Has anybody looked into the "statutory resident" tests different states use? My accountant told me that many states consider you a resident for tax purposes if you spend more than 183 days there in a year, even if your permanent home is elsewhere. I'm a digital nomad and I'm super careful not to hit that threshold in high-tax states. I literally keep a day counter in my phone lol.

This is such a tricky situation, and I feel for you! I went through something similar when my spouse had a job that required frequent relocations. The key thing to understand is that your physical presence for work purposes is what typically triggers tax obligations, not just where your company thinks you're working. Here's what I learned from my experience: even if your company doesn't approve you working from certain states, if you're physically there performing work, you may still have tax obligations to those states. The fact that your employer doesn't want you filing taxes in other states doesn't actually change the legal requirements. For travel nursing specifically, many states have temporary worker provisions, but they vary widely. Some states won't tax you if you're there less than a certain number of days (often 30-60), while others start taxing from day one. My advice would be to: 1. Track your days in each state meticulously 2. Research the specific tax thresholds for each state you'll be in 3. Consider consulting with a tax professional who specializes in multi-state situations 4. Be transparent with your employer about the potential complications The penalties for getting this wrong can be severe, so it's better to be overly cautious. Some couples in similar situations end up maintaining separate residences to avoid these complications, though I know that's not ideal for relationships.

Something important to consider with your inherited IRAs - if you don't need the money right now, the traditional and Roth have very different optimal strategies. For the traditional IRA, since withdrawals count as income, you might want to take distributions in years when your income is lower to minimize the tax hit. For the Roth, since withdrawals are tax-free, you might want to leave that money in as long as possible (within the 10-year limit) to maximize tax-free growth. Remember that once money comes out of either IRA into your brokerage account, all future growth will be taxable, so there's a big advantage to keeping it in the tax-advantaged accounts as long as possible!

One thing I'd add about timing your traditional IRA distributions - consider whether you expect your income to change significantly in the coming years. If you're planning to sell your business or have other major income changes, that could affect which years are optimal for taking larger distributions. Also, don't forget about the potential impact on other tax benefits. Large traditional IRA distributions could push you over income thresholds for things like the child tax credit, education credits, or even Medicare premiums (IRMAA) if you're approaching 65. It's worth running the numbers to see how different distribution strategies affect your overall tax picture, not just the tax on the IRA withdrawal itself. For your brokerage account, since you mentioned you just opened it - consider whether you want to focus on tax-efficient investments like index funds that don't generate much in taxable distributions, especially if you're already dealing with required distributions from the inherited accounts.

For student loan interest, make sure your loan qualifies! Not all education loans are eligible for the above-the-line deduction. Private loans used for non-educational expenses won't count.

Thanks everyone for all this helpful info! I'm the original poster and this has been incredibly educational. I had no idea about the income phase-out limits or that there were so many other above-the-line deductions I might be missing. Just to clarify my situation - I'm single making about $68k, so it sounds like I should be able to claim the full $2,100 in student loan interest since I'm below the $75k phase-out threshold. I found my 1098-E form and will definitely enter this on Schedule 1 like Dmitry explained. One follow-up question though - do I need to keep any other documentation besides the 1098-E form? My loan servicer sent me some other statements throughout the year but I'm not sure if the IRS needs anything beyond that single form for the deduction.

Has anyone had success getting a refund of preparation fees from tax chains when they mess up? TaxKing messed up my return last year (claimed I couldn't deduct my home office even though I'm self-employed and meet all requirements) and I had to pay another preparer to fix it.

This is exactly why I always tell people to be extremely cautious with tax prep chains, especially during busy season. What happened to you is unfortunately very common - they hire temporary workers who get minimal training and are pressured to rush through as many returns as possible. For your situation, I'd definitely recommend filing the amended return yourself using Form 1040X. The student loan interest deduction and business expenses are straightforward to correct. You'll need to attach revised Schedule 1 and Schedule C forms showing the correct amounts. Keep all your documentation organized - receipts for business expenses, Form 1098-E for student loan interest, etc. Don't pay TaxQuotes another dime to fix their mistake. The IRS website has good instructions for Form 1040X, and there are free tax clinics (VITA programs) that can help if you get stuck. You should also consider filing a complaint with the IRS using Form 14157 - this helps them track problem preparers and can lead to penalties. Most importantly, document everything about this experience in case you need to pursue getting your original preparation fees refunded. Many chains have satisfaction guarantees they don't advertise but will honor if you push back hard enough.

Has anyone actually gotten audited on this? I've been claiming both regular daycare and my evening babysitter on my taxes for years and sometimes worry I'm doing it wrong.

I'm in a similar boat as a 1099 graphic designer with clients in different time zones - my work hours are all over the place! One thing I learned the hard way is to keep a detailed log of not just the childcare payments, but also your work hours that correspond to when you needed the care. I use a simple spreadsheet that tracks: date, work hours (including which client/project), childcare provider, hours of care, and amount paid. This has been super helpful because it clearly shows the IRS that the childcare was necessary for you to work those specific hours. Also, don't forget that if you're paying your nanny more than $2,400 per year, you'll likely need to deal with household employee taxes (Social Security, Medicare, etc.). It's a pain, but worth staying compliant to avoid bigger headaches later!