Just wanted to add - make sure you keep copies of EVERYTHING related to your nondeductible contributions forever (or at least until you've withdrawn all the money). I learned this the hard way. I had made nondeductible contributions years ago, filed my 8606 forms properly, but then lost track of the paperwork during a move. When I started taking distributions years later, I couldn't prove my basis to the IRS and ended up paying tax on money that should have been tax-free coming out. The burden of proof is 100% on you to track your nondeductible basis, not on the IRS. They don't keep easily accessible records of your basis year to year.

Great advice from everyone here! I went through this exact situation last year when I discovered I had missed filing Form 8606 for multiple years of nondeductible contributions. One thing I'd add that helped me tremendously - when you mail your Form 8606, use certified mail with return receipt requested. The IRS can be slow to process these forms, and having proof of delivery gives you documentation that you filed it timely (even though it's late for the original tax year). Also, consider keeping a detailed log of all your IRA transactions going forward. I created a simple spreadsheet that tracks: - Date of contribution - Amount contributed - Tax year it applies to - Whether it was deductible or nondeductible - Form 8606 filing status This has made my annual tax prep so much easier and ensures I never miss tracking my basis again. The few hours spent organizing this information upfront saves tons of stress later, especially if you ever need to prove your basis to the IRS during an audit or when taking distributions. Your numbers look correct for the 2022 form, and yes, you should include the full $15,500 basis on your 2023 Form 8606 even if the 2022 form hasn't been processed yet. The key is that you're filing it before or with your 2023 return.

As someone who's been researching both programs extensively, I really appreciate everyone sharing their real-world experiences here! This thread has been incredibly valuable for understanding the practical differences beyond what you see in the marketing materials. One thing that strikes me is how much the local franchise/office quality seems to matter. Several people mentioned that Liberty locations can vary significantly in their professional setup (office vs. mall kiosk) and advancement opportunities. This makes me think it might be worth visiting both local options in person to get a feel for the specific work environment and management style, not just comparing the corporate training programs. I'm particularly intrigued by the hybrid approach that keeps coming up - getting that solid theoretical foundation from one program and practical software skills from another. It seems like this could create a really well-rounded skill set that would be valuable regardless of where you end up working long-term. The VITA program suggestion is also something I hadn't considered before. Having that additional volunteer experience plus the IRS-certified training could really set someone apart when applying for positions or building client trust. For Maya and others in similar situations - it sounds like the key is being honest about your learning style and career goals rather than trying to force a program that isn't clicking. The investment in proper training is too important to compromise on just because you've already started somewhere. Has anyone looked into whether completing both programs (even if at different times) would be valuable, or would that be overkill for most tax prep positions?

This has been such an incredibly helpful thread! As someone who's also considering both programs, I really appreciate all the detailed experiences and insights everyone has shared. What really stands out to me is how much the decision seems to depend on individual learning preferences and career goals. The consensus seems to be that Liberty's manual approach builds stronger theoretical foundations (which could be valuable long-term), while H&R Block's digital approach gets you job-ready faster and offers better advancement opportunities. Maya, given your situation with the teaching style not clicking, I'd echo what several others have said about trusting your instincts. Amina's experience of successfully switching mid-course is really encouraging - it shows that H&R Block can be flexible about these situations. The hybrid approach that keeps coming up sounds brilliant - finishing Liberty for that solid foundation, then potentially adding H&R Block's software skills later. As Isaac mentioned, the fundamentals you're building now will transfer regardless of which software you eventually use. I'm also really intrigued by the VITA program suggestion from Mikayla. Getting that additional volunteer experience while helping the community seems like a perfect complement to either commercial program. One practical tip: Yuki's suggestion about sitting in on an H&R Block session before deciding sounds like a no-brainer. Even if you decide to finish with Liberty, you'd at least know what you're missing (or not missing). Whatever you decide, it sounds like both paths can lead to success - the key is finding what works best for your learning style and goals!

Has anyone dealt with Canadian RRSP accounts when making the first-year choice? I've heard there's a special form you need to file to avoid the US taxing these accounts as regular investment income.

I went through this exact same situation when I moved from Toronto to Austin in September 2024! The first-year choice election was definitely the way to go - it saved us thousands compared to filing as non-residents. A few things to keep in mind that I learned the hard way: Make sure you calculate the 31 consecutive days and 75% presence test carefully. Since you arrived in August, you should easily meet this. Also, don't forget that making this election means you'll be considered US residents from January 1, 2024 forward for tax purposes, so you'll need to report ALL worldwide income including your Canadian employment from early in the year. The foreign tax credit on Form 1116 will help offset the Canadian taxes you already paid, but gather all your Canadian tax documents (T4s, Notice of Assessment, etc.) because you'll need them. One tip: if you had any Canadian investment accounts (TFSAs, RRSPs, etc.), there are additional forms and elections to consider. The US-Canada tax treaty has some helpful provisions but you need to be proactive about making the right elections. Filing jointly with the full standard deduction made a huge difference for us compared to the non-resident alternative. Definitely worth consulting with someone who knows cross-border tax if you have a complex situation, but the first-year choice sounds perfect for your circumstances.

This is such a great question and one that trips up a lot of people! The key thing to remember is that ALL your income sources (wages, ordinary dividends, qualified dividends, interest, etc.) get added together to determine your total taxable income after deductions. That total taxable income number is what determines which tax bracket you fall into for BOTH your regular income tax rates AND your qualified dividend rates. So yes, if you have a bunch of ordinary dividends, they absolutely can push your qualified dividends into a higher tax bracket. Here's a simple example: Let's say you're single and after deductions your taxable income would be $40,000 from just wages. Your qualified dividends would be taxed at 0%. But if you also have $10,000 in ordinary dividends, now your total taxable income is $50,000, which pushes your qualified dividends into the 15% bracket. It's worth doing some planning around this, especially near year-end, to see if you can manage your income to stay in a lower qualified dividend bracket if possible!

Great question about timing strategies! You're thinking along the right lines. Here are a few approaches to consider: **Dividend timing options:** - **Tax-loss harvesting**: If you have losing positions, you could sell them before year-end to offset some dividend income - **Defer dividend reinvestment**: Instead of automatically reinvesting dividends in December, you could take them as cash and reinvest in January - **Asset location**: Keep dividend-heavy investments in tax-advantaged accounts (401k, IRA) when possible **However, be careful with:** - You can't really "defer" most regular dividends since companies set their own ex-dividend dates - Selling dividend stocks just to avoid taxes often isn't worth it due to transaction costs and losing the underlying investment - The wash sale rule can complicate tax-loss harvesting if you rebuy within 30 days **Better long-term strategy:** Focus on tax-efficient investments in taxable accounts (index funds with low dividend yields, growth stocks, municipal bonds) and keep dividend-focused investments in retirement accounts where the tax treatment doesn't matter. The bracket thresholds are pretty wide, so unless you're right at the edge, the planning might not be worth the complexity. But definitely worth checking where you stand each year!

This is exactly why I always double-check my estimated tax payments immediately after scheduling them! I've seen this happen to several people, and you're handling it perfectly. The key thing to remember is that the IRS systems are actually quite good at detecting these cross-year payment misallocations. Since Where's My Refund is showing the adjusted amount, that's confirmation the IRS has already corrected the issue on their end. You definitely don't need to file an amended return - that would just complicate things unnecessarily and potentially delay your refund. Your plan to treat the misapplied January payment as your first 2025 estimated payment is spot on. Just make sure to adjust your remaining quarterly payments accordingly so you don't overpay for 2025. The IRS won't care that your "first quarter" payment was technically made in January instead of April - they just look at the total amount credited to each tax year. Keep those confirmation screenshots from WMR and your payment records for your files, but otherwise you should be all set!

I went through something very similar last year, and you're absolutely right to not file an amended return! The IRS has sophisticated systems that automatically detect and correct these payment allocation errors, especially when they cross tax years like yours did. The fact that Where's My Refund is showing the adjusted amount is your confirmation that they've already handled it internally. I made the mistake of filing an amended return in a similar situation and it actually delayed my refund by months because it created confusion in their system. Your strategy of treating that January payment as your first 2025 estimated payment is perfect. Just remember to factor it into your quarterly payment calculations for the rest of 2025. You might want to reduce your April payment slightly or spread the adjustment across your remaining quarters to avoid overpaying. One thing I'd suggest is pulling your IRS account transcript in a few weeks once everything is fully processed. This will give you a clear record of exactly how all your payments were allocated, which is great documentation to keep with your tax files. The transcript will show the payment reallocation and confirm everything was handled correctly. You're handling this exactly right - sometimes the best action is no action when the IRS systems are already working in your favor!