1 I didn't have any side income and I don't think I had any special credits before. I've always just taken the standard deduction since my situation is pretty simple. I did pick up more hours at work toward the end of the year but I didn't think that would affect things so much.

13 The additional hours actually might be a big part of it. If you earned significantly more in the last quarter of the year, the withholding system might not have adjusted properly. The system typically assumes you'll earn the same amount consistently throughout the year. Another thing to check is if you had any changes to your health insurance situation. If you started getting insurance through your employer or had marketplace coverage with premium tax credits, these can significantly impact your refund calculation.

4 This is a good point. I've seen this happen with friends who didn't realize that just checking different boxes could change their refund by hundreds of dollars. Especially things like whether someone can claim you as a dependent.

Did you end up having to amend your return or pay any penalties for the Form 1116 mistake? I'm leaning toward just not claiming the credit at all at this point.

No penalties or amendments needed, thankfully. I just had to send in some additional documentation to clarify how I calculated the credit. But it was definitely an unnecessary hassle for $8! For your $1.99 credit, I absolutely wouldn't bother claiming it if it requires paying for software upgrades. Even beyond the immediate cost, the potential for questions or confusion just isn't worth it for such a small amount. The IRS certainly won't flag you for not claiming a credit you're entitled to - that's your choice.

FreeTaxUSA has been my go-to for years. So much cheaper than TurboTax and includes most forms. I've claimed foreign tax credit with them without issues.

Thanks for the suggestion! I've been with TurboTax for so long I guess I just assumed all tax software had similar pricing tiers. I'll definitely check out FreeTaxUSA for next year. For now I think I'll just skip claiming the tiny credit since it's literally less than my lunch cost today lol.

Is there a good template for tracking this? My company has done RSUs, ISOs, and ESPPs over the years and I'm already losing track of which shares came from where and when each lot vested.

I don't have a specific template, but I created one in Google Sheets that works well. The key columns I use are: Grant Type (RSU/ISO/ESPP), Grant Date, Vest Date, Shares Granted, Shares Vested, FMV at Grant, FMV at Vest, Shares Sold for Taxes, Net Shares Received, and Cost Basis per Share. I also add notes for any corporate actions like splits or mergers that affected share counts. This has saved me countless hours at tax time. The most important thing is to update it immediately when new shares vest, because trying to reconstruct this later is a nightmare.

E*Trade is awful for this! I switched jobs and my new company uses Fidelity, which is SO much better. They provide a supplemental tax statement that shows your original W-2 income amount for RSUs and the corresponding cost basis adjustment. Made my taxes 100x easier this year.

Thanks for pointing out the actual tax difference! I was thinking about the $5 of income, not the actual tax amount which would be even smaller. That makes me feel better about the situation. Did you send your late 8606 forms with an amended return or just on their own with the cover letter? I'm debating both approaches and trying to figure out the easiest way to handle this without triggering unnecessary scrutiny.

I sent the late 8606 forms on their own with just the cover letter since they didn't actually change my tax liability for those years. The 8606 forms were just establishing basis for future use. In your case, since you do have a small change to your actual tax liability for 2019, I'd probably file an amended return for that specific year along with all the 8606 forms and a comprehensive cover letter explaining both issues. The reality is that the IRS isn't going to launch an audit over a dollar and change, but it's still technically the correct way to handle it. And having everything documented properly will save headaches down the road if you ever need to reference your IRA basis.

First Time Abatement is for failure-to-file and failure-to-pay penalties on returns, not specifically for the $50 penalty for late 8606 forms. Those are two different types of penalties. Are you sure that's what you received?

I actually did ask the dealer about this yesterday! They seemed open to the idea but weren't sure about the legal implications. Did you have any issues with the financing company or insurance when they delayed the official delivery date? What documentation did you end up using to prove the January delivery date to the IRS?

I didn't have any issues with financing or insurance. The dealer simply scheduled the "delivery appointment" for January 2nd, and all paperwork was dated that day - including the sale agreement, registration application, and delivery receipt. The loan wasn't finalized until that day either. For IRS documentation, I used the dated purchase agreement, the vehicle registration that showed the January date, and made sure the dealer noted "delivery date" specifically on the paperwork. I took pictures of me picking up the car on that date too, just to be safe. The key is having all official paperwork consistently show the January date.

That's not accurate advice and could potentially cause problems for the OP. The IRS is clear that "placed in service" is generally when you take possession and the vehicle is ready for use, not the registration date. Your situation may have worked out, but that doesn't mean it follows IRS guidelines. Registration timing doesn't determine the placed in service date.