Thanks! I didn't even think about being able to deduct things. I did drive the kids to soccer practice twice a week and bought art supplies a few times. Would I need receipts for all of that? I definitely didn't keep them...

For the driving, you don't need receipts - you can use the standard mileage rate (around 67 cents per mile for 2025). Just make your best estimate of how many miles you drove for work purposes. Keep a better log going forward! For supplies, receipts are ideal but not absolutely required. If you have bank or credit card statements showing purchases at relevant stores, that can help substantiate your claims. Make reasonable estimates of what you spent - just be prepared to explain your calculations if ever questioned. Going forward, keep all receipts and maybe use a separate payment method for work expenses to make tracking easier.

This is actually bad advice. The Voluntary Disclosure Program is for OFFSHORE accounts and much more serious tax evasion. What OP would want is just to file an accurate return, possibly with a "reasonable cause" statement explaining the mistake.

Thanks for the advice! How do I determine if the amounts on my K-1 will actually change my tax liability enough to make filing an amendment worthwhile?

The simplest way is to do a quick calculation with the largest numbers on your K-1. For example, if you see ordinary business income (Box 1) of $30, that would only increase your taxes by about $3-6 depending on your tax bracket. For small amounts like that, some people choose to wait and see if the IRS sends a notice. Look especially at Boxes 1-3 since those directly affect your income. If they total less than $50-100, the tax impact might be minimal. But remember, technically you're supposed to report all income regardless of amount. If you're more comfortable being 100% compliant, then file the amendment even for small amounts.

TurboTax can handle K-1 amendments but you'll need the paid version. The free version doesn't support K-1 forms at all. If you already filed with TurboTax, you can use their amendment feature - just log back in, click on "Amend return" and follow the steps to add your K-1 info.

I actually asked about that last year, but my company said they can't do it because of how they control my schedule and work processes. Something about the IRS having specific tests for who qualifies as an independent contractor vs. employee. They also mentioned it would mean losing my benefits like health insurance and 401k matching.

That makes sense. The classification rules are pretty strict and the IRS looks at factors like behavioral control, financial control, and relationship factors. If the company controls when and how you work, provides tools/equipment, offers benefits, etc., they're probably correct that you should be classified as an employee. Be careful pushing for 1099 status just for tax deductions - if misclassified, it could create bigger headaches down the road for both you and the employer. The accountable plan route others suggested is probably your best option at this point.

This is what I did too. My company was resistant to dealing with expense reports, so they just increased my commission structure. Just make sure you do the math first - calculate what your annual mileage reimbursement would actually be (miles × IRS rate) and make sure the commission increase at least covers that amount.

Did OLT handle state returns for nonresidents too? I'm in California and I heard they have a special nonresident state form that's super complicated.

Yes, OLT does handle state returns for nonresidents including California's form 540NR which is indeed quite complicated. They have specific sections for California's unique rules regarding nonresident income allocation and deductions. The state portion did require a bit more manual input compared to the federal section, especially for segregating California-source income from non-California income. But they provide decent guidance along the way with popup explanations for the trickier parts of nonresident state filing.

I went with a specialized international tax CPA last year and it was expensive ($450) but worth it for my complicated situation. He found deductions I never would have known about and properly applied tax treaty benefits. If you have multiple income sources like you described, it might be worth the investment.

1 That's a really good point I hadn't considered. If I amend 2021 to show the losses, would any unused losses potentially carry forward to the 2022 return? I'm trying to figure out the right sequence here.

3 Yes, exactly. Any disallowed passive losses from 2021 (amounts that exceed what you're allowed to deduct due to the income limitations) would carry forward to 2022. So first figure out your 2021 situation - how much loss you can actually claim after the Form 8582 calculations, then carry any remaining disallowed losses to 2022. Even if you can't deduct all the losses in either year due to the $150K phaseout, having them properly documented and carried forward is important because you can eventually claim them when you dispose of the property. That's why doing them in the right order matters.

10 I used TaxAct for a similar amendment last year. It was decent with Schedule E but the Form 8582 calculations were confusing. Had to basically understand the form myself to make sure it was done right. Not super user-friendly for rental property amendments.