This is really interesting, I hadn't heard of this option. Do these loans work for HELOCs too, or just for primary mortgages? And any idea which lenders typically offer them? My credit score is excellent (820+), it's just this stupid DTI issue because of the deductions.

They work primarily for primary and investment property mortgages, but some lenders have started offering HELOCs with bank statement options too. It's less common for HELOCs but definitely exists. Most non-bank lenders offer some version of these programs. Companies like NewRez, Angel Oak, and North American Savings Bank are known for their bank statement loan programs. Credit unions sometimes offer them too. With your excellent credit score, you'd likely qualify for the best rates they offer on these products. I'd recommend talking to a mortgage broker rather than going directly to lenders - brokers will know which specific lenders have programs that fit your situation.

Second this! Manual underwriting is the way to go for self-employed people. When we bought our house, we got denied by three big banks before finding a local credit union that actually took the time to understand my business income. They looked at my profit/loss statements and business bank accounts instead of just my tax returns.

Thanks for mentioning this! We actually did install some grab bars and a walk-in shower about two years ago but I didn't think of that as something tax-related. About how much of his care costs would qualify toward the support test? The in-home aide costs around $4,200/month and we're paying for all of it.

The in-home care costs absolutely count toward the support test! If you're paying $4,200/month, that's over $50,000 per year just for that care, which is substantial. All of that would count toward your support calculation. For the medical modifications, if they were medically necessary (prescribed or recommended by a healthcare provider), they could potentially be deductible as medical expenses if you itemize deductions. However, these would need to exceed a certain percentage of your adjusted gross income along with other medical expenses to get any tax benefit. Alternatively, those costs could be added to the basis of the home if you didn't take the medical deduction, potentially reducing any taxable gain.

What counts as a "major improvement" versus just regular maintenance? Like if he replaced the water heater, does that count?

Thanks for the info! That makes me feel better. Do you know if there's any way to tell which "batch" my return might be in? The IRS site just says "approved" but doesn't give an estimate.

Unfortunately there's no way to see which specific batch your return is in. However, once your return status changes from "Return Received" to "Return Approved," that usually means your refund will be issued within 1-3 business days. After the IRS approves your refund, it typically takes 1-5 business days for your bank to make the funds available to you, depending on your bank's policies. If you check the Where's My Refund tool and it shows "Refund Sent," that means the money has been sent to your bank.

In my experience, filing in February is actually slower than mid-March. The IRS gets swamped with early filers who have all their documents ready in February. I've filed in mid-March the last two years and got my refund within 10 days both times. April is definitely the worst though - everyone rushing to meet the deadline creates huge backlogs.

Thanks for the suggestion! Any specific apps you'd recommend? I'm definitely tired of trying to remember to write everything down, especially when I'm rushing between deliveries.

I've been using MileIQ for about 2 years and it's been really reliable. Stride is another popular one that's completely free and also helps track other business expenses. Everlance is good too - it has a free tier that lets you track up to 30 trips per month. The key is finding one that runs in the background without killing your battery. Most will let you export your mileage log as a PDF or spreadsheet at tax time, which looks way more professional than a handwritten notebook if you ever get audited.

This!!! I learned this the hard way my first year delivering. Didn't make quarterly payments and got hit with a penalty. The mileage deduction saved me though - turned a $3200 tax bill into about $850.

Wait, I think I might be confused now. My boss gives me cash at the end of each shift plus I keep the tips. He's never mentioned anything about a 1099 or being a contractor. Does that mean I'm an employee? How do I figure this out?

Thanks for breaking this down! Yes, my niece had almost no income in 2023 (less than $2,000 from a part-time job that didn't last). And for the baby, they both lived with me from birth in November through the entire year, and I provided well over 90% of all support. The father only lived there briefly and contributed almost nothing financially. Would bank statements showing I paid for diapers, formula, doctor visits, etc. be good evidence? And what about proof that they lived with me - would utility bills showing my address be enough?

Bank statements showing purchases of baby supplies and medical expenses would be excellent evidence. For proving they lived with you, utility bills are helpful, but even better would be: Medical records showing your address for the baby's appointments Any official documents like the birth certificate that might show your address Statements from doctors, childcare providers, or even neighbors confirming they lived with you Letters from social services or benefits offices if any benefits were received at your address The more documentation the better, but focus on official documents when possible. Also, if you can show that the father's address was different during most of this period, that would further strengthen your case.

Actually this isn't completely true anymore. With the new IRS systems, sometimes you CAN e-file even with a duplicate SSN claim. The system will accept it but flag it for review. A friend of mine was able to do this last year rather than paper filing.