I'm confused about the home office deduction. I've been working fully remote since 2021 but my employer doesn't require it. Can I still claim my spare bedroom that I use as an office?

Unfortunately, if you're a W-2 employee (even if fully remote), the home office deduction typically isn't available to you anymore. This was suspended by the Tax Cuts and Jobs Act through 2025 for employees. The home office deduction is generally only available if you're self-employed or an independent contractor. If you have a side gig that you run from home in addition to your regular job, you might be able to claim the deduction for that portion of your work, but not for your primary employment.

That's probably for the landlord to complete, not you as the tenant. Some cities in California have rental registry programs where landlords have to register their rental properties and provide information about rent amounts, but those aren't tax forms for renters.

Good point about the state return! If I amend my federal return for this 1099 income, do I need to wait until the IRS processes that amendment before filing the state amendment? Or should I do both at the same time?

You should check your specific state's requirements as they vary. Most states want you to wait until the federal amendment is completed and accepted by the IRS before filing a state amendment. This is because they'll want you to include a copy of your federal acceptance letter or transcript showing the changes. Some states have a specific timeframe (like 60 or 90 days) after your federal amendment is finalized to submit your state amendment. Missing this deadline can result in penalties, so definitely check your state tax agency's website for their specific process.

It depends on who controlled the work. If the family directed exactly how and when care was provided, it might be household employment. If OP was more independent in providing care on their own terms, it's likely self-employment. The distinction matters because household employees don't pay self-employment tax, but employers should pay their share of FICA taxes.

But wouldn't they still have to pay self-employment tax too? Even with $40k net income, shouldn't that be more than $4k total tax between income tax and SE tax?

You're absolutely right about self-employment tax. Even with $40k net income, they would owe about 15.3% in self-employment tax alone, which would be around $6,120. Then they'd still owe some amount of income tax on top of that, even after taking the standard deduction.

That's a great point. For 2023, self-employed individuals could contribute up to $66,000 to a Solo 401(k) if they're under 50. Add in a maxed HSA contribution and some business expenses, and you could bring that taxable income way down legitimately.

Thank you for mentioning this! I just checked my 1099-B and I think this might be part of my problem. The cost basis seems lower than what I remember the shares being worth when they vested. How exactly do I use this Form 8949 to make the adjustment?

You'll need to complete Form 8949 with your tax return. In column (a), enter the description of the property (your company stock). In columns (b) through (g), enter the information from your 1099-B. Then in column (g), enter the correct amount of gain or loss using your actual cost basis (the FMV on vesting date). In column (f), check box B to indicate you're reporting a basis different from what was reported to the IRS. You'll also need to attach an explanation statement to your return that explains why you're adjusting the basis - something like "Adjusting cost basis to fair market value at RSU vesting date, which was included as income on my W-2.

Great point! I mixed up my RSUs and ESPP shares last year and almost reported everything wrong. ESPP shares are WAY more complicated tax-wise because of the discount and lookback provisions. What helped me was downloading a detailed transaction history from my company's stock administrator (like E*TRADE, Fidelity, Morgan Stanley, etc.) and looking at the transaction types. RSUs will show as "RSU Release" or similar when they vest, while ESPP purchases will show as "ESPP Purchase.

Is there a cutoff for how far back you can claim refunds? I haven't filed for 6 years but had withholding the whole time.

Yes, there is a cutoff - it's 3 years from the original due date of the return. So for example, 2022 tax returns were due April 18, 2023, meaning you have until April 18, 2026 to claim any refund for that year. For 2021 returns, you have until April 15, 2025. Unfortunately for your situation with 6 unfiled years, you've likely lost the ability to claim refunds for the oldest 3 years, but you can still get refunds for the most recent 3 tax years if you're owed them.

This is 100% accurate. I work at a tax resolution firm and we help people with 10+ years of unfiled returns regularly. The IRS is far more reasonable than people think as long as you're making an effort to comply. They're not interested in sending people with regular jobs to prison.