Congratulations on your new baby! This is such a common source of confusion for new parents, and you're definitely not alone in feeling frustrated by the lack of clear guidance. Since you file jointly, you and your wife are essentially one tax unit in the IRS's eyes, so it doesn't legally matter which one of you claims your baby on the W-4. The critical thing is to avoid BOTH of you claiming the dependent - that would double-count the benefit and likely lead to under-withholding. My suggestion: have whoever earns more claim the dependent on their W-4 to maximize the immediate benefit in your paychecks. But honestly, the Multiple Jobs Worksheet is going to be way more important for your situation than who specifically claims the baby. Since you both work full-time, that worksheet helps ensure you're withholding enough to cover the tax on your combined income. The IRS Tax Withholding Estimator is really your best bet here - it's free, designed for exactly your situation, and will give you specific dollar amounts for each line of both W-4s. You'll need recent paystubs from both jobs and your 2023 return, but it takes all the guesswork out of it. Don't stress too much about getting it perfect right away - you can always adjust your W-4s later in the year if needed. The main goal is just avoiding a big surprise bill next April!

Congratulations on your new baby! I totally get the frustration - this should be straightforward but the guidance is so scattered and confusing. Here's the simple answer: Since you file jointly, you're one tax unit to the IRS, so it doesn't matter which of you claims your baby on your W-4. The key is that only ONE of you should claim the dependent, not both. If you both claim the child, you'll essentially be double-counting the benefit and will likely end up owing money next April. I'd suggest having whichever spouse earns more claim the dependent on their W-4 - this gives you the maximum immediate benefit in your paychecks. But honestly, the bigger issue for your situation is making sure you both complete the Multiple Jobs Worksheet. This is crucial when both spouses work because it helps account for your combined income potentially pushing you into higher tax brackets. The IRS Tax Withholding Estimator online is your friend here - it's free and specifically designed for situations like yours. You'll need recent paystubs from both jobs and last year's tax return, but it will give you exact dollar amounts for every line of both W-4s. Don't stress about getting it perfect immediately. You can always adjust your W-4s later in the year if you notice you're withholding too much or too little. The main goal is just avoiding any unpleasant surprises when you file next year!

Don't forget about reporting requirements! While the transfer itself might not be taxable beyond potential currency gains, you may need to file an FBAR (FinCEN Form 114) if your foreign accounts exceeded $10,000 total at any point during the year. I learned this the hard way after moving money between my Canadian and US accounts. The penalties for not filing an FBAR can be severe even if you don't owe any taxes. There's also Form 8938 if your foreign assets exceed certain thresholds, but that typically applies to residents, not someone on a J-1 visa. Since you were on a J-1 and never a US resident for tax purposes, your reporting requirements might be different, but it's worth checking just to be safe.

Just went through this exact situation last month when transferring funds from my US account back to Australia after finishing my F-1 OPT period. Here's what I discovered: The transfer itself is NOT taxable - you're just moving your own money between accounts. However, you do need to be aware of potential foreign exchange gains/losses. Since you earned the money at one exchange rate and are transferring at potentially a different rate, any gain could technically be taxable income. For your J-1 situation specifically, since you were never a US resident for tax purposes, your obligations are more limited than someone who was a resident. But you should still document the original exchange rates when you earned the money versus when you transfer it. One thing that caught me off guard - make sure to check if you need to file an FBAR. Even though you're not a US resident, if your UK account (or combination of foreign accounts) exceeded $10,000 at any point during the tax year, you might still have FBAR filing requirements. The rules can be tricky for non-residents with US source income. I'd recommend keeping detailed records of when you earned the money, the exchange rates at that time, and the rates when you transfer. That way you're covered if there are any questions later.

Welcome to the community! As someone who's been following EV tax credits professionally for several years, I wanted to address @Victoria Charity's excellent question about audit risk and add some perspective on documentation best practices. Regarding audit scrutiny - yes, the IRS has increased their focus on clean vehicle credits, but this is primarily because of the significant rule changes and the dollar amounts involved, not because they're trying to discourage legitimate claims. The key is being thorough with documentation from day one. Here's what I recommend keeping in a dedicated EV tax credit file: (1) Original purchase agreement with VIN clearly listed, (2) Manufacturer's certification letter (usually provided by dealer), (3) Proof of final assembly location if questioned, (4) Screenshots of the IRS qualifying vehicle list from your purchase date, (5) Form 8936 or 8936A if using point-of-sale option, and (6) Any correspondence with dealers about credit assignment. One thing I haven't seen mentioned is that if you're using the point-of-sale option, the dealer is actually required to provide you with a disclosure statement explaining your obligations. Keep this document - it's crucial if there are any disputes later. The increased scrutiny is really about catching people who claim credits for vehicles that don't qualify or exceed income limits. If you follow the advice shared in this thread about verifying eligibility and keeping good records, audit risk should be minimal. The IRS wants these programs to work correctly, not to penalize legitimate participants. @Jamal Washington - with all the great advice you've received here, you're well-positioned to make an informed decision. Just remember to verify everything close to your purchase date since rules and qualifying vehicles can change!

As a newcomer to this community, I'm amazed by how comprehensive and helpful this discussion has been! Reading through everyone's experiences and expertise has given me such a clear picture of the EV tax credit landscape for 2025. What really stands out to me is how much the program has evolved - it's clearly not as simple as "buy an EV, get $7,500" anymore. The battery sourcing requirements, income limits, and point-of-sale options add layers of complexity that definitely require careful planning. I'm particularly grateful for the practical tools that members have shared. The taxr.ai eligibility analysis and Claimyr IRS callback service sound like they could save a lot of time and frustration. @Savannah Glover's real-world success story showing $300+ monthly savings in operating costs really helps put the long-term benefits in perspective beyond just the initial tax credit. The documentation checklist from @Zoe Stavros is exactly what I needed to see - having that detailed list of what to keep in a dedicated file takes a lot of the guesswork out of staying organized and audit-ready. As someone considering making the switch from an older gas vehicle, this thread has given me the confidence that with proper research and documentation, navigating the EV tax credit process is definitely manageable. Thanks to everyone who shared their knowledge and experiences - this community is an incredible resource!

One thing that hasn't been mentioned yet - make sure your client keeps thorough documentation of the 8986 they received and how they handled it. In my experience, these partnership audit adjustments often trigger correspondence or questions later. I recommend creating a detailed memo explaining: 1) When and why they received the 8986 2) The analysis showing why no further forms were required 3) How the adjustments were incorporated in their reporting This isn't just for potential IRS questions - it's also helpful if your client changes tax preparers in the future or if you need to revisit this issue years later. Partnership items have a way of coming back around.

Just wanted to share that we ran into this exact situation last year with a client. A non-BBA LLC received an 8986 showing reduced K-1 income from an AAR filing. We called the IRS Partnership Hotline and confirmed our client did NOT need to issue 8986s to their partners. We just had to make sure the adjustments were properly reflected on the client's tax return for that year. The key factor was exactly what others have mentioned - since there was no imputed underpayment (just income/capital adjustments), there was nothing to push out further.

Here's a pro tip - if your company allows remote work, maybe ask if they have a "workation" policy where they cover some of your expenses if you work X hours during personal travel? My company does this and it's awesome. I get reimbursed for internet and a portion of lodging if I work at least 5 hours per day during trips!

I understand your frustration - it does seem unfair on the surface! But the tax code focuses on the original intent/purpose of travel rather than what actually happens during the trip. Your colleague's trip qualifies because meeting clients was the primary reason for booking it, even if the business portion is brief. Since you mentioned having a consulting side business, that could potentially change things for you. If you could legitimately schedule client meetings or business activities as the PRIMARY purpose for future trips (not just working remotely on your regular job), those might qualify for deductions on your Schedule C. The IRS is pretty strict about this "primary purpose" test though. You'd need solid documentation showing the business reason drove the travel decision, not the other way around. It might be worth consulting with a tax professional to see if any of your travel patterns could legitimately qualify given your side business.