10 Is the cover letter something official or do you just type up a regular letter explaining things?

9 The cover letter isn't an official IRS form - it's just a letter you create yourself that explains your situation. I simply typed up a one-page letter stating my name, Social Security number, the dates of my residency change, and a list of all forms included in my return package. It's not required, but IRS agents have to manually review Dual Status returns, and giving them a clear roadmap of your situation helps them process your return more efficiently. In my experience, anything you can do to make the IRS agent's job easier benefits you in the long run.

4 I'd recommend sending it with tracking too. USPS certified mail or similar so you have proof they received it.

This makes sense but I've heard some freelancers can reduce their tax burden significantly with the right business entity. Is sole proprietorship really the most tax efficient at $42k? Wouldn't an S-corp save on self-employment taxes?

At $42k in profit, an S-corp typically won't save you money because of the additional costs involved. With an S-corp, you must pay yourself a reasonable salary (subject to both employer and employee portions of FICA taxes), file separate corporate tax returns, and potentially pay for payroll services. The tax advantage of an S-corp comes from distributing some profits as dividends that aren't subject to self-employment tax. But when your profit is around $42k, a reasonable salary would likely be most or all of that amount anyway, leaving little to nothing for the tax-advantaged distributions. Plus, you'd have several hundred dollars in additional annual costs for corporate filing fees, separate tax returns, and possibly accounting services. The math usually doesn't work out favorably until you're earning significantly more.

Is there a specific form for making these quarterly payments? And what are the deadlines? I just started freelancing and haven't made any quarterly payments yet this year...

That's an interesting perspective, but how would a youth advisory council actually work? Would they have any real power or just be symbolic? And who would choose which teens get to serve on it?

Those are good questions. I think for it to be meaningful, the council would need some actual authority - perhaps control over a small portion of the budget earmarked for youth programs, or veto power over certain spending decisions that directly impact young people. As for selection, I would suggest a combination of approaches - some members elected by high school students, others appointed based on applications and interviews to ensure diverse representation across socioeconomic backgrounds, geographic regions, etc. Maybe even have a rotating membership with 1-2 year terms so more young people get the opportunity to participate.

That's a really privileged perspective. Not all parents vote in their children's best interests - many vote against policies that would help their own kids based on political ideology. And regarding felons, many states now recognize that permanent disenfranchisement after serving a sentence is counterproductive to rehabilitation and reintegration. That's why so many states have restored voting rights after sentence completion.

Omg thank you for mentioning this! I just checked and there IS a deadline - it says I need to respond within 30 days of the letter date (which was last week). Do you think it's enough if I just call them before the deadline or should I actually mail something back?

I'd recommend doing both if possible. Call them to understand what's happening, but also send something in writing before the deadline. You can send a simple letter stating you received their notice dated [date], you're currently reviewing it, and you've also called for clarification. Include your name, SSN, the notice number, and keep a copy of what you send along with proof of mailing (certified mail is best). This creates a paper trail showing you responded by the deadline, which protects you even if the phone call doesn't resolve everything immediately. The written response buys you time to figure everything out without risking penalties for non-response.

Great point! Also check the return address - official IRS letters come from places like Kansas City, MO; Austin, TX; or Ogden, UT. And they'll NEVER ask you to pay by bitcoin, gift cards, or wire transfer. If you're unsure, you can always call the main IRS number (not the one on the letter if you're suspicious) to verify it's legitimate.

Used both last year to compare. FreeTaxUSA was WAY better for crypto. TaxSlayer kept giving me errors when trying to report multiple coin transactions, while FreeTaxUSA handled it smoothly. Can't speak to the backdoor Roth part tho.

Thanks for the feedback! Crypto reporting was a nightmare last year so that's definitely pushing me toward FreeTaxUSA. Did you notice any significant price difference between the two?

Yep! I found the same thing. TurboTax somehow missed that I could deduct my HSA contributions even though I entered all the same information. It was like $800 difference in my refund!