Have you considered Short-Term Treasury Bills instead? They're yielding around 5.3-5.4% right now, and they have a tax advantage over HYSAs because they're exempt from state and local taxes. If you're in a high-tax state, this could give you a better after-tax return than a HYSA.

I'd echo what others have said about Treasury bills being worth considering. The state tax exemption can be a real advantage depending on where you live. One thing I haven't seen mentioned yet is considering a CD ladder as another option. Some banks are offering competitive rates on CDs (around 4.5-5.2%) with terms that could align with your 12-18 month timeline. While they don't have the state tax advantage of T-bills, they might offer slightly better liquidity planning since you can time the maturities exactly when you expect to need the funds. You could also look into money market accounts, which sometimes offer rates competitive with HYSAs but with check-writing privileges that might be useful during the home buying process when you need to move money quickly for earnest money deposits, inspections, etc. Given your substantial down payment amount ($325k), you might also want to consider spreading across multiple institutions to stay within FDIC limits if you go the HYSA route. Most banks have $250k FDIC coverage per depositor, so you'd want to split your funds to ensure full protection.

One thing no one's mentioned - if you're getting paid regularly for these gigs, you should be making quarterly estimated tax payments to avoid this problem next year. The IRS expects you to pay taxes throughout the year, not just at filing time. If you only pay at tax time, you might even get hit with underpayment penalties.

Anyone know if you can deduct a portion of streaming service subscriptions (Spotify, Apple Music) if you use them to learn songs for paid gigs? I've got three 1099-NEC forms this year from different venues and I'm trying to find every legitimate deduction.

I recommend you make a copy of the check when you pay that $58k and keep proof of payment forever. The IRS systems don't always talk to each other, and I've seen cases where one department doesn't know what the other is doing. The lock-in letter may have been processed before they knew you were about to pay.

Just went through this exact situation last month. The lock-in letter and your $58k tax bill are definitely connected - the IRS issued the lock-in because they see a pattern of underpayment and want to prevent it from continuing while you're resolving the existing debt. Here's what you need to know: paying off that $58k won't automatically remove the lock-in letter. These typically stay in effect for at least 12 months regardless of whether you've paid your back taxes. However, once you've paid the debt and can demonstrate compliance, you can appeal the lock-in or request a review. My advice - pay that $58k as planned (keep all documentation!), then immediately call the IRS number on the lock-in letter to discuss your situation. Explain that you've now paid the full debt and want to work with them on the withholding issue. Sometimes they're more willing to work with you once they see you've taken care of the outstanding balance. Also, double-check that your wife's employer received and processed the lock-in letter correctly. Some employers mess up the implementation, which can cause additional headaches down the road.

Don't forget part-year resident returns! Since you moved to Idaho, you're a part-year resident there, and you were a part-year resident of the last state you lived in. Part-year returns can be tricky but they're designed to make sure you're only taxed once on each dollar you earn.

I went through a very similar situation a few years ago when I worked in multiple states! One thing that really helped me understand the double taxation issue was checking whether any of the states you worked in have reciprocity agreements with each other. For example, if you lived in Pennsylvania but worked in a neighboring state with a reciprocity agreement, you might only need to file in your home state. However, since you worked in Wisconsin, Nevada, and Pennsylvania, you'll likely need to check each combination. Also, keep all your W-2s handy and look at Box 17 (State income tax) on each one. If you see state taxes withheld, that state will expect you to file a return there. The key is that when you file multiple state returns, each state's tax software should ask about taxes paid to other states - that's where you claim the credit to avoid double taxation. Since Nevada has no state income tax, that's one less return to worry about! But definitely file in Wisconsin and Pennsylvania for the income earned there.

Has anyone actually been audited over mileage? I've been a 1099 contractor for 6 years and honestly just guesstimate my miles. Never had any issues.

As someone who's been through the 1099 contractor maze myself (freelance graphic designer), I can confirm what others have said about the temporary work location rule being your friend here. The key distinction is that you don't have a "regular" workplace - you're bouncing between different client sites that are all temporary by nature. One thing I'd add that hasn't been mentioned yet: make sure you're also tracking any trips between job sites during the same day. If you go from your home to Site A, then to Site B, then back home, ALL of those miles are deductible business miles, not just the initial trip from home. Also, with 24,000 miles, you're looking at potentially $15,720 in deductions at the current rate (24,000 × $0.655). That's a huge amount to leave on the table! Definitely worth getting this sorted out properly. The documentation advice from @Ravi Sharma is spot on - I learned that lesson during a small audit a few years back. Better to over-document than under-document when it comes to the IRS.