Is there a way to report these places? There's a tax office near me that has a giant sign saying "WE GET YOU MAXIMUM REFUNDS GUARANTEED" and they advertise that they "only charge a percentage of what they save you." Seems super sketch.

That's a great point! I hadn't even thought about state-specific incentives. I'm in Pennsylvania - do you know if they have similar programs or where I should look to find this information?

Pennsylvania actually has several programs! Check out the PA Department of Environmental Protection website - they offer rebates for energy efficient appliances and heating systems through their PA Home Energy Program. Also look at your utility company's website as many PA utilities offer additional rebates. The PA Housing Finance Agency also has some programs for new homeowners making improvements. The state-level stuff isn't on your tax return directly but comes as separate rebates or credits that can be substantial. Some municipalities in PA also have property tax reductions for certain improvements, so check your local government website too!

I used TurboTax last year after buying my first house. It asks about mortgage interest and property taxes really clearly, but for energy credits you have to specifically look for those sections - they don't always come up automatically in their interview process. I almost missed the credit for my energy efficient windows until I specifically searched for it. Make sure you have manufacturer certifications for any energy efficient improvements. TurboTax has a section for these credits but you need to know to look for them under "Credits & Deductions" and then "Home Energy Credits.

Can you e-file a 1040X now? I thought you had to mail them in but I heard something changed recently. Would be much easier than dealing with certified mail etc.

You can e-file a 1040X now, but only for tax years 2019, 2020, and 2021 (and newer years going forward). Since the OP is amending a 2019 return, they should be eligible for e-filing, which is definitely easier than paper filing. However, if you have attachments like W-2s or 1099s that weren't included with your original return, you might still need to mail those in separately, depending on your tax software. Even with e-filing, I still recommend keeping detailed records of everything in case questions come up later.

I got my refund about 4 months after filing my 1040X last year. It takes FOREVER compared to regular returns. The IRS says to allow up to 16 weeks but that's definitely optimistic right now with their backlog.

I hadn't really considered a reverse mortgage. Are the fees for those reasonable? I've heard mixed things about them over the years. Also, wouldn't I need to be purchasing my new home before I could get a reverse mortgage on it? Since I don't currently own a property in my new town yet.

The fees can be substantial - typically 2-5% of the home's value. But compared to the tax hit from a large IRA withdrawal, it might still be advantageous. There actually is a specific type called a HECM for Purchase that lets you buy a new home with a reverse mortgage. You make a down payment (usually around 50-60% of the purchase price) and the reverse mortgage covers the rest. You'd never have mortgage payments, though you'd still be responsible for taxes, insurance, and maintenance.

A 1031 exchange wouldn't work if they're planning to live in the new property as their primary residence. The replacement property in a 1031 exchange must be used for business or investment purposes.

That's helpful but what if your income this year is way different from last year? I made much more this year so I'm worried about owing a huge amount at tax time if I just base it on last year's taxes.

That's a valid concern. The safe harbor just protects you from penalties, but you're right that you could end up with a large tax bill if your income increases significantly. If you expect to make substantially more this year, you might want to use the regular worksheet method to calculate payments based on your projected current year income. You can also adjust your payments for future quarters if you realize you're not paying enough. Just remember that each quarterly payment has its own due date and covers specific periods of income, so adjusting later payments doesn't retroactively fix earlier underpayments.

I use TurboTax Self-Employed and it does have a feature to calculate your quarterly payments. You input your estimated income for the year and it generates payment vouchers with the amounts. I've found it pretty helpful but it doesn't automatically adjust if your income changes during the year - you have to go back in and recalculate.