This is super helpful! Quick question - how far back can you go with TurboTax for previous years? I haven't filed since like 2019 and I'm trying to get caught up without making the same mistake as OP.

TurboTax typically keeps the last 7 years of tax software available, so you should be able to file returns back to 2019 without issues. You'll need to download the specific software version for each tax year you need to file. Start with your oldest return (2019) and work forward chronologically. Each year's return may affect the next, especially if you're carrying forward losses or credits. Just be prepared for potential late filing penalties if you owed taxes for those years. The IRS generally has a 10-year collection period for unpaid taxes, so it's definitely good you're getting caught up now.

Yeah, prior year returns definitely get processed differently. The IRS prioritizes current year returns during tax season. Did you get any kind of notice or explanation for the delay?

That's a really smart idea I hadn't considered! I do have student loans and I've been making payments. Would those interest deductions help in this situation? Also, is it too late to make retirement contributions that would count for last year?

Student loan interest can definitely help lower your MAGI, which is exactly what you want in this situation. You can deduct up to $2,500 in student loan interest depending on your income level. As for retirement contributions, you can still make IRA contributions for 2024 until the tax filing deadline in April 2025. If you have self-employment income, you might also be eligible for a SEP IRA which has higher contribution limits. Just make sure you specify that the contribution is for tax year 2024 when you make it. This is one of the few "retroactive" moves you can make that legally affects your previous year's taxes.

Yes! I successfully did this. The key is that you need to contact the marketplace and specifically request an "income adjustment review" for the previous year. The regular customer service reps often don't know about this process. Ask to speak with a supervisor or advanced resolution team. Explain that you made an honest mistake in reporting your income (confusing net vs. gross) and request the review. They may have you submit documentation of your actual income. In my case, they adjusted my 1095-A and issued a corrected one, which significantly reduced what I owed.

This sounds like a fantastic idea! Did you have any specific way you tracked everything? I'm worried about making it too complicated but love the real-world application.

Nothing fancy! We just use a simple chart on the refrigerator with magnets. Each kid has a section with their weekly "income" from chores, then two columns showing taxes collected and take-home pay. The family fund is a jar on the counter where the tax money goes. You definitely want to keep it simple - the point is just to visualize the concept, not create an accounting nightmare for yourself! My kids actually get excited on "budget day" when we decide how to spend the family fund. Sometimes they even vote to save it for something bigger. It's been a great lesson in collective decision-making too.

This is such a creative idea! Did you find that it made them more negative about taxes or did they see the benefits too?

I did mail paper returns for all three years because I had to include some supporting documentation. Did you do anything special to make the process go faster for the 2021 return?

I didn't do anything special for the 2021 return - it just happened to get processed faster. Paper returns are unfortunately at the mercy of whichever processing center they get sent to and how backed up that specific location is. One thing I learned later is that you can actually e-file amended returns for tax years 2019 and later using certain tax software, even with supporting documentation (you can scan and attach PDFs). E-filed amendments tend to process much faster than paper ones. For future reference, that might be a better option if you ever need to amend again.

I did this for my amended returns too. The in-person agent was WAY more helpful than phone support. She even spotted a mistake in my 2019 amendment that would have caused issues and let me fix it on the spot.

That's great to hear your experience was similar! The in-person assistance is definitely underrated. The agents at the Taxpayer Assistance Centers seem to have more time to thoroughly review your situation compared to phone agents who are trying to get through as many calls as possible. I've found they can also sometimes expedite processing if you have a legitimate hardship situation or if there's been an unusually long delay. Did they offer to help speed things up in your case?

Do I need to keep physical receipts for all the supplies I buy or are digital records okay? My CPA is pretty old school and I'm not sure what's actually required.

Digital records are perfectly acceptable for the IRS! I take pictures of all my receipts with my phone and organize them by month in Google Drive. Many CPAs now prefer digital because it's easier to search and organize. That said, if your CPA prefers physical copies, you might want to print them out just to make the process smoother on their end. But legally speaking, digital receipts have the same validity as paper ones as long as they clearly show the date, vendor, amount, and what was purchased.

Be careful with home office deductions though. You need a space used EXCLUSIVELY for business, not just your kitchen table where you also eat dinner. That's where a lot of people get in trouble.