I did exactly what you're asking about last year and ended up getting a notice from the IRS. Had to refile and pay penalties plus interest. Even my accountant missed this! S-corp owners HAVE to be W-2 employees if they're performing services. end of story.

Just wanted to chime in as someone who made this exact mistake when I first started my S Corp. I thought I was being clever by avoiding payroll taxes, but it backfired spectacularly. The IRS has very specific rules about S Corp shareholder-employees - if you're providing services to the corporation (which you clearly are as an IT consultant), you MUST be treated as an employee with proper W-2 wages. The "reasonable salary" requirement exists specifically to prevent what you're thinking about doing. The whole point of an S Corp is that you pay employment taxes on your salary, then take additional profits as distributions (which aren't subject to SE tax). If you could just pay yourself as a contractor, everyone would do it to avoid payroll taxes entirely. My advice: set up proper payroll for yourself immediately. Yes, it's more paperwork and you'll pay both sides of payroll taxes on your salary portion, but it's the only compliant way to do this. The tax savings on your distributions will more than make up for it, and you'll avoid the audit risk and penalties that come with trying to game the system.

Some practical advice from someone who went through this: document EVERYTHING. Make a spreadsheet showing all expenses for the kids with dates and amounts. Gather bank statements, cancelled checks, receipts for big purchases, school records showing your address, medical records, etc. Even if you decide not to file an amended return, having this documentation ready will help if the IRS contacts you. And FYI - there's a 3-year statute of limitations for amending returns, so you do have some time to decide.

This is a really tough situation, and I can understand wanting to claim what you're legally entitled to while also not wanting to create unnecessary problems. One thing that might help is getting a consultation with a tax professional who can review your specific situation and documentation before you make any moves. From what you've described, if you truly were head of household, provided more than half the support, and the children lived with you for more than half the year, you likely have a valid claim. The key is having solid documentation to back this up - receipts for housing costs, utilities, groceries, medical expenses, school supplies, etc. Regarding penalties for your ex, the IRS typically distinguishes between honest mistakes and intentional fraud. If she genuinely believed she was entitled to claim the children, the consequences would likely be limited to paying back the tax benefits plus interest and possibly a 20% accuracy penalty. However, if the IRS determines it was willful fraud, penalties can be much steeper. Before filing an amended return, you might consider one more conversation with her, perhaps suggesting you both consult tax professionals to understand who actually qualifies. Sometimes having a neutral third party explain the rules can help avoid the dispute altogether. The $4,800 difference is significant, but so is maintaining a workable co-parenting relationship if possible.

Quick question about TurboTax vs other software for international students - has anyone used both TaxSlayer and TurboTax? I'm wondering if TaxSlayer is any better for handling international student situations or if I should just use one of the specialized options mentioned earlier?

I went through something very similar last year as an F-1 student from India. The anxiety is totally understandable, but you're going to be okay! Like others mentioned, this is an honest mistake that many international students make. Here's what worked for me: I contacted my university's international student services office first - they had a tax specialist who deals with these situations all the time. She helped me understand that I needed to file Form 1040-X (amended return) along with Form 1040-NR since I was still considered a nonresident alien for tax purposes. The key thing that gave me peace of mind was learning that the IRS actually expects some confusion around international student tax status. They have procedures in place for exactly this situation. When you file your amended return, there's a section where you can explain that you initially filed incorrectly due to misunderstanding your tax status as an international student. Also, don't worry too much about the immigration consequences. I was paranoid about the same thing, but my immigration lawyer explained that tax filing errors that are corrected in good faith are very different from intentional tax evasion. The fact that you're actively trying to fix this shows good faith. One tip: keep documentation of everything - your amended return, any correspondence with the IRS, etc. It'll be helpful to have a paper trail showing you corrected the mistake promptly once you became aware of it.

Has anyone had experience with the IRS questioning donation amounts? I'm in a similar situation (donated about 15% of income) and worried about audit risk.

Great question! At 11% of your income, your donations are well within normal ranges and shouldn't raise any red flags. The IRS generally becomes more interested when charitable deductions exceed 20-30% of income without corresponding documentation. For your situation, definitely run the numbers on itemizing vs. standard deduction. With $8,200 in donations, you'd need about $6,400 more in other itemized deductions (mortgage interest, state/local taxes, medical expenses) to exceed the $14,600 standard deduction for single filers. Since most of your donations were likely under $250 each, your email confirmations should be sufficient documentation. Just make sure they show the charity name, date, and amount. For any single donations of $250 or more, you'll need a written acknowledgment from the charity stating whether you received anything of value in return. One tip: Consider setting up a simple spreadsheet to track donations throughout the year - it makes tax time much easier and helps with planning future giving strategies like the "bunching" approach others mentioned.

Something similar happened to me last year. I ended up contacting the HR department at my previous employer. Since they were the plan sponsor, they had access to all the plan documents and were able to request a duplicate 1099-R on my behalf. Might be worth giving that a try!

I work in tax compliance and see this issue frequently. Here's what I'd recommend in order of priority: 1. **Contact your old employer's HR/benefits department first** - This is often the fastest solution. As the plan sponsor, they maintain administrative access and can request duplicate tax documents even after you've left the company. 2. **Call Fidelity's dedicated tax document line at 1-800-544-4774** - When prompted for account info, immediately say "tax documents for closed account" or "representative." They're legally required to provide your 1099-R regardless of account status. 3. **Visit a Fidelity branch in person** - Bring your driver's license and be prepared to provide your SSN, previous address, and approximate account balance. This often cuts through the phone system issues. Important note: Even though this was a direct rollover, you still need to report it on your tax return (Form 1040). The 1099-R should show distribution code "G" in Box 7, which indicates it's a non-taxable direct rollover. The IRS receives a copy of this form and will expect to see it reported, even though it won't increase your tax liability. Don't panic about the timing - you have until the tax filing deadline to get this sorted out, and Fidelity is actually already late since 1099-Rs were due by January 31st.