How do you return an IRS check properly? Do you just write "VOID" on it and mail it back, or is there a specific process to follow?

There's a specific process. You should mail the check back to the IRS location listed in the instructions that came with it (or if no instructions, to the IRS office that services your area). Include a brief letter explaining why you're returning it. Don't write VOID on the check - send it back uncashed exactly as you received it. Include your taxpayer info (name, address, SSN) and phone number in your letter. Send it certified mail so you have proof you returned it. The IRS website has instructions for returning erroneous refunds - search for "returning erroneous refund" on IRS.gov.

I second this! Transcript is the fastest way to see what's happening. My cousin got a surprise refund last year, and the transcript showed someone had filed an amended return with her info. Turned out to be identity theft.

Would this work for crypto? I've got some ETH that's gone up like crazy and I'm trying to figure out how to cash some out without giving half to Uncle Sam.

Yes, it can work for cryptocurrency. The key is that the trust sells it after you've donated it, so the trust itself doesn't pay capital gains tax on the appreciation. You'll need to find a trustee comfortable with handling crypto assets though, as some traditional trustees aren't familiar with the process. Keep in mind that you're ultimately giving a portion to charity - this isn't a strategy to avoid taxes completely while keeping all the money. But the tax benefits plus the income stream can make the math very favorable compared to just selling and paying capital gains tax directly.

I looked into something similar for my business. The Wyoming LLC part can work for privacy and some liability protection, but it doesn't magically change your tax situation. The IRS follows the money regardless of how many entities you put in between. And trying to loan yourself money through your own entities gets really tricky really fast.

That's a really good point I hadn't considered! The job is offering a high-deductible plan ($2,750) while my partner's plan has a $1,000 deductible. And you're right about the gap - I'm not sure if there would be a waiting period to get back on his insurance after my job ends. Do you know if special enrollment periods apply when you lose job-based coverage?

Yes, losing job-based coverage does qualify as a special enrollment event that would allow you to join your partner's plan outside the normal enrollment period. You typically have 30 days from the loss of coverage to request enrollment in the new plan. As for the deductible difference, that's definitely something to consider carefully. Also look at the premium costs - what would your employer charge versus what your partner's paycheck deduction would be for adding you? Sometimes the premium difference can outweigh the deductible savings. And don't forget to compare the networks - make sure your doctors are covered in both plans before making a decision.

This is super important! I got a high-paying temp job last year and didn't realize it was 1099 until I got my first check with NO taxes taken out. Was a huge shock when tax time came around. OP should definitely clarify if it's W-2 or 1099 before making any decisions.

Would love to see that spreadsheet! Does it handle different recovery periods (27.5 vs 39 year) and mid-quarter convention too?

Yes, it handles both 27.5 and 39-year recovery periods for real property. It also has a section for mid-quarter convention that I use for equipment and other business assets. I designed it to be pretty flexible where you just input the property type, cost basis, placed in service date, and disposal date. It automatically determines the right convention and calculates both the regular annual depreciation and any partial year amounts. I've found it matches up with what my accountant calculates manually.

Pub 946 is technically correct but extremely difficult to follow. I tried using those worksheets last year and still ended up making errors. The exampels they give never quite match my situation exactly.

Thank you for the detailed steps! Did you have to do anything special for the state tax portion or was it pretty straightforward once you figured out the federal part?

The state part was actually pretty simple once I figured out the federal portion. I just entered the state withholding amount from my 1042-S in the state withholding section along with my W-2 state withholding. For the income, I reported it the same way on my state return as I did on my federal. FreeTaxUSA walks you through the state portion after you complete the federal section, and the state return automatically imports most of the information from your federal return. Just make sure to double-check that all the withholding amounts are correct before submitting.

This is incorrect advice. As a resident alien, you generally CANNOT claim tax treaty benefits. Those are mostly for nonresident aliens only. Once you become a resident for tax purposes, you lose most treaty benefits except for very specific exceptions.

You're right, I should have been more clear. Most tax treaty benefits are for nonresident aliens, but there are some specific provisions that continue to apply even after you become a resident alien. It depends entirely on the specific treaty and the specific type of income. For example, the US-China treaty has provisions for students that can continue for a limited time even after becoming a resident alien. But you're correct that in most cases, becoming a resident alien means losing treaty benefits.