Does anyone know if jury duty pay that you give to your employer counts as an above the line deduction? My company requires us to turn over jury duty pay but still pays our regular salary while serving. I thought I saw somewhere this was deductible above the line.

Great question! Above the line deductions are definitely worth understanding, especially with your side business. The key thing to remember is that these deductions reduce your Adjusted Gross Income (AGI), which is line 11 on Form 1040, and you get them regardless of whether you itemize or take the standard deduction. For your situation specifically: Yes, your self-employed health insurance premiums, IRA contributions, and student loan interest are all above the line deductions. Since you have a side business, you'll also want to look into the qualified business income (QBI) deduction under Section 199A - it can be huge for small business owners. One thing people often miss is that your business expenses from the side gig go on Schedule C and reduce your business income before it even gets to your main tax return. Then any remaining self-employment tax gets a 50% deduction above the line. The "above vs below the line" terminology comes from where these appear on your tax return - above the line means they reduce your AGI, while below the line deductions (like itemized deductions) only reduce your taxable income after AGI is calculated. Lower AGI can help you qualify for more credits and deductions that phase out at higher income levels.

Has anyone ever had success getting the withholding returned directly from the IRA custodian instead of waiting for tax filing? I had a similar situation last year with Fidelity and after enough complaining they actually reversed the transaction completely and reprocessed it correctly as a return of contribution with no withholding.

This is a frustrating situation but definitely fixable! You're right that this should have been processed as a return of contribution rather than a regular distribution. The 20% withholding was unfortunate but standard procedure when custodians process regular withdrawals. A few key points to help you navigate this: 1. **Timing matters**: Since this was a same-year contribution and withdrawal, you have a good case for treating it as a return of contribution, which would avoid the 10% early withdrawal penalty. 2. **Documentation is crucial**: When you file your 2025 return, include a clear statement explaining that this was intended as a return of excess contribution made in the same tax year. Be specific about the dates of both the contribution and withdrawal. 3. **Check your 1099-R**: Look at Box 7 for the distribution code. If it shows "1" (early distribution), you might want to contact your IRA custodian to see if they can issue a corrected form with code "8" (return of contribution). This could save you headaches later. 4. **The withholding will come back**: You'll get that $1,400 back when you file your return - it will be credited as taxes paid, likely resulting in a larger refund. The silver lining is that this is a common enough situation that tax software and preparers know how to handle it properly. Just make sure to document everything clearly!

idk why everyone says its good news, i had those codes show up 3 times and still no refund 🤡

Code 571 means they lifted the freeze on your account and 846 is the actual refund issuance! Based on your transcript, looks like the 810 freeze from March got resolved. The 846 date is usually pretty accurate - that's when it should hit your account. After 8+ months of waiting, you're finally in the clear! 🎉 Just make sure your direct deposit info is still current in case they need to update anything.

Something important to remember about AMT and self-employment income: the self-employment tax deduction (the employer portion of FICA taxes) doesn't get added back for AMT purposes. This is one adjustment that actually works in your favor! Also, if you're using Section 179 expensing for business equipment, be aware that AMT might require you to depreciate those assets over a longer period, which affects your AMTI calculation.

Speaking from experience, don't forget to check if you qualify for the AMT exemption phaseout with your combined income. When I added my side hustle to my W2 job last year, it pushed me into the phaseout range which really screwed up my calculations. For 2025, the exemption begins phasing out at $1,079,800 for married filing jointly and $539,900 for single filers. The exemption reduces by 25 cents for each dollar of AMTI above these thresholds.

My sister and I both got these notices. She used taxr.ai to figure out what was up and got her refund 2 weeks later. Something about her W2 triggering a review. Im gonna try it too tbh

Got mine about 10 days ago too! Super frustrating because I was counting on that refund for some bills. From what I've read online it's happening to a lot of people this year - seems like they're being extra cautious with reviews. Hang in there, hopefully it doesn't take the full 120 days 🤞