That's a really good point! My investment return has been about 11% annually while my loan interest is around 7%, so I've been ahead so far. But you're right about the risk - a market downturn could flip this equation quickly. Are there any strategies you use now to protect against that kind of scenario?

I maintain a much lower margin percentage now - never more than 20% of my total portfolio value. This gives me enough cushion to withstand even a severe market correction without facing a margin call. I also set up automatic alerts to notify me when my margin utilization crosses certain thresholds. This helps me stay proactive rather than reactive. And I keep a portion of my portfolio in less volatile investments that can provide stability during market turbulence - this has saved me several times when tech stocks took a nosedive.

Investment interest expense doesn't go on Schedule A anymore - it goes on Form 4952 and then the deductible amount transfers to Schedule A. But your point about the standard deduction is valid. For me, between state/local taxes, mortgage interest, and charitable contributions, I'm already itemizing, so investment interest deductions are definitely worthwhile. But if you're not already over the standard deduction threshold, you're right that this strategy might not matter much.

Thanks for the Form 4952 clarification - shows how long it's been since I've done this! I wasn't aware of the form change. You make a good point about already itemizing for other reasons. I forget that in high-tax states or with large mortgages, many people easily exceed the standard deduction. I'm in a no-income-tax state with a paid-off house, so I rarely have enough deductions to itemize anymore.

That's a really good point I hadn't considered. I make about $65,000 a year, and I've probably lost around $9,000 gambling this year (sadly). Would that raise red flags? Most of those losses were small amounts over many casino visits throughout the year.

That level of losses relative to your income likely wouldn't raise immediate red flags, especially since it's spread out over multiple visits rather than a few large losses. The IRS understands that people don't typically lose their entire gambling budget in one session. Just make sure you've got some supporting evidence beyond just the losing tickets - bank withdrawals at casino ATMs, credit card statements showing charges at gambling establishments, etc. The more documentation you have connecting your financial activity to your claimed gambling losses, the stronger your position would be if questioned. And remember, you're only claiming these losses to offset the winnings you already reported - you're not trying to generate a tax loss beyond that.

Does the player's card tracking actually work for slots too? I mostly play slots and video poker and wasn't sure if those machines track losses accurately.

11 Wait so does disability payments count as earned income for Roth IRA purposes? I've been on short-term disability for a few months but still contributing to my Roth.

22 No, most disability payments don't count as earned income for Roth IRA purposes. Short-term disability payments from your employer or an insurance company are generally considered taxable income, but they're not considered earned income for IRA contribution eligibility. The only exception would be if you're receiving disability payments from Social Security and you've previously opted to have those benefits taxed as wages. But that's pretty uncommon and requires specific prior arrangements with the SSA.

1 Thank you! I haven't filed yet for 2024, so I'm trying to fix this before I submit anything. Do I still need to file Form 5329 if I withdraw the excess before filing?

This was confusing me too. So if I drive for both Uber and Lyft, that's one Schedule C total? But if I drive for Uber and also do web design, that's two different ones?

Exactly right! Uber and Lyft would be considered the same business type (driving/transportation services), so you'd file one Schedule C combining that income and all related car expenses, phone expenses, etc. But if you drive for Uber and also do web design, those are completely different businesses, so you'd file two separate Schedule Cs - one for the driving income/expenses and another for the web design income/expenses.

This worked for me! I needed to finish ALL the income entry first, then go back to the business section. Thanks for spelling it out so clearly.

Would I still use TurboTax to do the rest of my return and just attach this form separately? I'm a little worried about how that would work with e-filing. Has anyone successfully done that?

You'd still complete the rest of your return in TurboTax, but when it comes to filing, you'd need to print and mail the return instead of e-filing. Just print everything from TurboTax, then attach your manually completed Form 8965. The downside is you'd have to paper file, which means a slower refund if you're getting one. But it's better than paying a penalty you don't owe! Another option might be to check out FreeTaxUSA or another software that might have updated their systems correctly for the 2018 hardship exemption changes.

Was it complicated to switch software mid-way through doing your taxes? Did you have to re-enter everything?