But I already sent the money to the family directly. Is there any way to reclassify it now? And does this educational expense exception work for schools in other countries too? The college is in Malaysia.

Unfortunately, you can't reclassify it after the fact. The money has to be paid directly to the qualified educational institution at the time of payment to qualify for the educational expense exception. For foreign educational institutions, they generally do qualify for this exception as long as they're a legitimate educational organization. The school doesn't have to be in the US for the direct tuition payment exception to apply. But again, the key is that the payment must go straight from you to the school - not through the family first. Keep this in mind for any future assistance you might provide.

Which tax software do you recommend for keeping track of charitable donations throughout the year? I always scramble at tax time trying to find all my receipts.

Does TaxAct force you to enter all those extra details for interest and dividends that the OP was complaining about? I hate when tax software asks for info that isn't actually required on the real forms.

TaxAct does ask for the payer names for interest and dividends, but it doesn't require all the excessive details like addresses and phone numbers. You can just enter the name and amount for each 1099-INT or 1099-DIV. For IRA distributions, you do need to enter each 1099-R separately, but that's actually correct since the distribution codes can be different. It's much less demanding than some of the other software I've tried.

Does your accountant e-file for you? I'm wondering if they have access to better tax software than what's available to regular consumers.

I had no idea about these caps! I'll definitely look into that for our state. Do you know if these exemptions are something we can apply for retroactively? We bought in 2022 but never filed for any exemptions because we didn't know about them.

In most places, you can apply for exemptions like homestead retroactively, but usually only for the current tax year and maybe the previous year. It varies by location though. When you call your assessor's office, specifically ask about retroactive applications for exemptions. Also, if this is your primary residence and you've lived there since you purchased in 2022, make sure the county knows that. Sometimes they assess at a higher rate if they think it's a rental or second home. Just having the property correctly classified can make a big difference in your tax bill.

Good point. When I bought my house, the previous owner was a veteran with a disability exemption. My taxes were way higher than what they had been paying, but there was nothing wrong with the assessment itself. Just the exemptions changing.

That's really interesting and something I hadn't considered. The previous owners were an older couple who had lived there for about 15 years, so they might have had some exemptions we don't qualify for. I'll definitely ask about this when I contact the assessor's office!

That's really helpful - I just checked my 1099-B and you're right, the cost basis shown is way off! So I need to use Form 8949 and check box "B" to make this correction? Do I need to include any supporting documentation with my return to explain the adjustment?

You don't need to include any additional documentation with your return to explain the adjustment. The IRS is familiar with this situation for RSUs. Just make sure you keep records of your RSU grant documents, vesting schedules, and the fair market value on vesting dates in case you're ever audited. When completing Form 8949, you'll enter the information from your 1099-B in columns a through e, then in column f enter code "B" (for basis adjustment), and in column g enter the difference between your correct basis and what's reported on the 1099-B. This effectively adjusts the basis to the correct amount for calculating your gain or loss.

How far back can you amend returns for this kind of mistake? I think I might have done the same thing for the past 3 years 😬

Can you explain more about the QBI deduction? I thought that was only for certain types of businesses. Does it apply to all self-employed people regardless of what service they provide?

The QBI deduction applies to most self-employed individuals, sole proprietors, partnerships, and S corporations. There are some limitations if you're in certain "specified service trades or businesses" like health, law, accounting, etc., and if your income is above certain thresholds (around $170,500 for single filers in 2022). For most freelancers making under that threshold, including graphic designers, you'll likely qualify for the full 20% deduction on your business profits. The calculation gets more complex at higher income levels or for certain professions, but tax software usually handles this automatically. It's basically free money that reduces your taxable income (though it doesn't reduce self-employment tax), so definitely don't miss out on it!

I've used QuickBooks Self-Employed for 2 years and it's pretty good for the basics. The mileage tracker works well if you remember to use it. The quarterly tax estimator is helpful but sometimes feels a bit off. The expense categorization is decent but you still need to review everything.