Make sure you're aware of the credit limits for different tax years. The rules changed significantly in 2023 with the Inflation Reduction Act. Before 2023, the lifetime limit for the Nonbusiness Energy Property Credit was $500 (with sublimits for specific improvements like $200 for windows). Starting in 2023, it became the Energy Efficient Home Improvement Credit with annual limits of $1,200 (with different sublimits). Different types of improvements have different limits too. For example, heat pumps have a separate $2,000 annual credit limit that doesn't count toward the $1,200 cap.

Don't forget state tax credits too! Many states offer additional incentives for energy efficient improvements on top of the federal credits. I made the mistake of only claiming federal credits for my solar installation and missed out on about $1,000 in state credits because I filed past my state's deadline.

Something nobody's mentioned yet - make sure you're accounting for any improvements you've made to the property since purchase when calculating your basis! If you've added landscaping, fencing, a driveway, or other improvements to the area being taken, those costs increase your basis and reduce your taxable gain.

This is a complex situation that definitely requires careful documentation! One thing I'd add to the excellent advice already given is to consider getting a professional appraisal of just the portion being taken. Even though the state offered $75k, having an independent appraisal can help support your basis calculations and provide additional documentation for the IRS. Also, since you mentioned this is an eminent domain situation, make sure you understand the timeline for any Section 1033 election if you decide to go that route. You generally have until the end of the tax year that's 2 years after the year you realized the gain to complete a qualifying replacement purchase. Given the complexity and the significant dollar amounts involved, this might be worth consulting with a tax professional who has experience with involuntary conversions and partial property sales. The cost of professional advice could easily be offset by ensuring you handle this correctly and don't miss any beneficial tax provisions.

Does anyone know if I can use a key code AFTER I've already paid for H&R Block? I was in a rush and just paid the full price but now I'm seeing all these discount options I missed! So frustrating.

Just wanted to share my experience - I actually called H&R Block directly (no special service needed) and asked if they had any current promotions. The rep told me they have a "first-time self-employed filer" discount that takes 20% off if you mention it when you call. Apparently it's not advertised online but they can apply it over the phone if you qualify. You have to call before you start your return though, and they'll give you a special code to enter. Might be worth a quick call if you haven't filed yet! The number is on their main website under customer support.

Something to remember about the dependent care FSA: if you and your spouse both have access to one through work, the $5000 limit is per family, not per person. Made that mistake one year and had to deal with excess contributions on our tax return. Not fun!

For the healthcare side, remember that FSA and HSA are completely different things! FSA = Flexible Spending Account, use-it-or-lose-it each year HSA = Health Savings Account, yours forever, rolls over yearly You mentioned both in your title but then only talked about FSAs. If you actually have access to an HSA (requires being on a high-deductible health plan), that's usually a better long-term financial choice than an FSA because you never lose the money and can invest it for retirement.

One thing nobody's mentioned - double check with your girlfriend if she can get insurance through her own employer. Often it's cheaper overall (even if her employer's plan is more expensive than her portion of yours) because of this imputed income tax situation. In my case, my partner and I were paying about $180 extra per month for her portion of my plan, but the imputed income was valued at $450/month, putting me in a higher tax bracket and costing us way more in the end. She switched to her company's plan at $240/month, and we still saved money overall!

This is such a common surprise for people! I went through the exact same thing when I added my boyfriend to my insurance plan last year. The imputed income concept is confusing at first, but once you understand it, you can plan better. One thing that helped me was setting up a separate savings account specifically for the extra taxes from imputed income. I calculated roughly how much extra I'd owe (about 25% of the monthly imputed income value in my tax bracket) and automatically transfer that amount each month. This way I'm not scrambling to find the money at tax time. Also, make sure you're keeping good records of what your girlfriend reimburses you. While it doesn't change the tax situation, having clear documentation of these payments can be helpful if you ever get questions about your finances. Some people even set up a simple written agreement just to keep everything transparent. The silver lining is that you caught this relatively early in the year, so you have time to adjust your withholding or quarterly payments if needed!