Don't forget to consider future tax years too! After my first year of homeownership, my itemized deductions dropped below the standard deduction threshold because I made an extra mortgage payment in the first year (increasing year 1 interest). Also watch out for things like property tax schedules - sometimes you pay more in the first year depending on when you close and how escrow is handled.

Great question about standard vs itemized deductions! With mortgage interest potentially in the $22k-$32k range, you'll definitely want to run the numbers carefully. One thing I'd add to the excellent advice already given - don't overlook timing strategies. Since you're closing in a few months, the exact closing date could affect your first-year deductions. If you close early in the year, you'll have more mortgage interest to deduct. If you close later, you might have less interest but potentially more property tax depending on how escrow and property tax payments are handled. Also consider that charitable donations can really help push you over the standard deduction threshold if you're close. If you normally donate throughout the year, you might want to bunch donations into years when you're itemizing to maximize the benefit. With your $175k income, you're well positioned to benefit from itemizing in those early high-interest years. Just make sure to keep meticulous records of everything - mortgage interest statements, property tax bills, charitable receipts, and any qualifying medical expenses. The documentation will be crucial if you ever face questions about your deductions.

I had this exact same problem earlier this year! The red form requirement is such a pain, especially when you're used to digital everything. I ended up going with one of the electronic filing services mentioned here and it was honestly a game-changer. One thing I'd add is that if you do decide to go electronic, make sure you have your contractor's W-9 form handy with their correct SSN or EIN. The electronic services need that info to validate everything properly. I made the mistake of trying to file without double-checking the tax ID number first and had to start over. Also, don't stress too much about the deadline - you've got until January 31st to get the forms to your contractors and the IRS, so you still have some breathing room to figure out the best approach. The electronic route really is worth it to avoid the handwriting nightmare!

I feel your pain! I went through this exact same nightmare last year when I had to file my first 1099-NEC for a graphic designer I hired. The whole red form requirement honestly made me question if I was missing something obvious - like surely there has to be a better way than hand-writing tax forms in 2025, right? After reading through all the suggestions here, I'm amazed at how many good options there are that I had no idea about. The electronic filing services sound like absolute lifesavers, especially for someone like me who only needs to file one or two forms per year. I definitely would have saved myself a lot of stress if I had known about those options earlier. For anyone else in the same boat - don't make the same mistake I did and wait until the last minute to figure this out. I ended up rushing to buy the red forms and making several errors because I was panicking about the deadline. Give yourself time to explore these electronic options that everyone's mentioned - they seem way more reliable than my chicken-scratch handwriting on important tax documents! This thread is going to save so many people from the red form headache. Thanks to everyone for sharing their experiences and solutions!

5 One thing nobody's mentioned - if your new job offers a 401(k), put as much in there as you can afford! It reduces your taxable income which means less tax owed. I doubled my salary last year too and upped my 401(k) contribution to 15% and ended up with a refund instead of owing. Plus you're saving for retirement which is a win-win.

Great thread! As someone who went through this exact situation two years ago, I wanted to add that you should also consider quarterly estimated tax payments if your withholding still isn't enough. When I doubled my salary mid-year, even with extra withholding I was still projected to owe about $800. My accountant suggested making a small estimated payment in Q4 (January 15th deadline) to cover the gap. It's form 1040ES and you can pay online through EFTPS. This way you avoid any underpayment penalties and don't get hit with a big bill at filing time. Just another tool in your arsenal to make sure you're covered!

I've been through this exact situation and can share some reassurance based on my experience. The key distinction here is that unemployment overpayments are considered state debts, not federal debts. The Treasury Offset Program primarily handles federal obligations like student loans, federal tax debts, and child support - but unemployment overpayments typically don't qualify for federal tax refund interception unless your specific state has entered into a special agreement with the Treasury Department (which most haven't due to administrative costs). Since your state department explicitly told you "only state taxes will be intercepted" and you're not seeing any offset indicators on your IRS account, that's a very good sign. I'd recommend doing one final check of your IRS transcript about a week before your expected refund date - look specifically for codes 896, 898, or 971 which would indicate pending offsets. If those aren't there, you can feel confident your federal refund is safe while planning for your state refund to be intercepted as they indicated. The systems really are separate for this type of debt collection, so trust what you're being told by the state agency in this case.

I've been in a very similar situation and wanted to share my experience to hopefully ease your worries. Last year I had an unemployment overpayment from 2021 that had me stressed about my federal refund too. After weeks of anxiety, I finally got definitive answers by checking multiple sources: 1. Called the IRS and specifically asked about Treasury Offset Program (TOP) holds - they confirmed none were showing 2. Checked my IRS account transcript for offset codes (896, 898, 971) - nothing there 3. Verified on the Treasury Offset Program website (fiscal.treasury.gov/top/) - no pending offsets My federal refund came through exactly as expected, while my state refund was intercepted as the unemployment office had warned. The key thing that helped me understand was learning that unemployment overpayments are state-level debts, and most states don't participate in the federal offset program because of the administrative burden and costs involved. Since your state specifically told you only state taxes would be affected and you're not seeing offset indicators, you can likely trust what they're telling you. The anxiety is totally understandable when you're counting on that money, but based on everything you've described, your federal refund should be safe. Just do one final transcript check about a week before your expected deposit date for complete peace of mind!

This entire discussion has been absolutely phenomenal for someone like me who's just starting to handle US tax compliance! As a newcomer to this field, I was completely overwhelmed by the W-9 requirements, but this thread has provided such clear, actionable guidance. I particularly appreciated the clarification that you should collect W-9s from EVERYONE first, then worry about who actually needs 1099s later based on entity type and payment method. That simple approach takes away a lot of the initial confusion about trying to figure out all the exceptions upfront. The practical tips about validation (checking TIN formats immediately), timing (quarterly reviews instead of year-end scrambles), and relationship management (clear communication protocols with clients) are exactly what someone new needs to avoid common pitfalls. As an international bookkeeper trying to serve US clients professionally, I'm definitely going to investigate the automation tools mentioned here - TaxR.ai for handling the complex exceptions and Claimyr for direct IRS guidance when needed. Given all the nuances discussed (attorney exceptions, entity classifications, payment method rules, backup withholding), having technology help catch details I might miss while learning seems like a smart investment. Thank you to everyone who shared their hard-earned experience! This thread is going to be my reference guide as I build my expertise in US tax compliance requirements.

As someone who has been handling cross-border bookkeeping for several years, I want to emphasize how important it is to establish these W-9 processes early in your client relationships. The confusion you're experiencing is completely normal - US tax compliance can be overwhelming even for experienced bookkeepers! One thing I've learned that might help: create a simple decision tree for yourself. Start with "Is this a US vendor?" If yes, collect W-9. If no, collect appropriate W-8 form. Then worry about the 1099 requirements later based on entity type, payment amounts, and payment methods. The advice in this thread about automation tools like TaxR.ai sounds promising, especially for catching those tricky exceptions like the attorney rule that even experienced professionals sometimes miss. When you're dealing with multiple clients across different jurisdictions, having technology help ensure compliance can be invaluable. Don't let the complexity discourage you - start with the basics (collect all the forms) and build your knowledge over time. Your Canadian perspective can actually be valuable to US clients who need someone who understands cross-border requirements. Good luck with getting this sorted out for your client!