Slightly off topic but does anyone know if the 8994 and 8995 forms are required if you have self-employment income? I got a 1099-NEC this year for some freelance work and I'm not sure if I need those forms too or just Schedule C?

For what it's worth, I've been through this exact situation multiple times as someone who gets various 1099s from different investment accounts and side work. The key thing to remember is that the IRS already has copies of all your 1099s - they're sent directly from the issuers to the IRS before you even receive yours. Your job is just to make sure you accurately report all the income and transactions on the correct forms and schedules. The 1099s themselves are basically just your "receipt" to help you fill out your return correctly. As long as you're reporting everything accurately on Schedule B (for interest/dividends), Schedule D with Form 8949 (for capital gains), and Schedule C or other forms as needed (for miscellaneous income), you're good to go. One tip: keep all your 1099s organized in a file for your records, even though you're not sending them in. If the IRS ever has questions about your return, having those original forms readily available will make any correspondence much easier to handle.

5 Another tip: check if your brokerage has an online portal where you might be able to look up historical transactions. I thought I had lost my acquisition dates too, but when I logged into my Fidelity account and dug through their "transaction history" section, I was able to go back much further than I expected and found purchase dates from 10+ years ago!

11 Something nobody mentioned yet - if these transactions were from a mutual fund, sometimes the blank acquisition date is actually correct! Some mutual funds, especially if you were reinvesting dividends, will report using the "average basis method" which doesn't require specific acquisition dates on the 1099-B.

Has anyone seen a code Y that DOES have a value next to it? Just curious what that would represent if it happened...

I work in tax preparation and see this all the time! Code Y without a value in Box 14 is completely normal and nothing to worry about. As others mentioned, Box 14 codes aren't standardized by the IRS, so employers use whatever letters make sense for their payroll systems. The key thing to remember is that Box 14 is only reportable on your tax return if there's an actual dollar amount that needs to be included somewhere (like state taxes, union dues, or certain benefits). A letter code by itself with no value is purely informational and won't affect your tax filing at all. You can safely proceed with filing your taxes - just ignore that lone "Y" in Box 14. If you're using tax software, it might ask about Box 14 entries, but you can simply skip it or enter "Code Y - no value" if the software requires something.

Thank you all for this incredibly detailed discussion! As someone who's been putting off dealing with my PFIC reporting requirements, this thread has given me the confidence to finally tackle Form 8621. Based on all the feedback here, I'm leaning toward trying TaxSlayer Pro first since it seems to get consistently positive reviews for the $60-70 price point. The advice about gathering all documentation upfront and contacting fund companies for QEF information is invaluable - I wish the IRS made this process more straightforward, but at least there are viable affordable options. One follow-up question: for those using TaxSlayer Pro, do you find their customer support helpful if you run into questions specific to PFIC reporting? Or are you pretty much on your own once you're working with Form 8621? I'm comfortable with most tax forms but the PFIC rules are definitely intimidating for a first-timer. Also planning to look into the taxr.ai option that Dmitry mentioned - the automated document recognition sounds like it could be a real time-saver if it works as advertised. Has anyone else tried it since his initial recommendation?

I've been wrestling with Form 8621 for my foreign index funds for the past couple of years, and this discussion has been incredibly comprehensive! As someone who's tried multiple approaches, I wanted to share a few additional insights. For truly budget-conscious filers, I'd recommend checking if your local library offers free access to tax preparation software through their digital resources. Some libraries provide access to more comprehensive tax software that includes Form 8621 support, which could save you the $60-75 cost if money is really tight. Also, regarding the timing of QEF elections - I learned the hard way that if you miss the initial election deadline, the IRS does allow "late QEF elections" under certain circumstances, but you'll need to file Form 8621 along with a request for relief. It's more paperwork but not the end of the world if you missed it in year one. One thing that hasn't been mentioned much is the importance of keeping currency conversion records. If your PFIC statements are in foreign currency, make sure you're using the correct exchange rates for each transaction date and year-end valuations. The IRS is pretty specific about which rates to use, and this is another area where errors can trigger issues later. The consensus here about TaxSlayer Pro and FreeTaxUSA being the best budget options seems solid based on my research as well. Just remember that even the best software is only as good as the data you put into it - organization and preparation are really key with PFIC reporting.

I had almost the same situation but with a traditional IRA rather than a Roth. Does anyone know if the process is different? I'm guessing with a traditional IRA both the contribution and earnings would be taxable when returned since it was pre-tax money, unlike a Roth which is after-tax?

I appreciate everyone sharing their experiences and advice here. This is exactly the kind of situation where having multiple perspectives really helps clarify things. Based on what I'm reading, it sounds like the consensus is pretty clear: I need to amend my 2024 return to include the earnings portion from the 1099-R, even though the form is dated 2025. The "P" code specifically indicates this relates to the prior year contribution. One follow-up question - when I amend my 2024 return in TaxSlayer, should I expect to see an option specifically for reporting 1099-R income with code PJ? Or will I just need to enter it as "Other Income" like Natasha mentioned? I want to make sure I'm categorizing it correctly so the IRS systems match everything up properly. Also, for anyone else dealing with this situation - it's reassuring to know that as long as we corrected the excess contribution before the filing deadline (including extensions), we avoid the 6% penalty. That was my biggest concern when I first realized the mistake.