Did the preparer explain why they felt entitled to use previous documents without permission? I went through something similar back in 2021 when my divorce was finalized. My ex's preparer used copies of our kids' documents from when we were married, and it created a nightmare with duplicate dependent claims. Did you find out about this because of a rejection or audit notice?

This is absolutely a serious compliance violation that needs immediate attention. The tax preparer is violating multiple IRS regulations by using previous year documentation without current authorization. Under IRC §7216, preparers must obtain fresh consent before using any taxpayer information, and Circular 230 requires current verification procedures each tax year. The fact that this involves minor dependents and custody arrangements makes it even more problematic - the preparer could face penalties ranging from $1,000 to $50,000 per violation depending on intent. I'd recommend documenting everything, filing Form 14157 with the IRS Office of Professional Responsibility, and contacting your state's board of accountancy if the preparer is licensed. This isn't just about convenience - it's about protecting your family's tax identity and ensuring proper compliance with federal regulations.

I'm not sure if anyone mentioned this, but most tax software has a specific "part-year resident" wizard or interview section. For example, in TurboTax, there's a separate section for "I lived in more than one state." Have you specifically completed that section? Also, double-check your W-2s. Sometimes employers mess up and put the wrong state code on your W-2, which can cause exactly the issue you're describing. My company once put CA on my W-2 even though I had moved to OR, and it caused a similar double-taxation problem.

This is a classic multi-state tax issue that trips up a lot of people! The key thing to understand is that you should NOT be paying full income tax to both states - that's definitely wrong. Here's what's likely happening: your tax software is treating you as a full-year resident of both states instead of a part-year resident. This causes it to calculate taxes on your entire annual income for both states, which is exactly what you're seeing. To fix this, you need to: 1. Make sure you've selected "part-year resident" (not just "resident") for both NY and VA 2. Enter your exact move date (July 1st, 2024) 3. Verify that your NY income is only what you earned Jan-June while living in NY (~$52k) 4. Verify that your VA income is only what you earned July-Dec while living in VA (~$19k) The taxable income amounts you're seeing ($61k for NY, $58k for VA) suggest the software is applying deductions incorrectly or double-counting income. Once you fix the residency settings, those numbers should drop dramatically. Also, just to confirm - you mentioned having separate W-2s from each employer. Make sure when you enter each W-2, you're telling the software which state that job was performed in. This helps the software properly allocate the income. Good luck! This should result in a much better outcome once sorted out properly.

Quick tip - if you expect to owe more than $1000 in taxes for the year, you need to make estimated quarterly tax payments to avoid underpayment penalties. I learned this the hard way and got hit with penalties my first year contracting. Easiest way is to use the IRS Direct Pay system and select "estimated tax" as the reason. You'll need to calculate roughly what you'll owe each quarter based on your income. Quarters are due April 15, June 15, Sept 15, and Jan 15 of the following year (weird schedule, I know).

The confusion is totally understandable! Think of it this way - when you're a W-2 employee, you see 7.65% deducted from your paycheck for Social Security and Medicare, but your employer is secretly paying another 7.65% that you never see. So the total is actually 15.3%, you just don't realize it. As a 1099 contractor, there's no employer to pay that hidden half, so YOU have to pay the full 15.3% as self-employment tax. Your federal income tax is completely separate - it's based on your income bracket and has nothing to do with Social Security/Medicare. The bright side? You can deduct half of that self-employment tax (the "employer" portion you're paying) when calculating your federal income tax. Plus, all those business expenses you can write off as a contractor often make up for the extra tax burden. Just make sure you're tracking everything - home office, mileage, equipment, software subscriptions, etc. At $78k with mixed W-2 and 1099 income, 44% savings rate does seem high. You might want to run the numbers more precisely or consult with a tax professional to make sure you're not over-saving (though better safe than sorry after last year's surprise!).

Remember that if you have ANY other traditional IRA money (like old 401k rollovers), the backdoor Roth gets much more complicated because of the pro-rata rule. The IRS doesn't let you just convert the non-deductible contribution - you have to convert proportionally from all your IRA balances. For example, if you have $50,000 in traditional IRA money from an old 401k rollover, and then you add $6,200 non-deductible for your backdoor, you can't just convert the $6,200. The conversion would be considered to come proportionally from both sources, so most of it would be taxable. Many people overlook this and get hit with unexpected taxes. One workaround is to roll any existing traditional IRA funds into your current employer's 401k (if they allow it) before doing the backdoor.

Just to add one more thing about Form 8606 - make sure you don't miss filing it for BOTH years. I forgot to file it the year I made my non-deductible contribution (only filed it the year I did the conversion) and it caused a huge headache. The IRS sent me a letter questioning the conversion, and I had to provide extra documentation proving the original contribution was non-deductible. Save yourself the trouble and make sure you file Form 8606 for 2023 (reporting the non-deductible contribution) and then again for 2024 (reporting the conversion).

I had LITERALLY the exact same situation happen to me last year. Contributed to Traditional IRA on Dec 29, initiated conversion same day, but it didn't settle in my Roth until January 3. I was freaking out too! My tax guy confirmed what everybody here is saying - report the nondeductible contribution on 2024 Form 8606, then report the conversion on 2025 Form 8606. When you get the 1099-R in January 2026 (for the 2025 tax year), it'll show the distribution from your Traditional IRA. The most important thing is making sure you file Form 8606 for 2024 to establish that the money was after-tax (non-deductible) contributions. That way when you convert in 2025, you're not taxed on it again.

I went through this exact same scenario two years ago and can confirm what everyone is saying - you didn't mess up at all! The key insight is that the backdoor Roth strategy doesn't require the contribution and conversion to happen in the same calendar year. What's important is that you made a non-deductible Traditional IRA contribution for 2024 (which you did on 12/28/2024), and you'll properly report that on your 2024 Form 8606. The conversion happening in January 2025 is actually pretty common with year-end contributions due to settlement delays. One tip I wish someone had told me: keep really good records of both transactions with the exact dates and amounts. When you file your 2025 taxes next year, having clear documentation of the contribution basis from 2024 makes everything much smoother. The IRS sees these cross-year backdoor Roth conversions all the time, so as long as your paperwork is in order, you're golden. Also, don't stress about not having the 1099-R yet - that will come in January 2026 for your 2025 tax filing, which is exactly when you need it!