don't benefit from charitable donation deductions anymore unless they have significant other itemizable expenses like mortgage interest or high state taxes. If you do decide to track donations, make sure they're going to qualified 501(c)(3) organizations - you can check this on the IRS website. And definitely keep good records! For donations under $250 you need receipts or bank records, and for $250+ you need written acknowledgment from the charity. Don't feel bad about not knowing this stuff - tax law is confusing and changes frequently. The key is learning as you go!

Just to add another perspective - I've been dealing with similar confusion about deductions for years! What really helped me was setting up a simple system to track everything throughout the year instead of scrambling at tax time. I keep a basic spreadsheet with columns for date, amount, and type of expense (charitable donations, business meals if applicable, etc.). Even if I end up taking the standard deduction, at least I have the data to make an informed choice. One thing that surprised me was learning that volunteer mileage for charitable organizations IS deductible at 14 cents per mile if you itemize. So if you drive to volunteer at your local food bank or animal shelter, those miles count! It's not much per mile, but it can add up if you volunteer regularly. The key is just being organized about it - whether you use a spreadsheet, app, or even just a shoebox for receipts, having some system in place makes tax season so much less stressful.

I completely understand that panic feeling - I went through the exact same thing with a LTR 324c about a year ago! The good news is this is really just a documentation request, not an indication that you did anything wrong. Your PayPal records and client emails are perfect for this situation. Here's what I'd recommend based on my experience: **Organize your response packet:** 1. Cover letter referencing the notice number and date 2. Summary sheet listing each payment (date, client, amount) totaling to your $6,700 3. PayPal transaction export (they have a download feature under Activity) 4. Client emails confirming work and payments 5. Copy of the original LTR 324c **Pro tips:** - Highlight payment amounts in your PayPal records so they're easy to spot - Organize everything chronologically by payment received date - Make copies of everything before mailing - Send via certified mail to the address listed on your notice The whole process took about 6-7 weeks for me, but I got my full refund without any issues. The 30-day response window gives you plenty of time to gather everything properly. You reported your income correctly and have the documentation to prove it - that's all they need to see. Try not to stress too much about this. It's really just a matching exercise on their end!

I went through this exact situation about 8 months ago and totally understand that initial panic! LTR 324c notices are actually pretty routine - the IRS just needs to verify income when their automated systems can't match what you reported with what's in their database. Since you have PayPal records and client emails for your $6,700 in side gig income, you're in great shape. Here's what worked for me: **Essential documents to include:** - PayPal transaction history (use their export feature under "Activity" for a clean PDF) - Bank statements showing the PayPal deposits - Client emails confirming work and payment amounts - A simple summary sheet listing each payment with dates and amounts totaling $6,700 **Response tips:** - Write a brief cover letter referencing your notice number and date - Organize everything chronologically by payment date - Highlight the key payment amounts so they're easy to spot - Send via certified mail to the address on your notice (usually page 2) The whole process took about 7 weeks for me, but I got my full refund without any adjustments. The 30-day deadline might feel tight, but you have plenty of time to gather your documentation properly. Don't stress - you reported everything correctly and have proof. This is just the IRS doing their due diligence to match records. You've got this!

One thing nobody's mentioned yet - check if your spouse has any unvested ISOs that might vest soon. If the company just IPO'd, there's probably a lockup period anyway (usually 180 days), and you might want to create a comprehensive strategy for all their options, not just the ones available now. Also, watch out for the calendar year issue with ISOs. If your spouse exercises in December but can't sell until January (due to lockup or trading windows), that can create a nasty AMT situation where you owe tax for the current year but don't have the cash from selling shares to pay it.

Has anyone mentioned 83(b) elections yet? If these are early stage ISOs and still have a low spread between grant price and FMV, filing an 83(b) election can be huge for tax savings. But you have to do it within 30 days of exercise.