This is a great discussion thread! I'm dealing with a very similar situation - I have a 4BR house where I live in one room and rent out the others (2 long-term, 1 short-term rental). One thing I'd add based on my experience is to make sure you're keeping separate bank accounts for your rental income if possible. It makes tracking so much easier when tax time comes around. I use one account for all rental income and pay all rental-related expenses from that same account. Also, don't forget about the QBI (Qualified Business Income) deduction if your rental activity qualifies as a business rather than just passive rental income. With short-term rentals especially, if you're providing substantial services (cleaning, providing linens, etc.), the IRS might consider it a business activity, which could make you eligible for the 20% QBI deduction on your rental profits. Has anyone here dealt with the QBI deduction for their mixed rental situation? I'm still trying to figure out if my activities qualify.

I've been dealing with a similar mixed-use situation for three years now, and I wanted to share a few key lessons I've learned that might help you avoid some headaches: First, create a simple room allocation chart early on and stick to it consistently across all tax years. I use a spreadsheet that shows each room's square footage, primary use, and percentage allocation. This becomes your baseline for all expense calculations and helps if you ever get audited. Second, for your Airbnb portion, track your "material participation" hours carefully. The IRS has specific tests for whether short-term rental activity qualifies as a business vs. passive investment, and this affects both your QBI eligibility and your ability to deduct losses against other income. If you spend more than 100 hours per year AND more than any other person managing the Airbnb (cleaning, guest communication, maintenance), you might qualify for more favorable tax treatment. Third, consider setting up a simple bookkeeping system now rather than trying to reconstruct everything at tax time. Even just separate folders for long-term rental receipts vs. Airbnb receipts vs. shared property expenses will save you hours later. The mixed-use property rules are definitely complex, but once you establish a consistent system, it becomes much more manageable. Good luck with your taxes!

I'm in the exact same boat! Just renovated the kitchen in my AirBnB for $18K. I was leaning toward Schedule E (rental income) because: 1) I don't want to pay self-employment tax if I can avoid it 2) My average stay is actually 8 days, just barely over the 7-day threshold 3) I don't provide "substantial services" - just basic amenities and cleaning between guests But then my tax guy pointed out that taking depreciation over 27.5 years for the renovation means only deducting about $650 per year instead of the full amount. He said some parts of the kitchen (appliances, etc.) could be separated out for faster depreciation or even immediate expensing. Has anyone done a side-by-side comparison using both methods to see the actual difference in tax liability?

This is such a great discussion! I'm dealing with a similar situation with my mountain cabin rental. One thing I learned from my CPA that might help - you can actually separate your bathroom renovation into different components for tax purposes. For example, if you installed new fixtures, vanity, or exhaust fan, those might qualify as "personal property" that can be depreciated over 5-7 years instead of 27.5 years, or potentially qualify for bonus depreciation. The structural work (plumbing, flooring, tiling) would still need the longer depreciation schedule. Also, don't forget about the "safe harbor" rule - if your average stay is 7 days or less AND you provide substantial services, you're almost certainly looking at Schedule C territory. But like others mentioned, basic cleaning between guests usually doesn't count as "substantial services." Given your $35K annual income, I'd definitely run the numbers both ways before deciding. The self-employment tax on Schedule C could be significant, but the potential for better deduction timing might offset it depending on your overall tax situation.

Just to add some perspective from someone who's been through this transition - the new W4 system is actually much better once you understand it, even though it seems confusing at first. For your specific situation (married, 3 kids, non-working spouse), here's a simple approach: Fill out Steps 1-3 normally (married filing jointly, claim your 3 children for $6,000 in Step 3). Then for Step 4, if you want less withholding, you can estimate your itemized deductions. With a $1,350 mortgage payment, you're probably paying around $16,000+ annually in mortgage interest, which along with state/local taxes might put you above the standard deduction ($27,700 for married filing jointly in 2024). If you're comfortable owing a small amount, you could put something like $5,000-8,000 in Step 4b as an estimate of deductions above the standard deduction. This would reduce your withholding similar to claiming additional allowances in the old system. Start conservatively and adjust later in the year if needed!

As someone who recently went through this same confusion, I can share what finally clicked for me. The key insight is that the new W4 is designed to be more precise than the old allowance system, but it requires you to think differently. For your situation, here's what I'd recommend: Start with the basics - married filing jointly in Step 1, skip Step 2 since you're the only worker, and definitely claim your $6,000 for three kids in Step 3. That's already going to significantly reduce your withholding compared to someone without children. For Step 4, here's the thing about your mortgage - with a $1,350 monthly payment, you're likely paying around $12,000-14,000 in interest annually. However, with the current standard deduction being $27,700 for married filing jointly, you'd need over $27,700 in total itemized deductions to benefit from itemizing. Unless you have high state taxes, significant charitable donations, or other major deductions, you'll probably take the standard deduction anyway. My advice? Start by filling out just Steps 1-3 and see how your paychecks look. The child tax credits alone will reduce your withholding substantially. You can always adjust later if you're getting too big of a refund. This approach has worked well for me and eliminates the guesswork about deductions you may not even use.

I work as a tax preparer and wanted to share a few insider tips for finding H&R Block discount codes! First, if you're a military member (active duty, veteran, or spouse), H&R Block offers a Military OneSource discount that can give you significant savings - sometimes up to 25% off. You'll need to verify your military status through their partner portal. Also, many credit unions have partnerships with tax software companies that their members don't even know about. Check with your credit union's member benefits - I've seen discounts ranging from 15-30% that way. One thing I'd caution about is waiting too long to file just to get a discount code. If you're expecting a refund, you're essentially giving the government an interest-free loan while you wait. Sometimes it's better to just pay the full price and get your refund faster, especially if it's a substantial amount. That said, the cart abandonment strategy mentioned by others really does work - I've had clients save 20-35% that way. Just make sure you're not cutting it too close to the deadline!

Just wanted to add another option that worked for me - check if you have any cashback or rewards credit cards that offer bonus categories for "software" or "digital services" purchases. I used my Chase Freedom card during a quarter when software was a 5% category and got $6 back on my H&R Block filing. It's not a discount code, but it's still money back in your pocket! Also, if you're a AAA member, they sometimes have tax software discounts in their member benefits portal. I remember seeing H&R Block deals there in previous years, though I'm not sure what they're offering this season. Worth checking if you're already a member since you're paying for those benefits anyway. Good luck with your filing! This thread has been super helpful - I had no idea there were so many ways to save on tax software.

Hey there! I had the same identity verification nightmare a few months ago. After trying endlessly to get through on the phone, I used Claimyr (claimyr.com) and it changed everything. The service basically waits on hold with the IRS for you and then calls you when an agent is ready. It was the only way I finally spoke to someone after weeks of frustration. The conversation with the agent took less than 10 minutes and my refund was processed the following week. Best decision I made during tax season!

I feel your pain! I was in the exact same situation about a month ago - stuck in identity verification limbo and couldn't get through to anyone at the IRS no matter what time I called. It's absolutely maddening when you need that refund for important expenses like medical bills. Here's what finally worked for me: I called the regular IRS customer service line (1-800-829-1040) instead of the identity verification line. When I got through (which still took several attempts), I explained my situation and they were actually able to transfer me to someone who could help with identity verification. The agent told me that many people don't realize the general line can sometimes assist with this. Also, if you have your transcript available, you might want to try calling right at 7am EST and keep hitting redial for about 20-30 minutes straight. I know it sounds tedious but that's how I finally got through initially. Hang in there - I know how frustrating this is but you'll get through it!