Just my two cents, but I've been audited before and parking deductions were one of the things flagged. My advice is to be super conservative with this. If you're claiming the home office deduction already, trying to also claim the garage separately might raise red flags.

As someone who's dealt with similar home office deduction questions, I'd recommend being very methodical about this. The key is proper documentation and understanding which method gives you the better deduction. Since you're already claiming 15% of your home for business use, you have a few options for the parking: 1. Include it as part of your home office calculation (15% of the $285/month) 2. Use it as part of the actual expense method for your vehicle if you switch from standard mileage 3. Treat it separately based on documented business use percentage The safest approach is probably option 1 - just include it in your existing home office percentage. This keeps everything consistent and is less likely to raise audit flags. Whatever you choose, make sure you keep detailed records of your business trips vs. personal use. A simple spreadsheet tracking dates, destinations, and purposes of trips will go a long way if you ever need to justify the deduction. Also consider consulting with a new tax professional before making any major changes to your deduction strategy, especially given the audit concerns mentioned by others here.

For house hackers: Don't forget to take the 199A Qualified Business Income deduction for your rental activity! It's a 20% deduction on your qualified business income from the rental portion. This applies on top of your depreciation deductions.

Great discussion everyone! Just want to add one more important consideration for house hackers dealing with HVAC depreciation - make sure you're properly documenting the "placed in service" date for your depreciation calculations. Since you mentioned the system died and was replaced, the depreciation clock starts ticking from when the new HVAC system was installed and operational, not when you paid for it or when the old one failed. This matters for the MACRS half-year convention calculations. Also, keep detailed records of the installation invoice showing the breakdown between equipment costs and labor. Sometimes contractors will itemize things like ductwork modifications separately, which might have different depreciation schedules than the main HVAC unit itself. The IRS loves documentation during audits, especially for rental property deductions! One last tip: Consider getting a cost segregation study done if you're planning to acquire more rental properties. It can help identify components that qualify for faster depreciation schedules beyond just the HVAC system.

For what it's worth, I'm a payroll specialist and we sometimes leave Box 18 blank when all wages are subject to local tax. It's not technically incorrect - just confusing for tax software. The correct approach is to enter the same amount as Box 1 (federal wages) unless you have specific local exemptions. The reason tax software requires Box 18 to be >= Box 19 is because you can't have local tax withheld on $0 wages logically.

Thanks everyone for all the helpful advice! I ended up following Mateo's suggestion and entered my Box 1 amount into Box 18, and it worked perfectly. The tax software accepted it and I was able to complete my filing. For anyone else dealing with this issue - it really is as simple as copying your federal wages (Box 1) into the local wages field (Box 18) when it's left blank. Mei's explanation as a payroll specialist really helped confirm this was the right approach. I was so worried about entering something that wasn't explicitly printed on my W-2, but it turns out this is totally normal and expected. My return has already been accepted by the IRS, so I can confirm this solution works without causing any problems. Thanks again to this community for helping me get unstuck!

Just wondering - has anyone had issues with their refund after filing a superseding return? I'm in a situation where I'd get a bigger refund with the corrected return and wondering if it complicates or delays things?

I went through this exact same situation two years ago and can confirm what others have said about the process. One thing I'd add that saved me a lot of stress - when you write "SUPERSEDING RETURN" at the top, use a red pen or marker if you're mailing it in. It makes it much more visible to the processors. Also, keep copies of EVERYTHING. I mean your original return, the superseding return, all your supporting docs, and even the envelope you mail it in (take a photo). The IRS processed mine correctly, but having all that documentation gave me peace of mind. One more tip - if you're close to the deadline, send it certified mail with a return receipt. That way you have proof it was delivered before April 15th, which is crucial since superseding returns must be filed by the original deadline.

Just a heads up - if you're claiming a home office deduction too (which it sounds like you might be since you work from home), make sure your mileage claims are consistent with that. The IRS may cross-check these deductions. Also, some tax software doesn't explain the vehicle questions very well on Schedule C. Where it asks if the vehicle is "available for personal use" - the answer is almost always "yes" unless you have a dedicated business vehicle that you NEVER use personally. And you should answer "yes" to "Do you have evidence to support the business use?" if you have that Excel spreadsheet you mentioned.

Great question! As someone who's dealt with mileage deductions for my freelance work, I'd recommend keeping more detailed records than just trip dates and mileage. The IRS prefers contemporaneous records, so ideally you'd track: - Date of each trip - Starting point and destination - Business purpose (e.g., "pickup materials from Client X" or "deliver finished project to Client X") - Odometer readings or calculated mileage - Any tolls or parking fees Your Excel spreadsheet approach is perfect for organizing this. Just make sure to back it up! For Part IV on Schedule C, you're absolutely right that trips from your home office to pick up/deliver materials are business miles, not commuting. The "other" mileage category should include all personal driving - grocery runs, doctor visits, vacations, etc. This helps the IRS see that you're reporting total vehicle usage accurately. One more tip: keep gas receipts and maintenance records even if you're using the standard mileage rate. While you can't deduct these expenses when using the standard rate, having them shows you're maintaining good business records overall.