One thing nobody mentioned yet - make sure you're not double counting any interest payments! Sometimes when loans transfer, both companies might report interest for the same month. Double check the periods covered by each 1098 to make sure there's no overlap. Also, remember that if you paid points when you refinanced with Company A, those might be reported separately on the 1098 and are generally deductible over the life of the loan (not all at once in the year you refinanced).

This is such a helpful thread! I'm dealing with a similar situation but with an added complication - my mortgage was sold twice in 2024, so I have 4 different 1098s from 3 different lenders. Based on what everyone has shared, it sounds like I should treat each 1098 period separately for the average balance calculation, then add up all the interest amounts for the total deduction. The key insight about not combining the balances since it's the same underlying debt is really reassuring. One question for anyone who's been through this - did you run into any issues with your tax software flagging the multiple 1098 entries as unusual? I'm worried TurboTax might think something's wrong when I enter 4 separate mortgage interest forms for what's essentially the same property.

This thread has been super helpful! One more question - how detailed should the descriptions be in the "Other expenses" section? Is "Software - $843" enough or should I spell out each program? My tax software only gives me limited space to type.

Sofia, you're making the right choice to be more careful about categorization! One additional tip that hasn't been mentioned yet - make sure you're keeping digital copies of all receipts and documentation for those "Other expenses." The IRS is particularly interested in being able to verify expenses that don't fall into standard categories. For your $57k business income level, you're actually in a pretty safe zone audit-wise, but good record-keeping habits now will serve you well as your business grows. I'd also recommend creating a simple spreadsheet at the beginning of each tax year with columns for date, vendor, amount, category, and business purpose. It makes next year's taxes so much easier! One last thing - if any of those software subscriptions or courses are things you'll use for multiple years, make sure you're not missing out on any potential depreciation benefits versus expensing everything in year one.

If you're really in a hurry and the amount is not too large, you can also pay with a credit card through one of the IRS payment processors. There's a fee (around 2%) but it posts immediately. I did this last year when I was up against the deadline and didn't want to mess with wire transfers.

I've been dealing with IRS payments for my small business for years and wanted to share what I've learned. The wire transfer process is definitely confusing at first, but once you understand the format it becomes routine. For the "account number" field, you're essentially creating a coded identifier that tells the IRS exactly what tax liability you're paying. The format varies depending on whether it's personal income tax, business tax, estimated payments, etc. The IRS worksheet should have the specific format for your situation, but it's usually your tax ID (SSN or EIN) followed by the tax form code and period. One thing I always recommend is calling your bank first to make sure they're familiar with federal tax wire transfers. Some smaller banks or credit unions might not process these regularly and could give you incorrect information. The larger banks usually have dedicated tax payment departments that know exactly what to do. Also, make sure you get a confirmation number from both your bank and keep records of the wire transfer. The IRS can take a few days to post the payment even though it's "same day," so having that documentation is crucial if any issues come up later.

I possibly made the same mistake last year. Paid about $40 for what I thought would speed up my refund, but it was essentially just a loan against my expected refund amount. What's worse is that my return ended up getting flagged for review anyway, so the "advance" was the only money I saw for nearly 8 weeks. The IRS processes everything at their own pace, regardless of what TurboTax promises. Now I just file using the free fillable forms directly on the IRS website and save all those extra fees.

I've been a tax preparer for over 15 years and can confirm what others have said - TurboTax's "faster refund" options are essentially high-interest loans, not actual refund acceleration. The IRS doesn't care which software you used or what fees you paid; they process returns in their standard queue based on complexity and accuracy. For future reference, filing early (by mid-February) with direct deposit selected is your best bet for genuinely fast processing. The average refund timeline is 21 days for e-filed returns with direct deposit, and that hasn't changed regardless of what tax prep companies advertise. Sorry you learned this the expensive way - we've all been there with various financial "shortcuts" that turned out to be anything but!

One thing I learned the hard way - if most of your income is from a regular job with withholding, you can also just increase your withholding for the rest of the year instead of making separate estimated payments. Just update your W-4 with your employer to take out extra money from your remaining paychecks. The IRS treats withholding as if it occurred evenly throughout the year, even if you increase it late in the year. This can sometimes help avoid the penalties for quarterly underpayment since estimated payments are tied to specific quarters.

As someone who's been through this exact situation, I'd recommend acting quickly since we're getting close to the end of the year. With your $68k capital gain on top of your $135k salary, you're definitely in territory where estimated payments make sense. Here's what I'd suggest as your immediate action plan: 1. Calculate 110% of last year's federal tax (since your AGI will be over $150k this year) 2. Check how much has already been withheld from your paychecks this year 3. Pay the difference as an estimated payment for Q4 The good news is that even though you realized the gains recently, making one payment now for the current quarter should protect you from penalties as long as you meet the safe harbor rules. Also, don't forget to check if your state has similar estimated payment requirements - many do, and the penalties can add up if you miss those too. You can make the federal payment directly through the IRS website using their Direct Pay system. Just make sure to specify it's for the current tax year and the correct quarter.