Wait really? I can still make charitable donations now that count for 2023? Does this work if I take the standard deduction or only if I itemize?

This only works if you itemize your deductions. If you're taking the standard deduction, additional charitable contributions won't help reduce your taxes. The standard deduction for 2023 is $13,850 for single filers, so your total itemized deductions (including charitable contributions, mortgage interest, state and local taxes up to $10,000, etc.) would need to exceed that amount to make itemizing worthwhile. For your 2023 taxes, there's unfortunately no above-the-line charitable deduction available for those taking the standard deduction. That was a temporary COVID provision that has expired.

Thanks for the rental property tips! I actually did quite a few visits last year but wasn't tracking mileage. Can I estimate it now based on my address and the property address for those trips I know I made?

You can use a reasonable estimate based on the distance between your home and the rental property multiplied by the number of trips you can substantiate. Just be prepared to justify those trips if asked - having calendar entries, texts with tenants, or receipts from the same days as your visits can help establish that you actually made those trips. For future reference, it's best to keep a contemporaneous mileage log with dates, starting/ending mileage, and the purpose of each trip. Many people use smartphone apps for this now, which makes it much easier to track.

Yes actually I did get short-term disability for about 6 weeks, but it wasn't much (about $3,200). I didn't realize that might count differently! Does disability count as earned income for the child tax credit calculation? I did qualify for the EITC which helped, but was still counting on more from the child tax credit since I got the full amount last year.

Short-term disability payments generally don't count as earned income for purposes of the child tax credit calculation. Earned income typically includes only wages, salaries, tips, and net earnings from self-employment. That explains part of your situation. If your W-2 wages were $6,630 but some of your total income came from disability payments, then only the W-2 amount would count toward the earned income calculation for the Additional Child Tax Credit. Good that you qualified for the EITC though - with two children and your income level, that can be a significant help.

You can definitely file an amended return using Form 1040-X, but there's a 3-year deadline from the original filing date. So if you're talking about last year's taxes, you have plenty of time. Just make sure you have documentation for everything and be prepared for a long wait - amended returns can take 16+ weeks to process right now.

That's an interesting idea I hadn't considered! My friend actually has some web design experience that could help my online store. Would I need to file any special paperwork if I paid him as a contractor? And would this potentially impact any benefits he currently receives?

If you pay him as a contractor and it's $600 or more in a year, you'll need to issue a 1099-NEC form to both him and the IRS. It's pretty straightforward - you'll need to get him to fill out a W-9 form first to collect his tax information. As for benefits, that's definitely something to consider. Earned income could potentially impact certain government benefits he receives, depending on the programs and income thresholds. This is something he should look into carefully before you proceed, as the extra income might reduce benefits by more than the amount earned in some cases. He might want to check with his benefits counselor to understand exactly how additional income would affect his specific situation.

This is super helpful! Does inventory include shipping costs to get the products to me? Or are those separate expenses?

I do have some investments but nothing on margin. What about tax preparation software? I usually spend around $150 on TurboTax Premium - is that deductible if I itemize?

Unfortunately, tax preparation fees including software like TurboTax aren't deductible for individuals anymore. That deduction was eliminated for tax years 2018-2025 by the Tax Cuts and Jobs Act. However, if you have self-employment income or rental property income, you can still deduct the portion of your tax prep fees related to those business activities on Schedule C or Schedule E. But for regular personal tax preparation, those costs aren't deductible currently.

Bunching works really well! We do this with our church donations - double up in December and January of the same tax year, then skip a year. Our CPA ran the numbers and we save about $1,800 every two years compared to giving the same amount spread evenly. Just make sure your charities are cool with the irregular donation schedule.

This subsidy cliff term is exactly what I've been experiencing but didn't have a name for! Do you know of any good resources that explain this phenomenon more? Or are there any efforts to address this problem in policy discussions?

The "subsidy cliff" is well-documented in healthcare policy discussions - the Kaiser Family Foundation has excellent resources explaining how it works, particularly with ACA marketplace subsidies. Urban Institute and Brookings also have published research on this topic. There are ongoing policy discussions about smoothing these cliffs through more gradual phase-outs of benefits rather than hard cutoffs. Some proposals include expanding premium tax credits, creating public options for various services, or implementing more universal programs that eliminate means-testing altogether. Unfortunately, these solutions require significant policy changes that have been difficult to achieve in our current political environment.

This is partially true but oversimplified. The top 1% pay about 40% of all federal income taxes, while the bottom 50% pay about 3%. The issue isn't that the wealthy don't pay taxes - it's that our tax system has inefficiencies, loopholes, and different treatment for different types of income. Capital gains being taxed lower than wages is a policy choice that benefits investors disproportionately.