Thanks for bringing up the cost basis point! Do you know if I need to track each batch of dividend shares separately for when I eventually sell? Like if I get quarterly stock dividends, do I need to track 4 different lots with different cost bases?

Yes, you should definitely track each distribution as a separate lot with its own cost basis and acquisition date. This becomes important when you sell, as you'll want to identify which specific shares you're selling to optimize your tax situation. Most brokers these days track this automatically in their systems, but it's good practice to keep your own records as well. I use a simple spreadsheet with distribution dates, number of shares, price per share on that date, and total value. It takes a little effort, but it makes tax time much easier, especially if you hold these investments for many years.

My broker does the same thing. I round to 3 decimal places for my records and it hasn't been an issue. The IRS isn't going to come after you for rounding $50.175 to $50.18 on your taxes. Just make sure your total dividend income for the year is reasonably accurate.

Thanks for mentioning this! I'm not claiming either of those credits, just getting back over-withheld taxes from my bonuses. So hopefully I won't be affected by those delays.

You should be fine then! Since you're just dealing with over-withholding on bonuses and not claiming those particular credits, your refund should follow the standard timeline. Just make sure to file electronically with direct deposit selected for the fastest processing.

Is there actually any evidence for this or is it just something you've noticed personally? I've never heard the IRS say anything about processing returns differently based on the day of the week.

For 2024 taxes (filed in 2025), the Child and Dependent Care Credit allows you to claim up to $3,000 in expenses for one child or $6,000 for two or more dependents. The credit percentage ranges from 20-35% of those expenses depending on your income. The percentage decreases as your income increases, with the 35% rate applying to those with AGI below $15,000. For most middle-income families, you'll get 20% of your qualifying expenses. Since you spent $8,400, you'd be limited to claiming the $3,000 maximum for one child. At the 20% rate, that would be a $600 credit. This is a non-refundable credit, so it can only reduce taxes you owe to zero, not generate a refund beyond that.

Thank you so much for explaining! That makes way more sense now. So basically even though I spent $8,400, I can only claim $3,000 of it, and then I get 20% of that amount as an actual credit on my taxes. That's much less than I was hoping for, but at least it's something.

Check out the IRS Free File program. If your AGI is under $73,000, you can file federal taxes for free. The Free File Alliance has different providers, and some even offer free state filing too. TaxAct, TaxSlayer, and 1040Now are usually good options. Make sure you go through the IRS website (irs.gov/freefile) to access the truly free versions. If you go directly to the company websites, they often push you toward paid versions.

In my 401k I've been using a treasury fund for cash parking and it's currently yielding about 3.8% which beats most stable value funds I've seen. The advantage of treasuries in the current environment is they respond faster to rate changes. The downside is there can be some minor NAV fluctuation vs stable value funds which maintain stable principal.

Thanks for that insight! Do you see much day-to-day fluctuation in the NAV with your treasury fund? I'm pretty conservative with this portion of my savings so stability is important, but that extra 0.7% yield is pretty significant too. I'm guessing the stable value fund will eventually catch up to current rates, but seems like they lag quite a bit based on what you're saying.

Money market funds are solid for cash parking in retirement accounts. The 4.2% yield is quite good actually. The main thing to check is the expense ratio - some 401k plans offer money market funds with ridiculous fees that eat into that headline yield. Also, if you don't mind sharing, which fund is offering 4.2%? Most I've seen are in the 3.5-3.8% range.

Was there any trouble with the IRS beyond the financial penalties? Like did they treat you differently or make things harder because you skipped filing?

No actual trouble beyond the financial hit, but they did put me on a shorter leash for a few years. They processed my refunds more slowly the next couple years and seemed to scrutinize my returns more carefully. I also couldn't qualify for their streamlined payment plans for a while - had to provide more financial documentation. The biggest issue was honestly just the unnecessary stress and the fact that I ended up paying more than double what I would have if I'd just filed on time and set up a payment plan from the start. The interest and penalties stack up way faster than most credit cards.

This is actually not a terrible idea if you can qualify for a 0% intro APR card. I did this last year - got a card with 15 months at 0%, paid my taxes, then focused on paying off the card before the intro period ended. Saved me a bunch compared to the IRS installment plan interest rates.