Oh crap I didn't even think about FBAR stuff. I do have a local bank account here but it's never had more than like $5k in it so maybe I'm ok? What happens if you miss filing those in previous years?

If your foreign accounts never exceeded $10,000 total (combined value of all foreign accounts) at any point during the year, you're not required to file the FBAR for that year. So based on what you've said, you should be fine on that front. If someone does need to file back FBARs, there's a streamlined filing procedure for people who weren't aware of the requirement. The IRS recognizes that many Americans abroad simply don't know about this obligation. The penalties for non-willful violations are much less severe than if they think you were deliberately hiding assets.

This happened to my brother too. The penalties literally doubled what he owed. He had to set up a payment plan for 3 years to clear it all.

Thanks for this tip! Do you know if there's a specific place in TurboTax where I should note that I'm missing the contractor's info? And did you still try to file a 1099-NEC anyway, or did you skip that part entirely?

In TurboTax, when you're entering business expenses, after you categorize the expense, it usually gives you a section for "Description" or "Notes" - that's where I mentioned the missing contractor info. I was very specific about what services were provided and when, plus how I paid them. I did attempt to file the 1099-NEC with "Applied For" in the TIN field as others suggested, but I also kept documentation showing I had repeatedly requested their tax info. The expense itself was claimed on my Schedule C regardless of the 1099 situation - they're separate issues. Your business deduction is valid even if you can't complete all the information reporting requirements, as long as it's a legitimate business expense.

This worked for me! My stubborn contractor finally sent their info when I explained that I'm actually REQUIRED by law to report payments over $600, and that without their EIN, the IRS might flag both of us for review. Sometimes they just don't realize it's not optional.

I prepared everything myself using TurboTax. This was definitely my first submission attempt. I called the Identity Protection Specialized Unit like someone suggested above, and they confirmed someone else tried filing with my SSN! Currently working through the identity theft affidavit process now. Thankfully I caught it early.

That's definitely more concerning then. Glad you called and confirmed! The earlier you catch these things and get the identity theft affidavit filed, the better. Make sure you also request an Identity Protection PIN from the IRS for next year - it's an extra 6-digit code that prevents anyone from filing electronically with your SSN without the PIN.

You absolutely still need to file the extension separately! The identity theft affidavit (Form 14039) doesn't extend your filing deadline. Make sure to submit Form 4868 by mail ASAP with "POTENTIAL IDENTITY THEFT" written at the top so they flag it for special processing.

Thanks for clarifying! That's super helpful to know. I'll make sure to do both if I ever run into this problem.

Do they offer any support if you get confused during the process? I'm not super tax-savvy and that's why I've always used a preparer.

They do offer customer support through email for free, and if you upgrade to their deluxe version (which is still only about $7), you get access to live chat support. Honestly though, their interface is really straightforward and they explain things in simple terms throughout the process. Their help sections are actually really good at explaining tax concepts in plain English, much clearer than what I got from my previous tax preparer who just rushed through everything. And even with the deluxe upgrade for priority support, you're still paying less than $25 total, which is a fraction of what you'd pay a professional.

Yep, this happened to me too. Started with "free" TurboTax, ended up paying $175 after state filing and all their add-ons. Still better than the $350 I was paying before, but definitely not the "free" they advertised.

That's a good point! He only has the restaurant job, no side gigs. But I'm not sure about the W-4 thing - I don't think he knew to check any specific box when he filled out his paperwork. Is that something the employer might have done automatically because of his age?

Employers shouldn't automatically mark anyone as exempt based on age alone. When your brother filled out his W-4, he would have had to specifically claim exemption from withholding by writing "Exempt" in the appropriate space. It's possible he did this without understanding it, or maybe the employer made an assumption based on his age and income level (which they shouldn't do). For his new W-4 this year, if he expects to earn more than the standard deduction ($12,950), he should definitely not claim exempt status, as he'll likely owe taxes.

Is that really true? I thought if you don't owe any taxes, there's no penalty for not filing when you're under the threshold. Why would the IRS come after someone for not filing when they weren't required to?