Another simple trick - look at your 2020 tax return PDF file size. If it's bigger than usual, you probably itemized because Schedule A adds pages. My standard deduction returns are always like 10-15 pages but my itemized years are 20+ pages with all the extra forms. Just a quick way to check before digging into the actual numbers.

UGH im looking at my 2020 return right now and line 12 shows $24,800 but there's also something on line 8 that says "Schedule A" with a checkmark? Super confused!!! Why would it have schedule A but also the standard deduction amount??

Has anyone used TurboTax to handle this specific situation? I use TurboTax Premier and am wondering if it has a way to handle this properly.

I went through this exact same situation with IBKR prediction contracts last year and can confirm the Schedule 1 approach works perfectly. The key is being very clear in your documentation. I reported the full $23,000 on Schedule 1, Line 8i "Other Income" with the description "IBKR 1099-MISC Prediction Contract Proceeds." Then on the very next line, I entered -$22,350 with the description "Cost Basis Adjustment - IBKR Prediction Contracts per 1099-MISC Instructions." I also attached a one-page statement explaining that IBKR reports gross proceeds on 1099-MISC but doesn't account for cost basis, referencing their own documentation that instructs taxpayers to make this adjustment. No red flags, no audit, no problems. The IRS computers can easily see that you're reporting what matches the 1099 they received while properly calculating your actual taxable gain. Keep all your IBKR statements showing the initial purchase and final sale amounts. This is actually a very common issue with prediction market brokers, so the IRS is familiar with it.

I moved to France last year and just filed with both forms. Here's what I learned: keep DETAILED records of every single day you're in and out of the foreign country! I almost failed the physical presence test because I didn't realize my vacation back to the US for Christmas counted against my 330 days. Had to dig through old emails to find flight confirmations.

Hey Amina! I went through this exact same situation when I was working in the UAE last year. You definitely need both forms - Form 1040 is your main tax return that reports all your income, and Form 2555 is like an attachment that calculates your Foreign Earned Income Exclusion. Since you're in Dubai (no income tax), the FEIE is definitely your best bet rather than the foreign tax credit. With your $73,200 income, you should be able to exclude most or all of it if you qualify for either the physical presence test (330 days in a foreign country over 12 months) or bona fide residence test. One heads up - make sure you keep detailed records of all your travel dates! Even short trips back to the US can affect your physical presence test qualification. I learned this the hard way when I almost missed the 330-day requirement because of a family visit I forgot to account for. The IRS website is definitely confusing for international stuff. If you get stuck, don't hesitate to reach out to a tax professional who specializes in expat taxes - it's worth the peace of mind!

I totally get that pre-opening anxiety! I've been there multiple times and that sick feeling when you see the IRS envelope in Informed Delivery is just awful. One thing that's helped me is remembering that March is peak processing season - they're churning through millions of returns and sending out tons of routine correspondence. Could literally be something as simple as "we received your return" or "your refund is processing." I actually started keeping a little log of IRS letters I've received over the years, and honestly about 85% turned out to be completely routine stuff that required zero action from me. The ones that did need responses were usually just requests for additional documentation that took maybe 15 minutes to handle. Try to get a good night's sleep tonight - tomorrow you'll have actual information instead of just anxiety-fueled speculation!

I feel you on this anxiety! That Informed Delivery preview is both a blessing and a curse - you get advance warning but then have to sit with the worry all day. I've gotten probably a dozen IRS letters over the years and only one was actually problematic (turned out to be a simple math error they caught). The rest were things like payment confirmations, return acknowledgments, or updates to my taxpayer info. Since you mentioned being extra careful this year after learning from the crypto situation, you're probably in really good shape. One thing that helps me is remembering that truly urgent IRS matters usually come certified mail or require signature - regular mail is typically routine stuff. Whatever it is, you'll handle it. The unknown is always scarier than the reality!

One thing that might help is understanding that the IRS penalty calculation system is largely automated and doesn't always account for nuances in how payments are processed through EFTPS. I've seen cases where the system flags deposits as late even when they were technically submitted on time. A few specific things to double-check: 1. When you schedule your EFTPS payment, make sure the "effective date" (when the money actually leaves your account) falls on or before the deposit deadline - not just when you initiate the transaction. 2. Be very careful about the "Tax Period" dropdown in EFTPS. For semi-weekly deposits, you need to select the specific quarter AND make sure you're not accidentally selecting "Annual" or "Monthly" instead of the quarterly option. 3. Bank holidays can throw off the timing. If your due date falls on a banking holiday, the deposit is due the next business day, but the EFTPS system doesn't always make this clear. I'd also suggest calling the Practitioner Priority Service line at 866-860-4259 if you or your tax preparer has a PTIN. It's a separate line with much shorter wait times than the general taxpayer line. Even if you're not a practitioner yourself, many enrolled agents will make this call on behalf of clients for a small fee. The good news is that first-time penalty abatement is usually granted automatically if you have a clean compliance history, so don't stress too much about the immediate financial impact while you figure this out.

I've been following this thread with great interest because I'm dealing with a very similar situation! Got bumped to semi-weekly deposits about 6 months ago and it's been a nightmare trying to get the timing right. One thing that really helped me was finding out that the IRS has a specific deposit schedule lookup tool on their website (Publication 15, Circular E) that shows exactly which days deposits are due based on your payday. But even more helpful was learning that you can call EFTPS customer service directly at 1-800-555-4477 - they can actually walk you through the correct way to enter your deposits and explain the tax period selections. The EFTPS rep I spoke with told me that a lot of the confusion comes from people thinking "semi-weekly" means twice a week, when it actually just means there are two possible due dates each week depending on when you pay wages. She also mentioned that if you're ever unsure about a deposit deadline, you can always make the deposit earlier - there's no penalty for depositing early, only for depositing late. Also wanted to echo what others said about keeping detailed records. I started taking screenshots of my EFTPS confirmations and noting exactly which tax period I selected for each deposit. When I did get a penalty notice, having those records made it much easier to prove the deposits were made correctly and get the penalties reversed. Hope this helps - you're definitely not alone in finding this system confusing!