Does anyone know if the adoption tax credit is still non-refundable for 2024 filings? I'm planning to adopt next year and trying to figure out how this will impact our taxes.

Thanks for starting this thread, Liam! The adoption tax credit carryforward rules can definitely be confusing. Just to add some clarity to what's already been shared: You're correct that the 5-year carryforward period includes the original year you qualified (2020). So your deadline to use any remaining credit is indeed 2024 - this is your final year to claim it. One important thing to keep in mind: make sure you have enough tax liability to absorb the credit. Since it's non-refundable, you can only use it to offset taxes you actually owe. If you don't have sufficient tax liability in 2024, any unused portion will unfortunately expire. I'd also recommend keeping detailed records of how much you've used each year. The IRS doesn't automatically track this for you, so you'll need to calculate your remaining balance yourself when filing. Form 8839 is required each year you claim any portion of the credit, including carryforward amounts. Good luck with your 2024 filing!

Yes, FreeTaxUSA absolutely saves your progress! I've been using it for the past two years and it's been really reliable about auto-saving everything as you work through each section. Just make sure you create an account and log in before you start entering information - that's the key step. Once you're logged in, it saves automatically after each page or section you complete. You can safely close your browser or log out whenever you need to, and when you come back everything will be exactly where you left it. I actually do the same thing you're planning every year - I start early and then add documents as they arrive throughout tax season. Last year I probably logged in and out at least 5-6 times over a couple weeks as I got various forms in the mail, and never had any issues with lost data. When you log back in, you'll see your return on the dashboard with a progress indicator showing how much you've completed. It makes it really easy to see what sections are done and what still needs your attention. Much better experience than trying to do everything in one marathon session! You're making a smart move switching from TurboTax - the functionality is essentially the same but you'll save a ton of money.

Yes, FreeTaxUSA definitely saves your progress! I've been using it for three years now and it's one of the most reliable features. As long as you create an account and stay logged in while entering your information, it automatically saves everything as you complete each section. I do exactly what you're planning every tax season - start early and then add documents as they come in. Last year I worked on my return over about two weeks, logging in and out probably 8-10 times as various 1099s and other forms arrived in the mail. Never lost a single piece of data. When you log back in, your return will show up on your main dashboard with a completion status (like "In Progress - 45% Complete") so you can easily see where you left off. The interface is really intuitive about showing which sections are finished and which ones still need attention. One small tip: make sure you're actually signed into your account before you start entering information. The system will let you work as a "guest" but then won't save anything. As long as you see your name in the top right corner of the screen, you're good to go! Don't stress about having to rush - take your time and add the missing documents when they arrive. You made a great choice switching from TurboTax!

Based on what everyone's shared here, it sounds like the key is really treating this as a legitimate business from day one. I'd recommend starting with a solid business plan that shows your intent to expand beyond just family rentals - maybe outline how you'll advertise on platforms like Turo, Facebook Marketplace, or even local classified ads within the first 6 months. One thing I haven't seen mentioned is that you'll want to check your state's requirements for car rental businesses too. Some states require special licenses or permits for vehicle rental operations, even small ones. Also, make sure your auto insurance covers commercial rental activity - most personal policies don't, and you could be looking at serious liability issues if something happens during a rental. The documentation piece that Mohammad mentioned about his brother's audit is crucial. I'd suggest keeping a detailed log of every inquiry, rental, and business expense from the very beginning. Even if someone calls asking about rates but doesn't rent, document it. This shows you're actively trying to build a customer base beyond family members. For the Section 179 deduction, remember that's only available if the vehicle is used more than 50% for business purposes. With just monthly rentals to your parents, you might not hit that threshold, so regular depreciation might be your only option initially.

One thing I'd add to all this great advice is to make sure you understand the hobby loss rules (Section 183). The IRS has a "3 out of 5 years" test where if your business doesn't show a profit in at least 3 out of 5 consecutive years, they might reclassify it as a hobby and disallow your business deductions. This is especially important for a single-car rental business with limited customers. You need to show that you're genuinely trying to make money, not just offsetting the costs of owning a second car. Keep detailed records of your marketing efforts, rental inquiries (even the ones that don't convert), and any steps you take to expand the business. Also, regarding the $24,000 car purchase - if you do go the Section 179 route, there are annual limits on the deduction ($1,160,000 for 2023, but with phase-out rules). For luxury vehicles there are also additional restrictions, though your price range probably won't trigger those. I'd strongly recommend consulting with a tax professional before making the purchase, especially given the family rental aspect. A few hundred dollars in professional advice upfront could save you thousands if you get audited later.

has anyone looked into the tax treaty between Paraguay & the US? that could be super important for determining how ur income gets taxed. also check if Paraguay has a territorial tax system (only taxes income earned within the country) or worldwide. also whats ur citizenship? that matters a ton for how this all shakes out. if ur a US citizen u cant escape US tax filing no matter what u do lol

One thing I haven't seen mentioned yet is the potential impact of the UK's IR35 rules on your situation. Since you're working remotely for a UK recruitment company, they might still consider you a "disguised employee" rather than a genuine contractor, which could affect how your income is classified and taxed. The UK has been cracking down on contractors using offshore structures to avoid employment taxes, especially in the recruitment/staffing industry. Even if you set up a US LLC, HMRC might still view your relationship with the UK company as employment rather than B2B services. This could create complications because: 1) The UK company might be required to operate PAYE (Pay As You Earn) and deduct taxes 2) You might still be liable for UK National Insurance contributions 3) The income classification could affect how it's treated under any tax treaties Before you commit to the LLC structure, I'd strongly recommend getting clarity from the UK company about how they plan to classify and pay you. Some companies won't work with contractors through foreign entities specifically because of IR35 concerns. You might want to consult with a UK tax advisor who specializes in IR35 alongside your international tax planning, as this could significantly impact the effectiveness of any offshore structure you choose.

One thing I haven't seen mentioned yet is the importance of timing when it comes to investment interest deductions. If you don't have enough net investment income this year to fully deduct your HELOC interest, you can carry the excess forward indefinitely to future tax years. For example, if your HELOC interest is $3,000 but you only have $1,500 in qualifying investment income this year, you can deduct $1,500 now and carry forward the remaining $1,500 to use against future investment income. This is particularly helpful for buy-and-hold investors who might not generate much taxable income from their investments in the early years. Keep good records of any carryforward amounts - you'll need to track them on Form 4952 each year until they're fully used up. Also worth noting: if you're near the standard deduction threshold, run the numbers both ways. Sometimes it makes sense to realize some gains or take dividends in cash rather than reinvesting to boost your investment income and maximize the interest deduction.

Great question! As others have mentioned, you can absolutely deduct HELOC interest as investment interest expense, but I want to add a few practical tips from my experience: **Documentation is everything**: Open a separate checking account just for your HELOC draws if possible. Transfer HELOC funds there first, then to your brokerage. This creates a crystal-clear paper trail that the IRS loves to see. **Consider the AMT implications**: If you're subject to Alternative Minimum Tax, investment interest deductions work differently. The AMT allows the deduction but calculates it using AMT investment income, which can be lower than regular tax investment income. **Don't forget state taxes**: Some states don't allow investment interest deductions even if the federal government does. Check your state's rules - you might be able to deduct federally but not at the state level. **Quarterly estimated payments**: If you're expecting a large investment interest deduction, remember it only helps if you're itemizing and it might affect your quarterly estimated tax payments. Don't get caught with an underpayment penalty. Keep excellent records from day one - it's much harder to reconstruct the paper trail later if you get audited. The IRS specifically looks for "tracing" of borrowed funds to investment use.