Wouldn't tax-loss harvesting just create more capital losses though? I'm already trying to use up my existing losses, not create more. Or am I misunderstanding something?

You're right, I should have been more clear. Tax-loss harvesting would indeed create more capital losses, which wouldn't help your current situation where you're trying to use up existing losses. I was thinking more long-term about tax efficiency once you've used up your carryover. For your current situation, you'd want to focus on generating capital gains. Consider looking at appreciated positions you might have in other accounts that you could sell to realize gains that would be offset by your losses. Or as others suggested, investing in assets likely to appreciate that you could sell later this year for short-term gains.

Zero coupon bonds are a bit more complicated than that. With most zero coupon bonds, including Treasury STRIPS, the built-in interest (the difference between what you pay and face value) is actually taxed as interest income each year as it accrues, even though you don't receive the cash until maturity. This is called "phantom income." Municipal zero coupon bonds are generally exempt from federal income tax, so they wouldn't generate taxable income or gains that you could offset with your capital losses.

I second this. My ex-roommate stole my W-2 from our mailbox and filed with my info. The IRS agent I spoke with said a surprising number of tax identity theft cases are people you know, not random hackers.

What about hybrid workers who split time between US and international locations? We have several people who work 3 months abroad, 9 months in the US. How would you calculate that?

For hybrid workers splitting time between US and international locations, you'd need to track their time and allocate accordingly. For your example of someone working 3 months abroad and 9 months in the US, you'd allocate 25% of their R&D salary to the 15-year amortization schedule (foreign) and 75% to the 5-year schedule (domestic). Documentation is absolutely critical here. Make sure you have systems tracking where work is performed, not just where the employee's home base is. Some companies use IP address logging or formal documentation of work locations to support their allocations in case of audit.

We use TaxMatrix Pro which has a decent R&D module. It's not perfect but it lets you set up different amortization schedules and track them year over year. The reporting is decent for tax time too.

I've used Direct Pay for the last 3 years and it's WAY better than mailing checks. You get an immediate confirmation number, you can designate exactly what the payment is for (estimated tax, extension, etc), and it shows up in your IRS account transcript within a few days. Plus no worries about checks getting lost in the mail!

Thanks for the info! That sounds much more reliable than what I've been doing. I hate not knowing if the IRS properly applied my payment until months later when I file. Do you know if the confirmation they send is something I should keep for my records or is it just for peace of mind? I'll definitely switch to Direct Pay for my next payment.

They're totally separate things. The Q1 2025 estimated payment (for income you earn January-March 2025) is due April 15, 2025, which is typically the same deadline as your 2024 tax return. But they're completely different payments. Any payment you make when filing your 2024 return is just to settle up what you owe for 2024 - it doesn't count toward your 2025 estimated taxes. You need to make that Q1 estimated payment separately if you expect to have income not covered by withholding in 2025.

I just checked that! You're right - I accidentally selected "I can be claimed as a dependent" even though my parents and I agreed they wouldn't claim me. As soon as I fixed that, the software recalculated and now I'm eligible for the full $2,500 American Opportunity Credit with $1,000 refundable. I can't believe it was such a simple mistake. Thanks so much for pointing this out!

You only need to subtract scholarships and grants that were specifically designated for qualified education expenses (tuition, fees, course materials). If your athletic scholarship wasn't specifically earmarked for tuition, but was instead for your role as a student athlete, you may not need to subtract it from your qualified expenses. However, be careful - if your scholarship award letter or financial aid statement indicates the athletic scholarship is for "tuition and fees" or "educational expenses," then you would need to subtract it. The key is how the scholarship is officially designated by your school.