Do you need to make an appointment for VITA or can you just show up? And do they file state taxes too or just federal?

You definitely need to make an appointment for VITA services - they book up fast, especially as it gets closer to the April filing deadline. I recommend calling your local library or checking the IRS website to find VITA locations near you and schedule ASAP. They absolutely handle state taxes too! The volunteers are trained on both federal and state returns. Just make sure to bring all your tax documents (W-2s, 1099s, last year's return, etc.) to your appointment. Most locations also offer the option to file electronically so you can get your refund quickly.

I used H&R Block last year when I was unemployed. Their basic free version is OK but very limited. I don't think they have a specific laid-off promo, but they do have a "More Zero" option that's free for simple returns. But beware they'll try HARD to upgrade you if you have anything even slightly complicated.

Does this mean any child (regardless of age) can be a qualifying person for QSS as long as they live with you and you provide more than half their support? What about the gross income test that applies to dependents?

That's exactly right - for QSS purposes, a qualifying child can be any age as long as they're your child (including stepchild or adopted child), they lived with you for more than half the year, and you provided more than half their support. The gross income test that applies to dependents doesn't apply to the qualifying person test for QSS status. This is a key difference that causes confusion. Your adult child can have unlimited income and still be your qualifying person for QSS purposes, even if you can't claim them as a dependent because of their income.

Absolutely! File Form 1040-X to amend your previous return. You generally have 3 years from the date you filed your original return (or 2 years from when you paid the tax, whichever is later) to file an amendment. Definitely worth doing for $4K!

So exactly how far back can states go to collect back taxes? Is there like a statute of limitations or can they just go back forever if they catch someone who hasn't been filing?

Most states have a statute of limitations of 3-7 years for ordinary tax assessment, but here's the catch: those time limits typically only start AFTER a return is filed. If someone never files at all, many states consider that an open window with no time limit. I've personally seen cases where the state went back 10+ years for non-filers. And the really painful part is that penalties and interest compound over time, so a relatively small original tax liability can grow into an enormous debt. I've seen $5,000 in original tax liability balloon to over $20,000 with penalties and interest when someone didn't file for several years.

Really?? They found you just from your Etsy shop location? That's kind of terrifying. I've been selling on Etsy for like 2 years and haven't filed anything with my state. Do you think I should get an accountant or just start filing now going forward?

This is exactly what I was looking for, thank you! I've checked our returns and there's no Form 6765 included anywhere, so I guess we're not claiming these credits. Based on that 4-part test, I'm pretty sure at least some of our projects would qualify. We do a lot of work on complex structures with unique sustainability challenges that require significant testing and prototyping. Do you know if there are downsides to claiming these credits? Like does it increase audit risk or anything like that?

There is a slightly increased audit risk since R&D credits are scrutinized more carefully than some other deductions, but it's manageable with proper documentation. The key is to maintain thorough records of your qualifying activities - project plans, design iterations, testing results, emails discussing technical challenges, etc. The potential benefits usually far outweigh the risks. If you're confident your activities meet the four-part test and you have documentation to support it, don't let audit concerns prevent you from claiming legitimate credits. Just make sure you're working with someone experienced in R&D credits for architectural firms specifically, as they can help structure your documentation properly.

What software do you use to track this? We're a small engineering firm and our time tracking is pretty basic right now.

Thanks for this advice. I have been keeping emails, but I hadn't thought to document the phone calls with this level of detail. Do I need to submit this documentation with my tax return or just keep it in case of questions later?

You don't need to submit the documentation with your tax return unless you're filing by mail and want to include it as supporting evidence. But definitely keep it in your records for at least 3 years (the standard IRS lookback period for audits). If the IRS does question the discrepancy between your Form 4852 and what your employer reported, having this documentation ready shows you weren't trying to misrepresent anything - you were actively trying to get the correct information but had to file with what you knew was accurate. It demonstrates good faith on your part.

That's terrible advice. You should NEVER file knowingly incorrect tax information, regardless of the amount. That's literally asking for problems down the road.

I wasn't suggesting filing incorrect information! I was suggesting evaluating whether the correction is material enough to warrant the extra steps. For example, if box 12 is off by $5 due to a rounding error, that's very different than if it's off by $5,000. The IRS itself has de minimis rules for certain reporting requirements. I'm not saying to ignore significant errors, just to consider whether the particular error materially affects tax liability before going through the Form 4852 process.