Anyone know if this foreign qualified dividends stuff affects the standard deduction vs itemized deduction decision? I usually take the standard deduction but wondering if having foreign dividends might change that calculation.

I went through this exact same confusion last year! Your accountant is asking for the foreign-sourced portion of your qualified dividends because it affects your foreign tax credit calculation. Here's what I learned: ADR dividends are often subject to foreign withholding tax (usually 10-15% depending on the country and tax treaty). When you receive these dividends, the foreign country takes their cut first, then you get the remainder. But you can claim a credit for that foreign tax to avoid being taxed twice. The key is looking at your 1099-DIV carefully. Most brokers will show: - Box 1a: Total ordinary dividends - Box 1b: Qualified dividends (this includes both US and foreign) - Then somewhere (usually in supplementary pages) they'll break down how much of your qualified dividends came from foreign sources and how much foreign tax was withheld If your broker's statements are unclear, try logging into your account and looking for a "Tax Center" or "Tax Documents" section - sometimes they have more detailed breakdowns there than on the printed 1099. You can also call their tax department directly and ask them to walk you through finding the foreign dividend information. This info is crucial for your accountant to properly calculate your foreign tax credit on Form 1116, which could save you money!

Don't forget about the Qualified Business Income Deduction (Section 199A) which can give you a deduction of up to 20% of your qualified business income! This is separate from your business expenses on Schedule C and can really help reduce your tax bill as a 1099 worker. Also, make sure you're tracking and deducting your self-employment tax payments. You can deduct 50% of your self-employment tax on your 1040, which helps offset some of the extra tax burden from being self-employed.

You might also want to look into setting up a SEP IRA or Solo 401(k) for retirement. As a 1099 contractor, you're eligible for these self-employed retirement accounts which let you put away WAY more than regular IRAs. This won't help with last year's taxes, but could significantly reduce your tax bill going forward. With a Solo 401(k), you can contribute up to $22,500 as an "employee" for 2023 PLUS an additional 25% of your net self-employment earnings as the "employer" (up to combined limits). These contributions are tax-deductible and reduce your taxable income.

Something to keep in mind with these transcript codes - the dates shown don't necessarily represent when money will be sent. The 849 code indicates your return was processed, but the IRS releases refunds in batches on specific days of the week (usually Wednesdays for direct deposits). So if your 849 code was February 10th, you'd likely be in the next available refund batch, which could be anywhere from a few days to a couple weeks later depending on their current backlog. If you have a complex return (earned income credit, additional child tax credit, etc.) there are also mandatory additional review periods.

If you filed for EIC or ACTC (additional child tax credit), the IRS legally can't issue your refund before mid-February due to the PATH Act, even if your return was processed earlier. This might explain some of the wait time after seeing the 849 code.

Here's a detailed breakdown for anyone filing prior years: - Download correct year forms from IRS.gov - Gather all income docs (W2s, 1099s etc) - Use taxr.ai to analyze your situation first - seriously this saved me so much headache - Fill forms carefully, double check math - Make copies of EVERYTHING - Send via certified mail - Expected wait: 4-5 months minimum - Check transcript weekly for updates Biggest mistake people make is rushing through it. Take your time, do it right the first time. And definitely use taxr.ai before starting - it'll tell you exactly what to watch out for with your specific situation.

Don't stress too much about it! I was in the exact same situation last year - hadn't filed 2020 or 2021 and was totally overwhelmed. The key things that helped me: 1. Start with getting your wage transcripts online (like Emily mentioned) - way faster than waiting for mail 2. Use the actual IRS Free File forms for prior years, not the expensive software 3. Set aside a full weekend to focus on it without distractions 4. The IRS is surprisingly understanding about late filings if you don't owe money One thing nobody mentioned - if you're expecting refunds for those years, you have until April 15th, 2025 to claim your 2021 refund (3 year limit). So there's still time but don't wait much longer! You got this 💪

Ugh, the tax system is so outdated. Why should marriage even matter for taxes anyway? My partner and I have been together 11 years, share all finances, but can't file jointly because we don't have a piece of paper. So frustrating!

I work in tax preparation and see this mistake more often than you'd think. The key thing is that you need to act quickly to minimize penalties. File Form 1040-X for both of you as soon as possible - you'll each need to file as single taxpayers. The IRS has a "reasonable cause" provision that can help reduce penalties if you can show the error was made in good faith (not intentional fraud). Since you're voluntarily correcting it, that works in your favor. You'll owe the tax difference plus interest, but the penalty might be reduced or waived entirely. Pro tip: When you file the amended returns, include a brief explanation letter stating that the error was unintentional and you're correcting it voluntarily. This can help your case if they review the amendment.