Has anyone actually tried to do what OP is asking on their tax return? I'm curious if the tax software would even let you. When I use TurboTax, it seems to automatically apply as much investment interest as possible against my investment income.

I appreciate everyone's thorough discussion on this topic. As someone who works in tax preparation, I can confirm what others have said - the IRS does NOT allow voluntary deferral of investment interest expense when you have sufficient investment income to use it in the current year. The key thing to understand is that Form 4952 is a calculation form, not an election form. Line 5 (deductible investment interest expense) is determined by the lesser of your investment interest expense or your net investment income - there's no checkbox or option to voluntarily reduce this amount. However, the suggestion about managing the timing of income recognition is spot-on. You do have control over when you realize capital gains by choosing when to sell investments. If you're really looking to defer the tax benefit, consider whether you truly need to realize all those gains this year, or if some could be pushed to next year when the deduction might be more valuable to you. Just remember that any tax planning strategy should consider your overall financial picture, not just one deduction in isolation.

Trying to understand what happened... you already paid and got your federal refund, but now they want MORE money to file your state taxes? That's sketchy af. Definitely not how reputable tax services operate. Get your docs back ASAP!

This is definitely a scam! I work in tax compliance and can tell you that $1700 is extremely high for standard tax prep - that's what you'd expect to pay a high-end CPA for complex business returns with multiple entities. For individual returns, even with some complexity, you should be looking at $200-600 max. The fact that they're now asking for MORE money after you've already paid and received your federal refund is a huge red flag. Legitimate tax preparers always disclose the full fee structure upfront and state returns are typically included in the base price. Here's what I recommend: 1. Demand ALL your documents back immediately - they legally belong to you 2. File a complaint with your state's consumer protection agency 3. Consider filing a complaint with the IRS if they claim to be enrolled agents 4. Your state likely has free filing options on their department of revenue website Don't pay them another cent. You can absolutely file your state return yourself using the information from your federal return. Most state returns are much simpler than federal anyway.

If the kids receive SSI themselves, that can also impact who can claim them. Is it your sister-in-law who gets SSI or do the kids get it too?

This situation is unfortunately common and your concern for your sister-in-law is totally understandable. The bottom line is that your brother cannot legally claim the children as dependents without proper authorization, regardless of whether your sister-in-law files taxes or not. Since the children live with your sister-in-law full-time, she is the custodial parent under IRS rules. Even though she receives SSI and doesn't file a tax return, she still retains the legal right to claim the children. Your brother would need either Form 8332 signed by her OR very specific language in their divorce decree to claim them. What's particularly concerning is that if your brother claims the children without proper authorization, it could create problems for your sister-in-law down the road if she ever does need to file taxes or if the IRS audits either return. She should definitely not sign Form 8332 unless there's a fair arrangement that benefits her and the children too. I'd strongly recommend your sister-in-law consult with a tax professional or legal aid attorney who handles family law issues. Many provide free consultations for low-income individuals. She has rights here and shouldn't be pressured into giving them up just because someone else wants the tax benefits.

I actually went through H&R Block's training program last year and can give you some firsthand insight! Their digital training approach was really comprehensive - it included interactive modules, practice returns with feedback, and simulated client scenarios. What I loved most was that by the time I finished training, I was already comfortable with the actual software I'd be using with real clients. The training took about 3 weeks of evening classes (2-3 hours each session), which was perfect for balancing with my day job. They also provided ongoing support throughout tax season - weekly team meetings where we could discuss challenging returns and get guidance from more experienced preparers. One thing that really stood out was their quality review process. Every return gets checked by a supervisor before filing, which gave me confidence as a new preparer and helped me learn from any mistakes. They also have a really good error tracking system that helps you identify patterns in your work and improve over time. The work environment was professional but supportive. Yes, there are metrics to meet (returns per hour, accuracy rates), but they're reasonable and there's good coaching to help you improve rather than just pressure to perform. The pay at our location started at $14/hour for new preparers, with bonuses based on client satisfaction scores and return volume. After my first season, I got promoted to a senior preparer role with better hourly pay plus commission opportunities. Would definitely recommend at least checking out their info session - even if you stick with Liberty, it'll give you a good comparison point!

As someone who's worked in tax preparation for several years now, I'd recommend taking a step back and thinking about your long-term goals before making this decision. Both companies can get you started in tax prep, but they really do serve different purposes. If you're looking at this as primarily seasonal income and want a more relaxed environment, Liberty might be fine despite the training issues you're experiencing. However, if you're serious about building a career in tax or accounting, H&R Block's structured approach, better training resources, and advancement opportunities make it the clear choice. That said, don't discount the value of what you're learning at Liberty right now. Even if the instruction style isn't ideal, understanding tax calculations manually will serve you well throughout your career. Many seasoned preparers who only learned software-based methods struggle when they encounter unusual situations that require deeper understanding. My suggestion? Finish your Liberty course to get that foundational knowledge, then consider H&R Block for next season to get the structured training and career development opportunities. You'll end up with the best of both worlds - solid fundamentals plus professional development in a company with real growth potential. Also, don't overlook networking opportunities at either company. The connections you make with other preparers, supervisors, and even clients can be just as valuable as the training itself for building your career in this field.

This thread has been incredibly comprehensive and helpful! As a newcomer who just stumbled onto this discussion while researching my own 1099/W-2 situation, I'm blown away by the quality of advice and real-world examples shared here. I'm in a similar position with about $22k in 1099 income this year and had been completely overwhelmed trying to figure out the Solo 401k rules on my own. The IRS publications are dense and confusing, but seeing everyone break down the actual calculations and share their tax savings numbers makes this so much clearer. A few key takeaways that really helped me: - The $23,000 employee contribution limit applies across ALL 401k accounts combined - You can still make employer contributions to a Solo 401k based on your SE income even if you've maxed out employee contributions elsewhere - The ~20% employer contribution rate accounts for the SE tax adjustment (thanks for clarifying that detail!) - Setup needs to happen by Dec 31st but funding can wait until tax deadline I'm definitely moving forward with opening a Solo 401k based on everything I've learned here. The potential tax savings of $800+ on my income level makes the setup effort a no-brainer. Thank you to everyone who shared their experiences - this is exactly the kind of practical, real-world guidance that makes all the difference when navigating these complex tax situations!

This is such an excellent resource! I'm also dealing with mixed W-2/1099 income for the first time and feeling completely overwhelmed by the retirement contribution rules. Reading through all the real experiences and actual tax savings numbers has been incredibly eye-opening. What really stands out to me is how the Solo 401k seems to be a game-changer for anyone with even modest 1099 income. The ability to make both employee AND employer contributions (up to that ~20% of net SE income) creates so much more retirement savings capacity than I realized was possible. I'm particularly grateful for the clarification about the December 31st setup deadline vs the funding deadline - that distinction could have easily tripped me up. And seeing the breakdown of how the SE tax adjustment works in the contribution calculations was super helpful since that's not something you'd easily figure out on your own. For anyone else reading this who's in a similar boat, the consensus here seems crystal clear: the tax benefits alone make a Solo 401k worth setting up if you have any meaningful self-employment income. The setup process sounds much more straightforward than the IRS publications make it seem! Thanks to everyone who shared their real-world experiences and numbers - this thread should definitely be bookmarked as the definitive guide for mixed income retirement planning.