Has anyone here used the IRS's Interactive Tax Assistant for this? I tried using it but got confused about what counts as "improvements" versus "repairs" when calculating my basis.

Great question! I went through this exact process last year when selling my home. One thing that really helped me was keeping a detailed spreadsheet of all improvements from day one of ownership. Even seemingly small things like a new water heater or upgraded electrical outlets can add up to significant basis adjustments. For your situation, you're actually in pretty good shape. With a $250k gain before any adjustments, you're right at the exclusion limit. But remember that the $12k HVAC and $8k buyer credit will reduce your gain further, and any documented improvements over the years will increase your basis. A few practical tips: Keep ALL receipts from improvements (take photos and store them digitally too). For the HVAC situation, since it's being paid at closing as part of the sale negotiation, it's definitely a selling expense that reduces your gain. Don't let your realtor talk you into creative commission arrangements - stick to legitimate, documented transactions. Also, consider having a tax professional review your calculation before filing. Home sales can get complex quickly, and the potential tax savings usually justify the cost of getting it right the first time.

Here's a simple way to think about it: Only report as income the part of your state refund that actually saved you federal taxes last year. If you were limited by the SALT cap ($10k), then you probably only need to report a portion of your refund. There's a worksheet in the 1040 instructions that helps calculate this. Don't just assume your full state refund is taxable!

Had the exact same issue. The worksheet you need is called the "State and Local Income Tax Refund Worksheet" in the 1040 instructions. BUT if you used tax software last year, you could just look at Schedule A, line 5e from your 2024 return to see exactly how much state tax was actually deducted. The rule is pretty simple: only pay tax on refund $ for which you actually received a federal tax benefit.

Has anyone used a tax professional to help with claiming these education credits retroactively? I'm in a similar situation trying to remember which credits I used years ago but I'm worried about making mistakes.

One thing to keep in mind about the Texas Tomorrow Fund - since it's a prepaid tuition plan, you'll want to check if your parents received a 1099-Q form for the distributions used to pay your tuition. This would show the amount that was distributed from the plan to cover your education expenses. If the entire tuition amount was covered by the prepaid plan and reported on a 1099-Q, then those expenses generally can't be used again for education tax credits. However, you might still be eligible for credits based on other qualified expenses you paid out of pocket, like mandatory fees, books, or required course materials. Also, don't forget that you can amend returns for up to 3 years after the original filing date (or 2 years after you paid the tax, whichever is later). So if you discover you were eligible for credits in 2014/15 that you didn't claim, you might still be able to file amended returns for those years if they're within the statute of limitations.

I think there's some misunderstanding about how the offset system works: • The debt WILL appear in the Treasury Offset Program database • You SHOULD receive a notice from the creditor agency (state unemployment) • The offset WILL appear on your tax transcript, but possibly not until after processing • The BFS (not IRS) handles the actual offset process • You CAN call TOP directly at 1-800-304-3107 to verify debts • You MAY have appeal rights depending on the debt type I appreciate all the insights shared here. This helped me understand the process much better!

Based on my experience dealing with this exact situation last year, I can confirm that unemployment overpayments will typically show up in the Treasury Offset Program before they take your refund, but the timing and visibility can be inconsistent. Here's what actually happened in my case: 1. I received a generic overpayment letter from my state unemployment office in October 2. In December, I checked the TOP database by calling 1-800-304-3107 and confirmed my debt was listed 3. When I filed my taxes in February, there was no indication on my initial transcript 4. My refund was processed but reduced by the overpayment amount 5. Code 898 appeared on my transcript about 10 days AFTER the offset occurred The key lesson: don't rely solely on your tax transcript for advance warning. If you suspect you might have an unemployment overpayment, proactively call the TOP line or contact your state unemployment office directly. The "60-90 day advance notice" rule exists on paper, but in practice, many people (myself included) don't receive adequate warning. I'd recommend checking both your state unemployment portal and calling TOP directly if you're concerned. Better to know now than be surprised when your refund is smaller than expected!

Has anyone used any particular tax software that handles this 941 deduction well for small business owners? I tried using TurboTax Small Business last year and it was super confusing with my payroll taxes.

Great question! I just went through this exact situation with my LLC last year. Yes, the employer portion of your 941 payroll taxes is definitely deductible on Schedule C. Here's what I learned: You can deduct the employer's share of Social Security (6.2%), Medicare (1.45%), FUTA, and any state unemployment taxes you paid. For your $2,100 in quarterly taxes, a good chunk of that should be deductible - just make sure you're only counting the employer portion, not the employee withholdings. I put mine on Line 23 "Taxes and licenses" on Schedule C. One thing that helped me was creating a simple spreadsheet to track the employer vs employee portions each quarter, since the 941 form shows everything together. Your payroll service should be able to give you a breakdown if you don't already have one. Also, don't forget about any state payroll taxes you paid - those are deductible too if they're the employer portion. Just keep good records of all your payroll tax payments and forms in case the IRS ever asks for documentation.