Serious question - what happens if your friend just ignores the W-2G? Like the casino sent the form to the IRS, but if he has no other income and has been a non-filer for years, would the IRS really come after him for a small jackpot? Just wondering if it's even worth the hassle.

I went through something similar a few years ago. Had a decent casino win with a W-2G but was basically broke otherwise. The key thing to understand is that even though your friend has been a non-filer, that W-2G creates a filing requirement regardless of his other income. However, the good news is exactly what Sophia pointed out - if that $1600 is his only income for the year, it's well below the standard deduction threshold. He'll need to file a return to report it, but he won't actually owe any federal income tax. The IRS just needs to see that return to match against their records. I'd definitely recommend he files rather than ignoring it. The IRS matching system is pretty good at catching unreported gambling income, and it's much easier to file a simple return now than deal with notices and penalties later. Most free tax software can handle a basic return with just a W-2G.

I noticed nobody mentioned this yet - if your client's original refund was already in process when you filed the superseding return, there's a chance they'll actually receive two separate refunds: the original amount and then the additional amount later. I've seen this happen a few times with superseding returns filed close to but not immediately after the original. The IRS systems don't always catch the superseding return in time to stop the original refund processing, especially during busy filing season. Just a heads-up so you're not surprised if this happens!

This is really helpful information! I'm dealing with my first superseding return situation and was getting confused by the same refund calculation display issues. One thing I want to add for other newcomers like me - make sure you keep detailed documentation of both the original and superseding returns in your client files. I learned this the hard way when a client called me months later asking about their refund amount and I had to piece together what happened. Also, if you're using tax software that shows confusing displays like the OP mentioned, don't hesitate to call your software support line. Most of the major tax software companies have specific help documentation for superseding returns, and their support teams are usually pretty good at walking through the calculation logic to confirm everything is correct. Thanks everyone for sharing your experiences - this thread is going to save me a lot of stress this filing season!

Has anyone addressed whether the grandson is involved in the business operations? If he's not materially participating, you might have passive activity loss limitations to consider. And remember that gifts of partnership interests to family members often trigger family partnership rules under Section 704(e).

This is a complex situation that requires careful documentation. Since you dissolved the original partnership and formed a new one, you'll want to make sure you have clear records showing this wasn't done to avoid gift tax obligations. The IRS will look at the substance over form. A few additional considerations: First, get a qualified appraisal for the 10% interest - family partnership transfers are heavily scrutinized and you'll want professional support for any valuation discounts. Second, consider whether the grandson meets the requirements for a bona fide partner under Section 704(e) if he's not actively involved in operations. Third, document the legitimate business reasons for the partnership restructuring beyond just the gift transfer. The gift tax return (Form 709) is definitely required regardless of the partnership restructuring. The value reported should reflect the fair market value of the 10% interest at the time of transfer, with appropriate discounts if supportable. Consider consulting with a tax professional who specializes in family partnerships to ensure all aspects are handled correctly.

I'm also an international student and cryptos are taxed weirdly in US. 2 important things to understand - your TAX RESIDENCY status is completely different from your IMMIGRATION status. You could be nonresident for immigration (F1 student) but still be resident for tax purposes if you stay in US long enough (substantial presence test). This affects which form you fill - 1040 vs 1040NR. Also even if youre nonresident, ANY crypto you sell while physically present in US is US-sourced income taxable here. Doesnt matter if your exchange thinks your foreign or not, you still gotta report it!

As someone who went through a very similar situation last year, I completely understand your confusion! The key thing to remember is that the forms you receive from different platforms don't determine your actual tax filing requirements - your immigration and tax residency status does. Since you're an international grad student, you'll most likely need to file Form 1040NR (not 1040) regardless of what Coinbase provided you. The reason TD Ameritrade sent you 1042S is because they correctly identified you as a non-resident alien, while Coinbase may not have your status properly documented in their system. Here's what I'd recommend: First, determine your tax residency status using the substantial presence test (but remember F-1 students have an exemption for the first 5 calendar years). Then file 1040NR and report all your crypto transactions using Form 8949, just like you would attach it to a regular 1040. The most important thing is accurate reporting on your actual tax return - don't worry too much about the inconsistency in the forms you received from different platforms. What matters is that you report all your US-source income correctly as a non-resident alien.

Just wanna point out that an S corp with $1M profit should be maxing out retirement contributions too! You can put up to $68,000 in a Solo 401k for 2025 (that's $23,000 employee contribution plus 25% of your salary as employer contribution up to the max). This reduces your taxable income immediately. Also look into setting up a defined benefit plan if you're planning to have similar profits for several years. Our S corp was able to legally contribute over $200k annually to retirement this way, creating a massive tax deduction.

One thing I haven't seen mentioned yet is the potential for Section 199A deduction (QBI deduction) which can be huge for S corp owners. With $700K in pass-through income, you could potentially deduct up to 20% of that ($140K) if your business qualifies and you're under the income thresholds. However, there are some complexities with S corps and QBI - the deduction is generally based on your K-1 income minus your W-2 wages from the S corp. So if you take a $150K salary, your QBI would be calculated on $550K, potentially giving you up to $110K in additional deductions. The rules get tricky around the income limits and whether your business is a "specified service trade or business" (SSTB), but with proper planning this could save you tens of thousands. Your accountant should definitely be running these numbers for you, especially since you're right at the income levels where the phaseouts start kicking in.