Don't forget that for gambling, you have to itemize deductions on Schedule A to claim losses. This means giving up the standard deduction which is $14,600 for single filers in 2025. If your total itemized deductions (including gambling losses, mortgage interest, charitable contributions, etc.) don't exceed your standard deduction, it might not make sense to deduct gambling losses at all.

For your 2024 situation where you didn't report small winnings under $600, you're probably fine since the amounts were minimal and you didn't receive any tax forms. The IRS typically focuses on larger unreported income. For this year with the $20,000 PayPal 1099-K, that's reporting gross payment volume, not taxable income. You'll need to separate your actual gambling winnings from deposits/withdrawals. Since you're only up $135 on FanDuel and didn't get a 1099 from Prizepicks, your actual taxable gambling income is likely very small. The key is keeping good records going forward. Download transaction histories from both platforms showing all bets placed and winnings received. Your tax professional should be able to help you properly report the actual winnings as income while ensuring you don't overpay based on the inflated 1099-K amount. Most importantly, don't panic - this is a common situation with payment processors issuing 1099-Ks for gross transactions rather than net gambling profits.

Has anyone successfully argued that an MPF should be treated as equivalent to a 401k? I've heard some tax preparers claim you can do a 60-day rollover from foreign pensions to IRAs if you time it right.

I went through a very similar situation with my MPF withdrawal in 2022 when I moved from Hong Kong to the US. Based on my experience and what my tax advisor told me, here are a few key points: The timing of when you received the funds (January 2024) is what matters for tax purposes, not when you applied or when your employer made their final contribution. So this will be reported on your 2024 tax return. One thing I wish I had known earlier - make sure you get a detailed breakdown from your MPF provider showing your personal contributions vs. employer contributions vs. investment gains. The portion that came from your own mandatory contributions (money that was already taxed in Hong Kong) might be eligible for some relief, though the rules are complex. Also, don't forget about the Foreign Bank Account Report (FBAR) requirements if your Hong Kong accounts exceeded $10,000 at any point during the year. The MPF account itself might need to be reported even if it's now closed. I'd strongly recommend getting professional help from someone who specializes in US expat taxes, especially for your first year filing as a US resident. The interaction between Hong Kong taxes you may have paid and US tax obligations can get tricky.

Called the tax commission yesterday and they said their backed up but should be caught up by end of march

Filed mine on Feb 3rd from Provo and just got my deposit this morning! So there's hope - seems like they're working through the backlog. The wait is brutal but hang in there everyone 🙏

Has anyone checked line 30 on Form 1040 (Recovery Rebate Credit) on both returns? That was the source of discrepancy for me last year - one software automatically calculated it correctly while the other one needed manual input.

I just went through this exact same situation last month! Had a $89 difference between TurboTax and FreeTaxUSA. After comparing both returns line by line, I discovered the issue was in how they handled my dependent care FSA contributions on Form 2441. TurboTax was correctly reducing my eligible dependent care expenses by the FSA amount I contributed, while FreeTaxUSA was double-counting it somehow. The IRS instructions are pretty clear that you can't claim the dependent care credit for expenses you already paid for with pre-tax FSA dollars. My advice would be to print out both completed returns and go through them systematically: - Compare your Form 1040 line by line - Check any schedules you have (A, B, C, etc.) - Look at state return calculations if applicable - Pay special attention to credits like Child Tax Credit, Education Credits, and Dependent Care Credit The $64 difference you're seeing is definitely worth investigating. In my case, TurboTax had it right and I would have gotten in trouble with the IRS if I'd filed the incorrect return showing the higher refund.

Has anyone considered the state tax implications? I'm in California and set up separate entities because CA has different rules for pass-through taxation of investment income vs. business income. My accountant showed me that using separate entities saved me about $11,500 in state taxes last year because of how CA treats qualified business income.

I'm dealing with a similar situation and wanted to share what I learned from my research. The key issue isn't just about entity structure - it's about the fundamental difference between being classified as a "trader" versus an "investor" by the IRS. From what I've gathered, if you're truly operating as a trader (frequent transactions, short holding periods, substantial time devoted to trading), then having mixed activities in one S corp could actually hurt your ability to prove trader status. The IRS looks at the overall character of your business activities, and mixing consulting with trading might dilute your argument that trading is your primary business purpose. However, if you're just making occasional investments alongside your consulting business, then you're probably classified as an investor anyway, and the gains/losses will be capital regardless of entity structure. One thing to consider is the administrative burden. Even if you can legally use one entity, maintaining separate books and records for each activity within the same S corp can be more complex than just having separate entities. You'll need to track expenses, allocate overhead, and document the business purpose for each type of activity. Have you calculated the actual cost difference between maintaining separate entities versus the potential tax savings? Sometimes the admin costs aren't worth the marginal benefits.