Is that always true though? What if the foreign tax rate on the capital gains is lower than the US rate, but the foreign tax on dividends is higher? Wouldn't it sometimes be better to combine them in that case?

That's a really good question. It depends on the specific tax rates and your overall tax situation. Generally, keeping them separate gives you more flexibility and prevents a lower-taxed category from diluting the credit for a higher-taxed category. But you're right that there are situations where combining might work in your favor.

And to add to this - FBAR is different from Form 8938 (FATCA). You might need to file both depending on your account balances. The thresholds are different and so are the filing methods. FBAR is filed electronically through FinCEN, not with your tax return.

Does H&R Block handle the capital gains calculation correctly? My situation is complicated because some of my RSUs vested early in the year and then I sold them months later when the price had changed quite a bit. I need to make sure I'm reporting both the initial income and the capital gains/losses correctly.

Yes, H&R Block handles the capital gains calculation correctly. It separates the initial income recognition (which appears on your W-2) from any subsequent capital gains or losses that occur between vesting and selling. When you enter your stock sales, you'll provide both the sale price and the cost basis (which is the fair market value on the vesting date). The software then correctly calculates only the difference as capital gains/losses. It's much more straightforward than TurboTax, especially for situations where there's a significant time gap between vesting and selling with price changes.

Form 3922 is for ESPP (Employee Stock Purchase Plans), not RSUs. For RSUs, employers typically provide a summary statement but not a specific IRS form. Most just include it on your W-2 and provide supplemental information.

Wait, there's an option to do summary reporting? How does that work and where do you indicate that on your tax forms? Never heard of this before...

You can report the summary of your transactions rather than listing each one separately. On Form 8949, you'd check box C for short-term transactions or box F for long-term transactions "not reported to you on Form 1099-B." Then you'd write "Available upon request" in column (a), enter "Various" for the dates in columns (b) and (c), and report your totals in the remaining columns. This is mentioned in the Form 8949 instructions. Just be aware that you still need to maintain detailed records of each transaction in case the IRS requests them. The summary method just saves you from having to list every single transaction on your tax forms.

I haven't been audited specifically for crypto, but my friend got flagged because he reported large crypto gains one year and then nothing the next, despite the exchange sending 1099s to the IRS. They questioned why he wasn't reporting any activity. Ended up costing him way more in penalties than if he'd just reported everything correctly.

That's really interesting! I do have a small side business doing web design that brought in about $12,000 last year. Would I qualify for this SEP IRA option? And can I open one if I also have access to my employer's 401k from my main job?

Yes, you absolutely can set up a SEP IRA for your self-employment income, even while having access to an employer 401k! The two are independent of each other. The calculation gets a bit tricky though - it's not simply 25% of your gross $12,000. For self-employment income, you first need to deduct the self-employment tax deduction, then calculate 25% of that reduced amount. With $12,000 in net business income, you could probably contribute around $2,200-2,500 to a SEP IRA. That would directly reduce your taxable income for 2023 if you establish and fund the account before filing your taxes. Many brokerages like Vanguard, Fidelity, or Schwab offer SEP IRAs that you can open online pretty quickly.

The work-related educational expenses deduction was suspended until 2025, so that's unfortunately not an option for 2023 taxes. The moving expense deduction is indeed only for active duty military now too. But good call on the self-employed health insurance premiums! If OP has self-employment income as mentioned above, they might be able to deduct health insurance premiums paid.

Interesting idea but isn't that overkill for what could just be a mistake? And would the IRS even care if the error results in people overpaying taxes rather than underpaying?

The IRS actually does care about systematic errors regardless of direction - their mandate is correct tax administration, not just collecting maximum revenue. Errors that cause overpayment can still trigger interest payments from the government and create unnecessary processing of amended returns. You might be right that it's overkill if this is truly just an isolated error. But based on the OP's description of being stonewalled for months despite acknowledgment of the error, I suspect this might be a more widespread issue. Brokerages have a legal obligation to report accurately, and the persistence of the problem suggests either incompetence or systemic issues in their reporting systems.

This is great insider knowledge - thank you! I'll definitely try the compliance department approach. Should I send this via certified mail or would email be sufficient? And is there specific language I should include to make sure it gets proper attention?

Certified mail with return receipt is best - it creates a paper trail that can be important if you need to escalate further. Email is okay as a follow-up but not as your primary communication. Use this language in your subject line: "FORMAL COMPLAINT: Regulatory Reporting Violation - Incorrect 1099 Tax Reporting." In the body, start with "This serves as a formal complaint regarding inaccurate tax reporting that violates IRS regulations for 1256 contract treatment." Then clearly outline the specific issue with your 1099, the dates you've attempted resolution, and names of people you've spoken with. Include a specific deadline (15 days is standard) and explicitly state that you will be filing regulatory complaints with FINRA, the SEC, and your state securities division if not resolved by that date. End with "I expect acknowledgment of this complaint within 3 business days.