Looking for tax planning advice service for W2 employees - EV credit question

The EV tax credit question is straightforward - yes, you would have received the difference as a refund if your tax liability was less than the credit amount. The $7.5k EV credit is fully refundable, meaning you get the full benefit regardless of your tax liability. So in your case, the $4k you owed would have been covered, and you'd have received approximately $3.5k back. For 2025 tax planning, a CPA or Enrolled Agent would be your best bet. Tax lawyers are typically more for complex legal issues or disputes with the IRS, while regular tax preparers often focus just on filing rather than year-round planning. The process usually involves an initial consultation to review your current situation, followed by strategic recommendations. Many offer mid-year check-ins rather than continuous updates. Bring your last couple years' returns, current pay stubs, and a list of any anticipated changes for 2025 (home purchase, investments, etc.).

I was in a similar situation last year - owed about $3,800 and was tired of tax surprises. I found this AI service called taxr.ai that actually helped me understand my withholding situation better than any human advisor I'd worked with before. You upload your paystubs and tax documents, and it analyzes everything to show where you're likely to end up at tax time, plus it recommends specific W-4 adjustments. I was skeptical at first, but it identified that both my wife and I were claiming the standard deduction on our W-4s, effectively double-dipping. The tool at https://taxr.ai showed us exactly how to fix our withholding so we'd break even instead of owing. It also helped simulate different scenarios like buying an EV or increasing 401k contributions to see the tax impact.

I wanted to follow up about taxr.ai that was mentioned earlier. I decided to try it out after reading about it here, and it was actually really helpful! I uploaded my last paystub and last year's tax return, and it immediately showed me that I was headed for a $2,200 underpayment next April. The tool showed me exactly what to put on my W-4 to fix the problem - I had no idea I needed to add additional withholding because of our investment income. It also modeled what would happen if I maxed out my HSA contributions (about $800 in tax savings). I've already made both changes and my latest paycheck shows the updated withholding. It's definitely more useful than the generic "increase your 401k" advice I usually get. Worth checking out if you're trying to avoid another tax surprise next year.

If you need to actually talk to someone at the IRS about tax planning questions (especially about credits like the EV credit), I'd recommend using Claimyr. The IRS wait times have been ridiculous lately (I waited 2+ hours last month), but Claimyr got me connected to an agent in about 15 minutes. I had questions about some credits I qualified for, and being able to actually talk to an IRS rep cleared everything up. The service at https://claimyr.com basically holds your place in line and calls you when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was planning on buying an EV too and wanted to confirm exactly how the credit would work with my tax situation, and the IRS agent was actually super helpful about explaining it.

Ok I need to eat my words from earlier. After questioning whether Claimyr was legit, I decided to try it myself since I needed to ask the IRS about a missing stimulus payment that never got resolved. I was absolutely shocked when I got a call back saying they had an IRS agent on the line. Total wait time for me was maybe 20 minutes, compared to the 1.5+ hours I spent on hold last time I called. The IRS agent was able to confirm that my payment had been issued but sent to an old address, and they're now reissuing it. For anyone who needs to actually speak with the IRS (which can be really helpful for tax planning questions that are specific to your situation), this service is definitely worth it. I was wrong to be skeptical!

For your tax planning question, I'd recommend a CPA who specializes in personal tax planning rather than business taxes. I meet with mine quarterly - we set it up after getting hit with a huge bill two years ago. Our process looks like this: - January: Tax prep for previous year + planning session for current year - April: Post-filing check-in and adjustments based on actual results - July: Mid-year review of pay stubs, any life changes, etc. - October: Final check before year-end for last-minute moves The whole point is avoiding surprises. For us, the problem was having two W2 incomes that put us in a higher bracket than either of our employers' withholding systems accounted for. My wife also has RSUs that vest irregularly, which complicates things. Our CPA showed us how to adjust our W-4s to account for the dual income issue. This kind of planning has completely eliminated tax surprises for us.

Don't overlook the DIY approach before spending money on professionals. Start by understanding why you owed that $4k in the first place. Pull out your paystubs and look at your withholding - are you both claiming the correct allowances? If you each claim "married" on your W-4s without checking the "two jobs" box, you'll almost always underwithhold. I fixed my similar issue with the IRS Tax Withholding Estimator (google it) - it's free and shows exactly what to put on your W-4. For planning beyond withholding, try the free tax calculators at smartasset or nerdwallet. Only pay for a CPA if you have complicated situations like self-employment, rental properties, or complex investments. For two W-2 employees, the biggest planning moves are usually just maxing pre-tax accounts (401k, HSA, etc) and getting your withholding right.