Good point about the improvements! For the first house, I actually did replace the roof ($14k) and installed a new HVAC system ($9k). Would I need receipts for all of these improvements or are there other ways to document these if I can't find all the paperwork?

Receipts are definitely the best documentation, but if you don't have them all, there are other options. Bank or credit card statements showing payments to contractors can work. Even emails confirming quotes that you accepted can help establish the costs. For major improvements like a roof or HVAC system, you might also have permit records with your local building department that can verify the work was done. Some contractors might also have records they can provide if you reach out to them. The IRS knows people don't always keep perfect records, but they do expect you to make a reasonable effort to document these costs.

Not necessarily. The test is whether you lived in it as your primary residence for 2 of the 5 years before selling. Who lives in it during other periods doesn't affect that qualification. If OP had rented it out, there might be some depreciation recapture to deal with, but since no rent was collected, that's not an issue.

That's a really important distinction. How can you tell if your LLC is being taxed as an S-Corp vs a disregarded entity? I filed paperwork when I started my business but honestly don't remember what I selected.

You can tell by looking at what tax forms you've filed in the past. If you've been filing Schedule C with your personal tax return, then your LLC is being treated as a disregarded entity. If you've been filing Form 1120-S and receiving a K-1 from your business, then you elected S-Corp treatment. If you're still unsure, you should be able to check with the IRS. You would have filed Form 2553 to elect S-Corp status. If you never filed that form, then you're most likely a disregarded entity by default. This distinction is crucial for understanding how losses flow through to your personal taxes.

Yes, the rules definitely changed. Starting with tax years after 2020, NOLs can only be carried forward (not back, except for some farming losses). Also, you can only use the NOL to offset up to 80% of your taxable income in any future year. So if you made $10,000 this year, you could only use $8,000 of your NOL, and would have to carry the rest to future years.

Thanks for explaining that! That makes sense why TurboTax was limiting how much I could claim. So I'll have to carry forward part of my loss to next year too. Wish they'd make these tax rules simpler to understand.

I had no idea this was even a thing! Do you know if there's a specific form I need to fill out to request this? And does it matter if I've already set up a payment plan?

You don't need a specific form - you can request it by phone when you call the IRS. Just specifically ask for "first-time penalty abatement" and explain that you've had a good compliance history. They'll check if you qualify right on the call. It doesn't matter if you've already set up a payment plan - you can still request the abatement. The payment plan is for the total amount, but if they approve your abatement request, they'll reduce the total and adjust your payments accordingly. Be aware this only removes penalties, not interest or the actual tax owed, but it can still save you a decent amount.

Do you just use the calculator on the IRS website? I've tried that before and found it super confusing with all the questions about dependents and deductions.

Thanks for the info. I just checked my online accounts and I do see the 1099-Rs have been issued. They both show Code G in Box 7! That's a relief. Do I still need to file Form 8606 for these rollovers? My tax preparer mentioned that form but seemed unsure if it applied in my situation.

Form 8606 is generally not required for direct rollovers between pre-tax retirement accounts like 401k/403b to a Traditional IRA. This form is primarily used to report nondeductible contributions to IRAs and distributions from Roth IRAs or conversions. Since your 1099-Rs show Code G, you'll simply report them on your tax return (usually on lines 4a and 4b of Form 1040), showing the full amount on line 4a but zero on line 4b (taxable amount). This indicates you've reported the distribution but it's not taxable. Your tax software or preparer should handle this correctly when you input the 1099-R information.

I rolled over two 401ks last year and one charged $75 while the other was free. From what I've heard, fees between $50-100 are pretty common. You might want to check if your new IRA provider offers any reimbursement for transfer fees - some do if you're bringing in a large enough balance.

7 Is there any negative consequence beyond just delay? Like, would this be considered a filing error that could cause problems for visa renewal or anything? I'm on F1 too and realized I might have made the same mistake.

11 There are no negative consequences for your visa status. This is strictly a processing issue, not a compliance issue. The IRS doesn't report this type of administrative error to USCIS - they simply forward the return to the correct department. Filing your taxes (even if sent to the wrong address) shows you're attempting to comply with U.S. tax laws, which is what matters for immigration purposes. Just make sure you've filed Form 8843 along with your 1040-NR, as that's required for all F1 students regardless of whether you had income or not.

15 I've also started using the IRS electronic filing system whenever possible. Not all forms can be e-filed if you're a nonresident alien, but more options are becoming available each year. Definitely more reliable than physical mail.