Did the CPA help you recover the excess refunds that should have been returned to you? I'm in a similar situation and wondering if paying for professional help is worth it.

Yes, that was the best part! The CPA was able to prove that the state had received about $1300 more than I actually owed once all the calculations were corrected. It took some back and forth, but the state eventually issued me a refund for the excess amount they had received through the offset program. As for whether it's worth hiring someone - in my case, absolutely. I had been trying to sort this out on my own for almost two years with no progress. The CPA had contacts and knew exactly what forms to file and what to say to get action. The $600 I paid saved me countless hours of frustration and helped me recover $1300 I wouldn't have otherwise received, plus got my future refunds flowing again. Sometimes you need someone who speaks their language.

I tried this number and it works! It's an automated system that tells you if you have offsets, the type of offset (state tax, child support, student loans, etc.), and the amount. It doesn't give you super detailed info, but at least confirms if your refunds are being redirected.

Glad it helped! Yeah, it's not a full solution but at least it gives you confirmation about whether offsets are happening. Sometimes just knowing for sure is half the battle, especially when you can't get anyone on the phone to explain things.

Thanks for the tip! I hadn't even thought about my state return. Will the IRS forward the information to my state tax agency or do I need to handle that completely separately?

The IRS doesn't forward information to state tax agencies for amended returns. You'll need to file a separate amended return with your state tax department using their specific amendment form (each state has its own version). Most states have a form similar to the federal 1040-X, but the exact name varies by state. For example, California uses Form 540X, New York uses Form IT-201-X, etc. Check your state's tax department website for the correct form and filing instructions.

You should talk to your company's payroll department. That's not normal and something is definitely wrong with their process if it happens repeatedly. Maybe ask them to hold your W-2 until they're absolutely sure the numbers are final.

That's fascinating! Do you need an engineering background to be credible in cost segregation, or can an accounting major learn enough to be valuable in that specific area?

You absolutely don't need an engineering background! While engineers are often involved in cost segregation studies, accountants play a crucial role in translating the physical components into tax classifications and depreciation calculations. What helped me was taking a specialized course through ASCSP (American Society of Cost Segregation Professionals) during my final semester. I combined that with reading every IRS ruling on the topic and creating sample studies for hypothetical properties. In interviews, I brought a portfolio showing how I would approach different property types. That practical demonstration of skills is what convinced the firm to place me directly in their real estate tax group instead of the general tax pool.

I'm at PwC in their real estate practice. Yes, you'll do grunt work, but it's ALL real estate-focused grunt work. Huge difference in learning curve compared to my friends doing general tax. After 2 years, I'm already sitting in on advisory meetings because I've seen so many different real estate structures.

Do you think you would have been audited if you'd used a local preparer from the start? I've heard the IRS is less likely to audit returns done by professionals.

I don't think using a local preparer would have prevented the audit because it was triggered by a specific issue with a 1099-K from my side gig that didn't match what I reported. The preparer told me these "document matching" audits happen regardless of who prepares the return. What would have been different is catching the error before filing. The software didn't flag the discrepancy, but a human preparer likely would have questioned me about it during the preparation process. So while it wouldn't have prevented the audit trigger, it might have prevented the error that caused it.

This is absolutely true. I worked at a tax prep chain in college and was disgusted by how we targeted low-income people with "instant refunds" that were just high-interest loans. The fees would eat up a significant portion of their refund, but they needed money immediately and couldn't wait for the IRS processing time.

What about vehicle advertising? I have my business logo and info on my vehicle. Is that deductible separately or is it considered part of the vehicle expense?

Vehicle advertising is absolutely deductible as a separate marketing expense, not as part of your vehicle costs. This includes permanent signage, vehicle wraps, magnetic signs, or even custom paint jobs with your business info. Save all receipts from the sign company or wrap installer. This is a great strategy because these advertising costs are separate from your vehicle deduction method. So even if you choose the standard mileage rate (which bundles most vehicle expenses together), you can still deduct the advertising separately as a marketing expense.

What mileage tracking app do you recommend? I've tried a couple but they drain my battery or forget to track sometimes.