Do you know if I can change the withdrawal date each month? My paychecks come on different days depending on the month.

When you set up a direct debit installment agreement with the IRS, you can choose a monthly payment date that works best for you - the 1st, 8th, 15th, or 22nd of each month. Unfortunately, you can't change the date each month - you have to pick one consistent date. Most people pick a date that's a few days after their typical paycheck arrives. If your pay schedule varies that much, you might want to consider keeping a buffer in your account or choosing a date later in the month.

Yes, there's a setup fee, but it's lower if you choose direct debit vs. other payment methods. I think it's around $31 for direct debit if you set it up online. Regular installment agreements have higher fees (like $149). If your income is below a certain threshold, you might qualify for a reduced fee or fee waiver. Check out Form 13844 for fee reductions based on income.

Does anyone know if minivans like the Toyota Sienna or Honda Odyssey qualify? They have tons of cargo space but I'm not sure about the weight requirements.

Most minivans don't qualify for the heavy vehicle Section 179 deduction because they typically have a GVWR under 6,000 pounds. The Toyota Sienna has a GVWR around 5,500-5,600 pounds, and the Honda Odyssey is similar. You need to look for vehicles specifically marketed as trucks or SUVs with a GVWR over 6,000 pounds. Even then, make sure the vehicle is primarily used for business (>50%) and keep detailed mileage logs. Also, the business usage percentage in the first year determines how much of the purchase price you can deduct under Section 179.

The 2023 limit for SUVs is $28,900, but you can still take bonus depreciation on the remaining amount, so you might still be able to deduct most of the purchase price in year 1 depending on your situation.

Is the QBI deduction automatic or do you have to do something special to claim it? I've been selling custom t-shirts online and made about $12k last year but my tax software never mentioned this.

It's not automatic - you need to specifically claim it on your tax return. Many basic tax software packages don't prominently feature it or explain it well. You should definitely look into it for your t-shirt business! With $12k in side hustle income, assuming reasonable expenses, you could potentially save hundreds in taxes. The deduction is calculated on your net profit (after expenses), not gross income. The calculation can get complex if your total income is above certain thresholds, but for most side hustlers making under $170k (single) or $340k (married), it's pretty straightforward - 20% of your net business income.

Yes, it's legit but be careful. I used this for my real estate side business last year with a Ford Explorer. The vehicle MUST be used more than 50% for business purposes, and you need to document that usage carefully. Also, they've reduced the bonus depreciation for 2023 (it was 100%, now it's 80% and decreasing by 20% each year). Make sure your side hustle income is substantial enough to justify this - the IRS does flag returns with large vehicle deductions relative to business income.

Good point about investment income! I do have a small amount of dividends (about $320) and some interest income (around $180) that I didn't include in my manual calculation. That definitely explains part of the difference. Do you know if student loan interest deduction reduces MAGI for the EV credit calculation? I paid about $900 in student loan interest last year.

Student loan interest is one of those deductions that gets added back when calculating MAGI for most tax credits, including the EV credit. So while it reduces your AGI, it doesn't reduce your MAGI for this purpose. So the $500 in investment income you mentioned plus adding back your IRA deduction and student loan interest deduction would explain why TurboTax is calculating a higher MAGI than you expected. It sounds like their calculation is likely correct based on everything you've shared.

I claimed it last year! The credit worked exactly as advertised. Just make sure the dealer provides the proper certification that the vehicle qualifies. Not all used EVs qualify - there are price limits ($25,000) and the vehicle can't be more than 2 years old from when you purchase it. Also, double check the VIN - some dealers will try to sell you a vehicle that's already had the credit claimed on it before (which would make it ineligible).

Thanks for the info! I didn't realize there was a $25,000 price cap on the vehicle itself. That definitely limits the options. Did you have any trouble with the MAGI calculation part when you filed?

Thanks for mentioning this! I hadn't even heard of the HCTC before. Do you know where I should look to see if I qualify? Is this something I'd need to apply for in advance, or is it just claimed when filing taxes?

The HCTC is claimed when you file your tax return, so you don't need to apply in advance. However, the program has changed over the years and eligibility can be complicated. Your best resource is the IRS website section on HCTC eligibility. Generally, it's designed for people receiving Trade Adjustment Assistance benefits or pension benefits from the Pension Benefit Guaranty Corporation. Standard FMLA alone usually doesn't qualify, but if your leave is related to certain qualifying situations, it might. It's worth investigating since the credit can cover 72.5% of premiums in some cases.

This is solid advice. My company's insurance was $1100/month but COBRA was somehow only $950. Something about administrative fees being calculated differently. Definitely check both options.