Super helpful, thanks! Do you happen to know if FreeTaxUSA generates that Form 8949 automatically when you make these adjustments? I heard something about needing to use code "B" for adjusted basis on that form.

Yes, FreeTaxUSA will generate Form 8949 automatically with the correct adjustment codes when you make these basis adjustments. When you indicate the 1099-B doesn't show the correct basis and enter your adjusted amount, it will use code "B" for the adjustment. You can preview the actual form before filing to verify everything looks right. It'll show your reported proceeds from the 1099-B, then your correct adjusted basis, and the difference will be your actual capital gain/loss. Just make sure when entering each lot that you're consistent with your adjustment method across all 8 lots.

This is an important point. OP should check box 14 of their W-2 as well - sometimes companies list the ESPP income there with a code like "ESPP" or "SD" (stock discount).

I'm actually really into sports - are there any good tax topics related to sports that would work for a research paper?

Absolutely! Sports and taxation have several fascinating intersections that would make for an excellent paper. You could explore the "jock tax" where athletes pay taxes in each state they play games in - this raises interesting questions about income sourcing and multi-state taxation. Another great angle would be the tax implications of NIL (name, image, likeness) deals for college athletes - this is relatively new territory with evolving tax guidance. You could also look at how major sports franchises use tax incentives for stadium construction, or the tax treatment of sports gambling following recent legalization in many states including Illinois. These topics combine sports interest with substantive tax policy questions.

The SALT deduction cap topic sounds interesting. Did you find it had enough material for 20 pages? And did you focus more on the federal aspects or the Illinois impact?

Can EAs handle more complicated S-Corp issues though? I've heard they're good for basic tax filing but might miss some of the more strategic planning opportunities. Have you found that to be true or not?

My experience has been that good EAs are excellent at tax strategy, especially for S-Corps. Mine regularly saves me thousands through proactive planning. The key is finding someone with specific S-Corp experience - ask how many S-Corp clients they have and what industries they specialize in. What many people don't realize is that EAs often focus more narrowly on tax code than many CPAs who might divide their attention across multiple accounting services. My EA catches things my previous CPA missed specifically because taxes are her entire focus. She's particularly good at maximizing the QBI deduction and optimizing my salary-to-distribution ratio to minimize self-employment taxes while avoiding audit flags.

This is the best advice here. When I switched from a general small business CPA to one that specializes in construction companies (my industry), they found over $23,000 in deductions my previous accountant missed. Industry-specific knowledge is worth its weight in gold.

This makes a ton of sense. I'm in the tech consulting space - do you think I should be looking for someone with specific experience there? Or is S-Corp specialization more important than industry knowledge?

I just dug through my paperwork and found the engagement letter. There's a clause saying they're "not responsible for penalties or interest charged due to delays" but nothing specifically addressing refunds lost due to their negligence. Does this mean I don't have any recourse?

That clause is primarily intended to cover situations where the client provides information late or there are other factors outside the CPA's control. In your case, they had all the necessary information and explicitly confirmed they would complete the work by the deadline - then failed to do so without any valid reason. This is a clear case of professional negligence that goes beyond the scope of a standard limitation clause. The fact that they acknowledged the deadline and committed to meeting it, then simply didn't do the work, strengthens your position considerably. I would still pursue compensation despite that clause, as courts have often found that professionals cannot contract away basic duties of care and competence.

This is good advice - I went through something similar in California and was able to get penalties waived by providing emails showing my accountant had everything needed well before the deadline. I had to fill out a formal abatement request form and include my evidence.

Yes, those are increasing too! For single filers, the Roth IRA phase-out range will be $146,000-$161,000 (up from $138,000-$153,000). For married filing jointly, it'll be $230,000-$240,000 (up from $218,000-$228,000). Hope that helps with your planning!

Also worth noting that if you're over the income limits, you can still do a backdoor Roth conversion! I make above the limit and still managed to get money into my Roth last year this way. The basic strategy is contributing to a traditional IRA (which has no income limit for contributions, just for deductibility) and then converting to a Roth right after.

Yes! The limits are separate. You can contribute up to the full amount to BOTH accounts in the same year. That's a total of $30,000 between the two accounts ($23,000 to 401k + $7,000 to IRA). This is one of the best ways to maximize retirement savings if you can afford it.

Just be careful about IRA deductibility if you have a workplace plan. You can still contribute the full $7,000, but whether you can deduct traditional IRA contributions depends on your income level. Roth IRA contributions also have income limits as mentioned above.