I'm actually using TaxAct and it's still a nightmare because I have to keep switching between the regular tax calculation and the special calculation for Form 8615. Have you dealt specifically with the Kiddie Tax situation? That seems to be what's making everything extra complicated.

I have dealt with Kiddie Tax and Form 8615, and you're right that it adds another layer of complexity. TaxAct should still handle the calculations, but it requires you to enter information very carefully. For Kiddie Tax situations, make sure you're entering the parent's tax information correctly when prompted, as that's a key input for Form 8615 calculations. Also, if you're filing separate returns for each child (rather than including them on your return), you need to ensure consistency across all the returns. The software should walk you through this, but it can be confusing when you have to switch between different calculations.

Totally agree! The complexity of the tax code punishes regular families trying to save and invest responsibly. My approach? Document your good faith effort to follow the rules, and don't lose sleep over small amounts that won't materially affect your tax liability.

Why does tracking home improvements matter for taxes? I thought those weren't deductible?

Home improvements aren't deductible yearly, but they increase your home's "cost basis." When you eventually sell your home, you'll pay capital gains tax on the difference between your selling price and your basis. Your basis is your purchase price PLUS the cost of substantial improvements. So tracking those improvements could save you thousands in capital gains tax when you sell. For example, if you buy at $400K, add $50K in improvements, then sell for $600K, you're only taxed on $150K of gain instead of $200K.

This is good advice but I thought there were income limits for taking the IRA deduction if you have a workplace 401k?

Do you know if there's a deadline for filing the Form 843 for FICA refunds? I just realized my employer was withholding these taxes during my OPT period last year.

Yes, there's definitely a deadline. You need to file Form 843 for FICA tax refunds within 3 years from the date you filed your income tax return for that year, or within 2 years from the date you paid the taxes, whichever is later. Since you're talking about last year's taxes, you have plenty of time, but don't put it off too long. The documentation requirements can be strict, and you want to submit while you still have easy access to all your visa and employment records.

I did mine myself last year and regretted it. Took me forever to figure out how to fill out Form 843 correctly and my claim was rejected twice for small errors. First time was because I didn't include a statement from my employer, second time because I didn't properly document my visa status. The specialized software is worth it IMO.

Would you recommend discussing this issue with the accountant's supervisor? Or is it better to just move on to a new tax professional at this point?

I'd definitely escalate this to a supervisor or the firm's partner. A mid-5-figure refund being handled differently than expected without client consultation is a serious customer service issue. Explain calmly that this decision has significant financial implications for you, and you expect them to help resolve it, including assistance with filing the amended return. If they're still dismissive after escalation, that's when I'd definitely move on to a new tax professional. A good accountant should be willing to explain their decisions and help fix issues when they arise. Also, be sure to get clear communication about their standard procedures before next tax season, regardless of which firm you use.

This is actually good advice. I adjusted my W-4 last year to have less withheld and get more in each paycheck instead of a big refund. It's made a huge difference in my monthly budget!

That's a fair question. We had some unusual circumstances last year - I received a large bonus that had mandatory 37% withholding, plus we sold some property but had significant basis in it so the withholding ended up being much higher than the actual tax due. We normally try to get our withholding pretty close to what we'll owe. You're absolutely right though - going forward we're adjusting everything to prevent this situation. I just need to solve the immediate problem of getting this year's refund back rather than having it applied to estimated taxes.

How much does this quarterly planning service typically cost? I'm interested but worried about the expense.

It's not as expensive as I expected! My CPA charges $350 for the initial planning session, which includes a detailed analysis and setting up the W-4 withholding calculator, and then $150 for each quarterly review (about 30-45 minutes). So about $800 per year total. The way I look at it, we saved about $3,200 in taxes the first year through strategies she suggested (maxing certain pre-tax accounts we weren't utilizing and timing some deductions better). Plus, no more surprise tax bills has improved our financial stress levels dramatically. Even just the peace of mind knowing we're on track is worth it for us.

Thanks for the suggestion! I actually tried the IRS Withholding Estimator last year but got confused halfway through. Maybe I'll give it another shot. I think part of our issue is that we both got promotions mid-year that bumped our withholding into a weird zone. We've also got some investments that generate dividends that aren't being accounted for in withholding. Is there a good resource you'd recommend for learning about tax planning beyond just the withholding part?

Totally understand the confusion with the IRS tool - it's not the most user-friendly! For your situation with promotions and investment income, try the "Two Earners/Multiple Jobs Worksheet" that comes with the W-4 form. That helps account for higher combined income. For investment income, you can either increase withholding to cover it or make quarterly estimated tax payments. If it's under $5,000 of additional tax, just dividing by your remaining pay periods and adding that amount to Line 4(c) of your W-4 is easiest. For learning resources, I really like the Bogleheads wiki for tax planning. They have great articles on tax-efficient investing, understanding tax brackets, and maximizing deductions. The Personal Finance subreddit wiki also has solid tax planning sections. Both are free and pretty comprehensive for people with W-2 income and basic investments.