Has anyone tried to get around this by forming an S-Corp? My buddy claims he saves thousands by having his construction company pay his S-Corp instead of him directly, and then all his tools are business expenses.

The elimination of unreimbursed employee business expense deductions really hit trades workers hard. For your $2,800 in tools and $350 in uniforms, here are your realistic options: **Immediate solutions:** - Ask your employer about setting up an accountable plan for reimbursement. This makes the expenses tax-free to you and deductible for them. - Check if your state still allows these deductions on your state tax return (many do). - If you do any side HVAC work as a contractor, those tool expenses can be deducted against that 1099 income on Schedule C. **Documentation is key:** Keep all receipts regardless. Tax laws could change after 2025, and good records help if you transition to contractor work or start a side business. **Reality check:** For W-2 employees, there's unfortunately no federal workaround that doesn't involve actual changes to your employment structure or getting employer reimbursement. The accountable plan route is honestly your best bet - many employers are willing once they understand it benefits them too. Don't get caught up in complex entity structures unless you're genuinely ready to become an independent contractor with all the risks and responsibilities that entails.

This thread has been incredibly enlightening! As someone who's been going back and forth on an EV purchase for over a year, I finally feel like I understand how the tax credit actually works. The biggest lightbulb moment for me was understanding that tax liability vs. refund/owe status are completely different things. I've been getting refunds for years and somehow convinced myself that meant I had low tax liability - totally wrong! Just checked line 24 on my 2023 return and my total tax was $11,400, so I'd actually benefit from the full $7,500 credit. I'm also really intrigued by the timing strategies Katherine mentioned. I've been planning to do a Roth conversion anyway, so coordinating that with an EV purchase to maximize the tax credit usage is brilliant. It's amazing how tax planning can turn one decision into multiple wins. The point about checking vehicle eligibility right before purchase is so important too. I've been eyeing a specific model for months, but now I realize I need to verify it's still on the IRS list when I'm actually ready to buy, not just assume it'll stay there. Thanks to everyone who shared their real experiences and professional insights - this has been way more valuable than any official tax guidance I've tried to wade through!

This thread has been absolutely fantastic! As someone who's been paralyzed by tax credit confusion for months, I can't thank everyone enough for breaking this down in such clear, practical terms. I just went through the exercise everyone's been recommending - looked up line 24 on my 2023 Form 1040 and found my total tax liability was $9,200. So I'd be able to use the full $7,500 EV credit! I had no idea because I always get refunds and somehow thought that meant I didn't have much tax liability. The timing strategy discussion has been eye-opening too. I'm already planning to sell some stock next year, so coordinating that with an EV purchase to ensure I can maximize the credit makes total sense. It's amazing how looking at these decisions together rather than in isolation can create better outcomes. I'm definitely going to try taxr.ai to get a personalized analysis of my situation, and bookmark Claimyr in case I need to actually talk to an IRS agent about anything. Having real tools that can cut through the confusion instead of trying to interpret tax code myself sounds like a huge relief. One quick question for the group - for those who've used the point-of-sale credit option, how did you verify beforehand that you'd definitely qualify? The idea of potentially having to pay it back later if something goes wrong seems pretty scary. Thanks again everyone for making this complex topic finally make sense! This community is incredible.

Congratulations on your new baby! I completely understand your frustration - this is one of those things that seems like it should be simple but the official guidance is surprisingly confusing. Since you and your wife file jointly, you're treated as one tax unit by the IRS, so legally it doesn't matter which one of you claims your baby on your W-4. However, you absolutely want to avoid BOTH of you claiming the dependent - that would essentially double the withholding benefit and could leave you significantly under-withheld. Here's what I'd recommend: Have whichever spouse earns more claim the dependent on their W-4 to maximize the immediate paycheck benefit. But more importantly, make sure you both complete the Multiple Jobs Worksheet that comes with the W-4 - this is crucial when both spouses work because it accounts for your combined income potentially pushing you into higher tax brackets. The IRS Tax Withholding Estimator online is really your best resource here. Yes, it asks for a lot of information (recent paystubs from both jobs and your 2023 return), but it will give you specific dollar amounts for each line of both W-4 forms instead of leaving you to guess. Don't stress about getting it perfect immediately - you can always adjust your W-4s mid-year if needed. I usually recommend doing a check-in around June/July to see if your withholding is on track. The main goal is just avoiding any nasty surprises next April!

Congratulations on your new baby! I went through this exact same confusion when my daughter was born. The frustration of not being able to get clear answers is so real - I spent way too many hours trying to figure this out! Since you and your wife file jointly, you're treated as one tax unit, so it doesn't legally matter which of you claims your baby on the W-4. The crucial thing is that only ONE of you should claim the dependent - if you both do it, you'll essentially double-count the benefit and likely end up owing taxes next year. My recommendation: have whoever earns more claim the dependent on their W-4 to get the maximum immediate benefit in your paychecks. But honestly, the Multiple Jobs Worksheet is going to be way more important for your situation than who specifically claims the baby. Since both of you work full-time, that worksheet ensures you're withholding enough to cover the tax on your combined income. I'd also strongly suggest using the IRS Tax Withholding Estimator online - yes, it asks for a lot of info (recent paystubs from both jobs and your 2023 return), but it gives you exact dollar amounts for each line instead of leaving you to guess. It's designed specifically for situations like yours. Don't stress about getting it perfect right away. You can always adjust your W-4s later in the year if needed. I usually do a check-in around mid-year to make sure I'm on track. The main goal is just avoiding any unpleasant surprises come tax time!

I've been a tax preparer for 8 years and see this confusion constantly. For 1099-B forms, here's what you need to know about state ID numbers: 1) For INDIVIDUALS in most states: Use your Social Security Number 2) For BUSINESSES: Use your state tax ID or FEIN 3) For TRUSTS: Usually use the trust's EIN The problem is that tax software often asks generic questions without specifying which type of ID they're looking for. Always look for state-specific instructions within the software, usually there's a help button or a "learn more" link that explains what they're actually asking for.

As someone who went through this exact same confusion last year, I completely understand your frustration! The good news is that you're probably overthinking this - in Pennsylvania (and most states), the "state ID number" your tax software is asking for is simply your Social Security Number. The reason you can't find it printed anywhere on your 1099-B forms is because those are federal forms that don't include state-specific identifiers. When your tax software asks for a "state ID number" for your 1099-B, it's really asking how you want to identify yourself to the state tax system - which for individual taxpayers is almost always your SSN. Try entering your Social Security Number in that field and see if the software accepts it. If it doesn't, you might want to check Pennsylvania's Department of Revenue website or give them a call. But in 99% of cases for individual filers, your SSN is what they're looking for. Don't let the vague wording in tax software drive you crazy - they really should be clearer about what they're actually asking for!

Anyone know if using your parents' address affects your state tax filing? I live in California for college but my parents' address is in Texas (no state income tax). Can I just use their address and avoid state taxes completely?

For your specific situation, it sounds like you did support yourself in 2021. The key test is whether you paid more than 50% of your total living expenses with your own earned income - which you did by covering rent, utilities, food, car payment, etc. The mailing address on your tax return is completely separate from the support determination. However, I'd recommend double-checking your calculation by listing out ALL your expenses for the year, including any amounts your parents might have contributed (health insurance, phone bill, etc.). Sometimes people overlook expenses that parents cover. Regarding your AMC stock - yes, you must report that $60 gain even without a 1099-B form. You can usually find your transaction history in whatever app/platform you used. Report the purchase price ($30) and sale price ($90) on Schedule D and Form 8949. The IRS requires all capital gains to be reported regardless of the amount. One thing to be careful about - make sure your parents aren't planning to claim you as a dependent on their return. If you're claiming yourself as independent, they can't also claim you. It's worth having that conversation with them before you both file to avoid any issues with the IRS.