Your 82% on the first practice test is actually really encouraging! I just passed the Intuit Academy Tax Level 1 certification last month and started with very similar scores. What I found most helpful was treating each practice test as a diagnostic tool rather than just a score to beat. After each test, I'd spend time categorizing my wrong answers into themes - like "missed filing status rules" or "confused dependency qualifications" - which helped me see patterns I wouldn't have noticed otherwise. The real exam definitely emphasizes scenario-based questions where you need to apply multiple concepts together. For example, you might get a question about a divorced parent claiming a child as a dependent, which requires you to understand both dependency rules AND filing status implications simultaneously. One specific tip that made a huge difference: practice explaining tax concepts out loud as if you're teaching someone else. I found that when I could clearly articulate WHY a particular rule applies in a given situation, I was much better prepared for those complex application questions on the actual exam. Keep working through all the practice tests - you're building a solid foundation, and consistent scores in the mid-80s should definitely give you confidence to schedule the real exam. The format is very similar, just with more nuanced scenarios that test your understanding rather than just recall.

Just wanted to add my perspective as someone who recently completed the Intuit Academy Tax Level 1 certification! An 82% on your first practice test is actually quite solid - I started around 79% and was feeling pretty discouraged initially. What really helped me bridge the gap between practice tests and the actual exam was focusing on the interconnected nature of tax concepts. The real exam doesn't just test whether you know individual rules - it tests whether you can apply multiple rules together in complex scenarios. For example, you might encounter a question about a college student who works part-time, lives with their parents part of the year, and provides some of their own support. This requires understanding dependency tests, filing requirements, education credits, AND earned income rules all at once. I found that creating "decision trees" for complex topics like filing status and dependency determinations was incredibly helpful. Instead of memorizing isolated facts, I mapped out the logical flow of questions you need to ask to reach the right conclusion. Also, don't underestimate the importance of timing practice. The actual exam has that 90-minute limit, and you need to be comfortable making decisions without second-guessing yourself too much. Practice tests under timed conditions really helped me build that confidence. Keep at it - you're definitely on the right track with your methodical approach to working through all the practice tests!

Has anyone here used TurboTax for this kind of situation? I also get a car allowance from my employer AND use my car for my side business. Wondering if TurboTax handles this well or if I need to pay for a CPA this year.

I went through this exact situation last year with my consulting business and W2 job that provided a vehicle allowance. The key thing to understand is that you absolutely CAN claim depreciation on the business portion of your vehicle even while receiving a W2 stipend - they're completely separate tax situations. Here's what worked for me: I calculated my total business mileage (excluding the W2 job miles since that's covered by the stipend) and divided by total miles driven to get my business use percentage. For a $45k truck, if you use it 60% for your own business, you can depreciate 60% of the cost. Keep detailed mileage logs with dates, destinations, and business purposes. I use a simple spreadsheet that tracks: date, starting odometer, ending odometer, destination, and whether it's personal, W2 job, or my business. This documentation is crucial if you're ever audited. One more tip - consider whether your truck qualifies as a heavy vehicle (over 6,000 lbs GVWR) because you might be able to take a larger Section 179 deduction in the first year instead of spreading depreciation over several years. Just make sure your business use percentage stays above 50% to qualify.

Consider looking into Captive Insurance Companies (CICs) if you own a business or have significant business income. Under Section 831(b), you can elect to have your captive taxed only on investment income, not insurance premiums, for captives with less than $2.3M in annual premiums. This allows you to deduct legitimate business insurance premiums paid to your own captive, while the captive accumulates wealth in a tax-advantaged structure. Another often-overlooked strategy is investing in Qualified Opportunity Zone funds, which allow you to defer capital gains taxes by investing those gains into designated economically distressed communities. You get a 10% step-up in basis after 5 years, 15% after 7 years, and if held for 10+ years, any appreciation in the QOZ investment itself is tax-free. For immediate tax relief, look into Cost Segregation studies if you own any commercial real estate or rental properties. This allows you to accelerate depreciation on certain components of buildings (like flooring, lighting, landscaping) from 27.5-39 years down to 5-15 years, creating significant upfront deductions. Finally, consider establishing a Charitable Remainder Trust (CRT) if you have highly appreciated assets. You get an immediate charitable deduction, avoid capital gains tax on the sale of the appreciated assets within the trust, and can receive income payments for life while ultimately benefiting charity.

One strategy that hasn't been mentioned yet is establishing a Solo 401(k) with a profit-sharing component if you have any 1099 income. Even small amounts of consulting or freelance work can open up significant additional retirement contribution space beyond your regular employer 401(k). Also consider tax-efficient withdrawal strategies from existing accounts. At your income level, you might benefit from Roth conversions during lower-income years (if you plan any sabbaticals, career transitions, or early retirement). Converting traditional IRA funds to Roth during a year when your income dips can be incredibly valuable long-term. Don't overlook state tax planning either - depending on where you live, strategies like establishing residency in a no-tax state before retirement or timing certain income recognition around state tax rules can save substantial amounts. Finally, if you're charitably inclined, consider a Donor Advised Fund (DAF). You can make a large contribution in a high-income year to get the deduction, then distribute the funds to charities over multiple years. It's more flexible than direct charitable giving and can help with the "bunching" strategy others mentioned. The key is working with a fee-only financial advisor who specializes in tax planning, not just someone who does basic tax prep. The strategies get much more sophisticated at your income level.

As a newcomer to both this community and tax-loss harvesting, this entire thread has been incredibly educational! I've been hesitant to try these strategies due to wash sale concerns, but the unanimous consensus here from tax professionals and experienced practitioners is really reassuring. What finally made it click for me is understanding that this isn't about correlation at all - it's about actual ownership. When you buy VTI, you literally own thousands of mid and small-cap stocks that don't exist in VOO whatsoever. That's not a subtle difference - it's owning a fundamentally different slice of the market (500 large-cap stocks vs 3,500+ total market stocks). The documentation strategies shared here are fantastic. I love the idea of creating a transaction log with dates, funds involved, key differences, and most importantly, investment rationale beyond tax benefits. It shows the IRS that you're making genuine economic decisions, not just paper shuffling for tax purposes. From what I've gathered, the key factors that make this strategy so defensible are: (1) different underlying indices (S&P 500 vs CRSP Total Market), (2) massively different compositions (500 vs 3,500+ holdings), and (3) legitimate investment reasoning (large-cap focus vs total market exposure). Your swap clearly hits all three criteria. Your 6-7 week holding period seems extremely conservative given the substantial compositional differences, but it provides extra peace of mind. Based on all the professional expertise and real-world success stories shared here, you should feel very confident proceeding with your strategy!

As someone who's been doing tax-loss harvesting for about 3 years now, I can confirm that your VOO to VTI swap is one of the most defensible strategies you can use. The compositional differences are so substantial that it's hard to imagine how anyone could argue these are "substantially identical" securities. What really drives this home is that VTI contains approximately 7x more securities than VOO (3,500+ vs 500). You're not just swapping similar funds - you're moving from large-cap only exposure to total market exposure that includes thousands of mid and small-cap companies that VOO doesn't hold at all. I've done this exact swap multiple times in both directions and have never had any issues. The key documentation I maintain includes: fund fact sheets showing different indices tracked, screenshots of holdings comparisons, and a simple spreadsheet noting my investment rationale (wanting broader market exposure vs focused large-cap exposure). One thing I'd add to all the great advice here - consider setting up alerts to remind yourself when your 30-day wash sale window expires if you want to be extra conservative. Though based on the substantial differences between these funds, most tax professionals would argue the wash sale rule doesn't even apply since they track fundamentally different market segments. Your 6-7 week timeline gives you plenty of cushion, and the professional consensus in this thread is remarkably consistent. You should feel confident proceeding with your strategy and claiming the tax loss.

Don't panic! You absolutely can handle this on your own, especially for your first year. I was in the exact same situation when I started contracting - couldn't find an accountant anywhere and was totally overwhelmed. Here's what I wish someone had told me when I started: **Start simple:** You don't need to figure out S-corps or LLCs right away. Just focus on tracking your income and expenses properly this first year. You can always form an entity later once you understand your income patterns. **Essential first steps:** - Open a separate business checking account (makes everything cleaner) - Start tracking ALL business expenses immediately - home office, internet, phone, computer equipment, software subscriptions, etc. - Set aside 25-30% of every payment for taxes in a separate savings account - Make quarterly estimated tax payments (due dates are Jan 15, April 15, June 15, and Sept 15) **Marriage question:** Don't make major life decisions based on taxes alone! The marriage penalty/benefit depends on both your incomes, so run some scenarios with tax software first. For your first year, I'd recommend using TurboTax Self-Employed or FreeTaxUSA. They're designed for 1099 contractors and will walk you through everything. You can always upgrade to an accountant next year once you have a full year of data and know what questions to ask. You've got this! The first year feels overwhelming, but it gets much easier once you establish good systems.

I completely understand the panic - I went through the exact same thing when I transitioned to 1099 work two years ago! The good news is that while an accountant is definitely helpful, it's not absolutely essential, especially for your first year. Here's my practical advice for getting started: **Immediate priorities:** - Open a separate business bank account ASAP (makes tracking so much cleaner) - Start tracking every business expense from day one - dedicated workspace, internet, phone, equipment, software, professional development - Set aside 35-40% of each payment for taxes (federal + state + self-employment tax) - Sign up for quarterly estimated tax payments to avoid penalties **The S-corp question:** Don't stress about this yet. Generally only worth considering once you're consistently making $80K+ annually. The administrative costs and complexity usually outweigh benefits below that threshold. **Marriage decision:** Never make major life decisions purely for tax reasons! Run some scenarios with tax software to see the actual impact, but remember the "marriage penalty" varies greatly based on both partners' incomes. For your first year, I'd recommend starting with TurboTax Self-Employed or FreeTaxUSA - they're designed specifically for contractors and will guide you through everything. You can always hire an accountant next year once you have a full year of data and better understand your specific situation. The first year feels overwhelming, but you absolutely can handle this! Focus on good record-keeping habits now, and everything else will fall into place.