Has anyone used TurboTax for reporting ESPP and RSU sales? I'm wondering if they have any built-in tools for calculating the correct cost basis. I transferred my shares to Fidelity last year and now I'm worried I might mess up my taxes.

One thing I'd add to all the great advice here - make sure you understand the "look-back" provision that many ESPPs have. This can significantly affect your cost basis calculation and whether you have a qualifying disposition. Many ESPPs allow you to purchase shares at a discount based on the LOWER of either the stock price at the beginning of the offering period OR the stock price at the end of the offering period. If your plan had this feature, your actual purchase price might be different than what you think, and this affects both your cost basis and the amount of discount that gets taxed as ordinary income. I learned this the hard way when I sold some old ESPP shares and discovered my cost basis was actually lower than I calculated because of the look-back provision. Check your original ESPP plan documents or contact your former employer's benefits team to confirm if your plan had this feature. Also, don't forget that some brokerages will automatically apply incorrect cost basis adjustments when you transfer ESPP shares. Make sure to review and correct these before you sell, or you might end up paying taxes on money you've already been taxed on.

Anyone used the free IRS Direct File this year? I heard they finally rolled it out for some states. Wondering if it catches all the same stuff as paid options.

The main difference I've noticed (working in tax prep for 5+ years) is that software often doesn't dig deep enough into your specific situation. Even with a "simple" return, there might be credits you qualify for that the software's question flow misses or doesn't explain clearly. For example, if you contributed to a retirement account, moved for work, paid student loan interest, or had any education expenses, these can all impact your refund. The software asks about these things, but the questions can be confusing or buried in screens people skip through. Also, tax preparers are required to ask specific questions that might uncover deductions you didn't think were relevant. Sometimes what seems like a "simple" situation actually has more complexity than you realize. That said, if you truly have just one W-2 and no other factors, the difference should be minimal. But it might be worth having your return reviewed once just to make sure you're not missing anything year after year.

Don't forget about Section 195 startup expenses! The tax code lets you deduct up to $5,000 of startup costs in the first year (with some limitations if your costs exceed $50,000). These are expenses you incur before your business is actually "in business." Then there are Section 179 deductions for equipment - you can write off up to $1,080,000 in 2023 for qualifying equipment purchases. The home office deduction is also available, but as others mentioned, the space must be used EXCLUSIVELY for business.

Quick tip - if you're using tax software, most will specifically ask if you had a business with expenses but no income. Be sure to say YES and then enter all legitimate expenses. Don't get discouraged by software that keeps saying things like "are you sure this is a business?" Many businesses lose money in their first year or two, and the software is just trying to prevent hobby loss deductions.

Quick tip about the home office portion - most people don't realize that you need to be VERY careful with claiming home office in apartments. I'm a property manager and many leases specifically prohibit running businesses from residential units. Before claiming this deduction, check your lease carefully! The IRS Form 1065 deduction might be valid tax-wise, but it could potentially put you in breach of your lease agreement.

Great question! You're on the right track with the accountable plan approach. Just wanted to add a few practical considerations from my experience handling similar partnership setups: For the mileage reimbursements, make sure you're maintaining detailed logs showing date, destination, business purpose, and miles driven for each trip. The IRS is particularly strict about vehicle expense documentation. I recommend using a mileage tracking app or keeping a simple logbook in your car. Regarding the home office, beyond the "exclusive use" requirement others mentioned, you'll want to calculate the percentage of your apartment used for business (square footage of office space divided by total apartment square footage). This percentage determines how much of your rent can be reimbursed. One thing to watch out for - since you're reimbursing yourself as a partner, make sure your partnership agreement specifically addresses this arrangement. Some partnerships require unanimous consent for expense reimbursements to partners to avoid any disputes later. Also consider the timing: while you mentioned quarterly mileage payments, the IRS generally expects expense reimbursements to occur within a reasonable time after the expense is incurred (typically 60 days). Monthly or quarterly should be fine, but don't let it stretch much longer than that. Your approach with Form 1065 line 21 and the attached statement is correct. The statement should detail each type of reimbursement, total amounts, and confirm compliance with accountable plan rules.

This is such a stressful situation, but you're definitely not alone in dealing with this! I went through something similar a few years ago when my tax preparer accidentally used outdated bank info from my previous return. One thing that really helped me was getting a copy of my tax transcript from the IRS website (irs.gov) - it shows exactly where your refund was sent and the status. You can access it immediately online with your SSN and some basic verification info. This gave me concrete details to reference when I called both the IRS and my tax prep company. Also, while you're waiting for everything to get sorted out, consider asking your tax preparer if they offer any kind of emergency assistance or advance on the refund amount since it was their error. Some of the larger chains have policies for situations like this, especially when it's clearly their mistake. At minimum, they should be covering any fees you incur because of their error. The good news is that your sister and cousin are right - the money will eventually come back to you, it's just a matter of time. Banks are required to reject deposits when the account name doesn't match, so it will bounce back to the IRS who will then issue a paper check. Hang in there!

I work as a tax professional and want to add some clarity about prevention for future years. Many people don't realize that you can (and should) verify all your banking information directly with the IRS before filing through their "Get My Payment" tool or by calling their automated refund hotline at 800-829-1954. For anyone reading this thread who hasn't filed yet this year: double and triple-check those routing and account numbers! Have your bank statement or a voided check in front of you when reviewing your return. The most common errors I see are transposed digits in routing numbers or using old account information from previous years. @Andre Lefebvre - since your tax preparer is being cooperative and has insurance, make sure they also provide you with a letter explaining exactly what happened that you can keep for your records. If there are any delays or complications down the road, having that documentation from them will be invaluable. Also ask them what steps they're taking internally to prevent this from happening to other clients - a good preparer should be implementing additional verification procedures after an error like this. The silver lining is that this experience, while stressful, will likely result in you getting your money back faster than the typical 6-8 week timeline since they're handling it proactively!