Wait, seriously? So if I buy $5000 of Bitcoin and it goes up to $5500 by the time I pay my supplier, I have to pay capital gains tax on that $500 increase? Even though I'm just using it to pay for inventory?

That's exactly right. The IRS views crypto as property, not currency. So when you use crypto to pay for business expenses, you're essentially "selling" your crypto for its fair market value and then using that value to pay your supplier. In your example, you'd have a $500 capital gain on the crypto transaction, but you'd also have a $5500 business expense deduction. So you're still coming out ahead tax-wise, but you do need to report both aspects of the transaction. This is why good record-keeping is extra important with crypto payments - you need to track both the business expense side and the crypto disposal side.

Does FBAR apply to crypto held on foreign exchanges? I've heard conflicting things about this.

Does this actually work though? I thought RMDs from different account types can't be combined - like 401k RMDs have to come from 401k accounts and IRA RMDs have to come from IRAs?

You're right that different account types have separate RMD requirements - you can't satisfy a 401k RMD by taking a distribution from an IRA or vice versa. What I meant was if there are still remaining RMDs to be taken from any account, you can increase the withholding on those to help make up for underwithholding on previous distributions. For example, if your parent has multiple IRAs and has only taken distributions from some of them, you could take the remaining required amount from another IRA with higher withholding. But you're correct that you can't mix account types for RMD purposes.

That's actually really smart! I hadn't thought about adjusting withholding on Social Security. Do you remember how long it took for the change to take effect after filing the W-4V?

Are you sure about that 3-year deadline? I thought if you're owed a refund, there's no penalty for filing late and you can do it anytime?

Yes, I'm 100% certain about the 3-year deadline for claiming refunds. The IRS gives you three years from the original filing deadline to submit a late return and still get your refund. After that window closes, any refund you were entitled to becomes government property - you lose it completely. This is different from owing taxes, where there's no deadline to file (though penalties and interest keep accumulating). But for refunds, it's a use-it-or-lose-it situation with a strict 3-year limit. Since 2022 taxes were originally due in April 2023, you have until April 2026 to claim any refund for that year.

That doesn't sound right. Most states only tax you for the portion of the year you were a resident. Did you try filing as a part-year resident?

Thanks for mentioning Form 8283. My donation was actually just a wire transfer though - it wasn't a non-cash donation. Would I still need that form? And what about the appraisal requirement?

For a cash donation (like your wire transfer), you won't need Form 8283 or an appraisal - those are only for non-cash donations like property, stocks, artwork, etc. For your cash donation, you'll need a receipt or acknowledgment letter from the organization that includes: the organization's name, the amount donated, the date of the donation, and a statement that no goods or services were provided in exchange for the donation. Since your donation is over $250, this written acknowledgment is absolutely required by the IRS.

TurboTax works fine but you have to manually enter the charity as "Other" and then fill in all the details yourself. The software won't verify if the organization is actually eligible for deduction though - that research is on you.

That's a really good point - I hadn't considered that angle. In our case, our son definitely lived with me for more than half the year (about 60% of the time). The custody agreement explicitly states I have primary physical custody and the right to claim him for all tax purposes including EIC in odd-numbered years. Would the IRS still reject my return even with these facts?

Given what you've described, you should definitely qualify to claim your son for EIC purposes. You meet both the residency test (more than half the year) and have documentation supporting your right to claim him. The rejection is almost certainly happening because your ex already claimed him electronically and the amendment hasn't processed yet. This is exactly the type of situation where paper filing with proper documentation is the right approach. The IRS will eventually sort it out, especially if you include a clear explanation letter with your paper return referencing the amendment your ex filed.

That's true about amendments raising flags. I work at a tax prep office and we always warn clients that amendments, especially ones involving dependents and credits like EIC, have a higher chance of being reviewed. Good documentation is key.