Thanks for bringing this up! I hadn't considered a cost segregation study. How much does something like that typically cost? And would it be worth it for a relatively small renovation like mine?

For a renovation of your size, a cost segregation study might cost between $3,000-$5,000 depending on complexity and where you're located. It's generally worth considering when your improvement costs exceed $100,000, but can still be valuable at $65,000 in certain scenarios. The key is what components make up your renovation. If you're doing significant updates to fixtures, appliances, flooring, and HVAC systems (which can be depreciated over 5-7 years) versus primarily structural work (27.5 years), the accelerated deductions could easily exceed the cost of the study within the first 1-2 years. Many accounting firms offer a free analysis to estimate potential benefits before you commit to the full study.

I used TurboTax Premier last year for my rental property and it worked pretty well. It asks you to categorize each expense as either a repair or improvement and then sets up the depreciation schedules automatically. It also calculates the passive loss limitations based on your income. Just make sure you have good records of all your expenses categorized properly before you start.

Does the ordering matter? Like what if I have both short-term and long-term losses carried over, and both short-term and long-term gains this year? Is there a specific way these have to be applied?

Yes, the ordering definitely matters because it can affect your tax rate. The IRS has specific rules for how losses and gains are netted against each other. First, short-term losses offset short-term gains, and long-term losses offset long-term gains. Then, if you have net losses in one category and net gains in the other, those net figures are used to offset each other. This is important because short-term gains are taxed at your ordinary income rate, while long-term gains get preferential tax rates.

You're absolutely right. You have to actually sell the investment (realize the loss) to claim it on your taxes. Holding onto stocks that have gone down in value doesn't create a tax loss you can claim - it's only when you sell them that the loss becomes "realized" and can be used on your tax return.

Thanks for confirming! That explains why I couldn't find any loss carryover from last year. At least i'll be able to use this year's losses to offset the gains I had earlier in the year, plus the $3000 against regular income.

Thanks for the insight! I did make around $8,900 over the summer, so that percentage makes sense. Do you think sharing my bank info with them is safe? That's my main concern honestly.

Sharing your bank info with a legitimate tax service is generally safe. They're handling millions of transactions and have security protocols in place. Account and routing numbers are actually printed on every check you write, so they're not your most sensitive financial information. That said, only provide this info through their secure portal, never via email or text. And if you're still uncomfortable, you can absolutely request a paper check instead as someone suggested earlier. It'll take longer but might give you more peace of mind. Most reputable companies offer both options.

THIS! I had the same experience. They called it a "refund management fee" on top of the tax prep fee I already paid. Check the paperwork you signed.

Do you know which 10 states haven't expanded Medicaid? I'm moving soon and worried about my coverage potentially changing.

As of early 2025, the states that have not expanded Medicaid under the ACA are Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. Wisconsin is a special case because they cover adults up to 100% of the poverty level but didn't adopt the full expansion. If you're moving to one of these states, you'll want to carefully check the eligibility requirements, as they're more restrictive than expansion states. The income limits and categories of eligible people vary significantly in these non-expansion states.

I thought the whole point of the 1095 forms was for the penalty? If there's no penalty anymore, why do they still send these forms out at all?

Does that head of household thing really make a big difference? I've always just filed as single. Is it complicated to change to that?

Head of household makes a HUGE difference! For 2025, the standard deduction for HOH is around $20,800 compared to just $14,600 for single filers. That's over $6,000 more of your income that won't be taxed! It's not complicated at all to change your filing status. When you prepare your return, you just select "Head of Household" instead of "Single" and the tax software or forms will automatically apply the better tax rates and higher standard deduction. The requirements are that you're unmarried, pay more than half the cost of keeping up the home, and have a qualifying person living with you (your dependent parent counts for this).

The gross income limit only applies to taxable income. Social Security is only partially taxable or not taxable at all depending on total income. Check out the worksheet in IRS Publication 501 for determining if Social Security counts toward the gross income test.