That's a really good point I hadn't considered. So even though some of the partnership income was earned in 2023, I'm reporting all of it on my 2024 personal return because the partnership's fiscal year ended within my 2024 tax year? Does this create any issues if I also have to file foreign bank account reports (FBARs) or Form 8938? Do those forms follow the same rules?

Yes, that's exactly right. All of the partnership income from their complete fiscal year (June 2023-May 2024) goes on your 2024 personal return. That's just how partnership taxation works. For FBARs and Form 8938, those follow different rules. Those forms are based on the calendar year reporting and the maximum value of accounts during that calendar year. So your FBAR and 8938 for 2024 would cover January 1 to December 31, 2024, regardless of any partnership fiscal years.

The Taxpayer Advocate Service is really only for when you have an actual tax problem that hasn't been resolved through normal IRS channels. They probably won't help with just form questions unless you've already filed incorrectly and are having issues. Your best bet for form questions is either the regular IRS help line (if you can get through) or a qualified tax professional who specializes in international taxation.

22 Thanks for the terminology correction! I always mess that up 🤦‍♂️ So to get a bigger refund, do I just put a specific dollar amount on line 4(c) of the W-4? Or do I need to change other parts of the form too?

7 Yes, line 4(c) on the W-4 is exactly where you'd put additional withholding. You can specify an extra amount to be withheld from each paycheck. As for how much to add, a rough calculation would be to decide how much extra refund you want, then divide by the number of pay periods remaining in the year. For example, if you want an extra $1,200 in your refund and get paid twice a month, you might put $50 in line 4(c) ($1,200 ÷ 24 pay periods = $50 per paycheck).

16 The standard deduction actually does increase with inflation each year. For 2025 it's $14,600 for single filers, up from $14,350 in 2024. The problem is that tax brackets also adjust with inflation, but when you get a big raise that outpaces inflation, you still move into higher brackets regardless. What really doesn't scale well are certain credits and deductions that start to phase out at higher income levels. That could be another factor in why OP's refund was smaller despite paying more tax.

Yes, you would still expense it in 2024. The tax year for the deduction is based on when you put the item into service for your business, not when the money was spent. If you never used the original item and returned/exchanged it, then the deduction happens in 2024 when you got and started using the correct item.

Thanks for clarifying! That makes sense. I was confused because I technically spent the money in 2023, but I see now that what matters is when I actually started using the item in my business operations.

That's not correct for a straight exchange. If you got a full refund and then made a separate purchase, maybe, but for an exchange of products it's treated as a single corrected transaction. The IRS doesn't expect you to report a refund as income in most cases - especially when it's just correcting a purchase.

Question about the real estate professional requirements - I've heard you need 750 hours annually in real estate activities to qualify. If my spouse does property management full-time while I keep my W2 job, does that work for us filing jointly? Or do I personally need to qualify?

Your spouse can absolutely qualify as the real estate professional while you maintain your W2 job. This is actually the most common arrangement I see with my high-income clients. As long as your spouse spends 750+ hours annually in real estate activities (and more time on real estate than any other employment), their status allows the rental losses to offset your joint income on a married filing jointly return. Just be aware that your spouse needs to be actively involved in day-to-day operations, not just nominally listed as the manager. The IRS looks closely at these arrangements, so documentation of your spouse's time and activities is crucial. Keep calendars, logs, emails, and all evidence of their involvement.

I wouldn't recommend TurboTax for this. My brother tried doing this himself with TurboTax and missed several key forms and elections that would have maximized his deductions. He ended up hiring a real estate tax specialist who amended his return and found an additional $23k in tax savings he'd missed.

Does this Social Security benefit apply even if both spouses work their whole careers? I thought that only mattered if one spouse didn't work much or at all.

Yes, it can still matter even if both work their full careers. Each person gets their own benefit based on their earnings, but they're also entitled to 50% of their spouse's benefit if that amount is higher than their own. So if one person consistently earned more, the lower-earning spouse could potentially get a higher benefit through the spousal benefit. It also matters tremendously for survivor benefits. If one spouse passes away, the surviving spouse can switch to the deceased spouse's full benefit amount if it's higher than their own. Unmarried partners don't have access to this option regardless of how long they've been together.

This is really helpful. Question though: for education credits, do both parents' incomes count anyway if they both claim the child as a dependent in alternating years (even if unmarried)? Or does it only look at the income of whoever claims the child that year?