That's a really good point. Do they usually send these out at tax time or should I ask for something now before investing?

Most firms will provide some basic tax information when you first invest that explains the general tax implications. Then toward tax season (usually January-March), they'll send out more specific guidance along with any required tax forms. I'd recommend asking them for any tax overview documents before you invest, since that might help ease your concerns. They should be able to explain what forms you'll receive, approximate timing, and the general tax treatment of their specific investment products.

This is solid advice! I'd also add that you should keep really good records of when you invested and how much. Makes tax time way less stressful.

How do you find these AFR rates? Is there a specific website? And do you have to use the exact rate or can it be higher?

You can find the AFR rates on the IRS website by searching for "Applicable Federal Rates" or "AFR" - they publish them monthly in the IRS Bulletin. The rates are divided into short-term (loans up to 3 years), mid-term (3-9 years), and long-term (over 9 years). Your rate can definitely be higher than the AFR - the AFR is just the minimum rate to avoid the imputed interest rules. Many family loans use AFR + 0.5% or something similar to make it beneficial for both parties - still lower than commercial rates but providing a decent return for the parents. Just be careful not to exceed your state's maximum legal interest rate (usury laws), which varies by state but is typically around 10-18%.

Oh that's scary! How did the IRS find out? Did they specifically ask for proof the loan was recorded with the county?

Thanks for mentioning this. I asked her and surprisingly, she says she's never received any notices from the IRS questioning her filing status. Which seems weird to me? Wouldn't they automatically catch that we're married but filing differently?

The IRS system isn't as automated and efficient as people think. They have matching programs that flag obvious discrepancies like reported income not matching W-2s, but filing status verification is more complex and often requires human review. The IRS is severely understaffed and underfunded, so many issues that should be caught slip through. This doesn't mean you're in the clear though - they can still discover it during a random audit or if another issue triggers a review of her returns. The fact that she hasn't received notices yet is actually pretty common, but doesn't mean it won't become a problem later.

This is crucial. If you've been claiming the same dependents on your return while she's also claiming them as HOH, that's definitely going to raise red flags for the IRS.

Did you give notice or just walk out? I'm worried about how to handle it professionally if I do decide to leave. Also, were you able to use the tax experience on your resume effectively even though you didn't finish the season?

I gave one week's notice, which was less than they wanted but all I could handle mentally. I was honest but professional - just said the hours and stress were more than I anticipated and affecting my health. My direct supervisor was actually understanding even if upper management wasn't thrilled. I absolutely still list the experience on my resume! I just write the months I worked there (Jan-March) without drawing attention to the fact I left before April 15. During interviews, if asked directly, I'm honest that the 70+ hour weeks were not sustainable with my health, but I emphasize what I learned. Most interviewers seem to respect the honesty rather than seeing it as a red flag.

Most tax prep places already require using their specific software. The software itself isn't usually the problem - it's the volume of clients, unrealistic appointment scheduling, and dealing with people who are stressed about money and taking it out on you.