Wait, seriously? I thought any Energy Star certified door would qualify. Is there a way to check if my door meets this "Most Efficient" standard after the fact? The packaging is long gone.

Actually I need to correct myself - for exterior doors, you're right that Energy Star certification is still sufficient. The "Most Efficient" requirement applies to other categories like water heaters and HVAC. What did change is the maximum credit amount - it's now 30% of costs up to $250 for a single door (or up to $500 total if you replaced multiple doors). You should be able to find the Energy Star certification information on any documentation that came with the door or by looking up the model number on the manufacturer's website.

I got mine processed without any delay. Make sure you filled out Form 5695 correctly - that's where you calculate the credit. Also, if you claimed other credits like solar or EV, those sometimes get additional scrutiny.

That's a good point I hadn't considered. Do you know if state tax agencies are generally easier to deal with than the IRS? And do they also have programs like the Fresh Start or Offer in Compromise?

In my experience, state tax agencies can actually be easier to deal with than the IRS. The phone wait times are usually shorter, and you can often make an in-person appointment at a local office. Many states do have their own versions of settlement programs similar to the IRS Offer in Compromise, though they might call them different things. For example, California has an "Offer in Compromise" program that's similar to the IRS version, while New York calls theirs an "Offer in Settlement." The qualification requirements and terms can vary significantly by state, so definitely look into your specific state's options.

Did the attorney deal with both federal and state taxes? And how did they handle years where you didn't have documents?

What about using a tax professional who specializes in real estate? I've heard they can help optimize both deductions and loan qualification. Any experience with that?

Absolutely! Working with a tax professional who specializes in real estate is one of the best investments you can make. They understand both sides of this equation. I've worked with the same CPA for a decade, and she's saved many of my clients who are also realtors from making mistakes with their deductions. A good real estate tax specialist will help you categorize expenses as either "ordinary and necessary" (which the IRS expects to see) versus discretionary deductions. They can also help document your income in ways that make sense to mortgage underwriters. The fee you'll pay them is typically far less than what you'll save either in tax benefits or loan qualification improvements.

Yes! That worksheet is a game-changer. It has specific lines for adding back certain business expenses when calculating your qualifying income. Ask your lender specifically about Form 1084 (the self-employed income analysis form). It standardizes how they look at Schedule C income and gives you a clearer picture of what they'll actually count.

Omg I didn't even think about that possibility! How would we know if that's what happened? And what did you have to do to fix it?

You can usually tell if there's potential identity theft if the notice mentions income sources your son didn't actually have. For example, if the notice shows income from employers he never worked for or investment income from accounts he doesn't own. In our case, we had to file Form 14039 (Identity Theft Affidavit) with the IRS and provide documentation proving my daughter's legitimate income. We also placed a fraud alert on her credit reports and froze her credit as a precaution. The IRS has a special department for tax-related identity theft cases, and they eventually cleared everything up - though it did take about 4 months to fully resolve.

I work in tax prep and we're definitely seeing an uptick. The IRS got a funding boost to go after unpaid taxes, but their systems are still outdated. They're basically casting a wider net with automated notices hoping to catch actual issues, but it means way more false positives.

I didn't even think about state taxes! I was in Illinois for college. Do you know if they're more aggressive than the IRS about pursuing old unfiled returns?

Illinois actually follows the federal statutes of limitations pretty closely for most tax matters, generally 3 years from filing or due date (whichever is later). However, like the IRS, they technically have no time limit for unfiled returns. That said, Illinois typically receives information from the IRS and educational institutions, so if the IRS hasn't flagged your account, Illinois likely hasn't either. State tax authorities usually have even fewer resources than the IRS for pursuing older, smaller cases. If you haven't received notices from Illinois by now, it's even less likely they'll pursue this than the federal government would.

Yes, he should check the box indicating that someone can claim him as a dependent when filing his own return. This is important because it affects his standard deduction amount and eligibility for certain credits. Being claimed as a dependent doesn't eliminate his obligation to file his own return if he meets the filing requirements (which for 2024, for dependents with only earned income, would be income exceeding $14,600). He'll need to report his taxable scholarship income (the portion exceeding qualified education expenses) as income on his return.