Another option is to request an "Account Transcript" instead of just the wage and income transcript. It shows different info like estimated tax payments you've made, any adjustments or credits from previous years that might carry forward, and other account activity. I usually request both to get the full picture before filing.

Just a heads up - sometimes the wage and income transcript isn't fully updated until later in the year. I checked mine in February and it was missing several 1099s that I knew had been issued. When I checked again in April, they had appeared. So if you find things missing, it might just be timing rather than actual missing documents.

Has anyone used the "Other additions" section of M-2 Column c for this? When I try to enter it in my tax software it keeps wanting me to explain what the "other addition" is. Not sure what to write there.

Thanks everyone for the detailed responses! This has been incredibly helpful. Just to summarize what I'm understanding for my situation: 1. Capital contributions don't go on Schedule K line 10 or 16b (those are for income/deduction items) 2. They get reported on Schedule L (balance sheet) as increases to capital accounts 3. For Schedule M-2, they go in column c "Other additions" with description like "Shareholder capital contribution" 4. They increase my stock basis but don't affect AAA 5. Important to document with corporate minutes/resolutions to distinguish from loans I'm going to make sure I have proper documentation showing these were intended as permanent capital investments rather than loans. The advice about not withdrawing the funds shortly after contribution makes sense too - these were genuinely meant to help the business grow and purchase equipment. One follow-up question: should I be tracking my basis adjustments on a separate schedule or statement that I attach to my return, or is there a specific form for this?

Has anyone mentioned penalties and interest yet? That's what really killed me when I owed the IRS after an audit. The amount kept growing while I was trying to figure out payment options. Make sure your CPA discusses penalty abatement options with you. If this is your first time having tax issues, you might qualify for First Time Penalty Abatement, which could save you thousands. Interest can't typically be abated, but penalties often can be if you have reasonable cause.

I went through something similar last year - owed $147k after an audit revealed my tax preparer had completely fabricated deductions. The stress was unbearable at first, but I want to reassure you that the IRS does work with people in our situation. Here's what I learned: For amounts over $100k, they're much more flexible than the standard guidelines suggest. I ended up getting an 84-month payment plan (7 years) at around $1,750/month after demonstrating financial hardship. The key was providing detailed financial documentation showing that shorter payment terms would prevent me from meeting basic living expenses. My advice: Don't drain your retirement accounts. The IRS would rather have guaranteed monthly payments than force you into financial ruin. Also, consider whether the fraudulent preparer issue gives you grounds for penalty abatement - my CPA was able to get about 40% of my penalties removed by arguing reasonable cause. The whole process took about 4 months to finalize, but having that payment plan in place gave me so much peace of mind. You'll get through this.

Has anyone dealt with having a spouse with their own 1095-C while you have VA coverage? My wife and I are filing jointly, but I'm not sure how to handle her employer coverage alongside my VA benefits. Do we need to report both on our joint return?

I had a very similar situation last year with both employer and VA coverage! One thing that really helped me was understanding that the 1095 forms are primarily for reporting purposes now - they're meant to show the IRS that you had qualifying health coverage throughout the year. Since you had continuous coverage (employer through May, then VA from June-December), you're in good shape. The key is making sure your tax software understands you had coverage all 12 months, just from different sources. A tip that saved me time: when your tax software asks about gaps in coverage, make sure to indicate "No" since your VA coverage filled any potential gap after leaving your employer. The software sometimes gets confused when it sees different types of forms covering different periods, but as long as you had qualifying coverage each month (which you did), you're compliant. Also, keep both forms with your tax records even if the software doesn't require you to input all the details - it's good documentation in case of any future questions.

I'm using FreeTaxUSA this year because its cheaper than TurboTax. Anybody know if consolidated 1099s from trading are easy to enter in that system? I have like 30 stock trades plus some dividends from Webull and dont wanna switch tax software just for this.

Great question! I went through this exact confusion last year when I started trading more actively. The consolidated 1099 from TradeWave is definitely what you want - it's much better than getting separate forms for each type of transaction. One thing I'd add to the helpful responses here is to double-check that your consolidated 1099 includes ALL your trading activity from the year. Sometimes if you had positions at multiple brokers or transferred accounts mid-year, you might need statements from each institution. Also, keep an eye out for any supplemental or corrected 1099s that might come later - brokers sometimes issue corrections in February or March. The consolidated format saves so much time during tax prep. I remember my first year trying to match up individual 1099-B forms with my actual trades and it was a nightmare. The consolidated version having everything in one place with clear summaries makes the whole process much smoother.