As a fellow physician who went through this exact transition from W-2 to K-1 income about 18 months ago, I completely understand your confusion! Don't feel embarrassed - they definitely don't teach this stuff in medical school, and most of us are learning as we go. One thing I'd add to all the excellent advice here is to make sure you understand how your partnership handles call pay, shift differentials, and any productivity bonuses. These can sometimes be treated differently on the K-1 depending on how your partnership agreement is structured. Some get included in guaranteed payments, others flow through as distributive share. Also, since you mentioned EmergencyHealth Partners specifically - I'd recommend asking them about their policy on continuing education expenses. Some partnerships reimburse these directly (which means they don't show up as your deduction), while others expect partners to pay and deduct them individually. This can make a difference in your tax planning. The learning curve feels overwhelming at first, but honestly after the first year you'll wonder why you were ever stressed about it. The tax advantages of partnership income often more than make up for the extra complexity, especially if the Republican tax proposals do make the QBI deduction permanent. Best of luck with your new position - emergency medicine partnerships can be incredibly rewarding both professionally and financially!

Hey Luca! Don't feel embarrassed at all - you're asking exactly the right questions, and honestly, most physicians are thrown into this without any preparation. I made a similar transition about two years ago when I joined an orthopedic surgery group. Here's the simple breakdown: K-1 income means you're treated as a business partner rather than an employee. Instead of getting a W-2 where taxes are automatically withheld, you'll get a Schedule K-1 that shows your share of the partnership's income, expenses, and deductions. The big difference is YOU become responsible for paying taxes quarterly. Regarding the Republican tax plan, the potential benefits for K-1 recipients are actually pretty significant. The main one is making the Qualified Business Income (QBI) deduction permanent - this could let you deduct up to 20% of your business income, though it phases out at higher income levels for physicians. My practical advice: 1) Set aside 35-40% of every distribution for taxes initially, 2) Find a CPA who specializes in medical partnerships, 3) Start making quarterly estimated payments from day one, and 4) Track every business expense meticulously. The adjustment period is real, but most physicians find the tax advantages and business deductions more than compensate for the added complexity. You've got this!

Pro tip from someone who deals with this every year (tax accountant here, though not YOUR tax accountant): Most tax refund cards have a bill pay feature that lets you "pay" your own bank account as if it were a bill. Clever workaround! 😉 Just add your checking account as a payee using your account/routing numbers. Usually has higher limits than direct transfers and sometimes lower fees too. The banking system doesn't know or care that you're paying yourself.

I totally understand your frustration with the prepaid card situation! I went through something similar last year. Here's what worked for me: First, call the customer service number on the back of your card to check your daily/weekly transfer limits - they're usually higher than ATM limits. Most cards allow $2,000-$5,000 per day for ACH transfers to your bank account through their online portal or mobile app. The transfer usually takes 1-3 business days and costs around $1-5. If you haven't activated online access yet, do that first - you'll need the card number, security code, and usually some personal verification info. Also double-check that the IRS has your correct bank account info for future refunds by updating your direct deposit information on IRS.gov. Hope this helps!

Has anyone been able to qualify as a Real Estate Professional to get around these passive loss limitations? I'm trying to figure out if it's possible with my situation. I work full-time (about 2,000 hours per year) but also spend a ton of time managing my properties (maybe 15-20 hours per week).

I went through the exact same confusion with Form 8582 when I first started with rental properties! Those "unallowed losses" basically mean your rental losses are suspended because of the passive activity loss rules. Here's what's happening: If your modified adjusted gross income (MAGI) is over $150,000, you generally can't use rental property losses to offset your regular income like wages. The losses aren't gone forever though - they carry forward indefinitely until you either have passive income to offset them against, or you sell the property. There's a potential exception if your MAGI is under $100,000 and you actively participate in managing your rentals - then you can deduct up to $25,000 in losses against other income. But based on your situation with 4 properties generating losses in your first year, I'm guessing your income might be above that threshold. The good news is those suspended losses will eventually be useful when you sell the properties or if you generate passive income from other sources. Keep good records of the amounts each year - you'll need them later!

Sorry if this is a bit off-topic, but has anyone claimed the credit for a used EV or PHEV? I'm looking at a 2022 Chevy Bolt and wondering if I can get any tax benefits for buying used instead of new?

Thanks everyone for all the detailed responses! This has been super helpful. Just to summarize what I've learned for anyone else in a similar situation: 1. Regular hybrids (like a standard Prius) DON'T qualify - only plug-in hybrids (PHEVs) do 2. PHEVs need at least 7 kWh battery capacity to qualify 3. The credit amount varies by vehicle due to battery sourcing requirements - could be $3,750 or $7,500 4. You can either claim it on your taxes OR get it as an immediate discount at the dealership 5. Always verify with the IRS list rather than just trusting what dealers tell you I'm definitely going to check out that IRS qualified vehicles list before I go shopping this weekend. Sounds like I need to focus on plug-in hybrids specifically, not regular hybrids. Really appreciate everyone sharing their real experiences - way more helpful than the generic info I was finding online!

Great point about account types! Just to add some clarity for anyone reading - if this is a Roth IRA, the rules are different too. With Roth accounts, you can withdraw your original contributions (basis) at any time tax-free, but earnings withdrawals before age 59½ may be subject to taxes and penalties. For taxable accounts like the original poster seems to be describing, the proportional method mentioned earlier is typically the default, but as others have noted, you might have options like specific identification that could be more tax-efficient depending on your situation. Keep detailed records of all your transactions including dates, amounts, and any reinvested dividends - this will make basis calculations much easier whether you do them manually or use software to help.

One thing I'd add that hasn't been mentioned yet - if you're dealing with partial withdrawals regularly, it might be worth considering tax-loss harvesting strategies alongside your basis calculations. When you're withdrawing from investments that have gains, you could potentially sell other investments at a loss to offset some of the taxable gains. Also, timing can matter. If you've held the investment for less than a year, you'll pay short-term capital gains rates (taxed as ordinary income), but if you've held it for more than a year, you'll get the more favorable long-term capital gains rates. In your example with the $160 taxable gain using the proportional method, this rate difference could be significant depending on your income bracket. Just make sure you don't run into wash sale rules if you're planning to repurchase similar investments within 30 days of selling at a loss.