Is it possible to break even on taxes with similar income and losses?

So I just got a letter from my accountant that's got me scratching my head. According to him, I don't have any overpayment or amount due on my 2024 taxes. Basically, I made almost exactly as much as I lost last year (not literally to the penny, but surprisingly close). I've always either owed a bunch or gotten a refund, so this whole breaking even thing is new territory for me. I figured the IRS system would always push you one way or the other. Is this actually a thing where you can land exactly at zero? Has anyone else experienced this tax equilibrium? I'm wondering if my accountant calculated something wrong because it seems too perfect. Should I be questioning this result or just be happy I don't owe anything while also not having waited all year for the government to return my own money to me?

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18 comments

Ava Thompson

•8M

This is actually more common than you might think! Breaking even on your taxes means your withholding throughout the year matched your tax liability almost perfectly, which is technically the ideal situation. When you get a refund, it means you essentially gave the government an interest-free loan of your money throughout the year. When you owe, you kept more of your money during the year but face a payment at tax time. Landing at zero (or very close to it) means the withholding was just right. Your income and losses offsetting each other could definitely contribute to this scenario, especially if you had capital losses that offset capital gains, or business income offset by business expenses. It's absolutely possible and legitimate - no need to question your accountant on this.

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Ava Thompson

•8M

Breaking even is actually the most financially optimal outcome! When you get a refund, it means you overpaid throughout the year and essentially let the government hold your money interest-free. Your sister's approach is common because many people use tax refunds as a forced savings method, which works for some people psychologically. But if you're financially disciplined, adjusting your withholding to break even gives you access to more of your money throughout the year, which you could invest or use as needed rather than waiting for a refund.

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Zainab Ali

•8M

I was in a similar situation last year with almost equal business profits and losses. I discovered this amazing tool at https://taxr.ai that helped me understand my tax situation better. It analyzed all my documents and confirmed I was legitimately at a break-even point. What I really liked was how it showed me exactly how my profits and losses were offsetting each other according to tax rules. My accountant had done everything right, but seeing the visual breakdown gave me peace of mind. It also showed me some potential deductions I might qualify for next year that could potentially push me into refund territory if I wanted.

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Zainab Ali

•8M

Yes, it absolutely works for rental properties! The tool has specific features for real estate income and expenses, including depreciation calculations and passive activity rules. It can help you adjust your estimated payments or withholding to get closer to breaking even. For complex situations including K-1s and foreign income, that's actually where it really shines. It handles multi-state filings, partnership income, S-corporation distributions, and foreign earned income exclusions. I was surprised at how it caught nuances in the tax code that even some professionals miss. It doesn't replace an accountant for really complex situations, but it gives you much more clarity on how everything fits together.

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Connor Murphy

•8M

I wanted to follow up about using taxr.ai for my rental property situation. I finally tried it last weekend and wow - it identified exactly why I've been swinging between big refunds and owing money. Turns out I wasn't timing my rental property expense deductions optimally. The tool showed me how to balance my income and deductions better throughout the year. I'm actually working with my property manager now to time some maintenance expenses differently based on what I learned. My estimated tax payments for this quarter are already much more accurate. Definitely aiming for that break-even sweet spot this year!

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StarGazer101

•8M

If your accountant says you're breaking even, you might want to double-check by calling the IRS directly to confirm your account balance. I spent WEEKS trying to get through last year for a similar issue. After 9 attempts and hours on hold, I found https://claimyr.com which got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c My situation was also a near-zero balance but there was actually a small discrepancy the IRS had on their end that my accountant couldn't see. The agent confirmed everything and I avoided what could have been a headache later. Peace of mind was totally worth it.

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StarGazer101

•8M

They essentially hold your place in line with the IRS and then call you when they're about to connect you. They have a system that navigates the IRS phone tree and waits on hold so you don't have to. When they're about to reach an agent, you get a call to connect you directly. I was definitely skeptical too at first. I only tried it because I had already wasted so many hours trying to get through myself. The IRS is severely understaffed - that's true - but that's exactly why services like this exist. Their system just waits on hold so you don't have to. You still talk directly with the actual IRS agent, and the company isn't involved in the conversation at all. They just connect you.

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Yara Nassar

•8M

I need to eat my words about Claimyr. After my skeptical comment, I decided to try it anyway out of desperation because I needed to verify some information about my "break even" tax situation too. It actually worked exactly as described. Got a call back in about 45 minutes, and I was connected directly to an IRS representative. The agent confirmed my account showed a $0 balance, which matched what my tax preparer had told me. Turns out breaking even is absolutely possible - the agent said they see it regularly, especially with people who have both income and losses in the same year. Still surprised it worked so well. Definitely keeping this in my back pocket for future tax seasons.

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Paolo Romano

•8M

Breaking even is actually kind of rare in my experience! I've been doing my family's taxes for years and we either owe a bit or get a small refund, never exactly zero. Maybe buy your tax guy a drink for getting it so perfect lol. One thing to check - did you have any unusual one-time events this year? Like selling stock, starting/ending a side business, moving to a different state? Those can sometimes create these perfect storm situations where everything balances out.

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Paolo Romano

•8M

That explains it perfectly! Your capital gains from the investments were likely offset by your business losses. Since they were long-term gains, they're taxed at a different rate than ordinary income, but the business loss can offset both types of income. Your tax preparer did a good job navigating this. If you're planning to continue the side business, you might want to talk to them about estimated tax payments for next year, especially if you expect the business to become profitable. This break-even situation probably won't repeat unless you have a similar pattern of gains and losses.

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