Thanks for sharing your experience! Could you clarify which specific tax form or schedule you used to list these expenses? And did you have to itemize deductions or was this handled differently?

I used Form 8863 (Education Credits) and claimed the expenses as part of my qualified education expenses for the American Opportunity Credit. The great thing is you don't need to itemize deductions to claim education credits - they're available even if you take the standard deduction. The form has a line specifically for required course materials, which is where these project expenses can fit. Just make sure you have documentation that clearly shows the project was required for your degree program!

This is critical advice! I got audited because I used outdated tax advice from a blog post. Always check that you're looking at the most current IRS publications. For education expenses, Publication 970 is the bible - they update it every year.

2 Can you explain how that works? I thought you couldn't "carry forward" Roth contributions like that?

18 You're right that you can't exactly "carry forward" Roth contributions in the traditional sense, but if you're eligible to contribute in the current year, you can apply excess contributions from a prior year to the current year instead of withdrawing them. For example, if you made an excess contribution in 2021, and you're eligible to contribute to a Roth in 2023 but haven't maxed it out yet, you can apply some or all of that 2021 excess amount toward your 2023 contribution limit. You'd still owe the 6% penalty for 2021 and 2022 (if you didn't fix it before the 2022 deadline), but you'd avoid the penalty for 2023 and beyond without having to withdraw funds.

6 I believe the 6% penalty continues indefinitely until you fix the excess contribution, but I'm not sure if there's a point where the IRS won't let you fix it anymore.

Do the carriers provide this service for free? And are their classifications considered "official" enough that customs won't question them? I ship through USPS mostly, but I'd switch carriers if it meant getting reliable HS code help.

The major carriers typically provide basic classification assistance for free if you're a regular customer shipping internationally. While their guidance isn't a formal binding ruling, it's generally reliable since they have a vested interest in ensuring smooth customs clearance. The classifications they provide are based on the official Harmonized Tariff Schedule. USPS unfortunately offers less support in this area compared to FedEx, UPS, or DHL. If you're shipping high volume or high-value items internationally, it might be worth considering a switch. Alternatively, you could use USPS for domestic and smaller carriers for international if that makes financial sense for your business.

That's super helpful! Did you run into any issues with duty rates varying between countries even with the same HS code? I'm trying to figure out if I should adjust my prices for international customers based on their location.

Wouldn't this definitely cause problems with OP staying in the industry though? The DOL investigation would name them specifically right? Unlike the IRS where there's at least some level of confidentiality?

You're right that there's less anonymity with a state labor board complaint. They typically inform the employer who filed the complaint during the investigation process. That said, there are strong anti-retaliation laws that make it illegal for your former employer to badmouth you in the industry or interfere with future employment. Whether this causes industry problems really depends on your specific situation - how vindictive your former employer might be, how large the industry is in your area, and how much power they have within it. It's definitely something to weigh carefully based on your individual circumstances and tolerance for potential conflict.

I did try talking to her about it while I was still working there. She blamed her accountant for all the mistakes but never actually fixed anything. When I brought it up again after getting my W2 and seeing all the problems, she got defensive and basically said her books were correct and I must be mistaken. That's when she cut my pay citing "tax errors" that needed to be "corrected" going forward. I've been hesitant to reach out again since quitting because our last conversations were pretty tense. But maybe a formal letter outlining the issues with copies of the checks would be worth trying before filing anything official?

A formal letter is definitely worth trying. Make it professional, not accusatory, and focus on the factual discrepancies with your documentation attached. Suggest that you're hoping to resolve this directly before having to involve tax authorities. Send it certified mail so you have proof she received it. Give a reasonable timeframe for response (like 14 days). This approach gives her one last chance to correct things, and if she doesn't respond, you've created additional documentation of your good-faith efforts to resolve the situation before filing official complaints. That paper trail of attempting resolution can be beneficial if you do need to escalate things.

That's a really good point I hadn't considered. I'm in Texas so I don't have state income tax, but I did live in California for part of 2020 before moving. Does that mean I need to file a partial year California return for that period?

Yes, you would need to file a part-year resident California return for 2020. California is particularly aggressive with non-filers and has a longer statute of limitations than the IRS for certain things. Since you sold property during that period, California will be especially interested in whether any capital gains tax is due to them. When you file as a part-year resident, you'll only pay California tax on income earned while living there, plus any California-source income (like rental income from California property) earned after you moved. Given the housing market in 2020, there might be significant tax implications depending on how long you owned the California property.

You can use TurboTax for prior years, but you'll need to buy the desktop software for each specific tax year you need to file - the online version only works for current year. And if your situation includes property sales or complex investments, you'll definitely need the premium versions.