Don't forget about insurance! If the damage was from a hit-and-run, did you file an insurance claim? If your deductible is less than $860, it might be worth filing. Your insurance rates might go up slightly, but that could still be better than paying the full $860 out of pocket.

As someone who's been driving rideshare for several years, I can confirm what Maya and others have said - the $860 mirror repair unfortunately can't be deducted separately when using the standard mileage deduction. The IRS is pretty clear that the standard mileage rate covers ALL vehicle operating expenses, including unexpected repairs from accidents. However, Logan makes an excellent point about potentially switching to actual expenses for this tax year if you haven't filed yet. Since you use the car 100% for business and started with standard mileage, you have the flexibility to switch to actual expenses this year if it results in a larger deduction. With an $860 repair plus all your other car expenses (gas, insurance, registration, etc.), it might be worth calculating both ways. Just make sure you have detailed records of ALL your car expenses if you go the actual expense route - the IRS requires much more documentation for this method. And definitely explore the insurance angle that Mikayla mentioned - even if your rates go up slightly, it could still save you money overall.

I'm so confused about all this Premium Tax Credit stuff. This is my first year dealing with Marketplace insurance. So if my mom claimed me on her insurance for part of the year, do I need to fill out this 8962 form too even if I'm not claiming any of the credit? I didn't get a 1095-A form myself.

Just went through this exact same situation last month! The IRS letter can be scary but it's actually a pretty straightforward fix. Like others mentioned, you need to complete Part II of Form 8962 showing all the monthly calculations with your 0% allocation - even though it results in zeros, the IRS needs to see the work. Here's what worked for me: I filled out a new Form 8962 with "CORRECTED" written at the top, completed the monthly table in Part II showing the premium amounts from the 1095-A multiplied by 0%, attached a copy of the 1095-A that showed my name, and included a brief letter explaining the 100%/0% allocation agreement with the other taxpayer (including their name and last 4 of SSN). Sent it certified mail and got a letter back in about 6 weeks saying the matter was resolved. The key is showing the IRS that you properly reconciled with the 1095-A information they have on file, even with a 0% allocation.

Has your CPA discussed the potential benefits of a tax-free reorganization under Section 368? Depending on your specific situation, there might be ways to restructure the company that could facilitate the ownership transition with more favorable tax treatment.

One strategy that hasn't been mentioned yet is considering a self-canceling installment note (SCIN). This could be particularly valuable given your mom's desire to step back from the business and your 5-7 year timeline. With a SCIN, your mom would sell her shares to you and your sister in exchange for installment payments, but the note automatically cancels if she passes away before it's fully paid. This provides several benefits: it removes the remaining unpaid balance from her estate for tax purposes, gives her income during her lifetime, and allows you to potentially acquire the shares at a discount to reflect the cancellation risk. The payments would need to be higher than a regular installment sale to account for this risk, but it could provide significant estate tax savings if structured properly. This approach works particularly well when the selling family member is older or has health concerns. You'd definitely want your attorney and CPA to model this carefully, as the IRS has specific valuation requirements, but it's worth exploring alongside the other options mentioned here.

its not worth it tbh. just wait for ur actual refund. the fees eat up so much of the advance its basically a payday loan w extra steps 💅

Pro tip from someone who's been through this multiple times - the TurboTax advance offer typically shows up right after you complete all your forms but before you hit the final submit button. You'll see your estimated refund amount first, then they'll show the advance option if you qualify. But honestly, after reading all these comments about the fees, I'd suggest just filing early and waiting for the actual refund. The IRS is processing returns pretty quickly this year anyway!

Don't forget that even after you estimate your federal payment, each state handles extensions differently! I learned this the hard way. For example, California automatically gives you the extension if you get a federal one, but you still need to pay the estimated amount. New York requires its own extension form AND payment. Some states don't charge interest if your estimate is reasonable while others are strict about it. Make sure you check your specific state's rules about extensions and payments - don't assume they follow the federal guidelines.

Just to add something here that nobody mentioned - make sure you remember to pay ESTIMATED TAXES too if you're self-employed or have other income without withholding! This is separate from your extension payment. Q1 estimated taxes for 2025 are also due April 15th, the same day as the 2024 tax year deadline. So you might need to make TWO payments - one for what you still owe for 2024 (your extension payment) and one for Q1 estimated taxes for 2025. I made this mistake and got hit with penalties even though I thought I'd done everything right with my extension.