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.

Does anyone know if Schedule E passive losses are subject to the SALT cap limitation of $10,000? My tax guy says no because they're "below the line" deductions not itemized deductions, but I'm not 100% convinced.

Great question about Schedule E passive losses! I went through something similar last year with my rental property. One thing I'd suggest is double-checking that your preparer properly classified all your expenses. That $14,500 loss you mentioned - make sure the roof repair was correctly categorized. If it's truly a repair (fixing existing damage), it's fully deductible in the current year. But if it's considered an improvement (like upgrading to a better roof system), it might need to be capitalized and depreciated over time, which would reduce your current year loss. Also, since you're handling the property management yourself, make sure you're documenting your active participation hours. The IRS can be picky about this during audits. Keep records of time spent on tenant communications, property inspections, repair coordination, etc. With your AGI around $95,000, you should definitely qualify for the full $25,000 special allowance, so those losses should flow directly to your 1040 and offset your ordinary income. Just verify that your preparer didn't accidentally trigger any Form 8582 (Passive Activity Loss Limitations) requirements.

Don't forget about state taxes too! Everyone's talking about IRS, but most states also require back tax filing and have their own statutes of limitations. I got caught up on federal but ignored state, and ended up with a nasty surprise from my state tax agency even after the IRS was satisfied.

I went through this exact same situation a couple years ago - the anxiety is real but you're doing the right thing by facing it! Here's what I learned from my experience: The IRS typically wants you to file the last 6 years to be considered "compliant," but like others mentioned, prioritize the last 3 years first if you think you're owed refunds. I discovered I was leaving over $4,000 on the table from 2020-2022 that I almost lost to the 3-year deadline. One thing that really helped me was requesting my "wage and income transcripts" from the IRS for each year I missed. This shows you exactly what income was reported to them (W-2s, 1099s, etc.) so you know what they already know about. It helped me realize I was missing some 1099s I had forgotten about. For someone with mainly W-2 income like you described, the returns should be pretty straightforward. I used TurboTax for prior years and it walked me through everything. The penalties weren't as scary as I thought they'd be, especially for years where I was due refunds. Start with 2021-2023, get those refunds secured, then work backward. You've got this!

One thing that might be helpful for your comic book situation specifically - make sure you understand the difference between "key issues" and regular comics when it comes to tax planning. Key issues (first appearances, major storylines, etc.) tend to have much more volatile price swings and better documented market values, which can make the tax implications more significant. Since you mentioned you just bought some vintage comics, if any of them happen to be key issues, you might want to consider getting them professionally graded sooner rather than later. Not only does this typically increase their value and make them easier to sell, but it also gives you clear documentation of condition and authenticity that the IRS appreciates when reviewing collectible transactions. Also, comic values can be quite seasonal - prices often spike around major movie releases or convention seasons. If you do decide to sell, timing it around these market peaks while also considering your overall tax bracket for the year could help optimize your after-tax returns. The vintage comic market has been really strong over the past few years, so you picked a good time to get involved. Just make sure to treat it seriously from a record-keeping perspective right from the start - it's much easier to maintain good documentation as you go rather than trying to reconstruct everything later!

Welcome to the collectibles tax world! As someone who's been dealing with this for a few years now, I can confirm that your understanding is absolutely correct. The collectible capital gains rate is indeed your ordinary income tax rate, but it's capped at 28%. So if you're in the 12% bracket, you pay 12% on collectible gains. If you're in the 32% bracket, you only pay the maximum 28%. Since you mentioned vintage comic books specifically, here are a few practical tips that have helped me: 1. **Start your record-keeping now** - Document everything: purchase price, condition when bought, any grading/authentication fees, shipping costs, even sales tax. All of these can be included in your cost basis. 2. **Take photos immediately** when you buy comics, especially if purchasing at conventions or local shops where documentation might be informal. This helps establish condition at time of purchase. 3. **Consider professional grading** for any potentially valuable issues. CGC or CBCS grading fees can be added to your basis, and graded comics have much clearer market values for tax purposes. 4. **Think about timing** - Since collectible gains count as ordinary income, selling in a year when your other income is lower could save you money on taxes. The comic market has been really strong lately, so you picked a great time to get involved! Just remember that if you sell within a year of purchase, you lose the 28% cap protection and pay your full ordinary income rate on any gains. Good luck with your collecting journey!

I know this is slightly off topic, but which medical studies are paying so well? I've only been finding ones that pay like $50-100 for a day of testing, and you made $5,800? Are you doing pharmaceutical trials or something more involved?

I'm a tax professional and can confirm that your medical study income on 1099-MISC forms absolutely qualifies as earned income for Roth IRA contributions. The IRS considers compensation for your time, participation, and following study protocols as "payment for services rendered," which falls squarely under the earned income definition. The key test is whether you're being paid for your active participation versus just receiving reimbursement for expenses. Since you're undergoing tests, taking medications, attending appointments, and following specific protocols, you're clearly providing services that warrant compensation. A few important points to remember: - This income is subject to self-employment tax (15.3%), so plan accordingly - You'll need to file Schedule C to report this business income - Keep records of any unreimbursed expenses related to your participation (travel, parking, etc.) as these may be deductible - The $6,500 Roth IRA contribution limit for 2024 still applies regardless of your total earned income Your $5,800 from medical studies gives you plenty of room to make a substantial Roth contribution this year. Just make sure to set aside funds for the additional taxes you'll owe on this self-employment income.