Could you explain that second point more? I don't get how the same deduction can be worth different amounts to different people.

Sure! It's about your marginal tax rate. Let's say you have $10,000 in mortgage interest. If you're in the 22% tax bracket, that deduction saves you $2,200 in taxes (22% of $10,000). But if you're in the 35% tax bracket, the exact same $10,000 deduction saves you $3,500 in taxes (35% of $10,000). That's why higher income earners often benefit more from deductions. The higher your tax rate, the more valuable each dollar of deduction becomes, because each dollar is offsetting income that would have been taxed at your highest marginal rate.

Thank you! I feel like I'm taking crazy pills when financial advisors tell me to keep my mortgage for the tax benefit. Why would I spend a dollar to save 24 cents??? Makes zero sense.

How do you separate the value of the land from the building for depreciation purposes? I've always been confused about that part. My property tax statement doesn't break it down clearly.

Your property tax assessment should actually have this breakdown. Check your property tax statement or look up your property on your county assessor's website - most will show the land value separately from the improvements (building) value. If it's not clearly stated, a common method is to use the ratio that other similar properties in your area use. Your tax professional can help with this, or you can look at comparable properties with known land/building breakdowns.

This is a really good point. My rental in the high-tax suburb has appreciated WAY more than my rental in the low-tax area. After 5 years, the difference in appreciation has completely dwarfed any tax deduction differences.

Can you really put it on line 8z though? I thought all self-employment income HAD to go on Schedule C regardless of the amount? That's what my friend who does accounting told me.

For very small amounts without expenses, the IRS has allowed this simplified reporting method. If you're claiming expenses though (like mileage), you absolutely need Schedule C. I should clarify though - the "proper" way is Schedule C, and that's what most tax pros will recommend to be 100% compliant. The line 8z approach is more of a practical solution for tiny amounts where you're not claiming deductions. Schedule C is definitely the correct technical answer for any self-employment income.

The chances of being audited for missing $180 are extremely low, but technically yes, you're supposed to report all income. The IRS generally has bigger fish to fry than chasing tiny unreported amounts, but it's still not the right approach. Maybe report it correctly this year?

Thanks for the suggestion! I tried logging out and back in but still got the same message. I did find something in the "Tax Documents" section though - looks like there might be an issue with the self-employment tax forms. I guess I'll wait a week or so and try again. Really appreciate everyone's help with this!

Glad you were able to at least identify which form might be causing the issue! Self-employment forms can definitely be among those that get delayed. If you want a rough timeline, in previous years the self-employment forms were usually finalized by mid-February, so you probably won't have to wait too long. One other option is to call TurboTax directly - sometimes they have internal notices about when specific forms will be ready that aren't publicized on their main site. Their customer service can often give you a more precise timeline.

This is correct. The IRS announced a processing delay for 1099-NEC forms specifically for the 2025 filing season due to changes in the contractor classification rules that were passed late last year. They're updating the form to include the new verification codes for gig workers. Last I heard they should be finalized by February 15th.

That's super helpful to know! I definitely did some gig work this year so that's probably exactly what's causing my issue. I'll just wait until after February 15th and try again. Thank you!!

Yes, if the IRS approves your S-Corp election with a retroactive date, you are required to amend your previous returns to reflect the correct entity type. Your business would need to file Form 1120-S (the S-Corp return) instead of reporting the income on Schedule C of your personal return. This is because once elected, S-Corp status changes how your business income is taxed - part becomes salary subject to payroll taxes and part becomes distributions not subject to self-employment tax. The tax treatment is fundamentally different, so your previous filings would no longer be accurate under the new classification.

Thanks for bringing this up - I should have mentioned that part. It's a single-member LLC with just me as the only owner, and I'm a US citizen. No fancy stock structure or anything like that. So I think I'm good on the eligibility requirements. It's just the timing with the already-filed tax returns that was worrying me.