Thanks, that's really helpful! Actually, my dad has been meticulous about keeping records. He's got the original purchase documents from when he bought it, plus receipts for clearing some areas, putting in a gravel access road, and installing some drainage systems. Would all of those count as improvements to the property?

Yes, all of those would likely qualify as capital improvements that increase your basis! Clearing land, access roads, and drainage systems are classic examples of improvements that add to your cost basis because they're not regular maintenance but actual improvements to the property. Make sure you have those receipts organized and ready to provide if needed. The higher your documented basis, the less capital gain you'll have to report. This is exactly why keeping good records is so important with investment properties.

I thought capital gains on real estate was always 15% regardless of income? Is that not the case?

But doesn't the new W-4 not have allowances anymore? I thought they got rid of the "0 allowances" option in 2020 when they redesigned the form.

You're absolutely right, and I should have been more clear. On the new W-4 form, I don't check the multiple jobs box, and I don't claim any adjustments to income or deductions. This effectively results in maximum withholding (similar to what "0 allowances" used to do on the old form). The principle is the same though - I let my main job withhold at the standard rate, and then my smaller job also withholds at the standard rate. Since the withholding tables don't "know" about my other job, I end up with a bit more withheld than necessary, which gives me a refund rather than owing taxes.

Ugh, the same thing happened to me! I checked the multiple jobs box on both W-4s and my take-home pay was depressingly small. Huge refund but it wasn't worth struggling all year.

5 If OP did have to file though, would the loss on Bitcoin be deductible against other income? Or do you have to have gains to report crypto stuff?

13 Capital losses (including from crypto) can be deducted against capital gains, and up to $3,000 can be deducted against regular income. In OP's case, the loss is so small (only a few cents) that it wouldn't make a meaningful difference on a tax return. Even if OP had other income that required filing, reporting a 7-cent loss wouldn't result in any tax benefit worth pursuing. If the amount was larger (say, $100+), then it might be worth reporting to offset other income.

21 The age doesn't change the tax rules, but if you're claimed as a dependent on your parents' tax return (which many 18-year-olds are), there are different filing thresholds. For dependents with unearned income (which includes crypto gains), you're required to file if that unearned income exceeds $1,150. In OP's case, there was a loss, not a gain, so it doesn't trigger any filing requirement regardless of dependent status.

That's actually really helpful - I hadn't thought about checking my credit reports. Did you end up placing a credit freeze? I'm wondering if that's overkill or a smart precaution at this point.

I absolutely did place a credit freeze with all three bureaus (Equifax, Experian, and TransUnion). It's free to do, and you can temporarily lift it whenever you need to apply for credit. In my opinion, it's not overkill at all - it's basic protection. After dealing with the nightmare of clearing up the fraudulent accounts that were already opened, I wished I had frozen my credit years ago. Just remember that each bureau requires a separate freeze request, and make sure to keep the PINs they give you for when you need to unfreeze.

This happened to me too! My accountant had a new assistant who thought she was supposed to e-file all the prepared returns in the system, including mine which was just a draft. Took months to sort out because I had to file an amended return even though I never approved the original. Definitely check with your accountant before assuming identity theft.

I hadn't thought about the spousal IRA angle - that's a good point if one of us takes time off work. For the head of household vs. MFJ comparison, do you know roughly what income levels the breakeven point would be? We're trying to plan for several scenarios.

The breakeven point between HOH+Single vs. MFJ varies widely based on income distribution, deductions, and credits. Generally, if you both make similar high incomes (like your situation), staying unmarried often provides tax advantages. The MFJ advantages typically shine when incomes are very disparate. For 2024/2025, the standard deduction for MFJ is $29,200 while HOH is $21,900 and Single is $14,600. So HOH+Single combined is $36,500 - already higher than MFJ. But when you factor in the different tax brackets, EITC, child tax credits, etc., it gets complicated. The child tax credit phase-out starts at different income levels for different filing statuses. If one of you might take extended time off work with the baby, that's when marriage often becomes more advantageous tax-wise due to the income splitting effect and spousal IRA.

The capital loss thing is interesting, but only matters if both people have capital losses exceeding $3k individually, right? Otherwise it doesn't seem like an advantage.