Thanks for the suggestions! I do max out my 401k already, but I hadn't thought about an HSA. My employer offers a high-deductible health plan option - would that automatically qualify me for an HSA?

Yes, if your employer offers a qualified high-deductible health plan (HDHP), that would generally make you eligible for an HSA. For 2025, you can contribute up to $4,150 for individual coverage or $8,300 for family coverage, plus an extra $1,000 if you're 55 or older. The beauty of HSAs is the triple tax advantage - tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Unlike FSAs, the money rolls over year to year, and you can even invest it for long-term growth. Many people don't realize you can use it as a stealth retirement account by saving receipts for medical expenses now and reimbursing yourself years later.

Isn't there also something about investment property loans being tax-advantaged? My cousin claims he deducts all his mortgage interest on his rental properties.

Can you use a Solo 401k if you already have a 401k through your full-time employer but also have a side business? I've been wanting to shelter more of my side income from taxes.

Yes, you can have both a 401k through your employer and a Solo 401k for your side business. The $23,000 employee contribution limit applies across ALL of your 401k accounts combined. So if you've already maxed out your employer 401k, you can't make additional employee contributions to your Solo 401k. However - and this is the great part - you can still make the employer contribution to your Solo 401k, which is up to 25% of your business net income. This is completely separate from anything happening in your day job's 401k. Just make sure your side business is legitimate with actual income, not just a hobby.

Defined Benefit Plans can be amazing for high-income self-employed professionals like yourself. They allow contributions well beyond 401k limits - potentially $300k+ annually depending on your age, income, and years until retirement.

Thanks for sharing your experience! Did you have to file any special forms when you did your taxes to show that you'd corrected the excess contribution? And did Fidelity calculate the earnings for you or did you have to figure that out yourself?

Yes, I had to report the correction on my tax return. Fidelity calculated the earnings for me (it was only about $215 since I caught it pretty quickly). They sent me a 1099-R form showing the distribution coded as "return of excess contributions" which I reported on my taxes. I also had to file Form 8606 to report the non-deductible IRA contribution and conversion. On that form, I only reported the allowable contribution amount ($6,000), not the full amount I originally put in. My tax software (I used TaxAct) had a specific section for handling excess contribution removals, which made the process pretty straightforward once I had the documents from Fidelity.

This is actually incorrect advice that could cause problems. You cannot pre-contribute to an IRA for a future tax year before January 1st of that year. While you can contribute to the previous year until the tax filing deadline, you cannot contribute to a future year early. The only option here is to remove the excess contribution (plus earnings) or face the 6% penalty that applies each year until the excess is removed.

The home energy efficiency credits (like for your mini splits) are non-refundable but can be carried forward for up to 5 years if you can't use the full amount in the installation year. So you don't lose it! But be careful - the rules are different for the clean vehicle credit. The used EV credit that OP mentioned ($4,000) cannot be carried forward, so if you don't have enough tax liability to use it all in the purchase year, you lose the remainder.

Thanks for that info! That's a relief - we only got to use about half of our mini split credit last year, so good to know we can apply the rest to this year's taxes. I didn't realize the EV credits work differently though. That's important for anyone planning to claim both in the same year to consider which one to prioritize if they won't have enough tax liability for both.

I actually did get documentation from the installer, but it doesn't specifically say anything about meeting IRS requirements or efficiency standards. It's just the invoice with model numbers and installation details. Is that going to be a problem? Should I be requesting something more specific from either the manufacturer or the installer?

This is so important! The tax prep companies are super sneaky about this. They advertise "free" filing everywhere but then hit you with fees at the very end. I almost fell for this too until someone told me about going through the IRS site directly. Does anyone know if there's an income limit for the Free File options? And does unemployment income count toward that limit?

The income limit for most IRS Free File options is $73,000 in Adjusted Gross Income (AGI). And yes, unemployment benefits do count toward that limit since they're considered taxable income. However, even if your income is above that threshold, the IRS still offers Free Fillable Forms which are electronic versions of paper forms - though they provide no guidance, so they're best if you're comfortable doing taxes yourself. Also worth noting that some Free File providers have lower income limits or age restrictions, so you need to check each one's specific requirements through the IRS portal to find your best option.

I used Cash App Taxes this year and it was surprisingly good for being completely free! It handled my unemployment and some freelance work without issues. The interface isn't as polished as TurboTax, but it asks all the same questions and I got the same refund amount when I compared them. Only downside is that it doesn't import as many forms directly - I had to manually enter some information. But for literally saving $100+ compared to TurboTax, I can spend an extra 15 minutes typing.

Thanks for the feedback! That's really helpful - I don't mind spending a little extra time if it saves that much money. As long as it handles everything correctly, that's my main concern. Did you have any issues with state filing? That's where I usually run into problems.