Holly, after reading through all the great advice here, it sounds like your original MFS strategy unfortunately won't work due to California's community property rules. Since you'd each have to report about half your combined income (~$192,500 each), you'd both be over the $150k MFS threshold. However, I notice you haven't mentioned what your 2023 combined income was. If it was under $300k and you can take delivery in 2024 (before Dec 31), you might still qualify for the full credit by filing jointly using your 2023 income. A few practical next steps: 1. Check your exact 2023 combined AGI 2. Confirm your chosen EV model still qualifies (the eligible vehicle list changes frequently) 3. See if you can accelerate delivery to 2024 if your 2023 income works 4. As others suggested, look into California state rebates and utility incentives as backup options The timing of delivery is really crucial here since it determines which tax year's income you need to use. If you're flexible on delivery timing and your 2023 numbers work, that might be your best path forward.

Holly, I've been following this thread and it seems like the consensus is pretty clear - the California community property rules unfortunately kill your MFS strategy since you'd each have to report around $192,500 (half of your combined income), putting you both over the $150k threshold. The real question everyone's asking that you haven't answered yet: what was your 2023 combined income? If it was under $300k, you might still have a path forward by filing jointly for 2023 and taking delivery in 2024. Also, I'm curious about the "one-time income stuff" you mentioned for 2024. Depending on what that was (stock options, bonus, business sale, etc.), it might help inform whether 2025 income could potentially work if delivery timing is flexible. Have you had a chance to look up your 2023 AGI and check if your delivery timeline can be adjusted? That seems like the most promising route given all the complications that have been identified with your original plan.

mine changed to 02 last month and got my refund exactly 2 weeks later. hang in there!

Cycle code 02 usually means your return is being manually reviewed, which can happen for various reasons like income verification, dependents, credits, or random selection. The good news is that it's still being processed! Keep checking your transcript for updates and watch for any letters from the IRS requesting additional documentation. Most manual reviews resolve within 4-8 weeks, though it can vary.

Don't forget you can also deduct mileage which is way more valuable than the phone deduction! For 2025 its like 65.5 cents per mile i think. I made $6000 from doordash last year but after mileage deduction i only paid tax on like $2500.

Great question! I've been doing delivery work for about two years now and had to figure this out myself. Here's what I learned: For your phone deduction, you're absolutely right that you can claim the business portion. Since you only did deliveries for 3 months (Oct-Dec), you'll want to calculate it as: Business use percentage × Phone costs × 3/12 months. A few practical tips: - Keep receipts for both your phone purchase and monthly bills - Document your business usage somehow (screen time, delivery hours, etc.) - Be conservative but reasonable with your percentage - 25-35% is typical for part-time delivery work For the iPhone itself, you can deduct the business percentage of the full $1,200 cost, not just what you've paid so far. You can either depreciate it over several years or use Section 179 to deduct it all in the first year. One thing to consider for next year: some drivers find it easier to get a separate phone line just for business use, which makes the deduction cleaner and gives you better documentation. Also don't forget about other potential deductions like mileage (67¢/mile for 2025), delivery bags, phone accessories, etc. TurboTax should walk you through most of these on Schedule C.

bruh the irs playing musical chairs with our cycle codes 🤡

Same thing happened to me! Was cycle 5 for the past 3 years and suddenly got bumped to cycle 1 this year. From what I've researched, it seems like the IRS redistributes returns across different cycles to balance their processing workload. The good news is cycle 1 typically means faster processing since Monday is the start of their work week. I'm actually expecting my refund to come earlier than usual because of this change!

Great question! I've been hosting au pairs for three years now and can share some practical experience with the tax side. One thing I learned the hard way is to keep meticulous records from day one. I use a simple spreadsheet to track weekly stipend payments, program fees, educational expenses, and any other qualifying costs. This makes tax time so much easier. A few key points from my experience: - You'll need your au pair's SSN or ITIN for Form 2441, so make sure they get one early in their stay - Keep copies of all program documentation - the agency contract, visa paperwork, etc. This helps establish the legitimate childcare relationship - Document the hours your au pair works in childcare vs. light housework, since only childcare hours count toward the dependent care credit Also, don't overlook state-specific benefits. Some states have their own dependent care credits that can stack on top of the federal credit. Worth checking with a local tax professional who understands au pair arrangements. The savings really do add up - between the federal credit and our state credit, we save about $1,800 annually on our tax bill, which definitely helps offset the program costs!

This is such a timely post for me! We're in the same boat with two kids (ages 5 and 8) and are seriously considering the au pair route for next year. The childcare costs in our area are absolutely crushing our budget right now. I've been doing some preliminary research and it's reassuring to see from everyone's responses that the dependent care tax credit does apply to au pair expenses. That $6,000 maximum for two kids could result in significant savings depending on our income level. One question I haven't seen addressed yet - does anyone know if there are any income limits that would phase out the dependent care credit? I want to make sure we'd actually qualify before we commit to the program. Also, for those who've gone through the process, how far in advance did you start the application process with the au pair agencies? The visa and matching process seems like it could take several months, so I'm wondering when we should get the ball rolling if we want someone to start in January. Thanks for all the detailed tax information - this thread has been incredibly helpful in our decision-making process!