As someone who's worked in tax preparation for years, I want to emphasize that documentation is absolutely crucial for hearing aid deductions. Keep all receipts, insurance correspondence (even denials), and any medical documentation about your hearing loss. One thing I don't see mentioned here is that if you're claiming hearing aids as a medical expense, make sure to include ALL related costs - not just the devices themselves. This includes audiologist visits, hearing tests, batteries, maintenance, and even travel expenses to medical appointments. These ancillary costs can add up and help you reach that 7.5% AGI threshold for medical deductions. Also, be aware that if you later receive any insurance reimbursement or settlement related to these hearing aids, you may need to include that as income if you previously deducted the expense. The IRS calls this the "tax benefit rule" - basically you can't double-dip on the tax benefit.

Just wanted to add another option that might help - if your employer offers a Dependent Care FSA or if you have access to a Health Savings Account through a high-deductible health plan, you can use those pre-tax dollars for hearing aids. This gives you an immediate tax benefit rather than waiting to see if you can clear the 7.5% AGI hurdle for medical deductions. Also, if you're considering financing the hearing aids, some medical financing companies offer interest-free periods. While the interest itself isn't deductible, spreading the cost over time might help you better manage the expense while still allowing you to claim the full deduction in the year you became liable for the payment. One more tip - if you're close to retirement or expect lower income next year, it might be worth considering whether to accelerate other medical expenses into this tax year to help reach that 7.5% threshold, or alternatively, defer the hearing aid purchase if possible to a year when your AGI will be lower and the threshold easier to meet.

As someone who works seasonal tax prep, the easiest way to find out if you're a dependent is to ask these questions: 1) Did you live with your mom for more than half the year? 2) Did she provide more than half your financial support? 3) Are you under 24 and a full-time student OR under 19? 4) Did you make less than $4,400 in 2023? If yes to all these, you're probably a dependent. If no to any, you might be able to file independently!

Hey @Keisha Jackson! Based on what you've shared (20 years old, not in school, earned $8,500), you likely CAN'T be claimed as a dependent by your mom. The income limit for qualifying relatives is $4,400 for 2023, and you earned double that amount. This is actually GREAT news for you! Since you probably can't be claimed as a dependent, you should file as an independent taxpayer. This means you'll get the full standard deduction ($13,850 for single filers in 2023) instead of the reduced amount dependents get. With your $8,500 income, you'll likely get back most or all of the federal taxes withheld from your paychecks. Just make sure your mom understands she can't claim you with your income level - you don't want both of you filing incorrectly and dealing with IRS delays later. Definitely worth confirming this with a tax professional or using one of the tools mentioned here to double-check your specific situation!

maybe a dumb q but does anyone know if vanguard's incentive offer for ira transfers counts as income? got $450 for moving my rollover and wondering if i'll owe taxes on that bonus

Great breakdown in the comments so far! Just want to add one more consideration for your partner's backdoor Roth situation. Even though she hasn't done any rollovers this year, she'll still need to watch out for the pro-rata rule if she has any existing pre-tax IRA balances. The rule applies per person, so your rollover activity won't affect her calculations, but any Traditional/SEP/SIMPLE IRAs in her name will. Also, regarding your question about people who do backdoor Roths annually - most don't worry about timing it around a specific date each year since conversions aren't subject to the once-per-12-month rollover rule. You can do a backdoor Roth in January every single year if you want. The key is just making sure you don't have other pre-tax IRA money mucking up the pro-rata calculation. One last tip: if you do decide to move your Rollover IRA into a current employer's 401(k) to clean up the pro-rata issue, make sure your plan accepts rollovers first. Not all employers allow incoming transfers.

One additional consideration that hasn't been mentioned - make sure you understand the timing implications. Since your friend is selling their house and this is tied to that transaction, you might want to coordinate the timing of the Zelle transfer with their closing date. This can help establish the context that the "thank you" portion is genuinely related to their home sale success rather than just arbitrary timing. Also, keep in mind that Zelle has daily and monthly transfer limits that vary by bank (typically $2,500-$5,000 per day). For a $50K transfer, you'll likely need to do this over multiple days or weeks, which actually might work in your favor for documentation purposes - you can have your friend note what each transfer represents (loan repayment vs. gift portion) in the Zelle memo field. If the transfer limits become cumbersome, you might consider having them do a bank wire transfer instead, which would be a single transaction and actually creates better documentation since wire transfers require more detailed records. Just another option to consider for such a significant amount.

I'd definitely echo what others have said about documentation being key here. One thing that might help put your mind at ease - the IRS sees informal loans between friends and family all the time, especially when it comes to home purchases. The fact that your friend is now in a position to pay you back (and then some) because of real estate appreciation is actually a pretty common and understandable scenario. A few practical tips from someone who's been through similar situations: First, if you paid the original $25K by check, your bank should still have records even after 12 years - they're required to keep them. Second, when you create that written acknowledgment that others mentioned, consider having it notarized. It's not required, but for $50K it's a small extra step that adds credibility. Also, don't stress too much about the Zelle reporting aspect. Payment apps are mainly focused on business transactions, and personal loan repayments between individuals typically fly under the radar. The key is being able to show the personal nature of the transaction if ever questioned. Your friend sounds like they're doing the right thing by wanting to share their good fortune with someone who helped them when they needed it. Just make sure you both document it properly and you should be fine!

Has anyone successfully taken the position that a crew cab pickup with a 5.5' bed qualifies as primarily designed for cargo rather than passengers? My accountant is being super conservative and saying any truck with a full back seat automatically falls under the SUV limitations.

I've been dealing with similar vehicle classification questions for my HVAC business, and what I've learned is that the IRS looks at the overall design and purpose of the vehicle, not just passenger capacity. For crew cab pickups with shorter beds, the key factors seem to be: 1) Is there a separate cargo area distinct from the passenger compartment? 2) What modifications have been made that demonstrate business purpose? 3) How is the vehicle actually used in practice? Even with a 5.5' bed, if you add permanent business equipment like toolboxes, ladder racks, or other work-related modifications, it strengthens your case that the vehicle is primarily designed for cargo/equipment rather than passengers. The fact that it CAN carry passengers doesn't mean that's its primary design purpose. I'd suggest documenting everything - take photos of the modifications, keep receipts for business equipment installed, and maintain detailed records of how the vehicle is used. Your accountant might be erring on the side of caution, but there's definitely precedent for crew cab trucks qualifying for full Section 179 treatment when they're clearly configured and used for business purposes. The 6-foot bed "rule" is more of a guideline than a hard requirement. The real test is whether the vehicle's primary design purpose is hauling cargo/equipment versus passengers.