Wait, I'm confused about the damages part. So if I get $50k for the land and $30k for "damages" are those taxed differently? My city is taking part of my frontage for a sidewalk project and their offer has these two separate amounts.

The key distinction for damages in eminent domain cases is *what* the damages are compensating for. If the $30k is "severance damages" - meaning compensation for how the taking decreases the value of your remaining property - that's typically not immediately taxable. Instead, it reduces your basis in the remaining property. However, if any portion of the damages is for things like: - Lost rental income during construction - Business interruption costs - Temporary relocation expenses - Attorney fees (sometimes) Those portions would likely be taxable income. Make sure your settlement agreement clearly specifies what each payment is for. The IRS looks at the actual purpose of each payment, not just how it's labeled. For a sidewalk project affecting frontage, most damages would probably be severance damages for decreased property value/access, which should reduce your basis rather than create immediate taxable income. Document everything carefully and consider getting the settlement reviewed before signing - the specific language used can make a real difference in tax treatment.

This has been such an educational thread! As someone who's been haphazardly donating items without proper tracking, I'm realizing I need to completely overhaul my approach. One question I have that I don't think was fully addressed - what about seasonal items? Like winter coats in spring or holiday decorations? Should I value these based on what they'd sell for during their off-season, or their peak season value? I imagine a heavy winter coat donated in July might have a different fair market value than the same coat donated in November. Also, I'm curious about the timing of when to take those documentation photos. Should I photograph items right before I load them in the car for donation, or is it better to stage everything earlier when I'm deciding what to donate? I want to make sure I'm capturing everything accurately for my records. The advice about being realistic with condition assessments really resonated with me - I think I've been way too generous in my mental valuations of items that are clearly well-worn. Time to be more honest about that "fair" vs "good" distinction!

This thread has been incredibly comprehensive! I've learned so much about proper donation valuation that I never knew before. One additional tip I'd like to share from my experience - if you're donating books, especially textbooks or professional books, check what they're selling for on Amazon or other online marketplaces first. I donated a bunch of nursing textbooks last year without thinking much about it, but when I looked them up later for tax purposes, I discovered some were still selling for $20-40 used even though they were a few years old. Professional and technical books often retain more value than general fiction, so it's worth doing a quick check. Also, for anyone using apps or software to track donations, make sure whatever system you use can export the data in a format your tax preparer can easily work with. I learned this lesson when I had everything perfectly organized in one app, but then had to manually transfer all the information because my accountant couldn't work with the export format. Thanks to everyone who contributed to this discussion - I feel much more confident about properly documenting my donations going forward!

Has anyone used both TurboTax and H&R Block software to check how they handle this specific situation? I tried calculating this in TurboTax and it seemed to reduce my SEP contribution limit by my K1 losses, which sounds wrong based on what everyone is saying here.

Just wanted to add some real-world validation to this thread. I'm a CPA and see this exact situation frequently with clients who have multiple business entities. The advice given here is correct - your K1 partnership loss does NOT reduce your Schedule C income for SEP IRA contribution purposes. The key distinction is that SEP IRAs are employer-sponsored retirement plans, even when you're self-employed. Your sole proprietorship acts as both employer and employee, allowing you to make contributions based on that specific business's net earnings. The partnership is a separate legal entity that would need its own retirement plan structure. I always tell clients to think of each business entity as having its own "retirement bucket." Your Schedule C business has one bucket, your partnership has another (which typically can't contribute to your individual SEP anyway), and any W-2 employment would have yet another bucket. So yes, use the full $12,400 from your sole proprietorship as your SEP contribution basis. Just remember the actual contribution limit is slightly less than 20% due to the self-employment tax adjustment - closer to 18.587% of your net Schedule C profit.

This thread has been super helpful! I'm in a similar situation - expecting my first baby in August 2025 and just accepted a new job offer. Reading through everyone's experiences has given me so much confidence about updating my W4. One thing I'm curious about - has anyone here dealt with having twins or multiples? I know each child counts as a separate dependent, so I assume you'd claim both on your W4 even if they're not born yet. Just want to make sure I understand this correctly since we just found out we're having twins at our last ultrasound! Also really appreciate the tip about keeping track of paystubs after updating the W4. That's definitely something I'll do to make sure everything looks right. Thanks everyone for sharing your real experiences with this - way more helpful than trying to decode IRS publications!

Congratulations on your upcoming addition to the family! You're asking exactly the right questions. I work in tax preparation and see this situation frequently. You're absolutely correct that you can claim your baby as a dependent on your W4 for 2025 even though they won't be born until June. The key thing to remember is that the IRS uses a "snapshot" approach for dependents - if your child exists at any point during the tax year (even if born on December 31st), they qualify as your dependent for the entire year. This applies to all the tax benefits too, including the Child Tax Credit of up to $2,000. When you fill out your W4, you're essentially telling your employer how to calculate your withholding based on the tax situation you expect to have when you file your return next April. Since you'll definitely have a qualifying child by then, claiming them now is not only allowed but recommended to avoid having too much tax withheld from your paychecks. One tip: keep your hospital records and birth certificate handy for next tax season, as you'll need your child's Social Security Number when you file your 2025 return. But for now, you're good to go with updating that W4!

As someone who's dealt with similar tax software discrepancies, I'd recommend starting with the basics: make sure you're comparing the exact same figures in both systems. The IRS calculator showing your AGI as $99,750 when your total income is $130,265 suggests there might be some confusion about what numbers you're entering where. Your AGI should equal your total income ($127,850 + $2,415 = $130,265) unless you have specific above-the-line deductions. Here's what I'd check in H&R Block: 1. Look for a detailed tax summary that breaks down each calculation step 2. Verify no duplicate income entries (especially if you had to re-enter your W-2) 3. Check if they're incorrectly applying self-employment tax to your interest income 4. Make sure the "total tax" isn't including state taxes or software fees With your income level and $20,175 in federal withholding, a refund around $1,600 (like the IRS calculator shows) makes much more sense than owing $320. I'd trust the IRS calculator in this case and maybe try a third calculator like FreeTaxUSA to confirm before filing. The math should be straightforward: ~$130K income - $14,600 standard deduction = ~$115K taxable income, which should result in federal tax around $18,500-$19,000 range.

I'm new to this community but wanted to chime in since I literally just went through this exact same situation last month! The discrepancy you're seeing between H&R Block and the IRS calculator is unfortunately pretty common. Based on your numbers, here's what I think is happening: Your total income of $130,265 ($127,850 wages + $2,415 interest) minus the standard deduction of $14,600 gives you taxable income of around $115,665. At that level, your federal tax should indeed be in the $18,000-$19,000 range, which aligns with the IRS calculator. The fact that you had $20,175 withheld and the IRS calculator shows tax liability around $18,515 means you should absolutely be getting a refund of roughly $1,660 - not owing $320 like H&R Block claims. A few things to check in H&R Block: - Make sure they're not double-counting any income (especially if you had to re-enter your W-2) - Verify they're not incorrectly applying self-employment tax to your interest income - Check that the "amount owed" isn't including state taxes or preparation fees - Look for their detailed tax calculation breakdown to see exactly where the extra $2,000 is coming from I'd strongly recommend trying FreeTaxUSA or TaxAct as a third comparison point. In my experience, when there's this big of a discrepancy, the simpler calculators (like IRS.gov) tend to be more accurate for straightforward W-2 + interest income situations like yours. Trust your instincts - with your income level and withholding amount, a refund makes much more sense than owing additional money!