Has anyone had issues with the age verification part? My son turned 17 in December and the system is counting him as 17 for the whole tax year even though he was 16 for 99% of the year. Seems unfair that if your kid's birthday is January 2nd they count for the credit but December 31st they don't.

Another thing to check is whether you accidentally entered any of your children as "qualifying relatives" instead of "qualifying children" - this is a common mistake that can zero out your child tax credits. In most tax software, there's usually a section where you specify the relationship and dependency status. If a child is marked as a "qualifying relative" rather than a "qualifying child," they won't be eligible for the Child Tax Credit even if they meet all other requirements. Also, double-check that you didn't accidentally enter any of their birthdates as being in the wrong year. I've seen people accidentally enter 2008 instead of 2018 for a child's birth year, which would make the software think the kid is way older than they actually are. Given that you found the solution (the dependent checkbox issue), this might help others who run into similar problems but don't have that specific issue.

Absolutely do NOT skip filing the 1099! Your friend's advice could get you in serious trouble. The IRS has automated systems that match income reports, so when that brokerage files their tax return showing $72,500 in income from your business, the system will immediately flag that you didn't file the corresponding 1099-NEC. Beyond the penalties (which can be substantial), you're also creating a nightmare for the brokerage. They need that 1099 to properly account for their income, and if they get audited and can't produce the proper documentation showing where that $72,500 came from, it creates problems for them too. The good news is that filing a 1099-NEC is actually pretty straightforward once you know what you're doing. Based on everything discussed here, you need Form 1099-NEC with the $72,500 in Box 1 and Box 2 checked. Use the exact business name and EIN from their W-9, and you'll be all set. It's really not worth the risk to skip it!

Just to add one more important detail that I haven't seen mentioned yet - make sure you file your 1099-NEC by January 31st. Unlike some other tax forms that have different deadlines, 1099s must be filed with the IRS AND provided to the recipient by January 31st. Also, since your commission payment was $72,500 (well over the $600 threshold), you're definitely required to file. The consensus here is spot on - use Form 1099-NEC, put the full amount in Box 1, check Box 2 for the real estate transaction, and use the exact business information from their W-9. One last tip: keep a copy of that W-9 with your records along with documentation of the commission payment. If there are ever any questions from the IRS down the road, having that paper trail makes everything much smoother. You've got this!

I went through almost the exact same situation about 2 years ago with a forgotten investment account in Canada that my parents had opened for me. The stress was overwhelming at first, but I want to reassure you that this is more common than you think and very manageable. Here's what worked for me: I filed all 6 years of delinquent FBARs using the IRS procedure mentioned by others here, and amended my last 3 tax returns to include the unreported interest income. The total additional tax I owed was only about $800 across all years, plus some interest - way less scary than I had imagined. The key was being proactive. I included a simple reasonable cause statement explaining that I genuinely forgot about the account after immigrating and was filing voluntarily once I discovered the requirement. No penalties were assessed, just the additional tax and interest. One practical tip for FreeTaxUSA: when entering the foreign interest, make sure you have the exact dates and amounts for each year. I had to contact my Canadian bank to get detailed statements going back several years, but they were helpful once I explained it was for tax compliance purposes. Don't let the anxiety consume you - take action now and you'll likely find the resolution much smoother than you're imagining. The IRS really does treat voluntary disclosures more favorably than discoveries during audits.

I completely understand the panic you're feeling - I went through something very similar when I discovered an old savings account in Australia that my parents had opened for me as a child. The good news is that your situation is actually quite straightforward to resolve, and the amounts involved work in your favor. Since you're being proactive about this discovery, you're in the best possible position. The IRS has specific procedures for exactly your situation called "Delinquent FBAR Submission Procedures" for people who genuinely didn't know about the requirement. Here's what I'd recommend: **For the FBARs:** File electronically for all years you should have filed (likely all 5 years you've been in the US). Include a brief statement explaining you genuinely forgot about the account after immigrating and are filing voluntarily upon discovery. **For your tax returns:** You'll need to amend the last 3 years to report the Singapore interest income. In FreeTaxUSA, go to Income → Interest → Foreign Interest Income. Make sure to convert the Singapore dollars to USD using the IRS yearly average exchange rates. **The reality check:** With $1,200 annual interest income, your additional tax liability will be relatively modest - probably a few hundred dollars per year plus interest. Since this is clearly non-willful (honest mistake), penalties are unlikely if you file before they contact you. The key is acting now while this is still a voluntary disclosure. Don't let anxiety delay action - that's the only thing that could make this situation worse. You've got this!

I'm going through something very similar right now with a $158k policy transfer from my former employer, so I really feel your pain on this situation. The tax implications are just as brutal as you suspected - you'll owe taxes on the full cash value regardless of what you actually receive after surrender fees. One thing I've learned through this process is to definitely get multiple quotes on your surrender value and ask them to break down exactly how they're calculating the fees. I found that different departments at my insurance company gave me slightly different numbers, and when I pushed for clarification, they discovered they were applying an outdated fee schedule that cost me an extra $4k. Also, before you surrender, make sure to ask about ALL your non-forfeiture options. I almost missed out on a "reduced paid-up" conversion that would let me use most of the cash value to eliminate future premiums while keeping some death benefit - completely avoiding surrender fees. The customer service rep didn't mention it initially, but when I specifically asked for a complete list of options, it was there. The timing pressure is real since those premiums are expensive, but try to get at least 30 days to explore your options fully. Most insurance companies will give you a grace period on premium payments while you're making these decisions. It's frustrating how the tax code penalizes employees in these situations, but there might be more creative solutions available than the obvious surrender option. Definitely bring all these possibilities to your accountant meeting - having a comprehensive view of your options will help you make the best decision for your specific situation.

I'm dealing with a very similar situation right now - $203k policy transfer from my previous employer. The tax hit is absolutely brutal, and like you, I'm facing massive surrender fees if I don't keep the policy. One thing that's been helpful is working with a tax attorney who specializes in executive compensation rather than just a regular CPA. They found that in my case, part of the value could be treated differently because of how my employer structured the benefit over multiple years. It didn't eliminate the tax burden, but it did reduce the taxable amount by about $18k. Also, I discovered that my policy had a "partial surrender" option that lets you take out chunks of the cash value over time rather than surrendering the whole thing at once. This can help spread the surrender fees across multiple transactions and potentially reduce the total fees paid. The insurance company definitely doesn't advertise this option, but it was buried in my policy documents. Have you looked into whether your policy qualifies for any business use deductions? If you're planning to start consulting or freelancing after leaving your corporate job, there might be ways to structure the policy as business insurance that could provide some tax benefits going forward. The whole system really does feel designed to trap employees - you get hit with taxes on money you might not keep, then lose more to fees if you try to access it. But there are definitely more options than the basic "keep it or surrender it" choice they initially present.

Has anyone actually had to USE their tax preparer bond? I'm curious about real-world experiences. Like, have any clients actually made claims against your bond, and what was that process like? I'm trying to understand not just which bond to get, but how this actually works in practice.

This is such a helpful thread! I'm in a similar situation as the original poster - just starting out and feeling overwhelmed by all the requirements. One question I haven't seen addressed: Do the bond requirements change if you're planning to offer additional services like bookkeeping or business consulting alongside tax preparation? I'm wondering if I need separate bonds for different services or if a comprehensive tax preparer bond covers everything. Also, for those who've been through this process - how far in advance should I get my bond before I actually start accepting clients? I want to make sure I have all my paperwork in order well before tax season begins.