Did you find it difficult to negotiate that part-time with benefits arrangement? I've been thinking about trying something similar but worried companies would just laugh at the idea. Any tips on how to approach it?

I was definitely nervous about asking! The key was approaching companies that already advertised flexible work arrangements rather than trying to convince traditional employers. I researched which companies in my field were rated well for work-life balance and specifically mentioned I was looking for part-time professional work with benefits during interviews. It took about 6 interviews before I found the right fit. I also gained leverage by offering to work reduced hours for slightly reduced pay percentage (I work 25 hours but get paid 70% of full-time salary). The company saves some money while still getting an experienced professional, and I get the flexible schedule plus benefits I needed.

I'd never thought to check the library for financial resources. What kinds of databases did they have access to? Was it mostly general info or could you get personalized advice too?

My employer actually picks the plan and pays the premium directly to the marketplace. They just give me this weird separate W-2 at the end of the year showing what they paid. So based on what you're saying, that would be the first scenario? And does that change how I should enter it in TurboTax?

Yes, if your employer selects and pays for the plan directly, that's more like traditional employer-provided coverage, just administered through the marketplace instead of a group plan. In this case, you would enter the W-2 normally in TurboTax, and the software should recognize that these amounts aren't subject to federal income tax. Just make sure when entering the W-2 that you include any codes shown in Box 12, as these codes tell the tax software how to treat different types of income. If your W-2 has code DD in Box 12, that explicitly marks the amount as employer-provided health coverage, which is not included in taxable income.

I've had issues with TurboTax too. Try checking if there's a code in Box 12 of your W-2 (like DD for employer health coverage). Sometimes TurboTax doesn't recognize these codes if you don't enter them exactly. Also worth reviewing the "Review" section before filing to make sure the taxable income calculation looks right.

Thanks for the tip! I'll definitely double check the Box 12 codes this time. I think last year I might have skipped over that part since I didn't know what those codes meant. Really appreciate the advice!

Oh no, I didn't even think about that! Is there some way she can plan these withdrawals to minimize the tax impact on her Social Security? She really relies on that money.

Your aunt might want to carefully plan her withdrawals to stay under the threshold where Social Security becomes taxable if possible. For a single filer, Social Security can become partially taxable when combined income exceeds $25,000. She should also check if her state taxes Social Security benefits - some states do while others don't. Given her situation, she might want to talk to a tax professional who specializes in retirement planning for low-income individuals. Some communities offer free tax counseling for seniors through programs like VITA or Tax-Aide that could help her plan this out.

The 10-year rule doesn't apply the same way to all inherited accounts though. If the original owner had already started RMDs, the beneficiary might need to continue taking annual distributions AND empty the account within 10 years. It got even more complicated with the SECURE 2.0 Act.

Are those still deductible? I thought the Tax Cuts and Jobs Act eliminated unreimbursed partnership expense deductions? My accountant told me they're not deductible anymore for 2023 taxes.

You're mixing up two different things. The TCJA eliminated unreimbursed employee business expenses (that used to be on Schedule A), but unreimbursed partnership expenses reported on K-1 are still deductible. If you're a partner and you pay for business expenses out of pocket (without being reimbursed), these expenses can still be deducted on your Schedule E. The key is that they must be properly reported on your K-1 in box 13 with code W. This is different from employee expenses - it's because as a partner, you're not an employee of the partnership.

Could you explain more about why a negative amount creates a taxable gain? I think mine shows negative but I didn't report anything extra and now I'm worried.

Does your accountant take into consideration things like health insurance, Social Security survivor benefits, inheritance laws, etc? The tax piece is just one part of the financial picture of marriage. Curious how those other factors weighed in.

Yes, we did a comprehensive analysis. For our specific situation (both have good employer health insurance, substantial retirement savings, and have proper estate planning with attorneys), the tax penalty outweighed other benefits by a significant margin. We're fortunate to be in a state that has strong domestic partnership protections. We don't have children and have advanced healthcare directives in place. It's definitely not a one-size-fits-all decision, but the tax impact was too substantial for us to ignore.

This is an excellent point that many people miss. When you combine incomes but have the same deductions, those deductions have less "power" to reduce your overall tax liability.