Thanks for the advice about Form 4852! I do have my December paystub with all the YTD numbers. Would I need to attach my paystub to the form as proof? And do I need to tell my employer I'm doing this, or will the IRS contact them directly?

You don't need to attach your paystub to Form 4852, but definitely keep it for your records in case the IRS has questions later. You should make a good faith effort to get a corrected W-2 from your employer first - document your requests by email if possible. The IRS will contact your employer about the discrepancy, so they'll find out eventually. It's generally better to tell them what you're doing as a courtesy, but you're not legally required to inform them. The most important thing is getting your taxes filed accurately and on time using the information you have available.

Is "statutory employee" that checkbox in Box 13? What exactly does that even mean and why would it cause Boxes 1-6 to be empty?

Yes, "statutory employee" is checkbox 13-2 on the W-2. Statutory employees are a special category where you're treated as an employee for Social Security and Medicare purposes, but as an independent contractor for federal income tax purposes. This means no federal income tax is withheld from your pay (which is why boxes 1-2 would be empty), but Social Security and Medicare taxes are still withheld (boxes 3-6 should still have numbers). Most restaurant managers definitely shouldn't be classified as statutory employees - that's typically for certain salespeople, life insurance agents, and piece-work workers in specific industries. If you're a regular restaurant manager on salary or hourly wages, you should be a regular employee with all boxes filled out normally.

Most of the Free File options only work for the current tax year. For previous years, you usually have to use the paid version of the software. I tried to use the free version for a late 2022 return and couldn't - ended up paying about $70 for TurboTax to file the previous year.

This is really reassuring to hear! I'm in a somewhat similar situation where I missed filing last year due to some major life changes. It's good to know that the IRS treats each tax year separately - I was worried that I'd have to get everything sorted for the missed year before I could file this year's return. @b4ff4b44430f - sounds like you're handling this the right way by addressing it now rather than letting it pile up. The 3-year window for claiming refunds is definitely something I didn't know about before reading this thread. @17b3860aed3b - thanks for breaking this down so clearly! Do you happen to know if there's any difference in how long it takes to process a late return compared to a current year filing?

If you rented out part of your home, you'll need to allocate the gain between the residential and rental portions. The part that was used as rental is subject to depreciation recapture and might not fully qualify for the exclusion. I had to do this calculation last year - you basically determine what percentage of your home was rented (by square footage usually) and for what percentage of your ownership period.

This is really helpful timing advice! I hadn't thought about strategically planning the sale date around the 2-year ownership requirement. Since estate planning often involves adding family members to deeds relatively recently, this could be a common issue for people in similar situations. Quick question - does the 2-year ownership requirement need to be exactly 2 full years, or is it 2 years out of the 5-year period before the sale? I want to make sure I understand the timing correctly for my own situation where I'm considering adding my daughter to my home's deed.

That's not quite right. The SECURE Act changes were effective beginning in 2020. If OP's father turned 70½ before 2020 (which seems likely given his age), he would have been required to take RMDs under the old rules starting at 70½, not 72.

You're totally right, my mistake. Since OP's father is 79 now, he would have turned 70½ around 2015-2016, before the SECURE Act took effect. So he would have been subject to the original 70½ rule. Thanks for the correction. That actually makes the missed RMD situation even more significant since it would include more years. This further emphasizes why getting proper documentation of his cognitive decline is crucial for requesting penalty waivers.

This is incredibly helpful advice, especially the point about spreading the distributions across multiple years. I hadn't thought about the tax impact of taking everything at once. One question - when you mention getting medical documentation about when the cognitive decline began, does this need to be from a specialist like a neurologist, or would documentation from his primary care physician be sufficient? We haven't had him formally evaluated by a specialist yet, but his regular doctor has been noting memory and decision-making issues in his chart for the past few years. Also, regarding the automatic distributions for the future - is that something the IRA custodian can set up, or does it require special arrangements?

This is such a helpful explanation! I'm actually dealing with something similar right now - my company just switched to using a PEO this year and I was wondering what would happen when I get my W-2 next January. It's reassuring to know that the tax software will handle it automatically and I won't need to do anything special. One question though - if the PEO is handling benefits too, does that change anything about how I report things like health insurance premiums or HSA contributions on my taxes? Or do those just flow through normally on the W-2 regardless of the PEO arrangement?

Great question! Benefits handling through a PEO actually flows through pretty seamlessly on your tax documents. Your health insurance premiums, HSA contributions, 401(k) deferrals, etc. will all show up in the appropriate boxes on your W-2 just like they would if your company handled payroll directly. The PEO processes all of this information and reports it correctly to the IRS, so you don't need to do anything different when filing. Box 12 will still show your HSA contributions with code W, health insurance premiums will be reflected in the appropriate sections, and pre-tax deductions will be handled normally. The only thing that might look slightly different is if your company switched benefit providers when they moved to the PEO - but even then, the tax reporting requirements remain the same. Just make sure to keep any benefit statements or summaries your company provides, as those can be helpful for your records even though the W-2 will have all the info you need for filing.

This is really valuable insight from a professional perspective! I hadn't even considered the unemployment benefits angle - that's something worth knowing about PEO arrangements beyond just the tax implications. Quick follow-up question: when you mention calling the number on the W-2 to verify processing, what specific things should someone ask about? I want to make sure I'm asking the right questions if I need to contact Decision HR directly. Should I be asking about state withholding calculations, or are there other verification points that are important? Also, do you find that most people have issues with the tax software correctly handling the state filing when there's a PEO involved, or does it usually work smoothly once they indicate their actual work location?