This is why I stopped day trading and switched to ETFs with occasional rebalancing. The tax headaches weren't worth the small gains I was making. Now I sleep better and spend way less time on tax prep.

I'm dealing with a very similar situation and wanted to share what I learned after consulting with a tax professional. The key insight is that when your disallowed wash sales exceed your realized losses, you're essentially "prepaying" taxes on losses that will benefit you in future years. Here's what helped me understand it: Think of the excess disallowed wash sale amount as an "investment" in higher cost basis for your replacement shares. When you eventually sell those shares (hopefully for a gain), your tax liability will be lower because of that higher basis. For your specific situation with $17,850 disallowed vs $14,200 realized loss, you'll report both amounts exactly as shown on your 1099B using the aggregation method. The $3,650 difference ($17,850 - $14,200) represents basis adjustments that are sitting in your current positions, waiting to reduce future gains or increase future losses when you sell. One practical tip: if you're planning to continue active trading, consider opening a separate account specifically for longer-term holds to avoid inadvertently triggering wash sales on positions you want to keep. This has helped me avoid some of the cascading wash sale issues others have mentioned.

My company handles this by having a 14-day rule. If an employee works in a state for less than 14 days in a calendar year, we don't bother with withholding for that state. If it's over 14 days, we set up proper withholding. This isn't technically 100% compliant with every state's laws, but it strikes a balance between administrative sanity and reasonable compliance. We document everything so if there's ever an audit, we can show our good-faith effort to comply with the complex patchwork of state laws. Different companies have different risk tolerances. Your friend's husband's company might be taking a more aggressive position, which isn't uncommon.

This is such a timely discussion! I'm a freelance IT consultant who travels to client sites across multiple states, and I've been wrestling with this exact issue for years. What I've learned through painful experience is that the "official" rule and the "practical" reality often don't align. Technically, yes, you're supposed to file in every state where you earn income, but the enforcement and thresholds vary wildly. One thing I'd add to the great advice already shared: keep meticulous records of your travel dates and work locations. Even if you decide to take a more conservative approach like Ian's 14-day rule, having detailed documentation is crucial if you ever face an audit. Also, don't forget about potential double taxation issues. Some states don't give full credit for taxes paid to other states, so you could end up paying more than if you just filed in your home state. This is where those reciprocity agreements Lucas mentioned become really valuable. For Eleanor's original question about whether most companies actually follow through - in my experience, it's about 50/50. Larger companies with dedicated tax departments usually comply, smaller companies often take calculated risks. Your tax advisor and legal counsel are being appropriately cautious, which is probably the right approach for a business owner.

I'm dealing with a very similar situation right now! I had a settlement check from an auto recall class action that expired about 3 months ago. After reading through all these helpful responses, I contacted the settlement administrator last week and they were incredibly accommodating. They didn't even require an affidavit - just had me verify some basic information over the phone and confirmed my current address. The new check should arrive within 2-3 weeks. One thing I learned that might help others: when you call, have the original check number ready if possible. It speeds up the process significantly since they can immediately locate your record in their system. Also, they mentioned that they actually set aside funds specifically for reissued checks, so there's no concern about the settlement being "closed" for at least the next two years. For the tax side, I'm reporting it as income this year (2025) even though the original check was from 2024, since that's when it was issued and when the 1099 was generated. It's reassuring to see so many people confirming this is the right approach!

I've been through this exact scenario twice in the past few years with different class action settlements, and I can confirm that everyone's advice here is solid. The most important thing is definitely to report the income regardless of whether you cashed the check - I learned this the hard way when the IRS sent me a notice about unreported income from a 1099-MISC. One additional tip that saved me a lot of headache: when you contact the settlement administrator, ask them to update your address in their system even if it hasn't changed. Sometimes checks get lost in the mail or delivery issues occur, and having them confirm your current address can prevent the reissued check from having the same problem. Also, many settlement administrators now offer direct deposit for reissued payments if you ask - it's faster and more secure than waiting for a paper check. The good news is that $370 isn't a huge tax impact, but you definitely want to get this sorted out properly. Most settlement administrators are very familiar with this situation since it happens frequently, so don't feel embarrassed about calling - they deal with expired checks all the time!

Random question - can I use blue ink for the correction or does it have to be black? I know the IRS is picky about some of these details.

Thanks everyone for all the helpful advice! I went ahead and made the correction using the single line method that Paloma mentioned - drew a clean line through the wrong number, wrote the correct amount above it, and initialed with the date. The correction was pretty minor (just a few hundred dollars difference in my totals), so I didn't include an explanatory note. I also ended up checking my work with taxr.ai before submitting, and it confirmed that my correction was done properly and didn't find any other issues. Really glad I found this thread before panicking and ordering a new form! Submitting everything today and feeling much more confident about it.

I'm seeing a lot of complicated answers here but it's actually pretty simple. I've owned 3 homes and here's what I've learned: if you didn't pay it, you don't deduct it. The seller credit on closing is just an adjustment to make the sale fair - it's not income and it's not a deduction. When you actually pay the property taxes in 2025, that's when you deduct them - regardless of what period they cover.

As a first-time homeowner myself, I went through this exact confusion last year! You're absolutely right - since you didn't make any actual property tax payments in 2024, there's nothing to deduct on your 2024 return. The key thing to remember is that property tax deductions are based on the cash basis - meaning you can only deduct what you actually paid out, not what was assessed or owed. That seller credit you received at closing isn't taxable income to you, it's just an adjustment to make the transaction fair since you'll be paying the full year's taxes when they come due. When February 2025 rolls around and your escrow company pays those property taxes, you'll be able to deduct the full amount on your 2025 tax return. Keep your escrow statements and closing documents organized - you'll need them to show exactly what was paid and when. One tip: make sure to review your mortgage servicer's annual escrow analysis statement early next year. It will show exactly when property tax payments were made, which is crucial for determining the correct tax year for your deduction.