Do you know if this varies by state? I'm in Texas which doesn't have state income tax, but I'm curious if there's a comprehensive list somewhere of how different states handle this. I might move to Colorado next year.

Yes, it definitely varies by state. Texas has no state income tax as you mentioned, so you don't have to worry about it currently. For Colorado, they generally follow the federal treatment, but they do have some specific forms for retirement income. There's no single comprehensive list that I'm aware of, but most state tax department websites have sections on retirement account contributions. The safest approach when you move is to check Colorado's Department of Revenue website or call them directly. States like New York, California, and Massachusetts often have more distinctive rules that differ from federal treatment.

Good point! Also worth mentioning that employer matching contributions don't count toward the employee deferral limit of $20,500 (for 2022). Some people confuse the employee limit with the overall 415(c) limit which includes all contributions.

What about stuff I already bought last year? Can I still claim those expenses even if I don't have all the receipts anymore?

You can absolutely claim expenses from last year even without receipts, though having some documentation is always better. Bank or credit card statements showing the purchases can work as backup. The IRS doesn't require receipts for expenses under $75 (though it's still good practice to keep them). For bigger purchases like a computer or equipment, definitely try to find some proof of purchase. Remember you can only deduct the percentage used for business - so if your laptop is 60% for freelance work and 40% personal, you'd deduct 60% of the cost. Start keeping better records now for this year!

Yes! This is a common misunderstanding. You can file your own tax return AND still be claimed as a dependent on your parents' return if you meet the criteria (which includes them providing more than half your support). The key thing is that if you're claimed as a dependent, you can't claim your own personal exemption. But you still need to file your own return if you meet the income thresholds, which it sounds like you do.

Thanks for pointing this out! Actually a lot of my holdings would qualify for long-term capital gains rates since I've held most for 2+ years. I didn't realize the rate could be as low as 0-15% depending on income bracket. Is there a specific income threshold for each rate?

For 2025 tax year, long-term capital gains rates work like this: 0% rate applies if your taxable income is under $47,025 for single filers or $94,050 for married filing jointly. The 15% rate applies if your income is above that but below $518,900 for single or $583,750 for married filing jointly. Above those upper thresholds, it's 20%. These rates are much better than short-term gains, which are taxed as ordinary income and can go up to 37% depending on your tax bracket. Definitely worth considering when deciding when to sell!

How do you recommend documenting wallet ownership? I have like 5 different wallets across different platforms and hardware devices.

That's a huge relief to hear about your experience! Did you ever get any kind of notice or update from them before the refund showed up? I'm wondering if I'll be completely in the dark until money suddenly appears in my account.

I didn't get any notices beforehand at all. The money just showed up in my account one day. The only way I knew they were processing it was by checking the "Where's My Refund" tool on the IRS website, which finally updated after about 8 weeks to show they had received my return. After that, it took about 2 more weeks for the refund to arrive. So yeah, you'll probably be in the dark for a while. Paper returns really do disappear into a black hole for a couple months. If you need the money urgently, that's when I'd recommend trying to talk to someone at the IRS directly.

This happened to me too! Turns out I had rounded my previous year's AGI instead of using the exact number. Such a stupid reason for rejection.

Oh that's interesting! I hadn't considered that. I worked for a startup so it's totally possible they messed something up with the reporting. How did you end up resolving your situation? Did you have to get documentation from your employer?

I had to get a corrected Form W-2 from my employer showing the stock compensation was included in my wages. Then I had to write a detailed letter to the IRS explaining exactly how the income was reported on my tax return (which line number, which form, etc.) and included copies of my brokerage statements showing the transactions. The key was getting someone from our HR/payroll department to provide a letter confirming how they had reported it to the IRS. Once I had that documentation and sent everything certified mail, it eventually got resolved. Just be prepared for it to take several months.

Tax advocates are nearly impossible to get right now unless you're facing "significant hardship" like eviction or utilities being cut off. They're seriously understaffed and have strict criteria for who they'll help. I tried for months and kept getting rejected.