Side note but if you're looking at EVs, make sure you understand the new rules for the tax credit. Not all EVs qualify anymore! Has to be assembled in North America and there are battery component requirements too. Plus there are income limits ($150k for single filers). The dealer should be able to tell you if a specific model qualifies.

Just wanted to add that while you can't become truly "tax exempt" as an individual, there are some situations where people effectively pay zero federal income tax through credits and deductions. For example, if you qualify for the Earned Income Tax Credit (EITC), Child Tax Credit, and other refundable credits, you might not only eliminate your tax liability but actually get money back. However, this typically applies to lower income levels or families with children. At your $58,000 income level, you're probably past the income limits for many of these credits. The EV credit is great, but as others mentioned, it's a one-time benefit. Your best bet for long-term tax reduction is maximizing retirement contributions and taking advantage of any other credits you qualify for. Also remember that even if you eliminate federal income tax, you'll still owe Social Security and Medicare taxes (FICA) which can't be avoided.

I might be the odd one out, but I've actually just let small K-1s slide before when they came super late and had minimal impact on my return. If we're talking about a tiny amount (like under $200 of income), sometimes the hassle of amending isn't worth it. The IRS generally has bigger fish to fry. That said, technically you're supposed to amend. So my approach isn't officially recommended. Just sharing my real-world experience.

I'm dealing with this exact situation right now! Got a late K-1 yesterday from a partnership investment I honestly forgot I even had. The income reported is about $850, so not huge but definitely not negligible either. After reading through all the responses here, I'm convinced I need to file the amendment. @QuantumQuasar is absolutely right about the IRS matching - I actually got a CP2000 notice a few years back for unreported 1099 income that I missed, and dealing with that was way more stressful than just filing correctly in the first place would have been. One question though - does anyone know roughly how long amended returns take to process? I'm planning to buy a house later this year and my lender said they might want to see my most recent tax transcripts. Don't want this amendment to complicate the mortgage process if it's still being processed.

Have you guys considered splitting the benefits? Like one of you claims the child tax credit and the other claims the EIC if eligible? My ex and I alternate years claiming our kid which works for us.

This is such a common situation for unmarried couples with kids! From what you've described, it sounds like your boyfriend would likely be the better choice to claim your child since he has the higher income and provides the financial support. The IRS tiebreaker rules for unmarried parents living together typically favor the parent with higher AGI. However, don't overlook the Earned Income Credit (EIC) - even with your lower income of $27k, you might still be eligible for EIC if you claim your child, and sometimes that can be more valuable than the Child Tax Credit your boyfriend would get. The EIC is specifically designed to help lower-income working families and phases out at higher incomes. My suggestion would be to use tax software or consult a professional to run both scenarios - him claiming vs you claiming - and see which gives your household the better overall refund. Sometimes the math isn't as obvious as it first appears, especially when factoring in all the different credits and filing statuses available to each of you. Also keep in mind that whichever one of you doesn't claim the child will need to file as Single rather than Head of Household, so factor that into your calculations too. Good luck navigating your first tax season as parents!

I had this exact issue! For what it's worth, I called TurboTax support and they confirmed that for real property structures, the program automatically applies straight-line depreciation because that's what's required under MACRS for buildings. The rep did show me how to access the "hidden" depreciation options though. If you go into each asset, there's an advanced settings option that's not obvious. For the building itself, you can't change from straight-line, but you can choose between GDS and ADS systems and adjust recovery periods in some cases. For personal property within the real estate (appliances, furniture, etc.), you CAN change to 200% or 150% declining balance methods once you find this menu. Saved me quite a bit in year one!

I'm dealing with a similar situation with my real estate partnership! After reading through all these responses, I'm realizing that what I thought were "errors" in TurboTax might actually be correct applications of tax law that I just didn't understand. The explanation about MACRS requiring straight-line for building structures makes sense now. I was expecting to see accelerated depreciation options like I use for equipment in my other business, but apparently real property is different. I'm definitely going to look for those hidden advanced settings that @Scarlett mentioned. I think I've been leaving money on the table by not separating out the personal property components (appliances, carpeting, etc.) from the building structure itself. Has anyone here actually done a cost segregation study? I'm curious if it's worth the expense for a smaller partnership or if that's only beneficial for larger real estate operations.

As someone who's been through a similar situation with employer-paid education benefits, I wanted to share what ultimately worked for me. The key is understanding that you have multiple avenues to resolve this, even when HR initially pushes back. First, try approaching your employer one more time, but this time with specific documentation. Print out IRS Publication 15-B, Section 3, which covers working condition fringe benefits for education. Highlight the part that explains education qualifies when it "maintains or improves skills needed in your present work." For RN-to-NP programs, this often applies since you're building upon your existing nursing knowledge base. If your employer still won't budge, you're not stuck. You can file your return showing the W-2 as issued, but then claim the adjustment by filing Form 4852 (Substitute for Form W-2) along with a detailed explanation of why the education qualifies as a non-taxable working condition fringe benefit. Include documentation like your job description, the education program details, and how it relates to your current nursing role. The fact that your employer is paying for this education actually strengthens your case - it suggests they see value in the education for your current position. Keep all documentation about your nursing program and how it enhances your current ICU skills, as this will be important if there are ever any questions. Don't let HR's initial resistance discourage you. Many HR departments aren't well-versed in the nuances of education benefit taxation, especially for healthcare professionals. You have legitimate options to get this resolved correctly.

I'm a healthcare administrator who's dealt with these education benefit classifications many times, and I wanted to add some practical perspective to help you navigate this situation. The good news is that RN-to-NP education often does qualify as a working condition fringe benefit, especially in your case where you're remaining in nursing and your employer is directly paying the institution. The "maintains or improves skills" test is key here - since NP education builds upon your existing nursing knowledge base rather than training you for a completely different field, you likely have a strong case. For dealing with your HR department, try this approach: Request a meeting and bring IRS Publication 15-B (specifically pages 16-17 about working condition fringe benefits). Ask them to show you in writing which part of their tuition questionnaire led them to conclude this should be taxable income. Often, HR departments make assumptions based on incomplete understanding of the tax code. If they still won't cooperate, document everything. Get your current job description, your NP program curriculum, and a statement from your nursing supervisor about how this education enhances your current role. This documentation will be crucial whether you're filing Form 4852 or appealing to your employer again. One often-overlooked point: The fact that your employer is paying tuition directly to the university (rather than reimbursing you) actually strengthens the argument that they view this as benefiting your current employment relationship, not preparing you to leave. Don't give up - I've seen many of these situations resolved in the employee's favor once the proper documentation and IRS citations are provided.