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Regardless of how you file, make sure you're keeping good documentation about your move date and establishing residency in your new state. This can matter a lot for state tax purposes. I had a similar situation moving from NY to FL mid-year, and the documentation of when I established my new residence saved me a bunch on NY state taxes since they're so high there. Also, if you had any moving expenses related to starting a new job, those used to be deductible but that's changed with the tax law updates.
Do students ever qualify for any special moving deductions or credits? I'm planning to move for my first job after graduation and wondering if I can deduct anything.
Unfortunately, moving expenses are no longer deductible for most people since the 2017 tax law changes. The only exception is for active-duty military members moving due to military orders. As a student starting your first job after graduation, you likely won't have any federal tax deductions for moving expenses. However, some states still allow moving expense deductions on their state returns. Also, if your new employer provides any relocation assistance, that's typically taxable income, but sometimes employers will "gross up" the payment to cover the tax impact.
$600 seems way too high! I'm also a student and used FreeTaxUSA last year - it handled my multi-state situation for less than $50 total (federal was free, and each state was like $15-20). The multiple W-2s don't actually add complexity - the software handles that easily. The IRA withdrawal might be trickier, but the premium software options walk you through it step by step with questions about why you took the withdrawal to see if you qualify for penalty exceptions.
Don't overlook business travel deductions if you ever attend industry conferences or training sessions! I'm a personal chef and wrote off an entire trip to a culinary conference last year including airfare, hotel, meals (at 50%), and conference fees. Saved me nearly $2,200 in taxes. Just make sure the primary purpose of the trip is business and keep DETAILED records of everything.
I've been considering attending a fitness business summit in Vegas this summer. If I go primarily for the conference but stay an extra day for personal time, can I still deduct most of the travel costs? And what about bringing my girlfriend along?
You can definitely deduct most of your travel costs for the conference. The days you spend at the business event, along with travel days to and from the location, are fully deductible for your expenses (hotel, transportation to/from conference, etc.). For bringing your girlfriend along, you can only deduct what the cost would have been if you traveled alone. So if the hotel room costs the same whether one or two people stay there, you can deduct the full room cost. But you can't deduct her flight, her meals, or any expenses that are specifically for her. And for that extra personal day, you can't deduct lodging or meals for that day - only your business days are deductible.
Honestly, don't sleep on the Qualified Business Income Deduction (Section 199A). As a self-employed personal trainer making under $170,500 (single) or $341,000 (married), you can potentially deduct up to 20% of your qualified business income. On your $78k, that could mean a deduction of around $15,600! This is ON TOP OF your regular business expense deductions.
Have you checked if you had any fees deducted for tax prep? Sometimes if you choose to pay your filing fees from your refund instead of upfront, they take the fees out of your refund amount. Check your TurboTax receipt/confirmation and see if that accounts for the difference.
I did pay my TurboTax fees upfront with my credit card, so that shouldn't be affecting my refund amount. My tax transcript specifically shows the full amount of $3,892 as the intended refund. This is so frustrating!
In that case, definitely sounds like an offset or calculation issue. One thing I've noticed is that sometimes the "Where's My Refund" tool and the transcript show different amounts. Have you checked the Where's My Refund tool on the IRS website to see if it shows a different expected amount than your transcript?
This happened to me last year! In my case it was because I had defaulted on a federal student loan years ago that I completely forgot about. The frustrating part was that the notice explaining the offset arrived almost 3 weeks AFTER my reduced refund hit my account. If you check your transcript, look for a code 898 - that's the code for an offset. But honestly, calling is probably faster if you can get through to someone.
Not always an offset though. Sometimes it's a math error correction (MEC) which would show different codes like 29X series. I work in tax prep and see this pretty often - IRS recalculates something on the return and adjusts the refund but the notice explaining why comes weeks later.
Another option: if you're filing with a pending SSN, make sure you're tracking your application status with SSA. If it's been more than 6 weeks since you applied at the hospital, you might want to contact your local Social Security office. Sometimes applications get lost in the system. You can request a confirmation letter from them showing you've applied, which can help with your tax preparer.
Thanks for this suggestion. It's been about 7 weeks since the birth and application, so I probably should check on the status. Do you know if there's a way to check online or do I have to call/visit the SS office?
Unfortunately there's no online tracking for first-time SSN applications for newborns. You'll need to contact your local Social Security office directly. I recommend calling first to make an appointment rather than just showing up. When you call, ask specifically for a confirmation letter showing you've applied for your child's SSN - this document itself can sometimes satisfy tax preparers while you wait. The confirmation letter usually includes your child's name and your address, which might even satisfy the residency requirement your tax preparer is asking for. Bring your child's birth certificate when you go in person.
Hospital bills and health insurance documents worked for us! Our son was born in December and we had the exact same issue. We brought the hospital discharge papers plus a health insurance statement showing the baby added to our policy - both had our address and the baby's name. H&R Block accepted these without question.
Most tax places are accepting birth certificates + hospital documents this year. Just call different preparers if Jackson Hewitt is being difficult. I switched from them to a local place that was much more helpful with my situation.
QuantumQueen
I completed a cross-state 1031 last year (CA to TX) and the one thing nobody mentioned yet is state tax implications. Since you're going from AZ to IN, you should check if Arizona tries to tax the deferred gain when property leaves the state. Some states have "clawback" provisions. In my case, California wanted their piece of the pie even though I moved to Texas. Had to file a special form with CA acknowledging the deferred gain. Don't know about AZ specifically, but worth checking into before you complete the exchange.
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Chloe Harris
ā¢That's a really good point I hadn't considered. Do you know if there's any resource specifically about Arizona's policies on this? I definitely want to avoid surprise tax bills from AZ after I've moved to Indiana.
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QuantumQueen
ā¢I don't know Arizona's specific rules, but I'd recommend calling the Arizona Department of Revenue directly. That's what I did with California. For what it's worth, most states follow the federal treatment and don't try to tax the gain immediately, but some have started implementing these clawback provisions to prevent losing tax revenue when property owners leave the state. Usually there's a form you need to file acknowledging the deferred gain and agreeing to file nonresident returns if you later sell the replacement property.
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Aisha Rahman
One thing to be careful about with cross-state 1031 exchanges is making sure you're working with a qualified intermediary who is licensed in both states. I learned this the hard way.
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Ethan Wilson
ā¢Is that really a thing? I thought QIs weren't actually licensed in most states. They're not like real estate agents with state-specific licenses. At least that's what I understood.
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