What futures broker are you using? I'm getting wrecked by the tax reporting from my current broker. Their 1099s are a nightmare and don't clearly separate section 1256 contracts.

Great question about futures taxation! I've been trading futures for a few years now and can confirm what others have said about the 60/40 rule. One thing I'd add is that you should also consider the wash sale rules, which work differently for futures compared to stocks. With futures contracts under Section 1256, wash sales don't apply the same way they do for securities. This means you can actually realize losses for tax purposes even if you immediately re-enter a similar position, which can be helpful for tax planning throughout the year. Also, since you're projecting such significant profits, you might want to look into making estimated quarterly tax payments to avoid underpayment penalties. The IRS generally wants you to pay as you go, especially with income this large. You can use Form 1040ES to calculate and make these payments. One last tip - keep detailed records of all your trading activity, including timestamps, contract specifications, and P&L for each trade. The IRS can be pretty strict about substantiating trading income, especially at higher amounts. Having clean records will save you headaches if you ever get audited.

One thing nobody has mentioned - if you have proof that your ex knowingly claimed your child incorrectly (like text messages where he admits it), you should consider reporting him for tax fraud using Form 3949-A. The IRS takes this stuff seriously, especially if there's a pattern.

I'm so sorry you're dealing with this - it's incredibly frustrating when an ex tries to pull something like this! As others have mentioned, you're absolutely in the right here. Since you have full custody, you're the custodial parent and entitled to claim your daughter. I'd recommend filing your paper return ASAP and including a clear cover letter explaining that you're the custodial parent with full legal and physical custody. Attach copies of your custody agreement (highlight the relevant sections), school enrollment records showing your address, and any medical records that show you as the primary contact. The more documentation you provide upfront, the smoother the process will be. One tip that helped me when I dealt with IRS paperwork - send everything certified mail with return receipt so you have proof of delivery and timing. Keep copies of everything you send. The waiting is the worst part, but stay strong! The IRS will sort this out correctly, and your ex will likely think twice about trying this again once he realizes the consequences. Focus on documenting everything properly and let the system work - you've got this!

This whole thread has been incredibly helpful! As someone who's had to deal with HSA contribution limits and corrections myself, I can't stress enough how important it is to stay on top of these details throughout the year rather than discovering issues at tax time. One additional resource that might be helpful for folks dealing with HSA complications - IRS Publication 969 has a comprehensive section on HSAs that covers contribution limits, excess contributions, and the correction procedures. It's not the most exciting reading, but it's the definitive source for understanding all the rules and requirements. Also, for anyone who's self-employed or has varying income throughout the year, remember that HSA contribution limits are based on your HDHP coverage months, not your income level. If you only had qualifying high-deductible health plan coverage for part of the year, your contribution limit is prorated accordingly. This is another common source of over-contributions that people sometimes miss. The bottom line is that while HSA over-contribution mistakes happen, they're usually fixable if you catch them early and handle them properly. The advice in this thread about keeping good records, working with your HSA administrator, and understanding the tax implications is spot on. Better to deal with a little paperwork now than penalties and headaches later!

This has been such an informative discussion! I'm dealing with a similar HSA over-contribution issue right now, and reading through everyone's experiences has been incredibly helpful. I wanted to add one more consideration that might be relevant for some people - if you're married and both spouses have HSA-eligible coverage through different employers, make sure you're coordinating your total household HSA contributions. The IRS has specific rules about contribution limits when both spouses have HSAs, and it's easy to accidentally exceed the limits if you're not communicating about your individual contributions. Also, for anyone who might be in a similar situation in the future, don't panic if you discover an over-contribution. As this thread shows, these issues are usually fixable with the right approach and documentation. The key is acting quickly once you discover the problem and working closely with your HSA administrator to ensure the correction is handled properly. Thanks to everyone who shared their experiences and solutions - this kind of real-world advice is so much more helpful than trying to decipher IRS publications on your own!

This is such a helpful thread! I'm in a similar situation - bought a used pickup truck in December 2024 for $22,000 and started using it for my landscaping business in January 2025. Based on what everyone's saying here, it sounds like I can take the 80% bonus depreciation on the business portion. One question though - I use the truck about 85% for business and 15% personal. So would I calculate 85% of $22,000 = $18,700, then take 80% bonus depreciation on that $18,700 amount? That would be about $14,960 in first-year depreciation? Also really appreciate the heads up about the future sale implications. I hadn't thought about how taking all this depreciation now would affect taxes if I sell the truck down the road. Definitely something to factor into the decision.

I've been following this thread closely since I'm dealing with a similar situation. Bought a used van in November 2024 for $19,500 and started using it for my delivery business in February 2025. One thing I want to add that hasn't been mentioned yet - make sure you understand the difference between "placed in service" date versus purchase date. The IRS cares about when you actually started using the vehicle for business, not when you bought it. So even though I bought my van in 2024, since I didn't start using it for business until 2025, that's the tax year where I can claim the depreciation. Also, for anyone considering this deduction, remember that you have to choose between taking the standard mileage deduction OR the actual expense method (which includes depreciation). You can't do both. The standard mileage rate for 2025 is pretty high, so run the numbers both ways to see which gives you a bigger deduction. In my case, with an older, less expensive vehicle, the mileage method actually worked out better than taking depreciation. Just wanted to throw that out there since everyone's situation is different!

I've been following this thread closely as someone who went through a similar situation with extensive work travel. One thing I haven't seen mentioned yet is the potential insurance implications of using your personal vehicle so heavily for business purposes. When I was driving 20,000+ miles annually for work, I discovered that my personal auto insurance might not fully cover me during business travel if I got into an accident. I had to contact my insurance company to add business use coverage, which increased my premium by about $400 annually - another cost my employer wasn't covering. Also, regarding the state tax deductions people have mentioned - while states like PA, NY, CA, and OH do allow these deductions, the documentation requirements are strict. The IRS and state tax agencies expect contemporaneous records, meaning you need to log your mileage when the trips happen, not reconstruct them months later from memory or credit card receipts. I'd strongly recommend Connor start tracking immediately using one of the GPS apps mentioned, and also have a conversation with his insurance agent to make sure he's properly covered for business use. The last thing you want is to discover coverage gaps after an accident during a work trip. The combination of proper documentation, understanding your true costs (including insurance), and knowing your state tax options gives you much stronger negotiating position with your employer.

As someone who's dealt with this exact situation, I want to emphasize how important it is to get ahead of this now before you put even more miles on your vehicle. Reading through all these responses, it's clear there are several angles you should pursue simultaneously: 1. **Start documenting immediately** - Don't wait another day. Download a GPS mileage tracking app (MileIQ, Everlance, or similar) and begin logging every work-related trip between sites. The contemporaneous record requirement for tax purposes is strict, and you can't recreate this data months later. 2. **Check your insurance coverage** - Contact your insurance agent about business use coverage. With 22k miles in just 6 months, you're likely underinsured for the amount of business driving you're doing. 3. **Calculate your true costs** - At 22k miles in 6 months, you're on track for 44,000 miles annually. That's nearly $30,000 in vehicle expenses at the IRS rate. Even if your employer covers $8,000 in gas, you're absorbing over $20,000 in costs. 4. **Research Pennsylvania state taxes** - As confirmed above, PA allows unreimbursed employee business expense deductions on your state return. You should definitely look into amending your 2023 return if you had significant work mileage. 5. **Prepare a comprehensive proposal** - Use all this data to request either proper mileage reimbursement under an accountable plan or a significant salary increase to offset these costs. Your "promotion" is currently costing you thousands annually. The key is having concrete numbers rather than just saying "I drive a lot for work." Document everything, know your rights, and present a professional business case to your employer.