Don't forget that as a sole proprietor you can deduct half of your self-employment tax on your 1040! It's an adjustment to income so you get it even if you don't itemize deductions. A lot of people miss this one.

As someone who went through this exact same situation last year (RN with a photography side business), I totally get the confusion! Here's what I learned the hard way: The key is understanding that your W2 withholding might already be covering more than you think. Don't just look at raw percentages - you need to consider your effective tax rate across both income streams. One thing that helped me was doing a "tax projection" using Form 1040ES worksheets instead of relying on online calculators. Take your expected total income from both sources, subtract your standard deduction, and calculate the tax on that amount. Then subtract what's already been withheld from your nursing paychecks to see what you actually still owe. Also, make sure you're maximizing business deductions! As a personal trainer, you can likely deduct equipment, continuing education, professional liability insurance, mileage to clients, and even a portion of your phone bill if you use it for business. These deductions can significantly reduce your taxable business income. The 35% you're setting aside is probably conservative, which is good! Better to overpay and get a refund than underpay and face penalties. But you might find you need less once you factor in all legitimate deductions.

PSA: ALWAYS KEEP COPIES OF YOUR TAX DOCS FOR AT LEAST 3 YEARS!!!

You can also try calling the IRS Taxpayer Assistance Center at 1-877-777-4778 if you're having trouble with the online account verification. They can mail you the transcript or help you access your account over the phone. It might take a few weeks to get it by mail, but it's a reliable backup option when the online system isn't working for you.

I'm dealing with a Hurricane Ian assessment myself - $5,200 from my condo board that I received just last week. This thread has been absolutely incredible for understanding what I thought was a completely hopeless tax situation! Reading through everyone's detailed experiences, I now have a clear action plan: send a formal written request directly to the HOA board (bypassing the property manager) asking for a detailed breakdown that separates unit-specific damage from common area repairs. That key phrase about "tax documentation under IRS requirements for federally declared disasters" seems to be what gets boards to take these requests seriously. What's really encouraging is seeing how many people have successfully gotten 15-25% of their assessments classified as unit-specific damage for items like windows, sliding doors, balcony railings, and front doors. Even at the lower end, that could provide meaningful tax relief to help offset this unexpected financial burden. I'm planning to reference IRS Publication 547 in my formal request to demonstrate this is backed by official guidance. My building had extensive balcony and sliding door damage from Ian, so I'm cautiously optimistic about getting a reasonable unit-specific allocation. The real game-changer for me has been learning about the distinction between items that qualify for immediate casualty loss deduction versus those that just add to cost basis. Thanks to everyone who shared their real-world experiences - this community knowledge has been infinitely more valuable than trying to decode IRS publications alone. Sending my board request this week!

I'm in almost the exact same boat - just received a $6,800 Hurricane Ian special assessment from my condo board yesterday and was completely overwhelmed until I found this incredibly helpful thread! Reading through everyone's experiences has given me so much hope. The process seems straightforward: send a formal written request directly to the HOA board (not the property manager) asking for a detailed breakdown of unit-specific damage versus common area repairs, and use that key phrase about "tax documentation under IRS requirements for federally declared disasters." What really encourages me is seeing how cooperative most HOAs have been once they understand this is for legitimate tax purposes. The fact that people are getting 15-25% of their assessments classified as unit-specific damage (windows, doors, balconies, etc.) that can potentially be deducted as casualty losses could mean real tax relief. My building had significant sliding door, window, and balcony railing damage from Ian, so I'm cautiously optimistic about getting a decent unit-specific allocation. Even if it's only 15% of my assessment, that's over $1,000 that could potentially be deducted. I'm planning to reference IRS Publication 547 in my formal request and send it to the board this week. Thanks to everyone who shared their real experiences - this community has transformed what felt like an impossible financial situation into something manageable with a clear path forward!

I've been following this discussion and wanted to add my perspective as someone who just went through the entire process of purchasing a 2024 Wrangler 4xe and claiming the tax credit. First, I want to echo what others have said about getting that manufacturer certification - it's absolutely critical and many dealerships don't automatically provide it. I had to specifically ask for it and the finance manager had to call their corporate office to figure out what form I needed. Regarding the $3,750 credit amount, that's exactly what I received. What I found helpful was using the IRS eligibility tool mentioned earlier to verify my specific VIN before finalizing the purchase. It gave me peace of mind that I wasn't making assumptions. One thing I haven't seen discussed much is the impact on your overall tax strategy. The credit is non-refundable, so if your total tax liability is less than $3,750, you won't get the full benefit. I learned this the hard way - my tax liability was only about $2,200, so I could only use $2,200 of the credit. The remaining $1,550 just disappeared. This is where services like the ones mentioned earlier could really help people avoid that mistake. For anyone considering this purchase, I'd strongly recommend calculating your expected tax liability first. If you typically get refunds or have low tax liability, the lease option might actually be better since the leasing company can use the full credit and pass the savings to you through lower payments. The vehicle itself has been great - I'm averaging about 20 miles of electric range in mixed driving conditions, which covers most of my daily needs. Combined with the tax savings I was able to use, it made the purchase worthwhile even though I couldn't capture the full credit value.

This thread has been incredibly informative! As someone who's been on the fence about purchasing a 2024 Wrangler 4xe, reading through everyone's real-world experiences has been more valuable than all the official IRS documentation I've struggled through. The key takeaways I'm getting are: 1. Get the manufacturer certification before leaving the dealership (seems like this is a common issue) 2. Understand your actual tax liability to know if you can use the full $3,750 credit 3. Consider leasing if you have low tax liability, since the leasing company can pass through the full credit value 4. Use the IRS VIN lookup tool to confirm eligibility for your specific vehicle 5. Factor in state incentives and sales tax considerations One question I haven't seen fully addressed - for those who went the leasing route, how transparent were dealers about how much of the credit benefit they were passing through to you? I'm concerned about dealers potentially keeping some of that $3,750 value for themselves rather than passing it all through as payment reductions. Also, has anyone had experience with Jeep's own financing vs third-party lenders when it comes to the point-of-sale credit transfer? I'm wondering if going through Stellantis Financial might make the process smoother. Thanks to everyone who's shared their experiences - this community discussion has been more helpful than hours of trying to get answers from dealerships and government websites!

I setup an LLC with my brother last year and wish I'd gotten better advice from the start! Make sure they file for an EIN immediately if they haven't already. Also very important - make sure they have a proper operating agreement that spells out profit sharing, voting rights, what happens if someone wants to leave, etc. This has tax implications too!

Great advice from everyone here! As someone who's helped several young entrepreneurs navigate LLC taxation, I'd add one more consideration: make sure your daughter and her partner discuss what happens with estimated quarterly tax payments. Since they'll likely owe self-employment tax on their profits (whether they take draws or not with partnership taxation), they may need to make quarterly estimated payments to avoid penalties. The IRS generally requires quarterly payments if you'll owe $1,000 or more in taxes. For their social media consulting business, income might be irregular - some months might be great while others are slower. I'd recommend they set aside about 25-30% of their profits in a separate tax savings account to cover both income tax and self-employment tax obligations. This habit will serve them well regardless of which taxation method they ultimately choose. Also seconding the advice about getting that operating agreement in place ASAP - it should specify how profits and losses are allocated, which directly impacts their individual tax situations!