Has anyone had luck with state efiling for prior years? I know the IRS doesn't allow it, but I'm wondering if some states might have different rules? I'm in California if that matters.

I went through this exact same situation last year! Unfortunately, as others have mentioned, you really can't efile prior year returns through any service - it's just not allowed by the IRS regardless of who prepares them. What I ended up doing was printing my completed TurboTax returns and sending them via USPS Priority Mail with tracking. It actually wasn't as slow as I expected - my returns were processed within about 6-8 weeks, which is pretty standard for paper filing. One tip that helped me: I called the IRS processing center for my area about 3 weeks after mailing to confirm they received my returns. You can find the right number on the IRS website based on where you're mailing your returns. It gave me peace of mind knowing they actually got them and were in the system. The certified mail route that Connor mentioned is also a good option if you want extra proof of delivery, though it does cost a bit more than regular Priority Mail.

Just to add something important here - there's a statute of limitations on amended tax returns. You can generally only go back 3 years from the original filing due date to file an amendment and claim a refund. So if you filed your 2022 taxes on April 15, 2023, you have until April 15, 2026, to file an amended return for 2022. For 2023 taxes, you'd have until April 15, 2027. Don't wait too long to address this or you could lose your chance to recover the overpaid taxes from earlier years!

Wow, reading through all these responses makes me realize I'm not alone in this! As someone who works in employee benefits administration, I can confirm that this domestic partner vs. spouse classification mix-up happens WAY more often than you'd think. A few additional tips based on what I've seen work: 1) When you approach HR, come prepared with documentation - marriage certificate, copies of your paystubs showing the imputed income, and ideally a calculation of how much this has cost you. Being organized makes them take it more seriously. 2) If your initial HR contact says "nothing can be done," ask to escalate to the benefits director or payroll manager. The front-line benefits person might not have authority or knowledge to make retroactive corrections. 3) Some companies have a formal "benefits error correction" process that allows for retroactive fixes. Ask specifically if this exists at your company. 4) Document everything in writing - send follow-up emails after verbal conversations summarizing what was discussed and agreed upon. The key thing to remember is that this IS fixable in most cases. Your employer has been incorrectly reporting your tax situation, and they generally want to correct legitimate errors like this to avoid potential issues with the IRS down the road. Don't give up if the first person you talk to says no!

I'm confused by FreeTaxUSA's handling of this. When I tried to create a superseding return, the software only gave me the amended return option. Does anyone know if FreeTaxUSA actually supports filing superseding returns properly? Or do I need to manually handle this somehow?

Thanks for asking this question! I was in a similar boat last month and learned the hard way that there's a big difference. Just to add to what others have said - timing is really crucial here. Since you're still before April 15, you have the choice between superseding (complete replacement) or amending (correction to original). One thing I wish someone had told me: if your changes are significant (like major income additions or big deduction changes), superseding is usually the better route because it treats your situation as if you filed correctly the first time. But if it's just minor corrections, an amendment might be simpler. Also, keep in mind that if you go the superseding route, you'll need to paper file since most tax software doesn't handle the specific markings required for superseding returns. The IRS needs to see "SUPERSEDING RETURN" clearly marked at the top of a new 1040, not a 1040-X form. Have you determined what kind of changes you need to make? That might help decide which path is better for your situation.

Slight tangent but still relevant - make sure you understand the difference between a patent filing and a patent being granted. They're different stages in the process. Some companies pay when patents are filed, others only when they're granted (which can take years), and some pay at both stages. Might be worth checking if you'll get another payment if/when the patent is actually granted!

Just to add another perspective on the QBI question - I went through something very similar with software patents from my previous job. The key thing I learned is that the IRS looks at the "origin" of the income, not just how it's currently being paid. Since you developed the patented technology as part of your regular job duties while employed, the royalty payments are considered to have their origin in your employment relationship. This disqualifies them from QBI treatment regardless of the 1099-MISC classification. I'd also suggest keeping good records of when you actually did the work that led to the patent (dates, whether it was during work hours, etc.). While it probably won't change the QBI outcome, it could be helpful if there are ever questions about the proper tax treatment. The bright side is that at least it's not subject to self-employment tax since it's not from an active business!

Remember that if you're shutting down the business entirely, you'll need to file a final return. Make sure to check the box indicating it's a final return and include a statement explaining the closure. Don't forget to cancel any business licenses, permits, and close business accounts properly too. I learned the hard way that loose ends with a business closure can come back to haunt you years later!

One thing to consider that hasn't been mentioned yet - if you're selling the equipment to your brother (the former partner), this could actually be viewed more favorably by the IRS than selling to other family members. Since he was an original co-owner of the equipment through the partnership, there's already an established business relationship and legitimate reason for the transaction. Just make sure you have documentation from when he left the partnership showing how the assets were divided. If the partnership agreement or dissolution documents don't clearly address the equipment, you might want to create a written agreement now that references the original purchase and his departure from the business. Also, regarding the gain recognition - yes, you'll need to report it on Form 4797 as others mentioned, but the good news is that since this was Section 179 property, the recapture will be taxed as ordinary income (not capital gains), which actually keeps the reporting simpler even though the rate might be higher.