One thing nobody's mentioned yet is that some charities will actually pick up your car for free, which saves you the hassle of dealing with selling it or negotiating with a dealer. When I donated my old Honda, they came right to my house with a tow truck and took it away - super convenient. Also consider that some charities might give you other perks besides just the tax write-off. The one I used gave me a free hotel voucher as an additional thank you. It wasn't worth a ton, but it was a nice bonus.

Has anyone tried selling the car privately instead of donating or trading in? I know it's more work, but I sold my old Nissan for almost double what the dealer offered for trade-in. Just a thought if maximizing the money is the priority.

Here's a practical tip for those caught in this hobby/business dilemma: keep DETAILED records regardless of which path you choose. I sell handmade jewelry occasionally and decided to establish it as a legitimate business even though sales are minimal. The key is showing your "profit motive" - document your efforts to make the activity profitable over time. Take photos of your workspace, keep receipts organized (I use QuickBooks Self-Employed), maintain a separate bank account, create a simple business plan, and market your creations consistently. Even if you don't show a profit immediately, these efforts demonstrate you're treating it as a business, not a hobby. This has worked for me for 3 tax cycles without issues.

An important point nobody's mentioned yet: If you're selling handmade items, you might also need to check your local laws about business licenses, sales tax collection, etc. Even if the fed gov considers you a "hobby," your state or local gov might still classify you as a business if you're making sales! I found this out the hard way with my stained glass hobby - my state requires me to collect sales tax even on occasional sales. Complete nightmare trying to fix this after the fact!

For what it's worth, your choice between leaving the return as is vs amending really depends on the dollar amount difference. You can estimate the difference by running your info through a tax calculator both ways. If the difference is only a couple hundred bucks, personally I wouldn't bother with the amended return hassle. If it's $1000+, then it's probably worth doing. Remember that amended returns can't be e-filed and take 4-6 months to process right now.

Just adding my experience - I was in this exact situation last year (filed single when I should have been HOH). I filed an amended return and it took almost 7 months to get the additional refund. The IRS is super backed up with amended returns.

One thing nobody's mentioned yet is that having an S-Corp adds a whole layer of complexity beyond just regular business taxes. I learned this the hard way. I started with a regular tax preparer, got audited, switched to a CPA, and still had issues with how my self-employment income vs S-Corp distributions were being handled. Only when I finally consulted with a tax attorney did I learn that my operating agreement had serious flaws that were causing tax problems. For me, the ideal setup has been using a tax attorney to set up the proper legal structure and documentation, then having a CPA handle the regular filings and planning. The attorney costs more but only needed occasional consultation, while the CPA handles the ongoing work.

Honestly depends on your asset size. If your company is making under $1M annually, a good CPA is more than enough. As you grow beyond that, especially if you're acquiring other businesses or have complicated ownership structures, a tax attorney becomes more valuable. Starting with a highly qualified CPA with S-Corp specialization is the most cost-effective approach. If they start saying things like "this is beyond my expertise" or "you might want a legal opinion on this," that's when you bring in a tax attorney for those specific issues. Don't waste money on attorney fees for routine matters a CPA can handle perfectly well. Just make sure you have a CPA who primarily works with businesses, not one who mostly does individual returns and occasionally handles business clients.

I'm a tax pro and I handle these Premium Tax Credit verification requests pretty regularly. Here's what you need to know: 1) Since you're not listed as the preparer, the IRS won't discuss anything with you without a Form 2848 (Power of Attorney). 2) However, your fiancée can simply sign the letter herself and include copies of all requested documents. No POA needed if she's the one submitting it. 3) Make sure you include the EXACT letter they sent her with your response. 4) If there's a reply envelope, use it. Otherwise clearly write her SSN and tax year on everything you send. 5) Keep copies of EVERYTHING and send it certified mail so you have proof of when it was delivered. The Premium Tax Credit verification is pretty routine - just include the 1095-A, Form 8962, and any other supporting docs they asked for. No need to overcomplicate it!

I dealt with this exact situation last year with my wife's return and Premium Tax Credit! The issue was that the 1095-A from the marketplace didn't match what we reported on Form 8962. Since you already have a PTIN, definitely file the 2848. Here's why: If there are any follow-up questions (which happened in our case), you can call the IRS directly instead of having to relay messages through your fiancée. Just make sure on the 2848 you specifically list "Form 1040" and the specific tax year, and also mention "Premium Tax Credit" in the description section. Being specific helps avoid any confusion about what you're authorized to discuss.