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Does anyone know if vehicle registration fees count toward the SALT cap? I pay almost $900 a year and TurboTax has a special section for this, but I'm not sure if it's part of the $10,000 limit.
This is really helpful info everyone! I've been wrestling with SALT deductions too since moving from a low-tax state to California. One thing I learned the hard way - if you have estimated tax payments, make sure you're allocating them correctly between federal and state portions. I was accidentally including my federal estimated payments in my SALT calculation and it threw everything off. Also, for anyone dealing with multi-state situations (like I was when I moved mid-year), each state's taxes still count toward the same $10,000 federal cap. So if you paid $6,000 to one state and $5,000 to another, you're right at the limit even though you dealt with two different tax systems. The timing of property tax payments can be tricky too - it's based on when you actually paid, not when the tax year was for. So December 2024 property tax payments go on your 2024 return even if it's for the 2025 tax year.
Have you checked your IRS transcript online? Sometimes it shows processing steps that WMR doesn't reveal. The combination of self-employment and credits often triggers what the IRS lovingly calls "additional review" (their euphemism for "we're going to take our sweet time"). š
Been in this exact situation for the past month! Filed February 10th with 1099-NEC income, CTC, and EIC. Finally got my refund deposited yesterday (March 6th) - so about 24 days total. My transcript updated with codes 846 and 571 about a week before the actual deposit hit my account. The waiting is absolutely brutal, especially when you're getting daily "any updates?" questions from family. What helped my sanity was checking my transcript instead of WMR - at least the transcript gives you SOME indication of movement even when WMR is stuck on that useless first bar. Hang in there - seems like most self-employed filers with these credits are hitting the 3-4 week mark this year. Your refund is coming! š¤
I'm genuinely curious why the $16,000 limit for QPA hasn't been adjusted for inflation. If it was set in the 1980s, that would be equivalent to around $45,000-50,000 today. Seems like the government has just let this deduction become useless for most actual performing artists.
It's because performing artists don't have a strong enough lobby in Washington. For comparison, look at how much the estate tax exemption has increased over the years - that benefits wealthy individuals who have substantial political influence.
The $16,000 AGI limit is indeed frustratingly outdated. It was established in 1986 and hasn't been adjusted since - that's nearly 40 years without any inflation adjustment! In today's dollars, that $16,000 would be worth about $44,000. The practical reality is that very few professional performing artists can survive on less than $16,000 annually, which makes this deduction almost useless for the people it was intended to help. Meanwhile, the standard deduction has increased regularly, and many other tax provisions get annual inflation adjustments. There have been some proposals in Congress over the years to either increase the limit or eliminate it entirely for QPA status, but they haven't gained enough traction. The performing arts community would benefit from more organized advocacy on this issue, as it affects thousands of working musicians, actors, and other performers who are caught in this outdated income trap. Until then, your best bet is exactly what others have suggested - maximize your legitimate Schedule C deductions for 1099 income and work with venues when possible to ensure proper worker classification based on the actual nature of your working relationship.
This is such valuable context, thank you! It's mind-blowing that a tax provision specifically designed to help working artists has been left to wither away for 40 years. $44,000 in today's money makes SO much more sense as a threshold. I'm curious - do you know if there are any current bills in Congress addressing this? It seems like with the gig economy exploding and more people doing freelance creative work, this would affect way more people now than it did in 1986. Maybe it's time for performing artists to band together and push for an update to this ridiculously outdated limit. In the meantime, I'll definitely focus on maximizing my Schedule C deductions for the 1099 work. At least that's something concrete I can do while we wait for Congress to catch up to reality!
I spent 6 hours trying to understand mine last week. Finally broke down and used taxr.ai - best decision ever. Explained everything in plain English and even told me when Id probably get paid.
I feel your pain! I was in the exact same situation a few weeks ago - staring at my transcript like it was written in hieroglyphics. The waiting game is the absolute worst, especially when you really need that refund. Have you tried checking the "as of" date on your transcript? That usually gives you a clue about when they last updated your account. Also, if you see any 971 notices, make sure to check your mail because they might have sent you something important. Hang in there - I know it's frustrating but your refund will come through!
Heather Tyson
Have you verified if you're affected by the PATH Act? This legislation requires the IRS to hold refunds involving EITC or ACTC until at least February 15th, causing significant delays for qualifying taxpayers. Did you claim either of these credits on your 2023 return?
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Ivanna St. Pierre
ā¢Thanks for bringing this up! I didn't know about the PATH Act holding things up. Explains a lot.
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ThunderBolt7
I feel your frustration - filed mine on February 14th and still waiting too! The uncertainty is the worst part, especially when you're budgeting around that refund. One thing that helped ease my anxiety was setting up IRS account online and checking my transcript weekly instead of obsessing over WMR daily. The transcript often shows activity before WMR updates. Also found that calling the automated refund hotline (1-800-829-1954) sometimes gives slightly different info than the website. Hang in there - based on what others are sharing, it sounds like many February filers are still in the same boat!
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