I find it so frustrating that the IRS doesn't make these things crystal clear in their publications. It's like they intentionally make it complicated. I missed out on claiming the extra amount for my spouse for TWO YEARS before figuring this out! Cost us over $700 in higher taxes...

As someone who's been through this confusion myself, I can confirm what everyone has said - you absolutely get $1,500 for EACH spouse over 65. So your calculation of $30,700 total ($27,700 + $1,500 + $1,500) is correct! The IRS really should make this clearer in their publications. I think the confusion comes from the way they phrase it as "additional standard deduction for taxpayers 65 and older" without explicitly stating it's per person on joint returns. But yes, each qualifying spouse gets their own additional amount. One tip: if you're using tax software, double-check that it calculated this correctly. Most do it automatically when you enter birth dates, but it's worth verifying the final numbers match what you expect. And as others mentioned, definitely review your prior year returns to make sure you didn't miss out on claiming the full amount you were entitled to.

Thought I'd chime in - I bought a new car last year too and tried to claim it on my taxes. H&R Block software actually walked me through the whole process for my Kia EV6. Needed the VIN, purchase date, and sale documents showing the purchase price. The most important document was the manufacturer's certification stating the battery capacity, which determines the credit amount. The dealer should have given you this, but if not, call them and ask specifically for the "EV tax credit certification" for your Prius Prime.

Just want to add another perspective here - I work in tax preparation and see a lot of confusion about vehicle tax benefits. The key thing to understand is that there's a big difference between a tax deduction (which reduces your taxable income) and a tax credit (which directly reduces the tax you owe). For personal vehicle purchases like yours, you're not getting a deduction - you're potentially eligible for a credit if it's an electric or plug-in hybrid vehicle. The Clean Vehicle Credit can be worth up to $7,500, but for plug-in hybrids like the Prius Prime, it's typically less based on battery capacity. Also worth noting - if you bought the car from a dealer in 2024, you might have had the option to transfer the credit to the dealer at the point of sale for an immediate discount instead of waiting to claim it on your tax return. Check your purchase paperwork to see if this happened, because if the dealer already claimed it, you can't claim it again on your return. The documents you'll need are your purchase agreement with VIN, and make sure your specific model is on the IRS qualified vehicle list. The rules have changed several times recently, so definitely verify current eligibility before filing.

This has been an incredibly thorough discussion! As a CPA who specializes in small business taxation, I want to add a few key points that could significantly impact your decision. First, consider the Alternative Minimum Tax (AMT) implications. Large depreciation deductions from cost segregation can sometimes trigger AMT, which could reduce your expected tax benefits. This is especially important if you have significant other income sources. Second, regarding the mixed-use concern between your existing sole proprietorship and new importing business - consider whether it makes sense to establish a formal rental arrangement between the businesses and yourself as the property owner. This creates cleaner documentation and can actually provide more flexibility in how you allocate costs and claim deductions. Third, don't overlook the potential for claiming bonus depreciation on qualifying components. Under current tax law, certain improvements to business property can qualify for 100% bonus depreciation in the first year, though this is being phased down. Items like security systems, specialized HVAC, and certain types of qualified improvement property might qualify. Finally, I'd strongly recommend running a detailed cash flow analysis comparing the garage project to leasing commercial space. Factor in the opportunity cost of the construction capital, ongoing property tax increases, maintenance costs, and the depreciation recapture tax if you sell the property. Sometimes the flexibility and immediate deductibility of commercial lease payments provides better long-term value than ownership. The tax benefits are attractive, but make sure the underlying business case is solid regardless of the deductions.

This thread has been incredibly educational! I'm in a similar situation with my home-based business and was considering a detached workshop/storage building. One thing I wanted to add based on my research: if you're importing products, make sure to factor in the potential need for climate-controlled storage. Electronics and many consumer goods can be sensitive to temperature and humidity fluctuations, which could affect your inventory value and insurance coverage. This might influence your HVAC decisions during construction and could potentially qualify more of those systems for the faster depreciation schedules mentioned earlier. Also, regarding the zoning concerns several people raised - I found it helpful to check not just with the building department, but also with your HOA (if applicable) and state/local business licensing departments. Some states have specific requirements for businesses that handle imported goods, and you want to make sure your residential location won't create compliance issues down the road. The cost segregation strategy everyone's discussing sounds really valuable. Based on what I've learned, it seems like planning this approach from the beginning of construction (rather than trying to retroactively apply it) makes a huge difference in the documentation quality and potential tax benefits. Thanks to everyone who's shared their experiences - this is exactly the kind of real-world insight that's hard to find elsewhere!

Has anyone used the Medical Expense Statement tool in TurboTax for this? I'm in a similar situation but confused about how to enter my mom's expenses that I paid versus what she paid herself.

Just wanted to add something that helped me when I was in this exact situation last year with my father's medical expenses. Make sure you're tracking not just the obvious medical costs, but also things like: - Medical equipment you bought for them (blood pressure monitors, diabetic supplies, etc.) - Transportation costs to medical appointments (mileage or actual costs) - Prescription glasses and hearing aids - Any dental work you paid for directly I found about $1,800 in additional deductible expenses I almost missed because I was only thinking about hospital and doctor bills. Also, if you're using a Health Savings Account (HSA) or Flexible Spending Account (FSA) to pay for any of their expenses, those don't count toward your itemized deduction since they're already tax-advantaged. One more tip - if you're close to the 7.5% AGI threshold, consider timing some medical expenses. For example, if you know your parents will need dental work or new glasses, paying for it in December versus January could make the difference in whether you get any deduction at all.

How do you even figure out what you can deduct with a 1099? My friend says I can write off part of my rent since I work from home sometimes??

As someone who's been freelancing for about 5 years now, I can tell you that 1099-NEC taxes are definitely manageable once you understand the basics. The biggest mistake I made my first year was not tracking my business expenses properly - things like software subscriptions, equipment, internet bills, and even mileage for client meetings can all be deducted. My advice is to open a separate business checking account and put 25-30% of each payment into a savings account immediately for taxes. That way you won't be scrambling come tax time. Also, keep receipts for everything work-related throughout the year. It's much easier than trying to reconstruct your expenses in April!