I asked their customer support about this last month. They said they're planning to add support for more international tax forms in the next major update, but couldn't give me a specific timeline. Might be worth checking with them directly.

Thanks for the info! I'll reach out to them and see if they have any updates. Really hoping they add it soon so I don't have to switch platforms or give up the extra credit.

This is really reassuring to hear from someone who's actually been doing it! I was worried there might be some hidden rule or audit risk with voluntarily forfeiting credits. How do you handle it on your return exactly? Do you just enter $600 as your foreign tax paid, or do you enter the full amount but somehow limit the credit to $600?

This is super helpful, thank you! I was honestly freaking out when I saw that identity theft hotline mentioned. Your experience gives me some hope that it might just be a verification thing rather than actual fraud. Did they ask you for specific documents when you called, or was it mostly just confirming basic info like SSN and filing details? Also, how long were the hold times when you called? Trying to mentally prepare myself for what sounds like it's going to be a marathon phone session 😅

Yes, the "lookback rule" is exactly what allows you to make IRA contributions for 2023 up until the tax filing deadline in 2024 (April 15, 2024 for most people). Since the OP made their contribution before this deadline, they can definitely count it for 2023. For amended return purposes, you report it exactly the same way you would have on the original return - as a 2023 contribution. Just make sure your IRA provider correctly coded it as a 2023 contribution when you made it.

This is such a relief to read! I've been losing sleep over this for days thinking I messed up big time. Your point about it being "taxpayer favorable" really helps put things in perspective. Did you end up getting a bigger refund when your amendment was processed? I'm trying to figure out if I should expect to owe money or get more back since this was a traditional IRA contribution that should be deductible.

How would the IRS even know about Zelle payments though? Does Zelle report to the IRS? I thought these payment apps were private.

The IRS might not automatically see every Zelle transaction, but that doesn't mean you're invisible. Banks are required to report patterns of transactions, especially ones that look like potential income. Plus, if you get audited for any reason, they can request your bank records. Starting in 2025, payment apps have increased reporting requirements for certain types of transactions. While genuine gifts aren't reportable income, large regular payments might trigger questions. It's always about the nature of the payment, not the method. If these are truly gifts for medical expenses, keep documentation showing that's the case. The IRS has sophisticated methods to identify unreported income, even from digital payments.

Is that true even if the money goes to the person first and then they pay the medical bills? Or does it have to go directly to the hospital/doctor?

Good question! The medical expense exemption only applies when payments go directly to the medical provider (hospital, doctor, etc.). If the money goes to you first and then you pay the bills, it's treated as a regular gift subject to the annual exclusion limits. So your friend would still need to file Form 709 if they're giving you more than $19,000 per year, even if you're using it all for medical expenses. The direct payment route is definitely the way to go if you want to avoid the gift tax reporting requirements entirely.

Wait, so if I've already paid 50% of my previous year's tax liability between withholding and Q1 payment, could I theoretically skip Q2 AND Q3 payments and just make a final payment in Q4?

No, that's not how the safe harbor works. To avoid penalties, you need to make payments in equal quarterly installments. If you need to pay $10,000 to meet safe harbor for the year, that would be $2,500 per quarter. Paying $5,000 in Q1 and skipping Q2 and Q3 would still potentially subject you to penalties for those missed quarters. The exception is if your income is highly seasonal or irregular, in which case you might qualify to use the annualized income installment method (Form 2210, Schedule AI). This allows for unequal quarterly payments based on when you actually earned the income.

Does this apply to checks too? Like if client mails me a check dated June 30 but I don't deposit it until July 3, which quarter counts?

For checks, it depends on your accounting method. If you're on cash basis (which most freelancers are), income is recognized when you receive the check, not when you deposit it. So if you receive a check dated June 30 on June 30, that's Q2 income even if you deposit it July 3. However, if the check arrives in your mailbox July 1, then it's Q3 income. The key is when you actually have possession of the payment, not when you cash/deposit it.