I'm not sure if anyone mentioned this, but most tax software has a specific "part-year resident" wizard or interview section. For example, in TurboTax, there's a separate section for "I lived in more than one state." Have you specifically completed that section? Also, double-check your W-2s. Sometimes employers mess up and put the wrong state code on your W-2, which can cause exactly the issue you're describing. My company once put CA on my W-2 even though I had moved to OR, and it caused a similar double-taxation problem.

This is a classic multi-state tax issue that trips up a lot of people! The key thing to understand is that you should NOT be paying full income tax to both states - that's definitely wrong. Here's what's likely happening: your tax software is treating you as a full-year resident of both states instead of a part-year resident. This causes it to calculate taxes on your entire annual income for both states, which is exactly what you're seeing. To fix this, you need to: 1. Make sure you've selected "part-year resident" (not just "resident") for both NY and VA 2. Enter your exact move date (July 1st, 2024) 3. Verify that your NY income is only what you earned Jan-June while living in NY (~$52k) 4. Verify that your VA income is only what you earned July-Dec while living in VA (~$19k) The taxable income amounts you're seeing ($61k for NY, $58k for VA) suggest the software is applying deductions incorrectly or double-counting income. Once you fix the residency settings, those numbers should drop dramatically. Also, just to confirm - you mentioned having separate W-2s from each employer. Make sure when you enter each W-2, you're telling the software which state that job was performed in. This helps the software properly allocate the income. Good luck! This should result in a much better outcome once sorted out properly.

Remember that if you have ANY other traditional IRA money (like old 401k rollovers), the backdoor Roth gets much more complicated because of the pro-rata rule. The IRS doesn't let you just convert the non-deductible contribution - you have to convert proportionally from all your IRA balances. For example, if you have $50,000 in traditional IRA money from an old 401k rollover, and then you add $6,200 non-deductible for your backdoor, you can't just convert the $6,200. The conversion would be considered to come proportionally from both sources, so most of it would be taxable. Many people overlook this and get hit with unexpected taxes. One workaround is to roll any existing traditional IRA funds into your current employer's 401k (if they allow it) before doing the backdoor.

Just to add one more thing about Form 8606 - make sure you don't miss filing it for BOTH years. I forgot to file it the year I made my non-deductible contribution (only filed it the year I did the conversion) and it caused a huge headache. The IRS sent me a letter questioning the conversion, and I had to provide extra documentation proving the original contribution was non-deductible. Save yourself the trouble and make sure you file Form 8606 for 2023 (reporting the non-deductible contribution) and then again for 2024 (reporting the conversion).

I had LITERALLY the exact same situation happen to me last year. Contributed to Traditional IRA on Dec 29, initiated conversion same day, but it didn't settle in my Roth until January 3. I was freaking out too! My tax guy confirmed what everybody here is saying - report the nondeductible contribution on 2024 Form 8606, then report the conversion on 2025 Form 8606. When you get the 1099-R in January 2026 (for the 2025 tax year), it'll show the distribution from your Traditional IRA. The most important thing is making sure you file Form 8606 for 2024 to establish that the money was after-tax (non-deductible) contributions. That way when you convert in 2025, you're not taxed on it again.

I went through this exact same scenario two years ago and can confirm what everyone is saying - you didn't mess up at all! The key insight is that the backdoor Roth strategy doesn't require the contribution and conversion to happen in the same calendar year. What's important is that you made a non-deductible Traditional IRA contribution for 2024 (which you did on 12/28/2024), and you'll properly report that on your 2024 Form 8606. The conversion happening in January 2025 is actually pretty common with year-end contributions due to settlement delays. One tip I wish someone had told me: keep really good records of both transactions with the exact dates and amounts. When you file your 2025 taxes next year, having clear documentation of the contribution basis from 2024 makes everything much smoother. The IRS sees these cross-year backdoor Roth conversions all the time, so as long as your paperwork is in order, you're golden. Also, don't stress about not having the 1099-R yet - that will come in January 2026 for your 2025 tax filing, which is exactly when you need it!

Has anyone used an S-Corp instead of a disregarded LLC to optimize for QBI? I've heard it can be beneficial in some cases.

Great discussion here! As someone who's been dealing with QBI calculations for a few years now, I wanted to add a few practical tips that might help: 1. **Keep detailed records** - The IRS may ask for documentation to support your QBI deduction, especially if you're claiming rental property income qualifies as a business activity. 2. **Consider the timing** - If you're close to the income thresholds, you might be able to defer income or accelerate expenses to stay below the phase-out limits. 3. **Don't forget about state taxes** - As mentioned earlier, most states don't conform to the federal QBI deduction, so make sure you're calculating your state estimated payments on the full income amount. 4. **Form 8995 vs 8995-A** - If your taxable income is below the threshold, you can use the simple Form 8995. Above the threshold, you'll need the more complex Form 8995-A. For your Q4 estimated payment, I'd recommend being conservative and calculating based on your full income, then adjust when you file your return. It's better to get a refund than owe penalties for underpayment. The tools mentioned above (taxr.ai, Claimyr) sound helpful, but also consider consulting with a tax professional who specializes in small business taxes if your situation is complex. The QBI rules are intricate and the cost of getting it wrong can be significant.

Something no one's mentioned yet - if you go with the Odyssey and can't take the full Section 179, you can still deduct the business percentage of actual expenses (gas, insurance, maintenance, depreciation) OR take the standard mileage rate (65.5 cents per mile for 2023). Might end up being better in the long run anyway.

As someone who went through this exact decision last year, I can share what I learned. The Honda Odyssey can qualify for Section 179, but it requires careful documentation and potentially some modifications. The key factors the IRS considers are: 1) Gross Vehicle Weight Rating (GVWR) - the Odyssey's GVWR is around 6,000 lbs which meets the threshold, 2) Primary business use - you need to demonstrate it's used more than 50% for business, and 3) Vehicle configuration - modifications that show clear business purpose help your case. For my situation, I kept the second row but removed the third row entirely and installed permanent equipment storage. I also maintain detailed logs showing 80% business use. My CPA confirmed this setup qualified for the full Section 179 deduction. Your 75/25 split should work, but document everything meticulously. Take photos of the vehicle loaded with business equipment, keep all business-related receipts, and maintain contemporaneous mileage logs. The IRS wants to see that it's genuinely a business tool, not a family vehicle that occasionally carries business items. One tip: consider getting a letter from your CPA stating the business necessity of the vehicle configuration before you make modifications. It helps establish intent if you're ever audited.