Thanks for mentioning this! I didn't even consider that the forms might be different since I'm filing late. Do you know if there's a penalty for filing 2022 taxes this late if I'm owed a refund?

There's generally no penalty for filing late if you're owed a refund! The IRS is actually happy to hold onto your money longer. However, there is a time limit - you must file your return within 3 years of the original due date to claim any refund. For 2022 taxes, that means you have until April 2026 to file and still get any refund you're entitled to. Just be sure to clearly mark which tax year you're filing for on your forms, and I'd recommend filing the 2022 and 2023 returns separately rather than at the same time to avoid any confusion. And definitely use tax software or forms specific to the 2022 tax year rather than current forms.

I used TurboTax last month to file my late 2022 return with a December baby. It works fine - they keep the old tax year versions available. Just make sure you specifically select "2022" when you start, not the current year. It'll ask when your child was born and automatically figure out that they count for the full year even though they were born in December.

Thanks for this advice. I've been thinking about getting a second opinion from another accountant. Did you just call around until you found someone willing to take a look? And how much did they charge for the second opinion?

I asked friends for recommendations and found one who specialized in small businesses. I was upfront that I wanted a second opinion, and they charged me $150 for a consultation where they reviewed my documents and explained their reasoning. It was money well spent because they identified several additional deductions my first accountant missed, which more than paid for the consultation. Look for someone who works with a lot of sole proprietors in your industry, as they'll be more familiar with the specific deductions and credits that apply to your situation.

This is why I always use tax software instead of an accountant! Last year I got back $4500 more than I paid in because of my business losses and two kids. The software finds all these credits automatically. Just make sure you answer all the questions accurately about business use percentages and stuff.

11 Did you end up having to pay taxes on the forgiven debt? My parents' reverse mortgage is underwater by about $65,000 and I'm terrified of getting hit with a massive tax bill if we do a short sale.

3 I didn't end up paying taxes on it, but only because I kept all the documentation and fought it. When I received the unexpected 1099-C (Cancellation of Debt) form, I had to file Form 982 with my tax return to claim an exclusion. In my case, I qualified for the exclusion because the debt was considered "qualified principal residence indebtedness" under a temporary extension of the tax relief provisions. But the rules change frequently, which is why consulting with a tax professional who specializes in real estate is so important. The documentation I had from the mortgage company proving it was a principal residence was critical to avoiding that tax bill.

8 How do you determine the fair market value at time of death? Do you need a formal appraisal or can you use comps from around that time?

But what if the numbers on the paystub don't match what should've been on the W-2? Can you get in trouble for that? Who's responsible if there's a discrepancy?

If there's a discrepancy between your pay stub and what would have been on your W-2, you won't get in trouble as long as you're using the best information available to you and documenting your efforts to get the correct information. The responsibility ultimately falls on the employer to provide accurate tax documents, and the IRS understands that sometimes taxpayers have to file with estimated information. When you file Form 4852, there's actually a section where you explain how you determined the amounts and what efforts you made to obtain the correct W-2.

Did anything actually happen after you filed that form? I'm wondering if it's worth the effort or if the IRS just files it away somewhere and never follows up.

Does the app separate business vs personal miles automatically? That's the part I always mess up. Also, does it integrate with any tax software?

The app lets you swipe right for business trips and left for personal ones after each drive, so it's not fully automatic - you still need to classify them. But it does track all the other details automatically (date, time, route, mileage). And yes, it can export to Excel or CSV formats that work with most tax software. I use TurboTax and it imports the data pretty seamlessly. The peace of mind knowing I have audit-proof records is totally worth the small effort of swiping each day.

This is super helpful perspective! My truck definitely falls into the "gas guzzler with high maintenance" category - it's a 2018 F-150 and I spent almost $4,300 on repairs last year plus all the gas. Sounds like I should really run the numbers on actual expenses based on your experience.

Definitely run the numbers with your specific situation. One other tip - if you go with actual expenses, don't forget to include less obvious costs like depreciation, property taxes on the vehicle, and even insurance. Those can really add up! A vehicle like yours with high repair costs often does better with actual expenses, especially if you're keeping all your receipts. Just remember that with either method, you need to track your business vs. personal miles to determine the business use percentage.