$600 is absurd for your situation. I do taxes professionally and would charge around $250-300 max for what you described. Multiple states adds complexity but not THAT much. The IRA distribution is literally just entering info from a 1099-R and checking a few boxes about exceptions.

As someone who's been through a similar situation, I'd definitely get a second opinion on that $600 quote. That seems really high for your circumstances. I moved from Illinois to Texas mid-year and had to deal with multi-state filing plus some retirement account complications. Ended up going with a local CPA who charged $275 total. The key is finding someone who specializes in multi-state returns - they can usually handle these situations efficiently since they see them all the time. Before you commit to paying $600, I'd suggest calling around to 2-3 other preparers for quotes. Also ask specifically about the medical exception for your IRA withdrawal - if it was truly for emergency medical costs, you might be able to avoid the 10% early withdrawal penalty entirely, which could save you way more than the difference in prep fees. Don't let anyone pressure you into paying more just because your situation has a few moving parts. Multi-state returns are pretty common, especially in college towns where students move around a lot.

Does anyone know if modifications to increase a vehicle's GVWR would work for Section 179 purposes? My truck is rated at 5850 lbs GVWR, but I could install heavier duty springs to get it over 6000.

This is a great question that trips up a lot of business owners! As others have confirmed, it's definitely GVWR (Gross Vehicle Weight Rating) that matters for Section 179, not the actual curb weight. For your Chevy Colorado ZR2 at exactly 6000 lbs GVWR, you're good to go! The tax code specifies "more than 6,000 pounds" in some places but the actual requirement is "at least 6,000 pounds" - so right at 6000 qualifies. One tip from my experience: take a photo of that door jamb sticker showing the GVWR before you drive the truck off the lot. Sometimes those stickers fade or get damaged over time, and you'll want clear documentation for your tax records. Also grab a copy of the manufacturer's spec sheet that shows the same number. The distinction between GVW and GVWR confused me for months when I was truck shopping for my construction business. Glad to see others clarifying this - it really can make or break a purchasing decision when you're talking about potentially $20K+ in first-year deductions!

Don't forget to check the math yourself! I had a similar situation and it turned out the IRS actually calculated correctly - I had missed a tax credit I was eligible for when I did my amended return. Pull out all your documents and try to reverse-engineer their math. Sometimes what looks like an error is actually them finding something in your favor that you didn't claim.

As someone who's dealt with IRS overpayments before, I'd echo the advice about not spending the extra money and being proactive about contacting them. One thing to keep in mind is that the IRS has up to 3 years to identify and request repayment of overpayments, and they will charge interest from the date you received the refund. When you do contact them, ask specifically for them to put a note in your account that you called to report the potential overpayment. This creates a paper trail showing you acted in good faith, which can be helpful if there are any disputes later about interest or penalties. Also, make sure to keep detailed records of everything - copies of your original return, amended return, the CP24 notice, the refund check, and any correspondence. If this does turn out to be an error, having all the documentation organized will make the resolution process much smoother. The silver lining is that dealing with this proactively now is much easier than trying to sort it out years later when memories are fuzzy and documents might be harder to find.

This thread has been incredibly helpful for understanding the health insurance premium exception! I'm dealing with a similar situation from 2023 and wanted to add one point that might help others who are still sorting through their documentation. If you had family coverage while unemployed, make sure you're tracking the full family premium amount, not just the individual portion. The IRS allows you to count the entire family health insurance premium that you paid out-of-pocket while receiving unemployment compensation. This was a pleasant surprise for me because my family premium was significantly higher than what I withdrew from my IRA, so I was able to apply the exception to my full distribution amount. Just make sure your records clearly show that you were responsible for the family coverage payments during your unemployment period. Also, for anyone using multiple sources to pay premiums (like savings, unemployment benefits, etc.), remember that the IRS doesn't care which specific money went where - they just want to see that you were unemployed, receiving compensation, and actually paying qualifying premiums during the eligible timeframe. The "money is fungible" point that Amara made in the original post is exactly right! Keep those records organized and don't stress too much about tracing individual dollars. Focus on documenting your unemployment status, the timing of your withdrawal, and your premium payment history.

This has been such an informative discussion! I wanted to add something that might help others who are in the middle of this process right now. When you're calculating your qualifying health insurance premiums, don't forget to include any dental and vision coverage you paid for separately while unemployed. The IRS considers these qualifying medical expenses as long as they were standalone policies you purchased to maintain coverage during your unemployment period. I initially only counted my major medical premium when calculating my exception amount, but my tax preparer pointed out that my separate dental policy ($45/month) and vision coverage ($15/month) also qualified. It wasn't a huge difference in my case, but every bit helps when you're trying to maximize your penalty exception. Also, for anyone who had a gap in coverage and paid COBRA continuation premiums retroactively, those payments can still count as long as they were for coverage periods when you were unemployed and receiving compensation. The timing of when you actually made the payment matters less than the coverage period the payment was for. The documentation for supplemental coverage is usually pretty straightforward - just keep the same types of records (premium statements, payment confirmations) that you'd keep for your main health insurance. Most dental and vision insurers provide monthly statements just like major medical carriers do.

Has anyone tried using the "Nutshell" series? I heard the "Federal Income Tax in a Nutshell" is pretty good for beginners who want to understand the basics without getting overwhelmed.

I'd add "Understanding Federal Income Taxation" by J. Martin Burke and Michael K. Friel to this great list of recommendations. It's specifically designed for people who want to understand tax law conceptually rather than just follow mechanical rules. What sets it apart is how it uses flowcharts and visual aids to break down complex concepts like the realization requirement, basis adjustments, and like-kind exchanges. The authors do a fantastic job explaining the policy rationale behind different tax provisions, which really helps you understand WHY the code works the way it does rather than just memorizing what it says. It's updated regularly and strikes a nice balance between being comprehensive enough for serious study but accessible enough that you won't need a law degree to follow along. The practice problems at the end of each chapter are also really helpful for testing your understanding.