This thread has been incredibly helpful! I'm a tax preparer and I see this confusion all the time with my clients. Just to add one more perspective - when applications ask for "federal tax paid," they're almost always looking for your tax liability (Line 24) rather than amounts withheld or estimated payments. The confusion often comes from thinking about "paid" in terms of cash flow (what came out of your paycheck), but from a tax perspective, "federal tax paid" refers to your actual tax obligation for the year. Even if you got a refund, you still "paid" the amount shown on Line 24 - it's just that you prepaid more than that through withholding. One tip I always give clients: if the application specifically mentions FAFSA, student loans, or income-based repayment plans, they almost certainly want Line 24. These programs use your tax liability to calculate your financial situation, not your withholding patterns. For anyone still unsure, most tax software (TurboTax, H&R Block, etc.) will show you exactly where these numbers are on your return if you log back into your account. Much easier than trying to decipher the form layout!

This entire thread has been a lifesaver! I was in the exact same boat as the original poster - staring at my 1040 trying to figure out which number represents "federal tax paid" for a rental application. After reading through everyone's explanations, I now understand that Line 24 (Total Tax) is almost always what they're looking for. It makes perfect sense when you think about it - that's your actual federal tax obligation for the year, regardless of how much was withheld from paychecks or whether you got a refund. I really appreciate how this community broke down the difference between tax liability versus withholding amounts. As someone who's relatively new to understanding tax forms, I was definitely overthinking it and getting confused by all the different lines that mention taxes. One thing I learned from this discussion is that it's always worth calling the requesting organization to ask for a specific line number if you're unsure. Some places are clearer about this than others, but it can save you from potentially using the wrong figure on important applications. Thanks everyone for sharing your experiences and expertise - this is exactly the kind of practical advice that makes navigating tax season so much easier!

I actually faced this same decision last year and went with Deluxe for my 1099-B stock sales. Worked perfectly fine! The key is understanding what you're actually paying extra for with Premier. From my research, Premier mainly gives you additional guidance features, live tax advice, and support for more complex investment scenarios like rental properties or business income. But the actual forms needed for basic stock sales (Schedule D and Form 8949) are included in Deluxe. My advice: if your stock transactions are straightforward - just buying/selling regular stocks or ETFs from major brokerages with proper cost basis reporting - then Deluxe should handle everything you need. I saved the $30 and had zero issues. The nice thing is TurboTax lets you start your return and see exactly which forms you'll need before you commit to paying. If you run into any limitations with Deluxe, you can upgrade and just pay the difference. So there's really no downside to starting with the cheaper option and upgrading only if necessary.

I've been using TurboTax for my investment income for about 5 years now, and I can confirm that Deluxe absolutely handles 1099-B stock sales without any issues. The main thing to understand is that both Deluxe and Premier include the same core tax forms - Schedule D and Form 8949 - which are what you actually need for reporting stock transactions. Premier is really targeting people with more complex situations like rental properties, business income, or those who want extra hand-holding with investment guidance. But if you're just dealing with regular stock sales from a major brokerage (Schwab, Fidelity, Vanguard, etc.), Deluxe has everything you need. I made the switch from Premier to Deluxe three years ago specifically to save money and haven't had any problems. The import process works the same way, the calculations are identical, and you get the same accurate results. The $30 savings adds up over time too! My suggestion would be to start with Deluxe this year and see how it goes. If you somehow run into limitations (which I doubt you will), you can always upgrade mid-process and TurboTax will just charge you the difference.

I went through this exact same situation two years ago and can confirm that you're not out of luck! The IRS does allow late filing of Form 3115 for 475(f) elections under certain circumstances. The key is that you made a good faith effort by filing the election statement with your return. You'll want to file Form 3115 with your 2024 return and include a detailed reasonable cause statement explaining why you missed the original deadline. Reference Revenue Procedure 2022-14 for automatic consent procedures. Make sure to emphasize that you properly made the election statement and are correcting the oversight as soon as you discovered it. The good news is that if accepted, you won't need to amend prior returns - the Form 3115 handles the accounting method change adjustments through Section 481(a). I'd recommend getting professional help to ensure everything is done correctly, but you definitely still have options to salvage your MTM election.

I went through a very similar situation last year and want to reassure you that it's not hopeless! I made my 475(f) election with my 2022 return but completely missed the Form 3115 requirement. I didn't discover this until I was preparing my 2023 taxes. I ended up filing Form 3115 with my 2023 return under the automatic consent procedures in Rev. Proc. 2022-14. The key was including a comprehensive reasonable cause statement that explained I had made the election in good faith but was unaware of the additional Form 3115 requirement. I emphasized that I was correcting the oversight immediately upon discovery. The IRS accepted my late filing without any issues. The Section 481(a) adjustment wasn't as scary as I thought it would be - it actually worked in my favor since I had some unrealized losses that reduced my taxable income for that year. My advice: don't panic, but do act quickly. File the Form 3115 with your 2024 return, include a detailed reasonable cause statement, and reference the appropriate revenue procedure. If your trading situation is complex, consider getting professional help, but many people have successfully resolved this exact issue. The IRS is generally reasonable when you show good faith effort to comply.

Has anyone used TurboTax to report these kinds of sales? I'm wondering if it handles personal items sold at a loss correctly or if it automatically assumes everything on a 1099-K is taxable income.

Great question! I was in a similar situation last year when I sold some old electronics and jewelry. The key thing to remember is that when you sell personal-use items (like your watch and camera) for less than you originally paid, there's no taxable gain to report. Since you're selling at a loss, the IRS doesn't consider this taxable income. However, keep good records of your original purchase prices and sale amounts just in case. If you sell on eBay and your total sales for the year exceed $600, you'll receive a 1099-K form, but you can still report these as personal items sold at a loss on your tax return. The location where you sell (eBay vs private sale) doesn't change the tax treatment - what matters is that these are personal items you owned and used, not items you bought specifically to resell for profit.

I think everyone's overthinking this. I just have my employer split my direct deposit - main portion goes to checking, then fixed amounts go to both my 401k and my IRA. Super simple and I never "see" the money so I'm not tempted to spend it.

I'll add some clarity to the tax mechanics here since there's been some great discussion but a few key points could use emphasis. Lucy, you're absolutely right to be confused about the double taxation aspect - it's one of the most common misconceptions about Traditional IRAs. Here's the key: when you contribute to a Traditional IRA with after-tax dollars (money that's already hit your bank account), you get to deduct those contributions on your tax return, which essentially "gives back" the taxes you already paid on that money. So you're NOT getting double-taxed. However, given your $85k income and 401k participation, you're in the phase-out range for Traditional IRA deductions. This means you can only deduct a portion of your contributions, which significantly reduces the benefit. You might want to run the numbers on whether it's worth the complexity. One strategy to consider: max out your 401k first (you're only doing 6% currently), then if you have additional funds for retirement savings, consider a Roth IRA instead. Since your Traditional IRA deduction is limited anyway, the Roth gives you tax-free growth and withdrawals in retirement, plus more flexibility with early withdrawals if needed. The payroll direct deposit to your IRA is really just a convenience feature - it doesn't change the tax treatment at all compared to transferring from your bank account.