Don't forget about the QBI deduction implications of hiring your spouse. Putting too much into their salary could reduce your Qualified Business Income deduction if you qualify for it. You need to balance the retirement contribution benefits against potential QBI losses.

Great point about the QBI deduction! This is something I hadn't fully considered. For anyone else reading, the QBI (Section 199A) deduction can be up to 20% of your qualified business income, but it gets complicated when you have employees. When you pay W-2 wages to your spouse, those wages reduce your net business income that's eligible for QBI. However, having W-2 wages can also help you qualify for QBI if your income is in the phase-out range ($182,050-$232,050 for single filers in 2024). The key is finding the sweet spot where the tax savings from maxing out retirement contributions outweigh any reduction in your QBI deduction. This really depends on your total income level and tax bracket. I'd recommend running the numbers both ways - with and without spousal employment - to see which scenario gives you better overall tax savings. A tax software program or CPA can help model this, especially since the QBI rules are pretty complex with all the wage and income limitations.

Check your transcript for code 971 - thats usually what shows up right before approval on injured spouse claims

I'm at 14 weeks waiting on my injured spouse claim too. From what I've researched, the IRS is really backed up this year - some people are reporting 20+ weeks. Have you checked your transcript lately? Sometimes there are updates there before they send any official notices. The waiting is brutal but unfortunately seems pretty normal for 2025 😕

Quick question about Form 8938 filing thresholds - I have about $95,000 in foreign assets. Do I need to file 8938 as part of my SDOP if I never hit the $100k threshold? The FBAR threshold is lower at $10k so I definitely need those, but I'm confused about whether I need to include 8938s with my amended returns.

I went through the SDOP process two years ago and wanted to share my experience since there seems to be a lot of anxiety here (which I totally understand - I was terrified too!). My situation was almost identical to Drew's - I had foreign accounts that exceeded reporting thresholds in years that fell outside the 3-year amendment window but within the 6-year FBAR requirement. I was convinced the IRS would come after me for those "gap years." Here's what actually happened: I filed all 6 years of FBARs and amended my last 3 tax returns with Form 8938s. About 8 months later, I received standard processing notices for my amended returns showing refunds where I had overpaid estimated taxes. No audit, no additional questions, no penalties. The key thing I learned is that the SDOP is specifically designed to handle these exact situations. The IRS knows there will be gaps between FBAR years and amended return years - that's built into the program structure. They're not trying to trap people; they want voluntary compliance. My advice: if you qualify for SDOP and have been non-willful in your non-compliance, just do it. The peace of mind is worth it, and in my experience, the IRS processed everything smoothly once I followed all the requirements correctly.

Mortgage interest is just one part of the equation and may not be as beneficial as you think. Your $42k in interest would be tax deductible, but remember: 1) You'd also need to add in property taxes under SALT (state and local tax deduction), which is capped at $10k 2) Only the amount OVER the standard deduction ($29.2k for MFJ) gives you tax savings, so really only about $13k of your interest is actually saving you money 3) With MFS, the standard deduction per person is only $14.6k, so you'd have less to overcome Have you run the actual numbers through a tax calculator? I'd be shocked if MFS works out better when factoring in the higher tax brackets and lost credits.

Great question! As someone who went through this exact situation last year, I can share what worked for us. We ended up filing MFJ federally and it saved us about $4,200 compared to MFS, even with our different state situations (I'm in Tennessee - no income tax, spouse in Virginia - 5.75%). The key insight is that federal and state filing decisions are separate. You can file MFJ federally while still handling your state taxes appropriately - your wife would only pay state tax on her income earned in her state, and you wouldn't need to file in her state at all. A few important considerations for your situation: 1) **Mortgage interest benefit**: With MFJ, you'd get the full $42k deduction against your combined income in higher tax brackets. With MFS, you'd split this somehow and lose the bracket advantages. 2) **Backdoor Roth**: Definitely file MFJ for this! MFS limits you to just $10k MAGI for direct Roth contributions, while MFJ gives you much higher limits. The conversion mechanics are the same either way since you have $0 traditional IRA balances. 3) **Other deductions**: MFJ preserves access to student loan interest deduction, education credits, and other benefits that disappear with MFS. I'd strongly recommend running the numbers both ways using tax software or consulting a professional, but in most cases MFJ comes out significantly ahead even with multi-state complications.

Miles, just want to emphasize that you should double-check that you actually have a qualifying High Deductible Health Plan (HDHP) before making any HSA contributions. For 2024, an HDHP needs to have a minimum deductible of $1,600 for individual coverage or $3,200 for family coverage, plus annual out-of-pocket maximums that don't exceed $8,050 (individual) or $16,100 (family). If you're not currently enrolled in an HDHP, you can't make HSA contributions for that tax year. Also, if you switched health plans during 2024, your contribution limit might be prorated based on how many months you had HSA-eligible coverage. The good news is that if you do qualify, that $3,800 contribution you mentioned would definitely help reduce your taxable income. Just make sure to designate it as a 2024 contribution when you make the deposit, and keep all documentation for your tax filing!

Miles, before you make that HSA contribution, I'd strongly recommend using one of the tax optimization tools mentioned here to model your exact situation. While HSA contributions are generally great for reducing taxable income, you want to make sure you're contributing the right amount to achieve your goals. Since you mentioned you think you need about $3,800 to drop back down to the previous bracket, it's worth double-checking that calculation. Remember what Ruby mentioned about marginal tax brackets - you're only saving the higher tax rate on the amount that pushed you over the threshold, not your entire income. So if you only went $1,000 into the higher bracket, contributing $3,800 might be more than necessary to achieve the bracket change you want. That said, HSA contributions are still worthwhile even if you contribute more than needed for the bracket change, since the money grows tax-free and can be withdrawn tax-free for medical expenses. Plus you have until April 15th to make 2024 contributions, so you have time to run the numbers properly. Just make absolutely sure you have qualifying HDHP coverage first, as Hunter and Dmitry emphasized. The penalties for ineligible contributions aren't worth the risk!