Would sampling work? Like if I analyze one month in detail for each quarter and then extrapolate for the whole year? Trying to reconstruct every single trip for two years seems excessive.

Sampling is actually an IRS-approved method for establishing business use patterns. The key is to make sure your sample periods are representative of your normal business activity. For realtors, I typically recommend sampling one month from each quarter (busy season, slow season, etc.) to account for seasonal variations in your business. Document your methodology clearly - explain why you chose those sample months and how you calculated the annual projection. The IRS accepts sampling as long as your approach is reasonable and consistently applied.

I considered the standard mileage rate initially but switched to actual expenses after I ran the numbers the first year. With the amount I was spending on gas, insurance and maintenance plus the depreciation on a $38,500 vehicle, the actual expense method gave me a bigger deduction. I guess my main confusion is whether I need to track down every single business trip from the past two years or if there's some acceptable way to use my current patterns to estimate past usage. And if I do need to reconstruct everything, how detailed does that reconstruction need to be to satisfy the IRS?

You don't necessarily need to track down every single business trip from the past two years. The IRS recognizes that records might not be perfect. What they're looking for is a reasonable basis for your business use percentage. For your reconstruction, focus on quality documentation for a representative sample of your business activities. Use your client files, MLS listings, settlement statements, and appointment calendar to establish patterns. If your current patterns are similar to your past activities, you can use them as supporting evidence, but you should still try to find some documentation from the specific tax years in question. The level of detail should include dates, destinations, purpose of trips, and mileage. If you're ever audited, the IRS is more interested in seeing that you made a good-faith effort to track your business use rather than having perfect records.

Thanks, this is super helpful. So if I understand correctly - transferring to Robinhood isn't taxable, but I need to make sure I have documentation ready for my cost basis when I do sell, since Robinhood won't have that info? Would it make more sense to sell on my current exchanges where at least some transaction history exists, rather than moving to Robinhood first?

That's exactly right - transferring isn't taxable, but you need to document your cost basis for when you do sell, since Robinhood won't have that information. As for whether to sell on current exchanges versus transferring to Robinhood first, that's a great question. There's a potential advantage to selling on exchanges where you have some transaction history, as you could potentially have more documentation to support your reported cost basis. However, if those are foreign exchanges, they might not issue U.S. tax forms, which could create other complications. If your current exchanges can provide transaction history reports that show your purchases, that documentation could be valuable regardless of where you ultimately sell. The key is having a defensible way to calculate and document your gains.

Is that true even for transactions that happened before they became a permanent resident? I thought you only had to worry about US taxes once you actually became a resident.

How do you check if you're withholding the right amount? I always get really small refunds too and I'm never sure if that's good or bad.

The IRS has a tax withholding estimator on their website that's actually pretty accurate. You input your income, filing status, and other tax situations, and it tells you if you're on track. You can adjust your W-4 anytime with your employer if you want a bigger refund (more withholding) or more money in each paycheck (less withholding). Small refunds are technically better financially because you've had access to more of your money throughout the year instead of waiting for a refund. But some people prefer larger refunds as a form of forced savings.

It really depends entirely on how much was withheld from each paycheck though. You probably just had more withheld throughout the year.

True, withholding makes all the difference. My job tends to withhold a bit more than necessary. I also contribute to a traditional 401k which lowers my taxable income pretty significantly, forgot to mention that. That probably explains the difference between our refund amounts. Might be worth checking if you have any retirement contributions or other pre-tax deductions that could have been missed.

Thanks for this advice! I checked and the second form is dated 10 days after the first one. I'll definitely send it certified mail with tracking. Should I also include a copy of my payment confirmation with the signed form?

Yes, absolutely include a copy of your payment confirmation with the signed form. This creates a clear paper trail showing you've both agreed to the adjustment and paid the amount due. I'd also recommend writing your Social Security number and tax year on every page you send them. This helps ensure your documents stay together if they get separated during processing.

This happens more than you'd think. The IRS exam department sometimes issues preliminary findings before they have all information. Usually it's because they received additional third-party reporting after the first assessment. Likely something like a 1099 or K-1 that wasn't originally matched to the return.

I'm filing as Head of Household, not single - does that change the income limits for Form 8880? And do employer matches count toward the contribution amount for the credit, or just what I put in myself?

For Head of Household, the income limit for Form 8880 is $51,000 for 2022, so at $43k you should still qualify for at least a partial credit. The credit rate would be 10% of your qualified retirement contributions. Only your contributions count toward the credit, not your employer match. So if you contributed 5% of your salary, only that amount qualifies for the Saver's Credit. The employer match is great for your retirement savings but doesn't factor into this particular credit calculation.

I used TaxAct last year for my Saver's Credit and it calculated everything correctly. Just make sure you enter your contributions accurately and answer all the questions. The software should handle the income phaseouts and percentages correctly.