I never thought to check that! We do use Workday actually. Is this something in the benefits section or somewhere else? I'll have to poke around tomorrow. If I could set preferences that would be awesome.

Check under the Payroll section in Workday. Look for something called "Tax Withholding" or "W-4 Elections." Most versions have a withholding calculator where you can play with different scenarios. Some even have a slider where you can choose between maximizing paychecks (0 refund) or getting a specific refund amount. It's usually in the same place where you would update your W-4 information. The calculator is pretty helpful because it shows how each change affects both your paycheck and your expected refund. If you don't see it, your HR department can tell you if this feature is enabled for your company.

This is actually a myth that needs to die. For most normal people, the "interest" you'd earn on the extra $20-40 per paycheck is minimal compared to the psychological benefit of getting a larger refund. Most people don't invest that small difference anyway.

You're missing the bigger financial picture. Even small amounts add up significantly over time, especially with compound interest. An extra $40 per paycheck is $1,040 annually that could be in your investment accounts growing instead of sitting with the IRS. But more importantly, having access to your full earnings gives you financial flexibility throughout the year. That money could go toward paying down high-interest debt, building an emergency fund, or investing in retirement accounts with tax advantages. It's about having control of your own money rather than voluntarily restricting access to it. For people struggling with cash flow issues, every dollar in their regular paycheck matters.

But what if there is a huge difference? My assessment from January valued the land at 120k, but the July one (closer to when I started renting) suddenly jumped to 180k due to some county-wide reassessment. That's a big difference in depreciable basis!

In that case, where there's a substantial difference that materially affects your tax liability, you should definitely go with the most accurate assessment closest to your placed-in-service date. The July assessment would be appropriate since it reflects the most current valuation when you began renting. For significant changes like you described, it's also worth consulting with a tax professional who specializes in real estate to ensure you're taking the right approach. You might even want to get a private appraisal that specifically breaks out the land value as of your placed-in-service date to have solid documentation if the IRS ever questions your depreciation calculations.

This is good advice! My HUD-1 settlement statement had this breakdown too. Made it super easy come tax time. Always check your closing docs first before digging through property tax records.

Wait, can you really deduct car repairs if you use your car for both personal and business? How does that work with the standard mileage deduction? I thought it was one or the other?

You're absolutely right about the standard mileage rate vs. actual expenses - it's one or the other. If you take the standard mileage rate (which is 67 cents per mile for 2024), that's meant to cover gas, insurance, repairs, depreciation, etc. If your car costs are really high, you can instead choose to deduct actual expenses, but you'll need to track everything and then deduct the business percentage. For most people, especially with older vehicles, the standard mileage rate is simpler and often more beneficial. Just make sure you're keeping a detailed mileage log either way!

This information is outdated. The IRS eliminated Form Schedule C-EZ after the 2019 tax year. All self-employed individuals now use the regular Schedule C, regardless of income amount or business complexity. The good news is that most tax software makes filling out Schedule C pretty straightforward, even for simple situations. Just answer the questions the software asks, and it will complete the form properly.

Thanks for mentioning the SEP IRA option! Do you know what the contribution limits are compared to the Solo 401k? And is it true there's less paperwork involved? The Form 5500 requirement for Solo 401ks once you hit $250k sounds like a potential headache.

For a SEP IRA, you can contribute up to 25% of your net self-employment income with a maximum of $66,000 for 2023. With a Solo 401k, you can contribute $22,500 as an employee plus that same 25% of income as the employer contribution, still capped at $66,000 combined. The paperwork difference is significant. With a SEP, there's no annual filing requirement regardless of account size - just set it up once and make contributions. Solo 401ks require Form 5500-EZ filing once assets exceed $250,000, which isn't super complicated but is an extra annual task. For many small business owners, the simplicity of a SEP outweighs the potential for slightly higher contributions with a Solo 401k.

Did you have to start running payroll for yourself to contribute to the Solo 401k? That's the part that confuses me with my LLC.

Thanks for the tip! I actually went back and checked my W-2 and you're right - the retirement plan box is checked but I definitely didn't select that in TurboTax. I didn't even notice that option when going through the questions. Do you remember where in TurboTax I need to go to fix this?

You should be able to find it by going back to the W-2 entry section in TurboTax. Look for a section that says something like "Does your employer offer a retirement plan?" or there might be a specific checkbox when entering your W-2 information. If you're not seeing it there, try looking in the "Deductions & Credits" section under retirement savings options. Sometimes TurboTax splits these questions into different sections which can cause these kinds of mismatches. Once you get the information entered correctly to match your W-2, the paper filing requirement might disappear.

This is a good point. I ran into this with New York one year because I'd moved mid-year and the address discrepancy triggered a paper filing requirement. Double check all your personal info matches what the IRS has on previous returns or communications.