So what if you genuinely had something stolen but have very little documentation? Like I had some camera equipment stolen from my car last year (did file a police report) but don't have receipts for everything. Can I still claim anything?

Yes, you can still claim something with limited documentation. Having the police report is already a good start. For the value, gather whatever evidence you can - credit card statements from when you purchased the items, photos of the equipment, insurance documentation, even screenshots of similar items with comparable age/condition showing current market value. The Cohan rule might help you establish the value based on your partial records, but you'll need to show you're making a good faith, reasonable estimate. Document your estimation method carefully. For example, "Camera body purchased approximately June 2023 for $X according to credit card statement, lens valued at $Y based on current market price of similar used equipment minus 30% for age/condition." The more detail and supporting evidence you provide, the stronger your position will be if questioned.

Thanks for sharing your real experience. What would you recommend for someone who's terrible at keeping receipts? I'm always losing them and I'm worried about an audit someday.

Do you remember what specifically changed on Schedule C? I'm working on mine now and want to make sure I get it right.

The main differences weren't dramatic, but there were some COVID-related options that existed only for 2020 returns. For example, there were special provisions for the Employee Retention Credit and paid sick/family leave credits that appeared on that year's forms. The core expense categories stayed the same (advertising, car expenses, insurance, etc.), but some of the instructions and limitations were different due to pandemic relief provisions. Your best bet is to download the actual 2020 Schedule C form and instructions directly from the IRS website rather than using any current year references. That way you'll be working with the exact form as it existed then.

Not to mention the possibility of having to amend your state return too depending on where you live. Some states require you to file a state amendment if you change your federal return.

This is super helpful! I had no idea about those limitations on education credits when filing separately. I think we'll definitely need to calculate it both ways. Do you know if standard free tax sites can show both scenarios accurately or do we need to use something more specialized?

Most of the free tax sites can show you both scenarios, but you might need to create two separate tax returns (just don't file both!). Start one return as married filing jointly, note the refund/amount owed, then start a new return as married filing separately and compare. The standard sites aren't great at explaining the financial aid implications though. For that, you might want to talk to your wife's school financial aid office directly. They can often run projections showing how different income levels would affect her specific aid package. Some schools even have financial counselors who specialize in these situations.

Yes, FAFSA made significant changes recently! Starting with the 2024-2025 FAFSA, they're using what's called the Student Aid Index (SAI) instead of the Expected Family Contribution (EFC). There are also changes to whose income is considered in the formula.

Thanks for this info! I did take the distribution in February 2023, which was before my filing deadline for 2022 taxes. But I'm confused about reporting the earnings - my 1099R doesn't break out what portion was earnings vs. principal. Does this mean I need to amend my 2022 return now to report those earnings? Or can I handle everything on my 2023 return?

Since you took the distribution before your 2022 filing deadline, you should definitely avoid the 6% excise tax, which is good news. For the earnings portion, yes, technically those earnings should be reported on your 2022 tax return, which would mean filing an amendment if you've already filed for 2022. You'll need to contact Vanguard to get the breakdown of principal vs. earnings from that distribution. Ask specifically for the "net income attributable" or NIA related to the excess contribution amount. This might not be reflected correctly on your 1099-R if the distribution wasn't properly coded.

I've never heard of this self-certification procedure. Does it apply to 401k contribution corrections too or just IRAs? I overcontributed to both last year and am trying to sort through the mess.

As I understand it, if the injunction is eventually overturned and the BOI requirements are upheld, FinCEN would likely establish new compliance deadlines rather than trying to enforce the original ones retroactively. It would be pretty unreasonable to penalize businesses for non-compliance during a period when a court order explicitly stated they didn't have to comply. The penalties are indeed significant - civil penalties of $500 per day for violations, plus potential criminal penalties including imprisonment for willful violations. But these would only apply to violations of whatever new deadlines might be established if the CTA is ultimately upheld.

That makes sense, thanks for the clarification! I was worried we might get caught in some kind of legal trap if we don't file now but then the requirements come back later. I'll just keep our information ready but hold off on filing until there's more clarity.

I think your accountant is being overly cautious. While FinCEN's system remains operational and you technically *can* still file, there's no legal requirement to do so while the injunction is in effect. There's no penalty for not filing right now. Unless you have some very specific business reason for wanting your beneficial ownership information on file with the government during this period of uncertainty, I'd recommend waiting to see how the legal situation resolves. Just keep your information organized so you're ready if/when the requirement comes back.