This is exactly what happened with my ex. He tried to claim our kid on his unemployment to get the higher benefit amount, knowing a portion would be garnished for the back support he owed. Kind of sneaky but at least some money was coming to support the child.

I know it seems silly to worry about 99 cents, but I just want to make sure I'm doing everything right. Better safe than sorry when it comes to taxes! Thanks for the straightforward advice though.

Trust me, I get it. I used to work myself up over tiny details on my taxes too. My accountant friend always says "report everything accurately but don't lose sleep over pennies." The IRS is looking for major discrepancies, not whether you properly categorized less than a dollar. Cash basis is right anyway for most regular people.

It's because different types of income have to be reported on specific forms. The 1099-B is specifically for proceeds from broker transactions (buying/selling investments). The 1099-MISC Line 3 "Other Income" is for things that don't fit elsewhere - like referral bonuses, interest on uninvested cash, or promotional rewards. The IRS requires brokers to categorize each type of payment correctly. It is confusing though - I agree the system could be streamlined!

Thanks for this advice! I've never heard of an IP PIN before. Does having this PIN slow down my refund processing at all? And do I need to get a new one every year or is it a one-time thing?

The IP PIN doesn't slow down your refund processing at all - it actually helps prevent delays because it verifies upfront that you are the legitimate filer. The IRS knows immediately that your return is the valid one. Yes, you do need a new IP PIN each year. The IRS issues new ones every January, and they'll mail it to you automatically once you're in the program. You can also retrieve it online through the IRS website. It's a small hassle to keep track of a new number each year, but definitely worth it for the protection it provides.

This is really good advice. How do you get the wage and income transcript? Can you do it online or do you have to mail a request?

That's a really important point I hadn't considered. So even though I'd be working for a US company, I could end up being a UK tax resident because of the 183+ days rule. Do you know if there's any way to maintain Irish tax residency instead, since that's where my permanent home would still be?

You could potentially maintain Irish tax residency by ensuring you spend enough time in Ireland and limiting your time in Scotland to under 183 days per UK tax year. Ireland has a similar 183-day rule, but also considers other factors like maintaining a permanent home there. One approach some people use is careful day counting across tax years - for example, spending just under 183 days in the UK in each UK tax year, but timing it so those days fall across two different Irish tax years. This requires very careful planning and documentation of your whereabouts. Keep in mind though that if you're physically performing the work in Scotland, the UK will have taxing rights on that income regardless of your residency status. The difference is that as a UK resident, they tax your worldwide income, while as a non-resident, they only tax UK-source income.

Really good point about social security! When I moved from Ireland to the UK for work, I was able to get a form from the Irish authorities confirming I was still covered under the Irish system, which meant I didn't have to pay UK National Insurance. I believe it was called Form E101 or something similar. Worth looking into!

How much prep work do you still have to do before meeting with your CPA? Do you have to categorize all your expenses or do they do that for you?

I still have to do quite a bit of prep work. I organize all my income documents (W-2s, 1099s, investment statements), categorize my business expenses in a spreadsheet, and summarize any major financial changes from the previous year. For business expenses, I do the initial categorization (office supplies, travel, meals, etc.), but my CPA often reclassifies some items to more advantageous categories I wouldn't have known about. She doesn't do basic bookkeeping - that would cost significantly more. The more organized you are, the less you'll pay because they bill by the hour. The real value comes from their knowledge of the tax code, not data entry work.

I've never heard of Enrolled Agents. What's the difference between them and CPAs? Are they as qualified to handle complex situations?