Something else to consider - check if your hospital has a shuttle service from a free parking lot further away. My hospital charges similar amounts for the close lots, but they run shuttles from a free lot about a mile away. I've been doing that for 2 years now and save almost $1800 annually. Adds about 15 mins to my commute each way but worth it financially.

Just to add another perspective - have you considered carpooling with coworkers? My hospital has a similar parking situation but they offer discounted rates for cars with 2+ employees. Four of us share a ride now and split the parking cost, bringing my monthly expense down from $130 to about $35. Plus we take turns driving which saves on gas too.

Just to add another data point - I'm single with just basic health insurance (no dependents) and my Box 12c shows $14,820. I pay $210 bi-weekly which works out to $5,460 annually, so my employer is paying about $9,360 of my premium. Makes me think twice about considering a job change, tbh. Those are some serious benefits that aren't always obvious when just comparing salaries!

This is such great information everyone! I'm dealing with a similar situation - my W2 shows $29,640 in box 12c with code DD and I was panicking thinking I somehow paid that much for health insurance. But after reading through all these responses, I checked my final paystub from December and my year-to-date health insurance deduction was only $6,720. So my employer must have contributed about $22,920 toward my family coverage! It's crazy how much employers actually pay for our health benefits. I never really thought about it before seeing this number on my W2. Makes me appreciate my job a lot more knowing they're covering over 75% of my health insurance costs. Thanks to everyone who explained this - definitely saving me a call to HR tomorrow morning!

Wait, don't freak out yet. What EXACTLY does the letter say? If it's a CP2000, that's not an audit - it's a notice of proposed changes based on income reporting discrepancies. If it's a CP75 or CP75A, that's requesting proof of certain credits/deductions. Each letter requires different responses. Look at the top right corner of the letter for the notice number. That'll tell us exactly what you're dealing with and how serious it is.

I went through this exact same situation about 6 months ago with a CP75 letter questioning my charitable donations and student loan interest. I was terrified at first, but it turned out to be much simpler than I expected. The key thing that helped me was being super organized with my response. I created a simple spreadsheet listing each donation with the date, amount, organization name, and which supporting document I was including (receipt, bank statement, etc.). For my mortgage interest, I just included the 1098 form my lender sent me. I sent everything via certified mail about 2 weeks before the deadline, and got a letter back about 6 weeks later saying "no changes needed" to my return. The whole thing was resolved without any issues. One tip: if you're missing a receipt or two for smaller donations (under $250), don't stress too much. Include what you have and write a brief explanation for any missing documentation. The IRS understands that people don't always keep perfect records, especially for smaller amounts. You've got this! It's way more common than you think and definitely not something to panic about.

Current McDonald's franchisee here. To add some color to what others have said - as a McDonald's owner, my business is completely separate for tax purposes from McDonald's corporate. I pay them royalties (currently 4% of gross sales) plus a service fee (currently around 4-5% for advertising and other services). I've set up an S-Corporation for my business which owns two locations. This gives me some tax advantages like avoiding self-employment tax on a portion of my income. The franchise disclosure document (FDD) will outline all the fees and financial expectations, but it doesn't dictate your business structure - that's up to you and your tax advisor.

One thing to be aware of with McDonald's franchises that affects your taxes - McDonald's typically owns or controls the real estate and leases it to you as the franchisee. This is different from some other franchise systems. The lease payments are tax-deductible business expenses, but it also means you're not building equity in the real estate (which can be a major asset).

$600 is absurd for your situation. I do taxes professionally and would charge around $250-300 max for what you described. Multiple states adds complexity but not THAT much. The IRA distribution is literally just entering info from a 1099-R and checking a few boxes about exceptions.

As someone who's been through a similar situation, I'd definitely get a second opinion on that $600 quote. That seems really high for your circumstances. I moved from Illinois to Texas mid-year and had to deal with multi-state filing plus some retirement account complications. Ended up going with a local CPA who charged $275 total. The key is finding someone who specializes in multi-state returns - they can usually handle these situations efficiently since they see them all the time. Before you commit to paying $600, I'd suggest calling around to 2-3 other preparers for quotes. Also ask specifically about the medical exception for your IRA withdrawal - if it was truly for emergency medical costs, you might be able to avoid the 10% early withdrawal penalty entirely, which could save you way more than the difference in prep fees. Don't let anyone pressure you into paying more just because your situation has a few moving parts. Multi-state returns are pretty common, especially in college towns where students move around a lot.