Has anyone actually received a 1099-R with code 8 (no J) for an excess contribution removal? I'm dealing with something similar and my broker is telling me they'll use code P, even though I also contributed and removed in the same calendar year. I'm wondering if different brokerages handle this differently.

I went through this exact situation last year and can confirm what others have said about the distribution codes. My contribution was made in January 2023 for tax year 2022, and I removed the excess in late 2023. My 1099-R showed code 8 (not PJ) because both the contribution and removal happened in the same calendar year. The key thing I learned is that you don't need to file an amended return as long as you report the distribution correctly on your original return. Since you mentioned your brokerage adjusted for losses, make sure you report any earnings (or in your case, the small loss) appropriately. The excess contribution removal itself isn't taxable, but any earnings would be. I'd recommend double-checking with your brokerage about exactly what they'll report on your 1099-R, since different institutions sometimes handle these codes differently. But regardless of whether they use code 8 or P, the tax treatment should be the same for your situation.

A common mistake I see businesses make is forgetting about state tax implications. Even if you're handling federal taxes correctly, some states have different rules for international contractors. What state is your S Corp registered in? That can make a big difference in your filing requirements.

Great question! I've been dealing with similar international contractor payments for my consulting business. One thing I'd add to the excellent advice already given is to make sure you're consistent with your categorization across all your financial records. Since you're using Wise for payments, I'd recommend exporting their transaction reports monthly and reconciling them with your spreadsheet records. This creates a clear audit trail showing the business purpose of each payment. Also, when you collect those W-8BEN forms from your Filipino team members, consider creating a simple tracking spreadsheet with expiration dates so you know when to request renewals (every 3 years as Miguel mentioned). I learned this the hard way when I realized half my forms had expired during tax season! The $67k in payments will definitely reduce your taxable income as legitimate business expenses, so you're smart to get this documented properly now rather than scrambling later.

Has anyone had experience using Free Fillable Forms with crypto transactions? I have about 40 trades from last year and I'm trying to figure out if I should just bite the bullet and pay for tax software instead.

This is such a helpful thread! I've been putting off filing my taxes because I was dreading paying for software again, but Free Fillable Forms sounds perfect for my situation. I just have a W-2 and some basic deductions, so the lack of "hand-holding" shouldn't be a problem. One question though - does anyone know if there's a deadline for using Free Fillable Forms? Like, is it available all the way up to the tax deadline in April, or do they shut it down earlier? I tend to be a last-minute filer and want to make sure I'm not stuck scrambling for an alternative if I wait too long. Also really appreciate the tip about saving frequently - that's exactly the kind of thing I would forget to do and then regret later!

Does anyone know if the state filing requirements follow the same rules? My kids have investment accounts that are mostly in-state municipal bond funds that are supposedly tax-exempt for federal but taxable for state purposes.

Great question about the yearly changes! Yes, the kiddie tax thresholds do adjust annually for inflation. For 2024 tax returns (filed in 2025), the threshold is indeed $2,300 for unearned income before a child needs to file. Based on your numbers ($190 + $165 + $1,850 = $2,205 per child), you're correct that each child falls below the threshold and won't need Form 8615 this year. This is a common situation where families had to file in previous years but don't need to anymore due to the threshold increases. One thing to keep in mind: make sure you're looking at the right tax year's thresholds. The 2024 threshold ($2,300) applies to income earned in 2024, which you'll file in 2025. If you're comparing to last year when you had to file Form 8615, that would have been under the 2023 threshold, which was $2,200. Also worth noting that these Vanguard accounts will likely generate similar income patterns going forward, so it's good to stay aware of how the thresholds change each year. The IRS usually announces the inflation adjustments for the following year in the fall.

Has anyone had success using the YUM Brands employee portal for getting old W2s? I worked at KFC (same parent company as Taco Bell) a few years ago and was able to login and get my W2 even after I quit. Don't remember the exact website but worth googling "YUM Brands employee portal" or "Taco Bell employee login

I went through something very similar with my son last year when he worked at a Pizza Hut for just a few days. Here's what ended up working for us: First, definitely start by calling the specific Taco Bell location where she worked. Even if she was only there 3 days, they're legally required to provide a W2 if any wages were paid. Ask for the manager and explain the situation - sometimes W2s get returned to sender if there was an address issue. If the local store can't help, try the corporate route. Since Taco Bell is owned by Yum! Brands, you can contact their employee services. Many locations also use ADP or another payroll company, so ask the store who handles their payroll processing. One thing that really helped us was having my son's employee ID number and exact dates of employment ready when making these calls. If she has any paystubs, that information should be on there. The IRS deadline for employers to send out W2s was January 31st, so at this point Taco Bell is actually late in providing it. If you don't get anywhere with the employer by next week, definitely contact the IRS directly. They can intervene on her behalf and often that gets employers to act quickly. Even though it's a small amount, it's worth getting the proper W2 rather than estimating on Form 4852 if possible. Good luck!