Just a heads up that the IRS actually released specific guidance on this topic after the tax law changes. Look up "Notice 2018-76" which details exactly how to handle business meals vs. entertainment. The key tests are: 1. The expense must be ordinary and necessary for business 2. The expense can't be lavish 3. You or an employee must be present 4. Food and beverages must be provided to a current or potential business contact 5. For food served at entertainment events, it must be purchased separately

This is such a helpful thread! I've been dealing with the same confusion about meals vs entertainment deductions for my freelance consulting business. One thing I learned from my tax preparer last year is to also keep notes about the business purpose and topics discussed during each meal - not just the receipt. The IRS wants to see that there was a legitimate business discussion, so I now keep a simple log on my phone noting who I met with, what business matters we discussed, and any follow-up actions. For example, instead of just keeping a receipt that says "Dinner at Mario's - $85", I'll note "Dinner with potential client Sarah Johnson to discuss Q2 marketing strategy for her startup. Discussed budget parameters and timeline. Follow-up: send proposal by Friday." This documentation has been invaluable when my accountant prepares my Schedule C, and it gives me confidence that I can substantiate these deductions if ever questioned. The business purpose requirement is just as important as getting the meal vs entertainment categorization right!

As a newcomer to this community, I want to thank everyone for this incredibly detailed discussion! I'm facing a similar situation with some Amazon shares I want to gift to my daughter, and I was completely lost on the timing rules. The explanation about "dominion and control" being the key factor makes so much sense - I was overthinking this and assumed it had to be based on when the actual transfer completed in the system. It's actually quite logical that the IRS looks at when YOU as the donor have done everything in your power to complete the gift. One quick follow-up question: if I'm mailing transfer forms to multiple family members (different gifts), do they all need to be mailed on the same date to use the same stock valuation, or can I stagger them over several days if I want different valuations? I'm trying to optimize around some upcoming earnings announcements that might affect the stock price. Also echoing what others said about documentation - I'll definitely be using certified mail and keeping screenshots of the daily high/low prices. This thread has probably saved me from making some costly mistakes!

As someone new to this community and dealing with stock gifts for the first time, this discussion has been incredibly enlightening! I'm planning to gift some Nvidia shares to my grandchildren and was completely overwhelmed by the tax implications and timing rules. The consensus here about the "dominion and control" principle makes perfect sense - the gift is complete when you mail the properly executed transfer forms, not when the broker processes them. This actually protects donors from being at the mercy of processing delays that could affect valuations. I appreciate all the practical advice about documentation too. Using certified mail, keeping proof of mailing dates, and documenting the daily high/low prices seems like a small investment for significant peace of mind. One thing I'm wondering about - for those who mentioned using services like taxr.ai or Claimyr, do you think these are worth it for relatively straightforward gift situations, or are they more valuable for complex scenarios? My situation seems similar to the original poster's, where I just need clarity on basic timing and valuation rules. Thanks to everyone for sharing their experiences - this community knowledge is invaluable for navigating these tax complexities!

Has anyone successfully gotten their employer to reduce the withholding BEFORE paying the severance? I'm about to get laid off (they told us it's coming) and want to avoid this exact situation.

The withholding on your severance is unfortunately very typical. I went through this exact same shock when I was laid off 6 months ago - $42k severance with over $18k withheld. What's happening is your payroll system is treating that lump sum as if it's your new regular pay rate, so it's withholding taxes as if you suddenly make $444k annually instead of your actual salary. Here's what I learned: most of that overwithholding WILL come back to you as a refund when you file taxes, assuming your total annual income doesn't actually put you in those higher brackets. In my case, I got back about $11,500 of the $18k they took. One immediate thing you can try - contact your former employer's payroll department and ask if they can process an amended W-4 for any remaining severance payments. Some companies will do this if you haven't received the full amount yet. Also keep very detailed records of everything because you'll need to track this carefully for your tax filing. The cash flow hit is brutal when you're already dealing with job loss stress, but the IRS math will work itself out in your favor come tax time.

Manual reviews for Michigan returns with homestead credits are super common - I went through the same thing last year. The June timeline sounds about right unfortunately. The good news is that "manual review" doesn't mean there's a problem with your return, it's just that certain credits like the homestead property tax credit trigger additional verification steps. They're basically making sure your property info matches up with county records and that you meet all the residency requirements. Just keep checking your eServices account periodically for any document requests, but otherwise there's not much you can do except wait it out. The refund will come eventually!

I'm going through the exact same thing right now! Filed my MI-1040 and homestead credit on January 28th and it's been under manual review since February 5th. The wait is brutal but from what I've read here and other forums, it seems like this is just the new normal for Michigan returns with property tax credits. I called the Treasury department last week and they basically said the same thing - June timeframe for manually reviewed returns. At least we're not alone in this! Hoping we all get our refunds sooner than expected 🤞

Don't forget to check if this affects your eligibility for premium tax credits if you purchased health insurance through the marketplace! If your employer offered this QSEHRA benefit, it might impact your subsidy calculations.

I'm a tax preparer and see this confusion about FF codes pretty frequently. The $2,400 represents the annual limit your employer made available through their QSEHRA plan, not an amount you received or owe taxes on. This is purely informational for tax purposes. Here's what you should do: 1) Ask your employer for the QSEHRA plan documents and claims submission process, 2) Gather any medical expenses you paid out-of-pocket in 2024 (doctor visits, prescriptions, dental, vision, etc.), and 3) Submit eligible expenses for reimbursement before any plan deadline. The fact that your employer and their payroll company seem unaware of this benefit is a red flag. Someone authorized this setup - possibly as part of a benefits package upgrade they didn't fully understand. Don't let their confusion cost you money you're entitled to claim back!