What counts as a "foreign account" exactly? I have a Canadian retirement account from when I lived there briefly, but it's just sitting there not generating much income. Do I need Schedule B just for that?

Yes, a Canadian retirement account absolutely counts as a foreign account, even if it's not generating much income. You would need to file Schedule B and complete Part III to indicate you have a foreign account. You may also need to file an FBAR (FinCEN Form 114) if the total value of all your foreign accounts exceeded $10,000 at any point during the year. The foreign account reporting requirements are completely separate from the interest/dividend thresholds. Even if you had $0 in interest and dividends, you'd still need Schedule B to report the existence of foreign accounts. The IRS takes foreign account reporting very seriously, so it's definitely something you want to make sure you do correctly.

I noticed this too! I switched from H&R Block to TaxAct this year and was confused by the different handling of Schedule B. Makes me wonder what other small differences exist between tax software that we don't notice.

That's a great idea, can't believe I didn't think of that! I was so focused on trying to figure it out myself that I forgot the source could just explain it. Do you think I should also ask them if this will affect my tax return calculation?

Absolutely ask them how it affects your tax return! That's the most important part. Bring specific questions like: "Does this amount need to be reported separately on my tax return?" and "Will this increase or decrease my taxable income?" A good payroll person should be able to tell you exactly where on your tax return this information belongs, if anywhere. Some items on tax forms are just informational and don't actually affect your filing.

TurboTax has similar features but charges extra for everything. I switched to FreeTaxUSA last year and saved a ton. They have good explanations too.

Thanks for the reminder about updating with my employer! I actually already checked with HR and they've updated everything, so this year's W2 should have my current name. It's just the W2 from my previous job and that 1099 work that will have my old name. How does the Child Tax Credit work? Is that something I need to apply for separately or does it just get calculated as part of the regular tax filing process?

The Child Tax Credit is part of the regular tax filing process, so you'll get it automatically when you claim your child as a dependent. Most tax software will calculate it for you. For 2024, it's currently worth up to $2,000 per qualifying child under 17. You don't need to apply separately, but do make sure you have your child's Social Security Number when you file. And double-check that both TurboTax and the IRS have your current address so you don't miss any correspondence about your refund or credits.

Head of Household is definitely the way to go if possible. You need a qualifying person though - the baby counts for sure, but not necessarily the partner. To file HOH, you need to: 1) Be unmarried at end of year, 2) Paid more than half the cost of keeping up a home, and 3) Have a qualifying person live with you for more than half the year. Your child is automatically a qualifying person. Partner might not qualify unless they're your dependent under certain circumstances. But with the baby, you should be able to file HOH regardless of whether you can claim partner as dependent.

Thanks so much for this! Did you end up using a tax professional or just tax software to file all the back taxes? I'm trying to figure out the most cost-effective approach since I'll be filing 4 years at once.

I used tax software for all of them. I bought the previous year versions (most of the major companies sell them) and did one return at a time. It was pretty straightforward since I mostly had W-2 income. For the oldest year, I had some 1099 work that made things a bit more complicated, so I paid a bit extra for the deluxe version that year. Still came out way cheaper than hiring a professional for all four years.

That's a good point. And if you moved between states during these unfiled years, you might need to file part-year resident returns for multiple states which gets complicated fast.

That's a great point I hadn't considered! We're in Texas, and I didn't even think about state-specific requirements. Do you know if most states have similar rules about fictitious business names?

Most states have some form of fictitious business name (DBA) requirements, but they vary significantly. In Texas, you'd file at the county level where your business operates. It's usually a simple form and modest fee ($25-50 typically). Texas doesn't have state income tax, but you may still need a sales tax permit depending on what you're selling. Even digital products can be subject to sales tax in Texas. Check the Texas Comptroller's website - they have specific guidance for partnerships using personal accounts.

I use Wave Accounting for my partnership (dog walking service with my roommate). It's free for the basic accounting features and lets you connect personal accounts but tag business transactions. You can set up multiple users so both partners can access it, which QuickBooks Self-Employed doesn't allow unless you pay for the higher tier. The reporting features make it easy to track partner distributions too.