Do you know if VITA can handle returns from 2022? And would they help even now since it's not tax season? I'd definitely prefer having someone knowledgeable walk me through it step by step.

VITA can definitely handle 2022 returns. While many VITA sites operate primarily during the regular tax season (January through April), some locations offer year-round assistance specifically for prior year returns. Your best bet is to call your local library or search for "VITA tax sites" in your area to check availability. Even outside regular tax season, many VITA volunteers are willing to help with prior year returns because they understand situations like yours are common. Just be sure to bring all your documents (W-2s, identification, social security card) when you go. The service is completely free for basic returns, and they're specifically trained to help people who are filing for the first time or have simple tax situations.

Cash App Taxes (formerly Credit Karma Tax) is completely free for federal and state returns, but there's a catch for prior year returns. They typically only support the current tax year and maybe the year before. For 2022 returns in 2025, you'll probably need to use one of the IRS Free File options instead.

Would these kinds of changes typically be communicated to employees beforehand? My company did something similar and nobody told us anything until we all noticed smaller paychecks.

Ethically and professionally, yes - these changes should absolutely be communicated in advance. However, there's no legal requirement for employers to notify employees about changing how they structure compensation, as long as they're properly reporting everything on your W-2 and following tax laws. Some companies deliberately avoid announcing changes that will effectively reduce take-home pay because they know it will cause employee dissatisfaction. It's a short-sighted approach that usually backfires when everyone notices anyway and feels deliberately misled. If this happened without communication, it might not be illegal, but it's definitely a red flag about company culture and how they value transparency with employees.

I actually did! I printed out my paystubs from before and after the change, highlighted the differences, and requested a meeting with the managing partner. I explained that the increased withholding effectively canceled out my recent raise, and asked if they would consider a compensation adjustment to offset the change. They initially said no, but when three other employees made similar requests within the same week, they announced an across-the-board 3% "market adjustment" the following month. Sometimes they just need to realize that people are paying attention.

That's really helpful to know! I've been feeling so powerless about the whole situation. I'm going to gather my documentation and see if any colleagues want to approach management together. Strength in numbers makes sense in this situation. Did you have to get confrontational or was it more effective to just present the facts clearly and ask for a solution?

Many people don't know exactly what their annual income will be until late in the year, especially if they get bonuses or have variable income. It's pretty common for people to contribute to Roth IRAs throughout the year and then discover at year-end that they've exceeded the income limits, requiring a recharacterization.

Exactly what the other commenter said - we contribute monthly to our IRAs throughout the year, and we didn't realize until December that a bonus and some unexpected consulting income had pushed us over the limit. By then we had already made full contributions to our Roth IRAs for the year. Honestly, we'd never had to do a backdoor Roth before, so the whole process was new to us. Next time we'll just contribute to Traditional and convert right away since our income will likely be over the limit again.

Does the policy need to be some fancy legal document or can it just be a simple written guideline? We're a small business and don't have the budget for attorneys to draft policies.

It doesn't need to be anything fancy or lawyer-drafted. A simple company policy document works fine. Ours is just a 1-page document that outlines: - Timeframe for submitting receipts and documentation (45 days for us) - What documentation is required (itemized receipts, business purpose, attendees for meals) - Process for submission and approval - Timeframe for processing reimbursements (30 days for us) We have employees sign it when hired so they understand the process. The key is being consistent in applying it. Even a simple email that you send to all employees can establish your policy, though I recommend something a bit more formal that you can reference if needed.

For foreign currency conversion, the IRS allows you to use either the actual exchange rate from the credit card statement (if available) or the official exchange rate for that date. Since your employee paid with their personal card, the simplest approach is to reimburse based on the USD amount shown on their credit card statement, as this reflects the actual cost to them including any conversion fees. For receipts that only show euros, you'll need to document what exchange rate you used for conversion and apply it consistently. Most accounting software can handle this automatically, or you can use the Treasury Department's official exchange rates if you want to be extra safe.

Thanks for explaining! My employee's credit card included the USD conversion amount for most charges, so I'll use those. For the few that didn't convert, I'll look up the Treasury rates for those specific dates. Appreciate the help!

Thanks for the tip! Will I need any specific documentation from Fidelity if I make this IRA contribution now for last year? And should I reduce the contribution amount since we'll only get 10% back?

You don't need any special documentation from Fidelity for your tax return. When you make the contribution, just make sure you specify it's for the 2023 tax year. Fidelity will eventually send a Form 5498, but that usually comes after the tax filing deadline and isn't needed to claim the credit. As for reducing the contribution amount, I'd still recommend contributing the full amount to reach $2,000 total. Even though you're only getting 10% back as a direct credit ($200), remember that traditional IRA contributions also reduce your taxable income. So you're getting both the $200 credit AND the tax deduction on your contribution, which at your income level could save you another 22% or so in taxes on that money.

I amended last year for exactly this reason! It was a bit of paperwork but totally worth it in my case. Got back about $280 between the credit and the deduction on a $1,400 contribution. Just filed Form 1040-X with the corrected info and Form 8880 for the credit.

Thanks for sharing your experience! $280 back on $1,400 is pretty good. I think I'm gonna go ahead with the amendment. I hate leaving money on the table, even if it's just a couple hundred bucks.