But doesn't that social contract idea assume we're getting functional services in return? Have you seen the state of public infrastructure lately? Where is all that money actually going?

I definitely understand that frustration. The quality of public services varies dramatically depending on where you live, and that's a legitimate concern. The issue isn't necessarily the amount of taxes collected but how efficiently they're being used. The reality is that a substantial portion of federal tax dollars goes to things like Social Security, Medicare, defense, and interest on the national debt - not directly visible infrastructure. Local infrastructure like roads and schools depends more on state and local taxes, which is why quality varies so much between different areas.

Be careful with that approach. A friend of mine got too aggressive with deductions and ended up getting audited. The penalties and interest ended up costing more than what he saved. Better to stay within clear guidelines.

Thanks for this advice! Do you have a specific mileage app you'd recommend? And should I also be keeping receipts for charging costs since it's an EV?

I use MileIQ and it's been great - it runs in the background and automatically detects when you're driving. You just swipe right for business trips and left for personal. The reports it generates are perfect for tax time. For charging costs, absolutely keep those receipts! You can deduct the business portion of your charging costs as a separate expense on your Schedule C. If you install a home charger, that might also qualify for a separate tax credit, so keep all documentation for that as well.

What about financing? Does it matter if the vehicle is financed vs paid in full for claiming the Section 179 deduction?

A second vote for FreeTaxUSA! That's encouraging. Have you ever had to amend a return with them? That's one thing I occasionally need to do when I receive a corrected 1099 from my brokerage after filing.

Yes, I actually did have to file an amended return last year when I received a late K-1 form after filing. The amendment process was very straightforward with FreeTaxUSA. They walked me through exactly what had changed from my original return and helped me complete the amended forms correctly. What I especially liked was that they didn't charge an additional fee for the amendment like TurboTax used to do to me. The whole process took about 30 minutes and was much less painful than I expected. They also kept good records of both the original and amended returns so I could see exactly what changed.

Did TaxSlayer handle partial-year residency well? I'm moving to another state next month for a new job and dreading next year's taxes. Last time I moved between states I used H&R Block in person because I was too intimidated to try it myself.

TaxSlayer handled the partial-year residency surprisingly well. It walks you through each state separately and asks specific questions about when you moved, your income earned in each state, and taxes already withheld. It then correctly apportioned my income between the two states based on my residency dates. The system also caught that I had paid too much tax to my previous state through withholding and calculated the refund correctly. For the new state, it properly applied their part-year resident rules. The whole process was much less intimidating than I expected, and I'd definitely recommend it over paying the high fees at H&R Block in-person.

Aren't there income limits for contributing to Coverdell accounts though? I remember looking into this and there was some cutoff that made me ineligible.

Yes, you're right about the income limits for Coverdell accounts - contributors can't have a modified adjusted gross income above $110,000 for single filers or $220,000 for joint filers. This is a significant limitation compared to 529 plans, which generally don't have income restrictions. A lot of people overlook this requirement and end up with excess contributions that can trigger penalties. It's definitely something to check before going this route.

But wouldn't the mom need to actually claim the daughter as a dependent to get that credit? Sounds like the daughter is OP's dependent, not the grandmother's.

3 Wait, seriously? I have an old Traditional IRA with about $30k in it from a 401k rollover years ago. I just did a $6k contribution to a new Traditional IRA and converted it thinking it would be tax-free. Am I going to owe taxes on most of that conversion? Is there any way to fix this after the fact?

8 Unfortunately, yes, you'll likely owe taxes on most of the conversion because of the pro-rata rule. With $30k in existing traditional IRA funds and a new $6k non-deductible contribution, only about 16.7% ($6k/$36k) of any conversion would be tax-free. There's not much you can do to fix it after the conversion has happened, but for future reference, some people with existing traditional IRA balances first roll those into a current employer's 401k (if the plan allows it) to clear the decks before doing backdoor Roth conversions. That way you avoid the pro-rata calculation entirely. But that would have needed to be done before the conversion.

16 I had the same issue! You need to make sure you're properly filling out Form 8606. In FreeTaxUSA, after entering your non-deductible contribution and the conversion, go to "Other Tax Forms" and select Form 8606. Make sure line 2 shows your non-deductible contribution amount, which establishes your basis. The software should then calculate correctly that you don't owe taxes on the conversion.