I checked with HR specifically about the filing status and they confirmed it shows HOH in the system. But the tax exempt thing is interesting - I hadn't thought of that! I'll definitely ask if something got checked wrong during the transition. Thanks for the Form 843 tip. I'm definitely keeping copies of all my emails with HR and the responses from the payroll companies as documentation. Did you need any specific documentation from your employer when you filed that form?

For the Form 843, I included copies of my W-4 showing the correct information, emails with HR where they acknowledged the error, and a short statement explaining the situation. The key is proving it was the employer's error, not yours. The most helpful document was a letter from my HR department acknowledging the mistake in their system. If your employer is cooperative, ask for something similar - a simple statement confirming there was a system error in the payroll transition that affected your withholding despite your W-4 being filled out correctly. That carries a lot of weight with the IRS.

The Earned Income Credit suggestion is good, but be careful - at $59k for HOH, you're probably over the income limit unless your dependent is qualifying for the child tax credit. For 2024 taxes (filing in 2025), the EITC income limit for HOH with one qualifying child is around $53k.

Thank you! I hadn't thought about making estimated payments directly - that's a great idea to handle this myself rather than relying on the employer fix. I'm going to check out the IRS calculator today to see exactly where I stand. And yeah, I'm probably just over the limit for EITC based on what the other commenter said, but I should still get the child tax credit which will help. My daughter is 12 so she definitely qualifies.

Does that student loan exclusion apply to private student loans too or just federal ones? I have some private loans for medical school that I'm trying to settle.

The student loan forgiveness exclusion through 2025 actually applies to both federal AND private student loans, which surprised me too when I researched it. As long as the loans were specifically for post-secondary education expenses, they qualify. For your medical school loans specifically, you'll want to make sure you get proper documentation from your loan servicer about the forgiveness or settlement. The key thing is that they were used for qualified education expenses, not whether they're federal or private.

That's really interesting. So basically the way the debt forgiveness is structured and who does the forgiving can completely change the tax implications? Makes me wonder if more charity organizations should focus on debt forgiveness if they can do it in tax-favorable ways.

Can they expand the examination even if you only respond to what they asked for? I've heard horror stories about audits expanding to multiple years after they started looking at just one thing.

Yes, they can potentially expand the examination even if you only respond to what they asked for, but it's much less likely. They typically expand examinations when they find significant discrepancies that suggest similar issues might exist in other years, or if documents you provide reference other potentially problematic items. That said, correspondence examinations (the mail-in kind) rarely expand to full audits or multiple years unless they uncover major issues. The IRS has limited resources and generally focuses on the specific items they initially identified. If you maintain good records and legitimately claimed the deductions in question, even if your documentation isn't perfect, you'll usually be fine.

Thank you! This is super helpful. I'm actually missing receipts for about $1,200 worth of equipment purchases, but I definitely have the credit card statements. I wasn't sure if that would be enough on its own. For the donations, most were to my local animal shelter and a couple larger national organizations. I'll reach out to them ASAP for proper documentation. Do you know if the acknowledgment emails would work as a backup if I can't get the formal letters in time?

Credit card statements are a good start, but try to supplement them with additional evidence of what was purchased and its business purpose. If you have order confirmations, product manuals, photos of the equipment in use for your business, or even detailed notes you made about the purchases, include those as well. Acknowledgment emails can work as acceptable documentation if they contain all the required information: the organization's name, date of donation, amount donated, and a statement that no goods or services were provided in exchange (or their value if you did receive something). If your emails have all this information, they can serve as primary documentation. If they're missing some elements, include them as supporting evidence along with your request for formal letters.

That's a smart idea! How did you verify they knew what they were doing though? I'd be nervous having another student handle my taxes. Did they make you sign any kind of waiver in case they made a mistake?

I checked that the student had completed advanced tax courses, including international taxation, and was in the master's accounting program. The professor supervision was key - I actually met with both of them for the initial consultation, and the professor reviewed the final forms before submission. No formal waiver was required, but we did have a simple email agreement outlining what they would do and the fee. The accounting program treated this as a practical training opportunity, so they were motivated to get it right. The student was actually incredibly thorough and found deductions I didn't know I qualified for, even with the non-resident limitations.

What software did you try using? I was thinking about trying TurboTax for my amendment but now I'm nervous...

How much more can you actually contribute to a Solo 401k vs a regular employer 401k? I've heard mixed things and I'm trying to decide if it's worth the extra paperwork.

With a Solo 401k, you can contribute in two capacities - as both the employee and the employer. As an employee, you can contribute up to $22,500 (for 2023), just like with a regular 401k. But you can also make additional employer contributions of up to 25% of your compensation, with total contributions capped at $66,000. A regular employer 401k typically just allows the employee contribution plus whatever match your company provides, which is rarely anywhere near the maximum possible. The Solo 401k essentially lets you control both sides of the equation and maximize the total contribution.

Aren't there income limitations on Coverdell accounts though? I thought if you make above a certain amount you can't contribute.