Quick question - does anyone know if leasing avoids this whole tax credit problem? I've heard that with leases, the leasing company can take the tax credit and pass the savings on to you in the form of a lower monthly payment, regardless of your tax situation. Is that true for 2024?

I was in exactly your situation a few weeks ago - AGI around $60k and stressed about whether to wait for Tesla's point-of-sale option or just buy now. Here's what I learned after doing a ton of research: With your $65k AGI, you'll almost certainly have enough tax liability to use the full $7,500 credit when you file your 2024 taxes. The standard deduction for 2024 is $14,600 (assuming you're single), so your taxable income would be around $50,400. The tax on that income will definitely exceed $7,500, so you won't lose any of the credit by taking it on your return instead of at point of sale. The real question is cash flow - can you afford the extra $7,500 upfront and wait until next tax season to get it back? If so, I'd say go ahead and buy now. Tesla's pricing has been pretty stable lately, but there's always the risk of price increases if you wait. I ended up purchasing my Model Y in March and claiming the credit on my taxes. No regrets - the peace of mind was worth more than potentially saving a few months of waiting for a point-of-sale option that may or may not come soon.

Has anyone here actually received their sales tax permit deposit back? My state (Florida) promised a refund after 3 years too, but when the time came they claimed I had filed one of my monthly returns 2 days late in year 2, so they kept the entire $500 deposit. Wondering if this is common practice.

Great question! I went through this exact same situation with my LLC last year. The advice about treating it as an asset is spot on - don't expense it initially since you're expecting to get it back. I set up a "Deposits - Refundable" asset account in my accounting software and recorded the $500 there. One thing I'd add is to keep really good documentation about the deposit terms and your compliance with the requirements. Take screenshots of your filing confirmations, payment receipts, etc. Some states are pretty strict about the "good standing" requirements and will keep your deposit for minor issues. Also, if you're using QuickBooks, you can set up a reminder for when the 3-year period is almost up so you can proactively follow up on getting your refund rather than waiting for them to process it automatically.

Pro tip for dealing with CP 11 notices: ALWAYS keep a copy of your original tax return handy! I make PDFs of everything before submitting. Makes it so much easier to compare line-by-line with what the IRS is saying when you get one of these notices. Just saved me tons of time figuring out where my math apparently went wrong on my student loan interest deduction.

I went through this exact same situation about 6 months ago! Got my CP 11 notice and immediately panicked thinking I was in huge trouble with the IRS. Turns out it was just a simple calculation error on my Earned Income Tax Credit - I had miscalculated my qualifying income by including some unemployment benefits that shouldn't have been counted. The notice looked really intimidating at first, but once I sat down and compared it line by line with my original return, I could see exactly what they were talking about. The IRS explanation section actually does a decent job of breaking down what they changed, even though the language can be confusing at first glance. I ended up agreeing with their calculation and just paid the $430 difference online through the IRS website. The whole thing was resolved within a week and I haven't had any issues since. Don't stress too much about it - these math error notices are super common and definitely not the same as being audited. Just take your time reviewing the numbers and you'll figure out what happened!

As someone who's been through multiple IRS notices, I want to emphasize that you're handling this exactly right by asking for help and not panicking. The CP2000 notice you received is actually one of the more straightforward ones to resolve. Since you've identified the PayPal income as the likely issue, here are your next steps: 1. **Review the proposed changes carefully** - The letter should show exactly how much additional tax, interest, and penalties they're proposing. 2. **Gather your records** - Pull together any documentation about that translation work, including PayPal statements, any business expenses you had, and records of what you actually earned. 3. **Choose your response** - You have three options: - Agree completely (if their numbers match your records) - Partially agree (if you want to claim business deductions they don't know about) - Disagree (if their information is wrong) 4. **Respond by the deadline** - This is crucial. Even if you need more time to gather information, you can request an extension. The good news is that since this appears to be legitimate unreported income rather than an IRS error, the resolution should be straightforward. Just make sure to respond within the timeframe given, and don't let the tax terminology intimidate you - the IRS forms usually have clear instructions for each option.

I've been following this thread and wanted to add some perspective as someone who works in tax preparation. The advice here has been really solid - Miguel, you're absolutely on the right track with identifying that PayPal income as the issue. One thing I'd emphasize is to keep detailed records of your response. When you send in your partial agreement (which I'd recommend given those business expenses), make copies of everything and keep a timeline of when you sent it. The IRS can sometimes be slow to process responses, and having documentation helps if you need to follow up. Also, since English isn't your first language and tax terminology can be confusing even for native speakers, don't hesitate to have someone review your response before you send it. Many community centers and libraries offer free tax help during filing season, and they might still have volunteers available to help review IRS correspondence. The key thing is that you're handling this proactively instead of ignoring it. That puts you way ahead of people who just panic and do nothing. You've got this!

turbotax is such a scam with there fees fr fr 🤮

Make sure u keep checking ur transcript every week. amendments can take forever but sometimes they randomly process faster then expected