Different states have different rules for state income tax on capital gains from home sales. What state are you in? Some states follow federal rules but others have their own rules for exemptions.

The employment-related partial exclusion should definitely work for your situation! Just a heads up though - make sure to keep detailed records of everything related to your job change and the timeline of events. The IRS can be pretty thorough if they decide to review your return later. One thing I'd recommend is getting something in writing from your new employer that confirms the job required you to relocate, even if it's mostly remote. An email from HR or your manager stating that the position necessitated the move to your new location could be valuable documentation. Also, since you mentioned the job is "mostly remote," make sure your offer letter or employment agreement clearly indicates where your official work location or home office is considered to be. With your numbers ($30K gain vs. $229K prorated exclusion), you're well within the safe zone, but having rock-solid documentation will give you peace of mind if any questions come up down the road.

The 37% withholding rate you're seeing is actually quite standard for NSO exercises, and unfortunately there's not much flexibility with automated platforms like Carta. However, I'd recommend running some quick calculations to see if the timing of your exercise could be optimized. Since you're exercising 15,000 shares with a $2.75 spread ($4.25 - $1.50), that's $41,250 in ordinary income that will be added to your W-2. Depending on your other income for the year, this could potentially push you into a higher tax bracket. You might want to consider splitting the exercise across tax years if that makes sense for your situation. For example, exercising 7,500 shares in December and 7,500 in January could potentially keep you in a lower bracket for both years, reducing your overall tax burden even though the withholding rates stay the same. Also, make sure you understand your company's exercise window - some companies have expiration dates on options that might limit your flexibility on timing. But if you have the flexibility, it's worth running the numbers on different scenarios before committing to the full exercise amount.

One thing I haven't seen mentioned yet is the potential impact of state taxes, which can vary significantly depending on where you live. While the federal withholding rates are pretty standardized, state withholding can range from 0% (if you're in a state like Texas or Florida with no income tax) to over 10% in high-tax states like California or New York. The 7% state withholding you mentioned suggests you're in a moderate-tax state, but it's worth double-checking that this aligns with your actual state tax liability. Some states have different withholding requirements for supplemental wages like NSO exercises compared to regular payroll. Also, if you're planning to move states between now and when you file your taxes, that could complicate things. The income is generally taxed by the state where you were a resident when you exercised the options, not necessarily where you file your return. This is another factor that might influence your timing decision if you're considering splitting the exercise across tax years. I'd recommend checking your state's Department of Revenue website for specific guidance on stock option taxation, or consulting with a tax professional who's familiar with your state's rules if the amounts are significant enough to warrant the expense.

Don't forget that your K-1 losses might push you into claiming a Net Operating Loss (NOL) if they're large enough to offset all your other income. The rules for NOLs changed after the TCJA - now you can only carry them forward, not back, and they're limited to 80% of taxable income in future years.

This is exactly the kind of confusion I had when I first started receiving K-1s! The key thing to understand is that partnership taxation operates on a "conduit" theory - the partnership itself doesn't pay taxes, so all income and losses flow through to the partners whether you receive cash distributions or not. Your K-1 losses are legitimate tax deductions, not some kind of accounting trick. The partnership actually incurred these losses through its business operations, and as a partner, you're allocated your proportionate share. This is fundamentally different from stock investments where you only recognize losses when you sell. To address your concern about "paying it back" - if the company becomes profitable in future years, you'll receive K-1s showing income rather than losses, which will increase your taxable income. But you won't have to "repay" the prior year loss deductions. Think of it like any other business - losses in one year offset income in profitable years. Just make sure you're tracking your basis properly, as others have mentioned, since you can only deduct losses up to your investment plus any retained earnings allocated to you over the years.

Does anyone know if I can use a key code AFTER I've already paid for H&R Block? I was in a rush and just paid the full price but now I'm seeing all these discount options I missed! So frustrating.

Just wanted to share my experience - I actually called H&R Block directly (no special service needed) and asked if they had any current promotions. The rep told me they have a "first-time self-employed filer" discount that takes 20% off if you mention it when you call. Apparently it's not advertised online but they can apply it over the phone if you qualify. You have to call before you start your return though, and they'll give you a special code to enter. Might be worth a quick call if you haven't filed yet! The number is on their main website under customer support.

Having been through a similar transition from academia back to practice, I'd recommend starting with a comprehensive assessment of what services you'll actually be providing. The $225/hour from 2015 is definitely outdated - that would be closer to $275-300 today just from inflation alone. For the Midwest market you're describing, I'd suggest positioning yourself around $350/hour for tax planning and advisory work, with potentially lower rates for routine bookkeeping tasks. Your academic background actually gives you an advantage - you've stayed current with tax law changes that many practitioners struggle to keep up with. One approach that worked well for me was offering an initial consultation at a reduced rate ($200-250) to demonstrate your value and knowledge, then transitioning to full rates once they see what you bring to the table. High-net-worth clients often care more about competence and responsiveness than saving $50/hour, especially if their previous CPA was reliable. Also consider that teaching experience translates well to client education and communication - something wealthy clients particularly value when dealing with complex tax situations.

Based on my experience serving high-net-worth clients in the Midwest, I'd strongly recommend considering the $350-375/hour range that others have mentioned. However, don't overlook the importance of having the right tools and resources to justify those premium rates. One challenge I faced when transitioning to serve wealthy clients was the complexity of their tax situations often requiring immediate clarification from the IRS. Traditional methods of contacting the IRS were eating into my billable hours and frustrating clients who expected quick resolutions. I've found that having reliable ways to quickly access IRS guidance has become essential for maintaining the level of service these clients expect. When you're charging premium rates, clients want answers within days, not weeks. The ability to efficiently handle complex inquiries and provide definitive guidance rather than "I'll get back to you after I spend hours trying to reach someone at the IRS" is what separates premium-tier service from standard practice. Your academic background actually positions you well here - you understand the technical aspects, and now it's about having the operational efficiency to deliver that expertise promptly. The combination of deep knowledge and responsive service is what allows you to command those higher Midwest rates for high-net-worth clients.