Another option worth considering is using tax software to prepare your 1040x. I had to amend last year and used TurboTax to prepare my amendment. It was pretty straightforward - I just created a new return with the correct information, and the software generated the 1040x for me showing the differences. Most major tax software can handle amendments, though you'll still need to print and mail the forms rather than e-file. Might be cheaper than going back to H&R Block if you're comfortable doing it yourself with some guidance.

I went through something similar last year with a missed 1099-INT. One thing I learned is that you should gather all your documents first before deciding on your approach. Make sure you have your original tax return, the missed 1099-INT forms, and any other tax documents handy. If the total additional tax owed is under $100 (which it probably will be for those amounts), I'd honestly suggest doing it yourself rather than paying H&R Block's amendment fee. The 1040x form looks intimidating but it's basically just three columns - what you originally reported, what it should have been, and the difference. Download the form and instructions from IRS.gov, take your time, and double-check everything before mailing it in. For straightforward additions like interest income, it's really not as complicated as it seems. Save yourself the $100+ fee and use that money for something more enjoyable!

Quick tip for the OP - make sure you're also factoring in any fees you paid when exercising or selling. Those can be added to your basis as well. Every dollar counts when you're trying to reduce the taxable gain!

Just want to add another important consideration - timing of when you actually paid the AMT matters for your basis adjustment. If you exercised ISOs in December 2014 but didn't actually pay the AMT until you filed your return in April 2015, some tax professionals argue the basis adjustment shouldn't apply until the 2015 tax year. This mainly affects people who did cashless exercises or had complex timing situations. For most people who did cash exercises and paid AMT in the same calendar year, it's straightforward. But if there's any timing complexity in your situation, you might want to double-check this detail. Also, keep really good records of everything - copies of your Form 6251 from 2014, your stock option exercise confirmations, and all the supporting calculations. The IRS has been scrutinizing ISO transactions more closely in recent years, so having bulletproof documentation is crucial if you ever get selected for review.

Has anyone ever actually been audited specifically for sales tax deductions? I've always been told the IRS doesn't really question sales tax unless it's absurdly high compared to your income.

I'm dealing with a similar situation this year! I live in Texas (no state income tax) and made several major purchases including a new HVAC system and some furniture. My calculated sales tax is about 4x higher than the IRS calculator suggests. After reading through all these responses, I'm feeling much more confident about using my actual calculation. The key seems to be having a clear methodology and keeping good records for the big-ticket items. I've been keeping a spreadsheet with purchase categories and applying the appropriate tax rates (8.25% general, 6.25% for certain items in my county). One thing I learned from my tax prep course is that the IRS sales tax tables are really just statistical averages based on consumer spending surveys. They don't account for life events like moving, major repairs, or simply having different spending patterns than the "average" taxpayer in your income bracket. Marcus, your programming approach actually sounds more thorough than what most people do. As long as you can explain your methodology and have the bank statements to back it up, you should be fine. The charitable donation is a separate issue entirely - just make sure you have proper acknowledgment letters from the organization.

Has anyone here actually tried to file an Offer in Compromise themselves? I'm hearing mixed things about how hard it is to get accepted. I've got about $25k in tax debt and a resolution company wants $4k to handle it.

Ruby, please don't pay that tax resolution company $16k! You can absolutely handle this yourself and save thousands. Here's what I'd recommend based on your situation: First, pay your 2023 taxes directly to the IRS with that $10k you have saved. This keeps you current and eligible for relief programs. Never fall behind on current year taxes while trying to resolve old debt. For the remaining $30k, you have several options you can pursue yourself: 1. Request Currently Not Collectible status if paying would create hardship - this pauses collections for free 2. Set up an installment agreement directly with the IRS 3. File an Offer in Compromise yourself using Form 656 The IRS actually has great resources and payment calculators on their website. You can also call them directly (or use a callback service like Claimyr if you can't get through) to discuss your options with an actual IRS representative who can explain what you qualify for. I've seen too many people get scammed by these resolution companies promising miracles. Save your money and handle this directly with the IRS - they're usually much more reasonable to work with than these companies make them out to be.

Guys, I've been carrying over capital losses for 4 years now after a really bad crypto investment in 2021. Quick tip - TurboTax doesn't always get the carryover right if you have complicated situations! Last year it somehow "lost" about $4200 of my long-term carryover and I had to manually correct it. Make sure you ALWAYS print out or save PDFs of: 1. Your complete tax return 2. Schedule D 3. The Capital Loss Carryover Worksheet 4. Form 8949 with all your transactions Then double-check the starting carryover amounts each new tax year. I learned this the hard way.

Great question about tracking capital loss carryovers! I've been dealing with this for a few years now after some unfortunate investment losses. One thing I'd add to the excellent advice already shared - make sure you understand the "netting" rules. If you have both short-term and long-term carryover losses, they get applied in a specific order against future gains. Short-term carryover losses first offset short-term gains, then long-term gains. Long-term carryover losses first offset long-term gains, then short-term gains. This matters because long-term gains are taxed at preferential rates, so using short-term losses against them first can actually be more tax-efficient. Also, regarding TurboTax - I've found it helpful to manually verify the carryover amounts by looking at the prior year's Schedule D before starting each new tax year. The software usually gets it right, but as others mentioned, it's not foolproof, especially if you're importing from different tax software or have complex transactions. One more tip: Keep detailed records of the original transaction dates for your losses. Even though the carryover loses connection to specific investments, you might need this info if the IRS ever questions the short-term vs long-term classification of your carryovers.