Can you really claim those deductions without receipts though? I worked construction under the table last year and literally have zero documentation for any of my expenses.

You can estimate reasonable expenses even without perfect documentation, but you should have some supporting evidence if possible. For example, with mileage, start a log now documenting your typical work travel patterns, then use that to reasonably estimate your past travel. For tools, take photos of what you own and research purchase prices online. The IRS does allow for reasonable reconstruction of records that were lost or never kept. Just be honest and realistic - don't claim $10,000 in tool expenses for a $26,000 job. And definitely start keeping better records going forward! Even a simple notes app on your phone where you take pictures of receipts is better than nothing.

I used TurboTax to amend a return with unreported income last year. It was pretty straightforward for the basics but I found it didn't give great guidance on what documentation I should keep or how to explain the situation in the amendment. For only $9k it might be fine, but if you can afford a CPA consultation, even just a one-hour session, they might catch deductions you'd miss and give you better peace of mind.

Actually that's not entirely accurate. You can be claimed as a dependent until you're 19, or up to 24 if you're a full-time student, as long as you don't provide more than half of your own support. So depending on the OP's situation, they could potentially be claimed for several more years.

I think you might be right! Looking at my W-2s again, my total wages for the year were around $145,000. I didn't realize that the excess refund was based on exceeding the wage base, not just on the total amount withheld. I thought if the combined withholding exceeded the max, I'd get the difference back regardless of my total wages. So even though I had more than $9,932 withheld between both jobs, I'm not actually entitled to a refund because my total wages didn't exceed $160,200? That explains the IRS letter then.

Exactly! You've got it now. The excess Social Security tax refund only applies when your total Social Security wages exceed the annual wage base ($160,200 for 2023). The system is designed to ensure you don't pay more than 6.2% on income above that threshold. Since your total wages were around $145,000, which is under the wage base limit, the full 6.2% Social Security tax applies to all your earnings. Even though the combined withholding might seem high, it's technically correct based on your total wages. When you respond to the IRS, simply acknowledge that you misunderstood how the excess Social Security tax rule works, and they should close the case without any penalties since it was an honest mistake.

That's the catch with having multiple employers in the same year! Each employer has no way of knowing how much you've earned at other jobs, so they each withhold the standard 6.2% on your earnings up to the $160,200 limit as if they're your only employer. The system is designed this way because employers don't share payroll information with each other. If you work for two employers and earn $100,000 from each in the same year, both will withhold $6,200 in Social Security tax, for a total of $12,400. Since that exceeds the maximum you should pay ($9,932.40), you can claim the difference ($2,467.60) as a refund on your tax return. But this only applies if your TOTAL wages exceed the $160,200 threshold.

12 Do you know if the tax brackets for 2022 are different than they are now? I made around $58,000 that year but I'm not sure which bracket that falls into for back then.

4 Yes, the tax brackets change each year due to inflation adjustments. For 2022, the brackets were different than they are for 2025. For example, if you were filing as single with $58,000 in taxable income for 2022, you would have been in the 22% bracket, which for 2022 covered income from $41,776 to $89,075. Remember that tax brackets are marginal, meaning only the portion of your income that falls within each bracket gets taxed at that rate. This is why it's important to use the correct year's tax forms and software, as they will have the correct brackets and calculations built in.

8 You file state taxes based on where you lived during the tax year you're filing for. So for your 2022 return, you would file state taxes for the state you lived in during 2022, regardless of where you live now.

Did you find any brokers that would accept the arrangement? I'm curious which ones actually allow this type of setup, even if they're not the best platforms.

I found a few smaller brokers in places like Belize and Vanuatu that would accept the setup, but their platforms were terrible compared to what I was used to. Delayed quotes, wide spreads, and sketchy withdrawal processes that sometimes took weeks. One broker I tried had such bad execution that I calculated I was losing about 3-4 pips on every trade just from slippage. When you're trading frequently, that adds up to more than what you'd save in taxes, even if the setup were legal (which it isn't).

That's really interesting! I hadn't considered futures. Does this apply to currency futures specifically? And would I need to make any special elections on my tax return to get this treatment?

Yes, currency futures specifically get the 1256 treatment. Regular spot forex doesn't qualify unless you make a specific election under Section 988 to treat it as capital assets, and even then it doesn't get the 60/40 split that futures get. You don't need to make any special elections for futures - they automatically qualify for the 60/40 treatment. Your broker will send you a 1099-B showing your futures trades, and you'll report them on Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles). The tax software handles the split automatically.