This thread has been incredibly helpful! I'm also self-employed and had no idea I could deduct the portion of premiums I pay out-of-pocket after marketplace credits. I've been missing this deduction for two years now. One question I haven't seen addressed: if I started my business mid-year and was employed for the first half of the year (with employer health insurance), can I still take the self-employed health insurance deduction for the months I was paying for marketplace coverage while self-employed? Or does having employer coverage for part of the year disqualify me entirely? I switched to marketplace coverage in July when I left my job to go full-time freelance, so I've been paying out-of-pocket premiums for 6 months of the year. Want to make sure I can claim this before I file!

Really appreciate everyone sharing their experiences here! As someone who's been self-employed for about 5 years, I want to emphasize how important it is to understand this deduction properly. One thing I'd add is that if you're just starting out as self-employed, don't assume you can't take this deduction because your business income is low. Even if you only made a few thousand dollars in self-employment income, you can still deduct health insurance premiums up to that amount of profit. Every little bit helps when you're building your business! Also, for those considering amending previous returns - it's definitely worth doing if you missed this deduction. I amended my 2022 return after discovering I could deduct my out-of-pocket premiums and got back about $800. The process was easier than I expected, and the IRS processed the amended return in about 8 weeks. One last tip: if you're unsure about any of this, consider keeping detailed notes about your specific situation and consulting with a tax professional who specializes in self-employment taxes. The peace of mind is often worth the cost, especially in your first few years of being self-employed when everything feels complicated!

I just went through this exact situation! My advice: have your kids file their own taxes BUT check the box that says "Someone can claim you as a dependent." They'll still get refunds of any withholding that exceeds their tax liability, and you can still claim them if they meet all the tests. My 19yr old made $7200 last year but still qualified as my dependent because: 1) lived with me all year 2) I paid over half support (rent, food, etc was way more than his earnings) 3) he's my kid He filed his own return, got back his withholding, and I still got the dependent tax benefit. Win-win!

Just to clarify what others have said - there's an important distinction between "qualifying child" and "qualifying relative" that determines income limits: **Qualifying Child** (no income limit): - Under 19, OR under 24 if full-time student - Lived with you more than half the year - You provided more than half their support - Didn't file joint return with spouse **Qualifying Relative** (income limit applies): - Can't earn more than $5,050 (2024 tax year) - You provided more than half their support - Not a qualifying child of you or anyone else So your 18-year-old could potentially qualify as a "qualifying child" regardless of income, but your 20-year-old (not in school) would need to pass the "qualifying relative" test, which includes the income limit. The key is the support test - you need to calculate if you truly provided more than 50% of their total support costs (housing, food, clothing, medical, transportation, etc.) versus what they paid for themselves with their earnings.

dont forget about retirement contritbutions too!! when i was doing pslf i figured out i could lower my AGI by putting more in my 401k which lowered my student loan payments. its like getting a discount on retirement saving!!! for us we did married/seperate and the lower income spouse claimed our kid. saved us like $4k a year in studen loan payments and only lost like $1500 in tax benefits

Yes, HSA contributions absolutely work the same way! HSA contributions reduce your AGI just like 401k contributions do, which means they'll lower your income-driven repayment calculations for PSLF. If you're eligible for an HSA (high-deductible health plan), you can contribute up to $4,300 for individual coverage or $8,550 for family coverage in 2024. It's actually a triple tax advantage - deductible going in, tax-free growth, and tax-free withdrawals for qualified medical expenses. With a new baby, you're probably going to have medical expenses anyway, so maximizing HSA contributions could be a really smart move for your situation. You'd lower your student loan payments AND build up a tax-advantaged fund for healthcare costs. The combination of maxing 401k, HSA, and filing separately with the right spouse claiming your child could really optimize your finances during these final PSLF years!

I messed up my rental condo depreciation last year using the town's weird assessment numbers. My accountant caught it before filing and said the 0.4% land allocation I calculated would absolutely trigger an audit. She helped me get the correct numbers from our condo docs (it was actually 16%). One thing nobody mentioned - with condos you're depreciating the interior structure plus your percentage interest in common elements, but NOT the land. That's why the allocation is so important. My accountant said this is one of the most common errors for first-time landlords with condos.

This is exactly the kind of situation where getting professional help upfront saves you headaches later. I made similar mistakes with my first rental property and learned the hard way that municipal assessments are often completely unreliable for depreciation purposes. Your 0.35% land allocation is definitely a red flag. Even for condos, anything under 10% typically raises eyebrows. The IRS expects reasonable allocations, and yours is so far outside normal ranges that it could trigger automatic review. Here's what I'd recommend based on my experience: 1) Check your original purchase documents - sometimes the land/building split is mentioned in the settlement statement or appraisal 2) Contact your condo association for official documentation of the land allocation percentage 3) If neither yields results, use a conservative 15-20% allocation and document your reasoning Remember, you're not just depreciating your unit - you're also depreciating your proportional share of common areas (hallways, lobby, etc.) but excluding the land value. Using $720k as your basis is correct regardless of current value. Better to be slightly conservative with your depreciation than to deal with an audit over unrealistic numbers!

mine cleared after 3 weeks, just keep checking WMR and your transcripts. dont call them unless its been over 21 days they wont tell u anything anyway

Hey! I was in the exact same situation last month - had those same codes on my transcript and was freaking out about when I'd get my refund. The 570 hold cleared after about 3 weeks for me, and I ended up getting a CP05 notice in the mail asking me to verify my identity online. Once I did that, my refund was released within a week. The waiting is honestly the worst part, but try not to stress too much - these codes are super common this filing season and most people get their refunds eventually. Just keep checking your transcript every Friday when they update! 🤞