Dude, I've been writing off my entire internet bill for years as a 1099 worker and never had an issue. As long as your primary use is for work, you're good. Don't overthink this... the IRS isn't going to come after you for a few hundred bucks in internet bills lol.

As a 1099 contractor myself, I can confirm that both the hotspot device and monthly data plan are deductible business expenses. The key is proper documentation and accurate business use percentage calculation. For your situation, since you're using the hotspot exclusively for work (8+ hours daily), you should be able to deduct 100% of both costs. However, I'd recommend keeping detailed records showing: 1. Purchase receipt for the hotspot device 2. All monthly service bills 3. A simple log documenting work hours/usage for at least one sample month 4. Any emails or documentation from your employer about remote work requirements The expensive data plan you mentioned is actually a positive for your deduction - it shows the business necessity since regular plans wouldn't meet your work requirements. Just make sure to save everything and be prepared to justify the business use percentage if ever questioned. Don't let fear stop you from claiming legitimate business expenses - just document everything properly!

Just as an FYI from someone who's been there - the offset will happen automatically if you're getting a federal refund, but it doesn't cancel your payment plan. The amount offset will just reduce your balance. If the offset covers your entire remaining balance, then your payment plan will essentially be fulfilled. If it only covers part, you'll still need to continue making payments on the reduced balance.

I went through this exact same situation last year and want to share what I learned. The Notice of Intent to Offset is basically the state's way of putting their claim on any federal refund you might receive - it's completely separate from your payment plan and doesn't mean you've done anything wrong. What happened in my case: I kept making my monthly payments as scheduled, they took about $1,200 from my federal refund, and that amount was credited to my remaining balance. My payment plan automatically adjusted to the lower balance and I continued paying the reduced amount monthly until it was paid off. The key thing is to keep making your regular payments until you hear otherwise from them. Don't assume the offset will cover everything - in my case it only covered about half of what I still owed. Also, keep really detailed records because as someone mentioned above, their systems can get out of sync when processing the offset payment. One more tip: if you're not sure about getting a federal refund this year, the offset notice might just sit there unused. It's valid for multiple tax years until your state debt is resolved.

Great discussion here! I wanted to add one more important consideration that could affect your situation - make sure to check if your husband's previous employer had any "grace period" provisions for the FSA he contributed to earlier in the year. Some employers offer a 2.5 month grace period (through March 15th of the following year) to spend remaining FSA funds, while others allow up to $640 to carry over to the next plan year. If his previous employer had either of these provisions, it could create additional coordination issues with HSA eligibility that go beyond just the contribution limits. The IRS considers you "covered" by an FSA during any grace period or carryover period, which could potentially affect HSA eligibility even after starting the new job with the HDHP. This is definitely something worth checking on - you might want to review his previous employer's FSA plan documents or contact their benefits department to clarify what happens to any unused FSA balance. Also, since you mentioned he doesn't have 401k matching at the new job, the HSA becomes an even more valuable tax-advantaged savings vehicle. HSAs are actually triple tax-advantaged (deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses), making them potentially better than traditional retirement accounts for healthcare planning.

This thread has been incredibly helpful! I'm dealing with a similar situation and wanted to share what I learned from my CPA about the grace period issue that Talia mentioned. You're absolutely right that FSA grace periods can affect HSA eligibility timing. In my case, my previous employer's FSA had a grace period through March 15th, which meant I couldn't start HSA contributions until April even though I enrolled in an HDHP in February. The IRS considers you "covered" by the FSA during the entire grace period, regardless of whether you actually have funds left to spend. However, there's one potential workaround - if the previous FSA balance was completely exhausted before the new HDHP coverage began, some tax professionals argue that the grace period doesn't create a disqualifying coverage issue. But this is a gray area and you'd definitely want to document everything carefully and possibly get professional tax advice. One more tip for Jeremiah - since you're trying to maximize tax benefits without 401k matching, consider that HSA funds can be invested in mutual funds or other growth investments once your balance reaches a certain threshold (usually $1,000-$2,000 depending on the HSA provider). This lets you treat it like an additional retirement account for future healthcare costs, which tend to be significant in retirement.

Wow, this thread is exactly what I needed to find! I'm also a NJ tax newbie (just moved here from Florida where there's no state income tax - what a shock this whole process has been!) and filed on March 14th. Reading through everyone's experiences has been both comforting and terrifying - I had no idea NJ was notorious for these incredibly long wait times! I've been checking that status page almost daily since filing and getting increasingly worried that something was wrong. Now I realize that "in process" status might as well say "check back in 3 months" 😅 Based on @Avery Davis's super helpful breakdown and everyone else's timelines, it sounds like I shouldn't expect anything until late June or July. I claimed the Earned Income Credit and have some rental property income, so I'm probably in the "additional scrutiny" category. At least now I can stop obsessing over the status checker and just accept that this is how the Garden State rolls. Thanks to everyone for sharing their experiences - this community has saved my sanity! Here's to hoping we all get our refunds before the next tax season starts! 🤞

This thread has been such a lifesaver! I'm also a NJ newbie (moved from Texas last year) and filed on March 18th. In Texas there's no state income tax, so this whole waiting game is completely foreign to me. I've been refreshing that status page like it's going to magically update with good news, but after reading everyone's experiences here, I realize I need to just chill and accept that NJ operates on geological time when it comes to refunds! 😅 I claimed the property tax deduction and have some investment income, so based on @Avery Davis's incredibly helpful breakdown, I'm probably looking at summer 2025 before I see anything. It's honestly both frustrating and oddly comforting to know this is just "how things work" in the Garden State rather than something being wrong with my return. Thanks to everyone for sharing - this community solidarity is getting me through the wait! Now I just need to forget about that money until it magically appears in my account someday... 🎩✨

Has anyone successfully gotten their Airbnb annual tax summary to actually match the 1099-K amount? I've tried for 3 years and they never match exactly. Always off by a few hundred dollars even after accounting for all the fees.

This is such a common issue with Airbnb hosts! I went through the same confusion last year. Here's what I learned after consulting with my CPA: You definitely need to report the full gross amount from your 1099-K on your Schedule C - this is what the IRS will be expecting to see since they receive a copy of that form from Airbnb. The key is then deducting all those Airbnb fees as legitimate business expenses. Look for these line items on Schedule C: - Line 10 for commissions and fees (this covers Airbnb's service fees) - Line 27a for other expenses (you can itemize things like payment processing fees) Also don't forget about other deductible expenses like cleaning supplies, repairs, utilities for the rental space, and depreciation on furniture/appliances used exclusively for the rental. I found it helpful to download all my transaction history from Airbnb for the year and create a simple spreadsheet tracking gross bookings vs. net deposits. This gives you a clear paper trail in case of any IRS questions later. The bottom line is your net rental income should end up being the same whether you report gross and deduct fees, or just report net - but matching the 1099-K is important for avoiding any red flags.