Did your CPA provide any documentation about why they thought you qualified for HoH? I'm surprised they were so confident about this if you were trading off claiming the kids. When I got divorced, my tax person was super strict about HoH requirements and made me document everything.

First, my deepest condolences for your loss. This is such a difficult time and dealing with tax complications on top of grief is incredibly stressful. I think you should definitely file your wife's final return - it's required by law and avoiding it won't make any potential issues go away. The good news is that if you've been filing separately all these years, her final return should be relatively straightforward as married filing separately. Regarding your Head of Household status, I'd recommend gathering all your documentation from those years (mortgage/rent payments, utility bills, childcare expenses, etc.) to see if you truly met all the requirements the enrolled agent listed above. The fact that you alternated claiming the children as dependents could be problematic for HoH eligibility in the years you didn't claim them. Consider getting a consultation with a different tax professional for a second opinion on your situation. They can review your specific circumstances and help you determine if you need to amend any returns. It's better to be proactive about this than to wait for the IRS to potentially discover any issues later.

Another thing to consider is that the Advanced Child Tax Credit is back for the 2025 filing year - so whatever you decide for this tax season will affect how those payments get distributed starting in July. Make sure whoever claims the kids has their direct deposit info updated with the IRS!

This is such a complex situation, but you're smart to ask these questions now! Based on what you've described, here are a few key points to consider: Since you supported the household for most of 2024 and have a qualifying child (your baby), you should be able to file as Head of Household. Your girlfriend's child might also qualify as your dependent if you provided more than half their support after moving in together. One thing I'd strongly recommend is keeping detailed records of all the expenses you paid - rent, utilities, groceries, childcare, medical expenses, etc. The IRS uses a "support test" to determine dependency, so having documentation of what you actually spent will be crucial if you're ever questioned. Also, don't overlook state tax implications! Some states have different rules for filing status and dependents, so make sure you're optimizing for both federal and state returns. Given the complexity with multiple children and the adoption in progress, you might want to consider working with a tax professional this year. The cost could easily pay for itself through credits and deductions you might miss otherwise.

Don't forget that your state board of accountancy or tax preparer oversight board might also be appropriate places to report this, especially if the preparer has state credentials. Some states take a more active approach to preparer misconduct than the federal system.

As someone who's been through a similar ethical dilemma, I want to emphasize that you absolutely have both the legal and moral obligation to report this. The fact that you discovered systematic fraud puts you in a position where inaction could potentially make you complicit. A few practical points from my experience: First, document everything meticulously before you report - dates, client interactions, specific examples of the fraudulent Schedule C entries, and any conversations about this issue. This documentation will be crucial if the IRS investigates. Second, consider that your colleague's actions aren't just harming the tax system - they're putting those clients at serious risk. When the IRS eventually catches this pattern (and they will), those clients could face severe penalties, interest, and potential criminal charges. By reporting now, you're potentially protecting future victims. Regarding your concerns about management and workplace dynamics - remember that if your employer retaliates against you for reporting known fraud, they're opening themselves up to significant legal liability. Most reputable tax firms would rather address the problem than risk becoming complicit in ongoing fraud. The integrity of your EA credentials and the entire tax profession depends on practitioners like you taking these difficult stands. You're doing the right thing by considering this report, even though it's uncomfortable.

Has anyone tried just calling their brokerage directly? I had a similar issue and just called Fidelity. They gave me the dividend amount over the phone and sent me an unofficial statement I could use for my taxes. Didn't need the password or anything, just verified my identity.

Great thread - this helped clarify my own situation! I just want to emphasize what others have said: the $10 threshold is purely about when companies are REQUIRED to send you a 1099-DIV form, not about your reporting obligations. The IRS expects all income to be reported, period. For what it's worth, I've always followed the "report everything" rule because the potential penalties for unreported income (even small amounts) can be way more than the actual tax owed. Plus, as someone mentioned, the IRS systems are getting more sophisticated at catching these discrepancies. If you're really stuck without access to your brokerage account, try calling them first like Jade suggested - most major brokerages can verify your identity without a password and give you the info you need. It's probably faster than trying to reset passwords during tax season when everyone's scrambling.

Watch out for the contribution limits! For 2024, individual coverage limit is $4,150 and family coverage is $8,300, plus an extra $1,000 if you're 55+. Your employer contributions AND your personal contributions both count toward these limits.

Great question! I had the same confusion when I first started with HSAs. Your employer doesn't provide Form 8889 - that's a form you fill out yourself when filing your taxes. Since your W-2 shows the $3,000 in Box 12 with code W, you have everything you need from your employer. Just to add to what others have said - make sure you keep good records of any medical expenses you paid for with your HSA throughout the year. While you don't need to submit receipts with your tax return, you should keep them for your records in case the IRS ever asks. The Form 8889 will ask about any distributions you took from your HSA, so you'll want to have that information handy too. If you used tax software last year, it probably walked you through Form 8889 without you even realizing it was a separate form. Most tax prep software will automatically generate it based on the HSA information you enter.