That's exactly what I'm worried about! How do you know for sure you've got everything? I usually get a W-2 from my main job and a 1098-T for my kid's college, but sometimes random 1099s show up.

I keep a checklist of all expected documents from previous years and mark them off as they arrive. I also wait until at least February 1st even though some forms come earlier - this gives stragglers time to arrive. For unexpected 1099s, I log into any accounts where I might have earned interest or made transactions (banks, investment accounts, payment apps like PayPal or Venmo if you use them for business) and check if they're issuing forms. Most places now let you see if a tax form is being generated before they actually send it.

I second FreeTaxUSA! Used it for the first time last year and it was super straightforward. The interview process walks you through everything, and they have good support articles if you get confused.

The IRS absolutely does catch these eventually through their matching programs. My brother ignored his excess contribution for 4 years thinking they wouldn't notice, and then got hit with the 6% penalty for all 4 years PLUS interest and an accuracy-related penalty. The IRA custodian reports all contributions to the IRS on Form 5498, and they cross-check that against your income on your tax returns.

That's good to know - definitely going to address this ASAP then. I was hoping maybe they had bigger fish to fry, but sounds like their systems eventually catch up to these issues. Better to pay the penalties now than wait for them to find it and potentially face even more penalties and interest.

This is actually super helpful. What specific items don't count toward MAGI for Roth contribution purposes? I'm wondering if I might have made the same mistake in my calculations.

Which state was this in? I'm in California and my husband works for a consulate with tax exemption. Been wondering if state taxes work differently for us.

I'm in New York, which has some unique rules for diplomatic and international organization families. California also has its own system that doesn't perfectly align with federal filing statuses, especially for international employees with special tax treatment. For California specifically, even if your husband has federal tax exemption through his consulate work, you may still need to report his income on your state return depending on your filing status. California looks at worldwide income for residents even when it's exempt at the federal level. I'd recommend consulting with a tax professional who specializes in diplomatic/international tax situations in California to avoid surprises.

I amended 2 prior years returns in a similar situation (spouse with NATO exemption). No audit but the refund for the older year took almost 11 months to process! The more recent one came in about 5 months. Just be prepared to wait forever if you're owed money.

Get everything documented before you file amendments. I amended 3 years ago and got audited because I couldn't properly document my wife's exempt status. The IRS wanted a letter from her employer confirming her tax exemption status. Took forever to sort out.

Thanks, this is exactly what I needed to know! I pay about $6k in state income taxes, no mortgage, and minimal medical expenses. So it sounds like I'd need to donate around $8k worth of stuff to make itemizing worthwhile, which is definitely not happening this year lol. I'll just take the standard deduction and be happy the clothes are going to someone who needs them more than me.

Yep, you've got it right. In your situation with $6k in state taxes, no mortgage, and minimal medical expenses, you'd need about $8k in charitable donations to make itemizing beneficial. The good news is that even without the tax benefit, your donation will help others. And if your financial situation changes in future years (like buying a home with a mortgage), the equation might change too!

You're not wrong, but there are other tax benefits designed for lower/middle income folks that high-income people don't get. The tax code is complicated. Also, the standard deduction is basically a "freebie" deduction whether you donate or not, so at least there's that.

This is exactly what I was worried about. I kind of estimated my business use at around 75% but I don't have perfect records. I do have all my delivery app summaries though - would those be enough to support my claim if I get audited? And how long after filing did your brother get audited?

The delivery app summaries are a good start, but they usually only show miles while actively on deliveries. They don't capture dead miles (driving to busy areas, returning home, etc.) which are still business miles. My brother got audited about 14 months after filing, and the IRS wanted to see a mileage log showing business vs. personal trips. If you don't have perfect records, reconstruct the best log you can from the app summaries, your calendar, bank statements showing gas purchases, etc. Even a reconstructed log is better than nothing. Also, in my brother's case, they only went back one year, so if your return from last year doesn't get flagged in the next 6-12 months, you're probably in the clear.

Yeah, the QBI deduction is awesome! But keep in mind it gets complicated if your income is above certain thresholds or if you have multiple businesses. For simple delivery driving below the threshold amounts, you basically get to deduct an extra 20% of your net business income, which can really help offset the self-employment tax burden.