That's really good to know! Do you have any recommendations for keeping track of all these potential deductions throughout the year? I feel like I might be missing stuff.

I just use a simple spreadsheet with categories for each potential deduction - mortgage interest, property tax, charitable donations, medical expenses, etc. I update it monthly so I don't forget anything. Some tax software also has year-round tracking features or apps. The key is being consistent about saving receipts and documentation. I take photos of donation receipts immediately and save them to a specific folder. For medical expenses, I request year-end summaries from all my providers. It's also smart to check your itemized deductions against the standard deduction amount mid-year to see if you're on track to benefit from itemizing.

Not all points are deductible though. I learned this the hard way. Points for lowering your interest rate are deductible, but points that are really just fees disguised as points aren't. Check IRS Publication 936 for the full details.

Didn't they actually try to make a "postcard-sized" tax form a few years back? Whatever happened to that? Seems like my tax return gets thicker every year.

They did try to make that simplified postcard form around 2018 as part of the tax law changes. It was basically a marketing gimmick - they just moved all the calculations to separate worksheets and schedules that you still had to fill out. The whole thing was abandoned pretty quickly because it actually made filing more complicated, not less. Now tax returns are definitely getting thicker every year with more worksheets and schedules than ever. The 2023 tax year is no exception with all the special credits and deductions they keep adding without simplifying the old ones.

Try using tax software. It walks you through all that stuff step by step. TurboTax, H&R Block, or even the free options like FreeTaxUSA handle all those worksheets and calculations behind the scenes.

Thanks for pointing this out! She already filed her return and I just texted her to check if she selected that option. I'm going to ask her to show me her return tonight so I can verify everything matches up with what I filed. Did you end up having to amend either return in your situation?

In our case, my son had to file an amended return to correct his mistake. He had checked "someone can claim me as a dependent" but also claimed his own personal exemption (this was before the tax law changes). It wasn't a huge deal to fix, but it did delay things. The most important thing is making sure all the facts are consistent across both returns. If she filed saying she can't be claimed as a dependent, but you claimed her, that's where the IRS gets confused and may flag both returns for review.

Do you need original documents or are copies/screenshots okay? I have similar issues with my nephew who lives with me but his mom claims him every year even though she barely sees him.

That's incredibly frustrating to learn! I had no idea there was actually a proposed system that got killed by industry lobbying. I just looked up that ProPublica article and wow... the fact that other countries have been doing this for decades while we're stuck manually entering numbers that the government already has is ridiculous. Do you know if there's any movement to revive this idea? Seems like the kind of common sense thing that both political parties could potentially get behind.

There have been several attempts over the years, most recently the Tax Filing Simplification Act that's been introduced a few times but hasn't passed. The current administration has made some promises about simplifying the tax filing process, but meaningful change faces the same powerful lobbying obstacles. The Free File agreement was actually modified in 2019 after the ProPublica reporting, removing the provision that explicitly prevented the IRS from creating its own system. That's a start, but there's still strong resistance. The best hope is continued public pressure and awareness - the more people understand that better options exist and are being deliberately blocked, the more momentum builds for change.

This makes me want to move to Australia just for the tax system lol. Do they at least buy you dinner before they take your money? The US system is just insult to injury - "figure out how much you owe us or go to jail, but also we won't make it easy, and ps we already know the answer.

Wait, I thought QIP only applies to interior improvements of nonresidential property? This is a residential rental building with exterior work.

You're absolutely right - I missed that this was a residential rental property. QIP only applies to interior improvements of nonresidential real property, so it wouldn't apply here. This would just be a standard capital improvement depreciated over 27.5 years as residential rental property. If you can establish the coating itself as a separate building component with a determinable useful life (based on manufacturer specs), you might be able to use a shorter recovery period. But it wouldn't qualify for QIP treatment.

Interesting point, but I don't think it applies here. Routine maintenance is about keeping the property in efficient operating condition, not extending its useful life. Since OP specifically stated this coating extends the life of the roof, it's a betterment, not routine maintenance.