Make sure you use the right dependent code on your tax return! Many tax software programs will ask if the dependent is your "qualifying child" or "qualifying relative" - your grandmother would be a qualifying relative. Using the wrong code could trigger unnecessary reviews.

Just to add some reassurance - I work in tax preparation and see this situation frequently. The IRS audit from last year has absolutely zero impact on your ability to claim your grandmother as a dependent for 2024. Each tax year is evaluated independently. Based on what you've described, your grandmother should qualify as your dependent under the qualifying relative rules. Her Social Security income of $14,500 is likely mostly non-taxable (especially if it's her only income), which means her gross income for dependency purposes is probably well under the $5,050 threshold for 2024. The key thing is documenting your support. Since you're paying $1,800-2,000 monthly for her expenses, that's $21,600-24,000 annually - far more than her $14,500 Social Security income. Keep receipts for housing, utilities, food, medical expenses, and anything else you pay for her. One tip: calculate the exact support test by adding up ALL sources of her support (what you pay + what she pays from her own income), then make sure your contribution exceeds 50% of that total. Given your numbers, you should easily pass this test.

One thing nobody mentioned - if you do need to file in multiple states, make sure your accounting software is set up correctly to track income and expenses by state! I learned this the hard way. We had jobs in 3 states last year, and come tax time, we had to go back through ALL our receipts and invoices to figure out which state each transaction belonged to. Complete nightmare. QuickBooks and other software can tag transactions by location/state if you set it up right from the beginning.

As someone who's been through this exact situation, I'd strongly recommend getting a consultation with a tax professional before making your decision. Even if the out-of-state job is small, the compliance requirements can be tricky. One thing that helped us was creating a simple spreadsheet to track all the potential costs: additional state filing fees, estimated tax prep costs, any required business registrations in the new state, and the time value of dealing with the extra paperwork. When we added it all up for our first small out-of-state project, we realized we needed to increase our project fee by about 15% just to break even on the tax complications. Also consider whether this could lead to ongoing work in that state. If it's truly a one-time thing, the hassle might not be worth it. But if it could open doors to more business there, the initial setup costs become more justified. The good news is that once you've figured out the process for one additional state, adding more becomes much more manageable since you'll understand the workflow.

Has anyone looked into whether these foreign pension contributions can be excluded from income under the Foreign Earned Income Exclusion? I'm trying to figure out if I need to add back in my Colombian pension contributions when calculating my FEIE amount.

I went through this exact same situation with my Colombian AFP account last year. After consulting with a tax professional who specializes in expat taxes, I can confirm that you absolutely need to report it on both FBAR and Form 8938. The key points that apply to your Porvenir account: 1. **FBAR reporting is required** - Even though it's mandatory and you can't access it until retirement, you still have a beneficial interest in the account. The private management by AFP companies means it doesn't qualify for any government pension exemptions. 2. **Form 8938 reporting is also required** - Since your account exceeds the $10,000 threshold and you're filing as single (assuming from your post), you'll need to include it on Form 8938 as well. 3. **Valuation can be tricky** - Make sure to convert the peso value to USD using the exchange rate on December 31st of the tax year. Your AFP should provide year-end statements that show the account balance. 4. **Don't forget about employer contributions** - If your employer is making matching contributions to your AFP account, those count toward your total account value for reporting purposes. The penalties for non-compliance are severe, so it's definitely better to over-report. I learned this the hard way after initially thinking my account might be exempt due to the retirement restrictions.

Friendly reminder to everyone discussing RSUs: there are actually TWO tax events to worry about! 1. When RSUs vest: This is treated as ordinary income (what everyone's discussing in this thread) 2. When you sell the shares: Any gain or loss after vesting is capital gain/loss For example, if RSUs vest at $100/share and you sell later at $150, you'll pay: - Ordinary income tax on the $100 at vesting - Capital gains tax on the $50 appreciation when you sell I see a lot of people getting confused because they only think about one of these tax events. Both need to be reported properly!

Yes, you should definitely consider filing amended returns if you've been using the wrong cost basis! The cost basis for RSUs is always the fair market value on the vesting date (not the grant date), since that's when you already paid ordinary income tax on that amount. Using the grant date price as your cost basis means you've been paying capital gains tax on appreciation that was already taxed as ordinary income at vesting - essentially double taxation. If you've held and sold RSU shares over multiple years, this could add up to significant overpayment. You can file Form 1040X (Amended U.S. Individual Income Tax Return) for up to 3 years from the original filing date. You'll need your brokerage statements showing actual sale prices and your RSU vesting records showing the fair market value on each vesting date. The IRS will refund any overpaid taxes with interest. Given the complexity of equity compensation, this might be worth consulting with a tax professional who specializes in stock compensation to make sure you're calculating everything correctly before filing amendments.

Has anyone had the experience where TurboTax actually does let you e-file with Form 7202? My husband could swear he e-filed with it last year. Feel like some of this info might be outdated.

I went through this exact same situation earlier this year! After reading through all the responses here, I ended up using taxr.ai like Sophie and Connor mentioned, and it was honestly a game-changer for my Form 7202 amendment. The key thing that helped me was realizing that no matter which route you go - TurboTax's delayed 1040X feature, switching to new software, or using an AI service - you're still going to have to print and mail the forms. The IRS just doesn't accept e-filed amendments with Form 7202 attached, period. What made taxr.ai worth it for me was the time savings. As a self-employed person with multiple income streams like you, re-entering everything from scratch would have been a nightmare. The PDF upload feature worked perfectly and caught all my Schedule C details accurately. My advice: don't wait for TurboTax's 1040X feature if you want your refund sooner. Use one of the automated services to prepare your amendment, send it certified mail like Kelsey suggested, and then use Claimyr if you need to follow up with the IRS later. The whole process will still take months, but at least you'll get it started quickly!