Small thing to add - if you're using the standard mileage rate and deducting tolls separately, make sure you're only deducting the business portion of those tolls. If you use your car 70% for business and 30% personal, you can only deduct 70% of the tolls.

Great question! I went through this exact same situation last year with my freelance work. The good news is that toll expenses are definitely deductible separately from the standard mileage rate - they're specifically excluded from what the standard rate covers. Just a heads up though - make sure you're only deducting the business portion of those tolls. If you use your car for both business and personal driving, you'll need to calculate the percentage that's business use and only deduct that portion of your toll expenses. Also keep in mind that if you're an employee rather than self-employed, unreimbursed business expenses like this are generally not deductible under current tax law (suspended through 2025), unless you fall into certain categories like qualified performing artists or military reservists. Those EZ Tag receipts will be perfect documentation - just make sure to keep a detailed log of which trips were business-related so you can match them up with the toll charges. Good luck with your taxes!

Has anyone here actually had the IRS come after them for selling a personal car? I've sold like 5 cars over the years and never reported any of it on my taxes. Should I be worried about past sales?

This is a great question that trips up a lot of people! The key thing to understand is that when you receive a gift, you inherit the donor's "basis" (what they originally paid) for tax purposes. Since your car was originally purchased for $38k and you sold it for $15,800, you actually had a capital loss of about $22,200. However, the IRS has asymmetrical rules for personal-use property like cars - while capital gains would be taxable, capital losses aren't deductible. So you don't owe any capital gains tax (since you had a loss, not a gain), but you also can't use that loss to reduce other taxes. The good news is this is actually the most common scenario with personal vehicles since they typically depreciate over time. Just keep your documentation (bill of sale, any gift paperwork) in case you ever need to show the IRS how you calculated your basis, though it's unlikely to come up since there's no tax owed.

One thing people overlook in this discussion - if one of you has significant medical expenses (over 7.5% of your AGI), filing separately COULD be beneficial. My husband has ongoing medical issues, and his expenses easily exceed that threshold on his income alone. But when combined with my income, we couldn't deduct as much. We saved about $1,800 filing separately last year despite losing some credits. Just another angle to consider based on your specific situation. Tax software often misses these nuances.

Adding to the great advice already shared - as someone who's worked in tax preparation for over 15 years, I can confirm that for your specific situation (significant income disparity, three kids, homeownership), filing jointly is almost certainly your best bet. The key thing people don't realize is that when you have unequal incomes, the lower-earning spouse essentially "fills up" the lower tax brackets first, creating substantial savings. With your $120k/$40k split, you're getting maximum benefit from this effect. A few quick calculations based on your numbers: filing jointly, you'd likely qualify for the full $6,000 in child tax credits ($2,000 per child), plus potential additional child tax credit refunds. Filing separately, the higher-earning spouse would lose most or all of these benefits due to income phase-outs, while the lower-earning spouse couldn't claim all three children. My recommendation: run the numbers both ways using tax software, but I'd be genuinely surprised if separate filing saves you money. The math just doesn't work out in favor of separate filing for families with kids and significant income gaps like yours.

Has anyone here tried using a written business plan to document your intent with the vehicle? My CPA had me create one for my Turo business to show legitimate business purpose.

I've been through this exact scenario with my luxury SUV on Turo. The harsh reality is that you can't deduct the entire $165k purchase price even with 100% business use for those 2 months. The IRS calculates business use percentage based on the entire tax year, so 2 months = roughly 16.7% maximum deduction. Even with Section 179 and bonus depreciation for vehicles over 6,000 lbs, you're still limited to that business use percentage. Plus, there are luxury auto depreciation limits that cap your deductions regardless. The bigger issue is that switching to personal use right after taking business deductions could trigger recapture rules and look like tax avoidance to the IRS. I'd strongly recommend keeping it as business use for at least the full year if you're going this route, and definitely consult a tax pro before dropping $165k on this plan.

I almost signed up with Optima last year but decided to check reviews first. Thank god I did! Instead, I went directly to the IRS and set up a payment plan myself. It took one phone call (admittedly after being on hold for 2 hours) and I was approved for a monthly payment I could afford. These companies make it sound like you need some special expertise or insider connections to deal with the IRS, but for most basic tax problems, you absolutely don't. They're just inserting themselves as expensive middlemen.

This is exactly why I always tell people to be extremely cautious with these tax relief companies. The pattern you described - big promises upfront, poor communication after payment, and then trying to silence customers with NDAs - is unfortunately very common in this industry. The fact that they're demanding you sign an agreement to remove negative reviews in exchange for a partial refund is a huge red flag. Legitimate businesses don't operate this way. They're essentially admitting their service was inadequate while trying to manipulate their online reputation. For anyone reading this who's dealing with tax problems: before paying anyone thousands of dollars, try these free or low-cost options first: 1. Call the IRS directly to discuss payment plan options 2. Use the IRS Online Payment Agreement tool 3. Contact your local Low Income Taxpayer Clinic (LITC) if you qualify 4. Consult with a local CPA or Enrolled Agent for a transparent fee quote Don't let these companies prey on your stress about tax issues. Most tax problems can be resolved without paying these inflated fees to middlemen who often provide little actual value.