One thing I haven't seen mentioned yet is the importance of documenting your informal agreement, even if it's not court-ordered. While you don't need a formal custody decree, having something in writing (even just a simple email exchange with your ex) can be really helpful if the IRS ever questions who has the right to claim your son in a given year. Also, since you mentioned you now have full physical custody, you might want to consider whether it makes sense to revisit your alternating arrangement. The IRS generally allows the custodial parent (where the child lives more than half the year) to claim the dependent, but the custodial parent can release that right to the non-custodial parent using Form 8332. This could give you more control over the arrangement and make your W-4 planning more predictable. Just something to think about as your situation has changed! The most important thing is that you and your ex are on the same page about who's claiming him each year, and that you update your W-4 accordingly.

This is such a helpful thread! I'm dealing with a similar situation but with a twist - my ex and I have joint legal custody, but our son splits time pretty evenly between both homes (about 55% with me, 45% with her). We've been alternating who claims him each year, but I'm wondering if the "more than half the year" rule affects our arrangement at all? Also, for those mentioning updating W-4s in January - what happens if you forget and realize in like March that you need to update it? Is it still worth doing mid-year, or should you just ride it out and adjust your estimated tax payments instead? I really appreciate everyone sharing their real experiences here. The IRS publications are so confusing when you're dealing with these informal custody arrangements!

Just a heads up - don't panic, but also don't ignore this completely. The 1095-C gets reported to the IRS, so there's a mismatch between what they're reporting and your actual situation. While it's not likely to cause an audit by itself, it's better to have documentation showing you tried to get it corrected. Email is great but also send a certified letter to their HR department explaining the error. Keep a copy of everything. That way if there's ever a question, you can show you took reasonable steps to address the mistake.

I work in HR and deal with 1095-C corrections all the time. Here's what you should know: the form gets automatically generated by payroll systems, and sometimes people don't get removed from the system promptly after termination. It's a very common error. When you contact them, be specific about your termination date (November 2023) and ask them to verify when you were actually removed from their health insurance eligibility system. They should be able to see that you never enrolled and issue a corrected form showing no coverage offered for those months. Keep in mind that even if they drag their feet on the correction, you should still file your taxes accurately based on your actual situation. The 1095-C is informational - what matters is reporting your real health insurance status on your return. Since you had marketplace coverage, you're all set. One more tip: if they're unresponsive, you can also contact their benefits administrator directly (usually a third party company) rather than just HR. The contact info is often on the form itself.

Is nobody going to mention bonus depreciation??? Depending on when you actually place the property in service, you might be able to take advantage of bonus depreciation on those appliances (its currently at 80% for 2023, 60% for 2024, and 40% for 2025). Check with your tax pro cause the rules are always changing.

Just to add another perspective - make sure you keep detailed records of everything! I bought appliances for my rental in November but didn't start renting until the following April. The IRS audited me two years later and wanted documentation proving when I purchased each item versus when the property was placed in service. I had to provide receipts, bank statements, and even photos showing the appliances were installed before my first tenant moved in. They were particularly interested in the timing because I was claiming depreciation starting from my rental start date rather than purchase date. Everything worked out fine since I had good records, but it was a stressful few months. Also worth noting - if you're buying multiple appliances, consider whether any qualify as "personal property" that can be depreciated separately from the building itself. Sometimes this can give you better depreciation schedules than treating everything as part of the real estate.

I'm confused about the whole 1099-NEC vs 1099-MISC thing still. I paid a contractor $1200 last year for some website work. Do I need to file the NEC or MISC version? And do the red form requirements apply to both?

Just wanted to add another perspective here - I've been dealing with 1099 forms for my small business for years, and I think you're right to be frustrated with the red form situation. It really does feel outdated in 2025! One thing that might help is checking if your local library has computers with tax software installed. Many libraries offer free access to programs like TurboTax Business or H&R Block that can handle 1099 printing. You could bring your red forms there and print directly onto them using their equipment. Also, if you're planning to hire contractors regularly in the future, it might be worth investing in basic accounting software like QuickBooks Simple Start. It's around $15/month and handles all the 1099 reporting automatically throughout the year, then can either e-file for you or print perfectly onto the red forms. Much less stressful than scrambling every January! The electronic filing options people mentioned are definitely the way to go for a one-off situation though. Good luck getting this sorted out!

I've been using the IRS Tax Withholding Estimator for a few years now and can confirm what others have said - definitely use your GROSS pay amounts. One thing I'd add is to be really careful about timing when you run the calculator. I always wait until I have at least 2-3 recent paystubs from the current year to get more accurate year-to-date numbers, especially if you got a raise or bonus early in the year. Also, don't forget to update your estimates if your situation changes during the year (new job, marriage, kids, etc.). I run it twice a year - once in spring and once in fall - just to make sure I'm still on track. Better to catch any issues early than get surprised at tax time!

Great thread everyone! I just wanted to add a tip that helped me a lot - when you're entering your gross pay in the Tax Withholding Estimator, make sure to double-check that you're looking at the right line on your paystub. My paystub has like 6 different numbers that could be "gross pay" but only one is the actual total gross before ANY deductions (including pre-tax stuff like health insurance and 401k contributions). I was accidentally using my "taxable gross" which excludes pre-tax deductions, and that threw off my whole calculation. The IRS tool wants your TRUE gross - the very top number before anything comes out. Once I figured that out, my withholding estimates became much more accurate and I stopped getting those scary "you may owe money" warnings from the calculator!