Be careful about one related issue! If any of your margin debt was used for anything other than buying securities that produce taxable income, that portion of interest isn't deductible. For example, if you withdrew cash from your margin account for personal expenses, bought tax-exempt municipal bonds, or purchased options (which sometimes don't count as producing investment income), the related interest might not be deductible.

One thing to keep in mind is that margin interest is only deductible in the year it's actually paid, not when it accrues. So make sure you're looking at the actual payments made in 2024, not just what accumulated on your account statement. Also, if you're planning to carry forward any unused investment interest expense to future years, remember that it maintains its character as investment interest expense. This means in future years, it will still be subject to the same net investment income limitation - it doesn't become a general deduction. For your Tesla situation specifically, since you're dealing with a single stock across multiple purchases, the IRS will view this as one investment activity. The fact that you sold only one batch doesn't limit your deduction to just that portion of the interest - you can deduct up to your total net investment income for the year, which sounds like it covers your full $67,500 in margin interest. Just make sure to complete Form 4952 properly and keep detailed records of all your margin account activity in case of any future questions.

Do I need to worry about state taxes with a 1099-NEC? My client is in a different state than where I live.

I went through this exact same confusion last year with my first 1099-NEC! The checked boxes can definitely be confusing when you're not familiar with the form. One thing that really helped me was taking a photo of the form with my phone so I could zoom in and see exactly which boxes were checked. Sometimes the printing quality makes it hard to tell which specific box has the mark. Also, if you're using TurboTax, it should walk you through each section of the 1099-NEC and ask you to enter the amounts from each box. Even if you can't tell which box is checked, entering the amounts from each box (most will be $0) should help the software figure out what you need to report. And yes, definitely start planning for quarterly payments next year! I learned that lesson the hard way when I got hit with underpayment penalties. The good news is that with $8,400 in income, your tax burden won't be too overwhelming, especially if you can deduct some business expenses.

Don't forget to update your W-4 with your employer as soon as possible! I learned this lesson the hard way after my divorce.

I'm going through a similar situation right now and this thread has been incredibly helpful! Just wanted to add that if you're considering Head of Household status, make sure you understand the "more than half the year" requirement. Since you separated in March, you'll likely qualify if your kids have been living with you since then. But also remember that Head of Household requires that you paid more than half the cost of keeping up the home where your qualifying person lived. This includes things like rent/mortgage, utilities, food, and other household expenses - not just child support. The tax savings from HOH vs Single can be substantial, especially if you're in higher income brackets. It might be worth consulting with a tax professional to make sure you're maximizing all available benefits during this transition year.

Just my experience, but I deducted my hearing aids last year as a medical expense along with some dental work and surgery costs. The combined amount got me over the 7.5% threshold. When you file, make sure you keep all receipts and documentation from your audiologist about the medical necessity. I also got a letter from my doctor explaining why I needed them, which helped support the deduction.

It's not too complicated to itemize, especially if you have substantial medical expenses like hearing aids. You'll use Schedule A instead of taking the standard deduction. The key is making sure your total itemized deductions (medical expenses over 7.5% of AGI, state/local taxes, mortgage interest, charitable donations) exceed the standard deduction amount to make it worthwhile. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly. If your hearing aids plus other medical expenses get you over that 7.5% AGI threshold and your total itemized deductions beat the standard deduction, then it's worth doing. Most tax software will automatically calculate both scenarios and tell you which saves you more money.

Just got my refund on Green Dot yesterday - March 21st! My official DDD was March 22nd, so they did release it one day early. I filed on February 3rd and got accepted the same day. Had to wait through the whole PATH Act delay since I claimed EITC. The money showed as pending at first around 9am, then fully available by 2pm. Hope this helps with your timeline expectations!

Thanks for sharing your experience @Amina Diallo! That's actually really encouraging to hear that Green Dot did release your refund a day early. I'm in a similar situation with the PATH Act delay since I claimed EITC too, so it's helpful to see the timeline from someone who just went through it. Did you notice any specific time of day when the pending status changed to available? I'm trying to figure out if I should be checking morning, afternoon, or if it's pretty random. Also curious - did you get any notifications from the Green Dot app when the deposit hit, or did you just have to keep checking manually?