The 24% total tax rate you're seeing is absolutely normal for your income level! A lot of people get confused because they focus only on the federal income tax brackets (10%, 12%, 22%), but those percentages don't include all the other taxes that come out of your paycheck. Here's what's likely making up your 24%: - Federal income tax: probably around 10-12% effective rate for your income - Social Security tax: 6.2% (this is a flat rate on wages up to ~$168K) - Medicare tax: 1.45% (flat rate on all wages) - State income tax: varies by state, could be anywhere from 0-6%+ - Possibly local/city taxes depending on where you work So when you add federal income tax + Social Security (6.2%) + Medicare (1.45%) + state taxes, you easily get to that 24% range. To see exactly where your money is going, look at your ADP paystub - it should have separate line items for each type of tax. You can also log into your ADP employee portal online to see year-to-date totals for each tax category, which gives you an even clearer picture of your overall tax burden. The good news is your 6% 401k contribution is actually helping reduce your taxable income, so you're saving on taxes there!

Your 24% tax withholding is totally normal! I had the same confusion when I first started working and couldn't understand why my take-home was so much less than I expected. The key thing to remember is that the tax brackets you see (10%, 12%, 22%) are ONLY for federal income tax. But your total tax burden includes a bunch of other stuff: - Federal income tax (those bracket rates) - Social Security: 6.2% - Medicare: 1.45% - State income tax (varies by state, usually 3-6%) - Sometimes local/city taxes too So even if your federal income tax is around 12%, you're automatically adding 7.65% just for Social Security and Medicare, plus whatever your state charges. That gets you to your 24% pretty quickly! The best part is that your 6% 401k contribution is actually reducing your taxable income, so you're saving money there. If you weren't contributing to retirement, your tax percentage would be even higher. Check your ADP paystub - it should break down each tax type separately so you can see exactly where every dollar is going. Understanding this stuff really helps with budgeting!

This is exactly why I always recommend getting an independent appraisal for high-value business vehicle trades, especially when dealing with significant depreciation recapture. The IRS has access to valuation databases and will scrutinize trade-in values that seem inflated. In your case, getting exactly what you paid ($65,000) after 2-3 years of use on a construction truck does seem unusually high - most commercial vehicles depreciate faster than that due to wear and tear. You might want to document why the trade-in value equals your original purchase price (low mileage, excellent condition, market appreciation, etc.) in case the IRS questions it. Also consider that if the IRS later determines the actual FMV was lower than $65,000, it would actually reduce your depreciation recapture amount. For example, if they determine FMV was $55,000, your recapture would be $55,000 instead of $57,000, since recapture is limited to the lesser of depreciation taken or gain realized.

Since the trade is already completed, I'd focus on gathering strong documentation rather than getting a formal appraisal at this point. Collect your maintenance records, photos showing the truck's condition, mileage documentation, and maybe some comparable sales data from that time period to justify the $65,000 value. The used truck market really was exceptional in 2024-2025, especially for commercial vehicles, so your trade-in value isn't as unusual as it might seem. Construction trucks that are well-maintained and garage-kept often hold value better than people expect. You're right that a lower FMV determination would reduce your recapture, but it would also reduce your basis in the new truck for depreciation purposes. The IRS typically accepts dealer trade-in values when they're reasonable and supported by market conditions, so as long as you have good documentation, you should be fine. One more tip - make sure your depreciation calculations account for any personal use percentage if applicable, even though you mentioned 100% business use. The IRS scrutinizes high depreciation claims on vehicles more closely than other business assets.

Has anyone used the home office deduction in conjunction with mortgage interest when you have unequal ownership? I'm in a similar situation (30/70 split with my partner) but I also use about 15% of the house exclusively for my business. Not sure if I calculate the business portion before or after applying the ownership percentage.

Just wanted to add a practical tip from my experience last year - make sure you keep documentation of how you calculated everything! I had a similar situation (40/60 split on a $1.6M mortgage) and got a letter from the IRS asking for clarification on my mortgage interest deduction. Having a clear worksheet showing: 1. Total mortgage amount ($2M) 2. Mortgage interest limit calculation ($750K ÷ $2M = 37.5%) 3. Total deductible interest ($53K × 37.5% = $19,875) 4. Your ownership percentage and resulting deduction ($19,875 × 25% = $4,969) Made the response super straightforward. The IRS accepted my documentation without any issues. Also, make sure both you and your wife are consistent in how you report this - any discrepancy between your returns could trigger additional questions. One more thing - if you're using tax software, double-check the calculations manually. Some programs don't handle the unequal ownership split correctly and you might end up claiming more or less than you're entitled to.

I want to echo what others have said - you absolutely have a strong case for deducting this as a medical expense. Having documentation from four different doctors is exceptional and really strengthens your position with the IRS. One additional point that might help: make sure to ask your doctors to be as specific as possible in their letters about how the mold is directly impacting each child's condition. Phrases like "medically necessary to prevent further deterioration" or "required to manage chronic asthma condition" carry more weight than general recommendations. Also, if you haven't already, consider getting a professional mold assessment report that documents the specific types and levels of mold in your home. This creates an official record of the problem that correlates with your children's symptoms. The fact that your 4-year-old has dropped to the 2nd percentile is extremely concerning from a medical standpoint, which actually works in your favor for the deduction. The IRS recognizes that some medical expenses are urgent and necessary regardless of cost. Keep every single piece of documentation - medical records, test results, photos of the mold, air quality reports, remediation quotes and final invoices. The more comprehensive your documentation, the less likely you'll face any challenges if questioned. Your children's health comes first, and it sounds like you have everything you need to properly claim this deduction. I hope the remediation helps them recover quickly.

I'm so sorry your family is dealing with this situation - having children with serious health issues is stressful enough without the financial burden of necessary medical treatments. Based on everything shared here, you have an exceptionally strong case for deducting the full remediation cost as a medical expense. Having four different doctors document that mold remediation is medically necessary is really compelling evidence. The IRS specifically allows deductions for home modifications that are primarily for medical care, and your situation clearly fits this criteria. A few practical suggestions from someone who works in tax preparation: 1. When you get the final remediation contract, ask the company to itemize the work with medical language where appropriate (e.g., "installation of medical-grade air filtration," "removal of health-hazardous materials," etc.) 2. Keep a detailed health log for both children starting now - document symptoms, medications, doctor visits, emergency room visits, etc. This creates a clear timeline showing the medical necessity and urgency 3. After remediation, continue the health log to document improvements. This demonstrates that the expense was truly effective medical treatment 4. Consider getting a written statement from your children's doctors specifically addressing the tax deduction - many physicians are willing to write letters that explicitly state the remediation is "medically necessary treatment" for tax purposes Your children's health is the priority here, and you shouldn't have to choose between their wellbeing and your financial stability. With your documentation, you should be able to deduct this expense and get some relief to make this possible for your family.

I went through this exact situation last year and ended up speaking with a tax professional at H&R Block about it. Here's what they told me: You absolutely need to address the 1099-K on your return, but you don't need to itemize every single item if you have reasonable documentation showing most were personal items sold at a loss. What worked for me was creating a simple summary with broad categories: - Electronics: ~15 items, original cost ~$800, sold for ~$300 - Clothing/accessories: ~20 items, original cost ~$600, sold for ~$200 - Collectibles: ~10 items, original cost ~$400, sold for ~$150 Then I noted the few items where I actually made a profit and reported those gains separately. The key is showing the IRS that you're not trying to hide income - you're demonstrating that most of your sales were personal property sold at a loss (which isn't taxable income). H&R Block's software has a specific workflow for this under the "Other Income" section where you can reconcile your 1099-K. Don't stress too much about perfect documentation for every $15 t-shirt - reasonable estimates based on what you remember paying are usually sufficient for personal items.

Just went through this exact situation with my 2023 return! I had over 60 items sold on eBay and was completely overwhelmed at first. Here's what I learned: You definitely need to report the 1099-K amount on your return, but the good news is you don't need to itemize every single $20 item. I created a simple spreadsheet grouping similar items together - like "vintage electronics (8 items): original cost ~$400, sold for ~$180" and "clothing/accessories (25 items): original cost ~$650, sold for ~$320." The key insight my tax preparer shared was that the IRS mainly wants to see you're not hiding income. Since most of your items were sold at a loss (like mine), you're actually showing there's NO taxable income from those sales - just documenting it properly. For the few items where you made a profit, you'll report those gains as ordinary income. Keep it simple but reasonable - the IRS isn't expecting you to have receipts for every garage sale find from 5 years ago. I used TaxAct and they had a specific 1099-K reconciliation section that made this pretty painless once I had my summary ready. H&R Block should have something similar. The whole process took maybe an hour once I stopped overthinking it!