Is your wife considered of counsel or an employee of a firm? That can change how this is reported. My wife is of counsel and her firm takes 40% of any referral fee (their policy), so she only gets 60% of it, but it's still reported on a 1099-NEC to her, not a W-2.

One more thing to consider - since this is a substantial one-time payment ($48,000), you might want to look into whether you can make a SEP-IRA contribution to reduce the tax burden. If your wife treats this as self-employment income on Schedule C, she may be able to contribute up to 25% of her net self-employment earnings to a SEP-IRA (after deducting half of the self-employment tax). This could potentially allow her to shelter several thousand dollars from current taxation while building retirement savings. The contribution deadline would be the tax filing deadline (including extensions), so you'd have some time to set it up if you decide to go this route. Also, don't forget to factor in state taxes if you're in a state that has income tax - this referral fee will likely be subject to state income tax as well as federal.

I keep seeing conflicting info about mortgage interest! Has anyone else noticed that some newer homes dont qualify for the full mortgage interest deduction? I think theres a new loan limit around $750k.

@Molly Hansen - Just to add another perspective on your mortgage interest situation: don't forget to also consider if you had any mortgage insurance premiums (PMI) during the year. If you paid PMI and meet certain income requirements, that could also be deductible and help push your itemized deductions higher. Also, since you mentioned you've been getting 1098s since 2019, you might want to double-check that you haven't been missing out on deductions in previous years. If you were taking the standard deduction but could have benefited from itemizing in any of those years, you can still file amended returns (Form 1040X) for up to three years back to claim those deductions. The mortgage interest deduction really is one of those things that can make a big difference depending on your total tax picture, so it's worth running the numbers each year!

This is really helpful information everyone! As someone new to WOTC, I'm wondering about the state certification process that was mentioned. How long does it typically take to get the certification back from the state workforce agency after submitting Form 8850? We're planning to implement this program but want to make sure we understand the timeline - if there are delays in getting state certification, does that affect when we can claim the credit on our taxes? And what happens if an employee we thought was eligible ends up not getting certified by the state?

As someone who recently went through implementing WOTC at our mid-size tech company, I can share some practical insights. We hired 3 software engineers with disabilities last year and claimed the full credits for each - about $7,200 total savings on our tax bill. One thing I'd add to the great advice already shared: consider working with your local One-Stop Career Centers (part of the American Job Center network). They can help pre-screen candidates and often have relationships with disability service organizations. This made our hiring process much smoother since candidates were already familiar with WOTC and had their documentation ready. For higher-salary positions like you mentioned ($85-95k), the $2,400 credit might seem small percentage-wise, but remember it's a dollar-for-dollar reduction in your tax liability, not just a deduction. Plus, in my experience, candidates who qualify for WOTC often bring unique perspectives and problem-solving approaches that benefit the entire team - the real value goes beyond just the tax savings. The key is building WOTC into your standard HR processes from the start rather than trying to retrofit it later. We now include the self-identification forms in our standard onboarding packet for all new hires, which normalizes the process and ensures we don't miss any opportunities.

One important thing to consider that I don't see mentioned yet - if you've been claiming depreciation on the rental property over the years, you'll need to recapture that depreciation when you sell, and it's taxed at a higher rate (up to 25%) than regular capital gains. Make sure you have records of all the depreciation you've claimed since owning the property. This is separate from your capital gains calculation but equally important for your overall tax liability. The IRS will assume you claimed depreciation even if you didn't, so if you forgot to claim it in previous years, you might want to consider amending those returns or at least be prepared for the recapture. Also, regarding your FSBO question - while you'll save on commission, make sure you're prepared for all the other costs like title work, legal review of contracts, and potentially having to pay some of the buyer's closing costs to make the deal work. Sometimes the "savings" from FSBO aren't as much as initially expected once you factor in all these other expenses.

Great question about depreciation recapture! You can still amend previous returns to claim missed depreciation, but there are time limits - generally 3 years from the original filing date for each year. However, even if you can't amend, claiming the missed depreciation might still be worth consulting a tax professional about since the recapture will happen regardless. For FSBO costs, here's what I experienced when I sold my rental last year: attorney fees ($800-1200), title insurance/closing costs ($1500-2500), any buyer concessions you might need to make ($2000-5000 depending on market), professional photos ($300-500), and miscellaneous marketing costs ($200-500). So you're looking at roughly $5000-10000 in costs even without an agent. In your case, if agent commission is $16K and FSBO costs are around $7K, you'd net about $9K in savings. But factor in the time investment and stress of managing everything yourself - for some people that $9K isn't worth the hassle, especially when dealing with complex tax situations on rental properties. One more tip: if you do go FSBO, consider hiring a real estate attorney just for contract review and closing coordination. It's a middle ground that gives you professional guidance on the legal aspects while still saving most of the commission.

Thanks for all the detailed comparisons everyone! This thread has been super helpful. I'm leaning toward the desktop version now based on the cost savings and privacy benefits. One question I haven't seen addressed - if I buy TurboTax Desktop, can I still e-file my return or do I have to print and mail it? I've been e-filing for years and really don't want to go back to paper filing if I can avoid it. Also, does anyone know if the desktop version still offers the same refund advance options as online?

I've been using TurboTax Desktop for the past three years and can confirm most of what's been said here. The cost savings are real - I typically save $50-80 per year compared to the online version, especially when you factor in that the desktop version often goes on sale at retailers like Costco or Amazon. One thing I'd add is that the desktop version is great if you like to work on your taxes in multiple sessions over several weeks. Since everything is saved locally, you can pick up exactly where you left off without worrying about cloud sync issues or having to remember which browser you were using. For anyone concerned about missing out on new features, I haven't found that to be an issue. The desktop software gets the same tax law updates and new form support as the online version. The main trade-off is convenience - you can only work on your taxes from the computer where it's installed, but for most people that's not a big deal since tax prep usually happens at home anyway. Bottom line: if you're comfortable with basic software installation and want to save money while keeping your data private, desktop is definitely the way to go!