Check if your housing might qualify as excludable under Section 119 of the tax code! If the housing was provided for the "convenience of the employer" and on the employer's premises, and you were required to accept the housing as a condition of employment, it might not be taxable. Worth looking into before you amend!

I went through something very similar last year with a tech company that forgot to report my relocation bonus. The whole process was honestly less scary than I expected once I got started. A few practical tips from my experience: First, gather all your documents from that tax year (original W2, W2C, your filed return, any records of the housing arrangement). The IRS will want to see everything matches up. Second, if you used tax software originally, most programs like TurboTax or H&R Block have tools specifically for amended returns that walk you through the W2C situation step by step. One thing that surprised me - I actually ended up getting a small state refund because the additional federal tax I owed put me in a higher bracket that qualified for a bigger state deduction. So it's not always doom and gloom! The interest on what you owe will probably be manageable since it's only been 3 years, not like 10. Definitely don't wait though. The company already sent the corrected info to the IRS, so their computers will eventually flag the mismatch anyway. Better to handle it on your terms.

Does anyone know if using both an FSA and HSA in the same year is allowed? I thought you couldn't have both but the original poster mentioned using both. I'm so confused about all these health accounts!

This is exactly the kind of HSA confusion that trips up so many people! The key thing to remember is that your HSA is like a savings account - money can go in and out multiple times throughout the year for various reasons. When you reimburse yourself from your HSA for medical expenses, then later receive insurance money that you deposit back, you're essentially "undoing" part of that original distribution. The IRS recognizes this is a normal part of how medical expenses and insurance work together. For your Form 8889, stick with the W-2 Box 12W amount on line 9 as others have mentioned. The 5498-SA will always show higher numbers when you're redepositing insurance reimbursements because it captures all the money flowing into the account, not just your original contributions. Keep detailed records of all your medical expenses, HSA distributions, and insurance reimbursements. This paper trail will be invaluable if you ever need to explain the transactions. You're handling this correctly - the orthodontic work is a qualified medical expense, and redepositing insurance reimbursements is completely allowed and encouraged by the IRS.

I went through this exact same situation with TurboTax last year and can confirm what others are saying - it's completely normal but poorly explained. The key thing to understand is that your original return and amended return are processed as completely separate transactions by the IRS. Here's what actually happens: 1. Your original refund will be issued regardless of your amendment status 2. Your amendment creates a separate tax liability that must be paid independently 3. The IRS systems don't automatically "net" these amounts together One important tip that saved me stress: you can actually make the amendment payment using EFTPS (Electronic Federal Tax Payment System) directly to the IRS instead of through TurboTax. This gives you more control over timing and you can see exactly when the payment processes. Just make sure you include the correct tax year and form code (1040X) when making the payment. The whole process took about 6 weeks for me - got my original refund in 3 weeks, and the amendment was processed about 3 weeks after that. The separate payment thing is definitely counterintuitive, but once you understand it's two different systems, it makes more sense.

This is such a common source of confusion! I went through the same thing two years ago and it really threw me off. What helped me understand it better was thinking of it like this: your original return is like a contract you already signed with the IRS - they're going to honor that refund amount. Your amendment is essentially a new, separate contract saying "oops, I actually owe you more money." The IRS processes these through different departments and systems, so they can't just automatically adjust one against the other. It's frustrating from a cash flow perspective, especially for contractors like us who might be waiting on that original refund to cover the amendment payment. One thing that might help ease your mind: you can check the status of your original refund using the "Where's My Refund" tool on IRS.gov. Once you see it's been approved for direct deposit, you'll know exactly when to expect it. Then you can time your amendment payment accordingly (just don't miss the deadline as others have mentioned). The whole system definitely feels backward, but once you accept that it's two separate transactions, it becomes less stressful. Your original refund is coming - the amendment doesn't change that!

One more thing nobody's mentioned - if you're sending money to help with a house down payment, the mortgage company might ask questions about it. When I got money from my parents abroad for my house purchase, the lender required a "gift letter" stating the money didn't need to be repaid. They were extra cautious because the money came from outside the US. My lender wanted to see documentation of the transfer from origination through receipt, plus a signed letter from my parents confirming it was a gift with no repayment expected. This isn't an IRS issue, but it could be important if your brother is planning to use the money for a home purchase and will be applying for a mortgage.

Just to add another perspective - I recently handled a similar transfer from my aunt in Turkey to help with my car purchase. The banking side went smoothly, but I learned a few things that might help: Turkey has specific regulations about foreign currency transfers above certain thresholds. Your aunt should check with her Turkish bank about any required documentation or approvals before initiating the transfer. Some Turkish banks require additional paperwork for transfers over $30k. Also, consider splitting the transfer into smaller amounts if there are no urgent deadlines. While it's perfectly legal to send $40k at once, smaller transfers sometimes move faster and attract less scrutiny from both banking systems. My aunt sent mine in two $20k transfers a week apart and both went through without any holds or questions. The gift letter mentioned by others is crucial - have it ready before the money moves. Include your relationship, confirm it's a gift with no repayment expected, and keep copies of all documentation. This helps with both the bank and any future mortgage applications.

Has anyone used TurboSelf-Employed for tracking these kinds of expenses? My accountant charges me a fortune and I'm wondering if I could DIY with the right software.

Great question! I've been self-employed for about 5 years now and have dealt with this exact situation multiple times. The key thing to remember is that you can't deduct the value of your time, but you absolutely can deduct legitimate business expenses incurred during client acquisition. Since you mentioned spending 80 hours over two weeks, I'd suggest going back through that period and documenting every actual expense you had. This might include gas/mileage if you drove to meetings, any materials you purchased for the proposal, software subscriptions you used, coffee/meals during client meetings (50% deductible), and even a portion of your home office expenses if you qualify. One thing that helped me was creating a simple spreadsheet to track all expenses by potential client, even when deals don't close. That way I have documentation ready at tax time. The IRS allows these client acquisition costs as ordinary and necessary business expenses on Schedule C, but good record-keeping is essential. Also, since this client did sign the contract, all those expenses are clearly legitimate business costs that led to actual revenue. Make sure to keep copies of your SOW, meeting notes, and any receipts from that period.