Thanks for pointing this out! How do I know if I have the right certification from the manufacturer? I have receipts for my new heat pump and some documentation that came with it, but not sure if that's enough for the IRS.

The manufacturer documentation needs to explicitly state that the product qualifies for the federal tax credit. It should specifically reference the energy efficiency ratings or certification that make it eligible. Most major manufacturers provide downloadable tax credit certification letters on their websites. For heat pumps specifically, you need documentation showing the SEER2, EER2, and HSPF2 ratings that meet the minimum requirements set by the IRS. The installer should have provided this information, but if not, you can usually find it by searching your model number on the manufacturer's website and looking for their tax credit documentation section.

This happened to me too! They also asked for proof that the installation was completed in the tax year I was claiming. Had to send in the final inspection document from my county building department.

2 Do you know if I can deduct the initial cost of my certification course and background check? I spent almost $500 getting certified and wasn't sure if that counts since it was before I actually started working as a signing agent.

9 Yes, you can absolutely deduct the initial certification costs and background check fees! Those are considered start-up costs for your business, and the IRS allows you to either deduct them in the first year (up to $5,000) or amortize larger start-up costs over 15 years. Even though you paid for them before earning your first dollar as a notary, they're directly related to your business and completely deductible. Just make sure you keep the receipts and documentation showing these were required steps to become a signing agent.

5 Can you explain more about this S-Corp thing? I've heard people mention it but don't really understand why it would save on taxes or when it makes sense.

That's a great way to explain it! I'm definitely going to try this approach. Our tax liability last year was around $10,500 and I had about $9,800 withheld while he had his measly $46. We ended up owing, but it wasn't too bad since I had extra withheld from my checks. Do you know if there's a penalty for underwithholding even if you pay everything you owe by April 15th?

Yes, there can still be a penalty even if you pay everything by April 15th. It's called an "underpayment penalty" and the IRS expects you to pay your taxes throughout the year, not just at filing time. The general rule is that you need to have paid at least 90% of this year's tax liability OR 100% of last year's tax liability (110% if your income is over $150,000) through withholding or estimated quarterly payments to avoid the penalty. So if you're significantly underwithholding, you could face penalties even if you pay the full amount when you file.

This is exactly what happened to my coworker! He thought the form was asking for how many people were in his extended family, so he put 12 (counting parents, siblings, etc.). His first paycheck had like $3 in federal withholding and payroll had to explain the mistake.

I hadn't considered that my ex's family might have filed our taxes incorrectly in previous years. That's a really good point and makes a lot of sense with the Form 8862 requirement. I'm going to request my transcripts right away to check for any patterns. I'm also wondering if I should reach out to my ex about this since these were joint returns and any liability might affect both of us? Or is it better to just handle this on my own since we're no longer together?

If you filed joint returns with your ex-spouse during your marriage, you're both potentially liable for any issues on those returns. This concept is called "joint and several liability." However, there are provisions like Innocent Spouse Relief that might help if you can demonstrate you had no knowledge of errors your spouse or their family made. Regarding communication with your ex, it's generally a good idea to keep them informed since this could potentially impact them too. However, I'd suggest consulting with a tax professional before making any decisions about how to approach the IRS about joint returns. There are strategic considerations that might affect both of you, and you want to make sure you're protecting yourself first while being fair.

This is so true! The IRS made a mistake on my return saying I didn't report income but it was clearly on Schedule C instead of where they were looking for it. They tried to hit me with an extra $7k in taxes! Always check their work carefully.

No way! I paper filed in February and I'm STILL waiting for my refund. The IRS is a disaster right now. E-file if you possibly can.

Do you know roughly what CPAs are charging for a return with Form 8915-e? I'm trying to decide if it's worth it vs waiting for my regular software to update.