Just wanted to add something important that hasn't been mentioned yet - make sure your mom considers the timing of the purchase carefully. The truck needs to be "placed in service" (actually used for business) by December 31st, 2025 to qualify for the 2025 tax year deductions. Also, since she's financing most of the purchase, she can still claim depreciation on the full purchase price, not just the amount she's paying out of pocket. The $10,500 trade-in value gets subtracted from the purchase price for depreciation purposes, so she'd be depreciating $32,500 ($43,000 - $10,500) if used 100% for business. One more thing - if her landscaping business has been profitable and she expects it to continue being profitable, the immediate deduction from bonus depreciation could be really valuable for reducing her current tax liability. But if she's expecting much higher income in future years, she might want to consider spreading the deduction out more evenly.

Great discussion here! As someone who's helped several small business owners navigate vehicle depreciation, I wanted to add a few practical considerations for your mom's situation. Since she's in landscaping, make sure to document not just mileage but also how the truck is used for business - hauling equipment, transporting materials to job sites, etc. This strengthens the business use justification beyond just driving miles. Also, with a seasonal landscaping business, consider the cash flow impact. While the 80% bonus depreciation ($26,000 as Marcus calculated) gives a great tax deduction this year, it means much smaller depreciation deductions in future years. If her business has good years and lean years, timing this large deduction during a profitable year makes sense. One last tip - if she's considering any other equipment purchases (trailer, mower, etc.), coordinate the timing since the total Section 179 and bonus depreciation deductions can impact her overall tax strategy. Sometimes spreading major purchases across tax years works better for cash flow and tax planning.

This is absolutely a payroll error that needs immediate attention. What you're describing is unfortunately more common than it should be with small businesses that don't have dedicated HR or payroll expertise. Here's what's happening: your employer is incorrectly deducting their required contributions from YOUR paycheck instead of paying them separately as required by law. Under the Federal Insurance Contributions Act (FICA), employers must pay their 6.2% Social Security and 1.45% Medicare contributions in addition to what they withhold from employee wages - not by deducting it from employee pay. A few important steps: 1. Document everything with photos/copies of multiple pay stubs 2. Calculate your total overpayment (should be 7.65% of gross wages for each affected pay period) 3. Approach your employer professionally - most will want to fix this quickly once they understand the error 4. If they use a payroll service, the provider should be able to correct the setup immediately The silver lining is that once corrected, you should receive reimbursement for all the incorrectly withheld amounts. If your employer has already issued W-2s showing the incorrect withholding, they'll need to file corrected forms as well. Don't hesitate to escalate to your state's Department of Labor if your employer is uncooperative - this type of payroll error violates federal employment law.

This is definitely a payroll error that needs to be corrected immediately. As a W-2 employee, you should never see employer portions of FICA and Medicare being deducted from your gross pay - those are separate obligations your employer must pay on top of your wages. What you're describing is actually a violation of federal employment law. The employer portions (the additional 6.2% Social Security and 1.45% Medicare) are supposed to be paid by your company directly to the IRS, not taken out of your paycheck. I'd recommend taking your pay stubs to your employer or HR department right away. Most small businesses will want to fix this quickly once they understand the error, especially since continuing this practice could expose them to IRS penalties. Make sure to keep copies of all your incorrect pay stubs - you'll need them to calculate exactly how much in back pay they owe you. Based on your numbers, you're being overcharged about $140 per paycheck, which adds up fast. If your employer seems confused about the rules or pushes back, suggest they contact their payroll provider's support team. This is a common setup error that payroll companies deal with regularly and can usually fix quickly once identified. The good news is that once corrected, you should get reimbursed for all the incorrectly withheld amounts from previous paychecks. Don't accept just a "we'll fix it going forward" response - you're entitled to every penny they incorrectly deducted.

Does anyone know if the reporting threshold applies here? If I'm paying mortgage interest to an individual that's less than $600 for the year, do I still need to file the 1099-INT? Our monthly interest payment is only about $45.

Thank you all for this incredibly helpful discussion! As someone dealing with the exact same situation, I really appreciate everyone sharing their experiences and knowledge. @Alexis Robinson - your original question perfectly captured what I've been struggling with too. Based on all the responses here, it sounds like the key is identifying who you're paying the mortgage to. Since you mentioned it's a business property with mortgage payments, if you're paying a traditional bank or financial institution, you shouldn't need to issue any 1099 forms at all. The breakdown that @Katherine Harris provided is really clear - it's all about the type of entity receiving the payments. The $27,600 in interest you mentioned would only need to be reported on a 1099-INT if you're paying an individual, LLC, or partnership (not a corporation or bank). One thing I'd definitely recommend is getting this confirmed directly with the IRS or a tax professional before filing, especially given the amount involved. Better to be absolutely certain than to face issues later during an audit.

I went through this last month and was fed up with waiting. Used taxr.ai to look at my transcript and figure out exactly what was happening. It showed me that my return was on hold with a specific verification code and explained what I needed to do. Helped me understand where things were stuck and gave me a game plan. Seriously a lifesaver when dealing with the black hole that is the IRS. https://taxr.ai

I'm dealing with the same frustrating situation! Filed in March and still waiting for my identity verification letter. The whole system seems completely broken. What's really bothering me is that they can flag our returns instantly for verification but then take months to send the letter we need to actually verify. Has anyone had luck with the in-person visits to IRS Taxpayer Assistance Centers? I'm wondering if showing up with ID documents might be faster than waiting for this letter that may never come. My local office is about an hour away but at this point I'm desperate enough to make the drive. Also seeing some people mention these third-party services - are they legit or just taking advantage of people's desperation? The IRS process is so opaque that it's hard to know what's actually helpful vs what's just a money grab.

I went through this exact situation about 8 months ago - also lived overseas during the pandemic and came back to find expired stimulus checks for my family. The good news is that you're definitely not out of luck with that $8,400! Here's what worked for me: I called the IRS Economic Impact Payment line (800-919-9835) early in the morning around 7:30 AM. It took about 4 attempts over different days to get through, but once I did, the process was surprisingly straightforward. The agent could immediately see in their system that our checks were issued but never cashed. What really helped was having all the information ready - Social Security numbers for everyone, approximate issue dates, and the actual expired checks with check numbers visible. The agent started payment traces for all our checks during that single call and gave me confirmation numbers. One thing that might be especially relevant for your situation - the agent told me they handle overseas cases like this regularly and completely understood why we couldn't cash the checks while abroad. They didn't ask for any proof of international residence or question the delay. They're very familiar with how the pandemic affected people living overseas. The replacement checks arrived about 6 weeks later as standard Treasury checks (not the original EIP format) at our current US address. The amounts were exactly what we were originally entitled to - nothing was reduced due to the delay. Don't give up on pursuing this! That $8,400 is still rightfully yours, and the IRS has systems in place specifically for this situation. The key is just persistence with getting through on the phone.

I went through almost the exact same situation! I was living in Germany during the pandemic and received stimulus checks that I couldn't cash overseas. When I moved back to the US last year, I found all the expired checks in my paperwork. The IRS was actually really understanding about the overseas situation. I called the Economic Impact Payment line (800-919-9835) around 7 AM and got through after a few attempts. The agent immediately understood why someone living abroad couldn't cash US Treasury checks and didn't question it at all - apparently they deal with this frequently. What really helped was having photos of all the expired checks saved on my phone when I called. The agent could look up the check numbers in their system and confirm they were never deposited. They started the replacement process right on that call and gave me tracking numbers. One thing I learned - make sure your current US address is updated with the IRS before you call. They'll send the replacement checks to whatever address they have on file, and you don't want them going to your old overseas address or a previous US location. The whole process took about 7 weeks from that phone call to receiving new checks in the mail. They came as regular Treasury checks, and the amounts were identical to what we were originally supposed to receive. Don't stress about the timing - the agent told me they've processed expired stimulus checks that were even older than yours. That $8,400 is definitely still recoverable!