Did your CPA give you advice for the current tax year or just file last year's return? I'm considering one but want ongoing tax planning, not just filing help once a year.

My CPA definitely provided advice for the current year, which was one of the most valuable parts of working with him. After filing my previous year's return, we had a separate 30-minute call specifically focused on tax planning strategies for the current year. He suggested restructuring how I track business expenses, recommended setting up quarterly estimated payments to avoid penalties, and gave me a spreadsheet template for better tracking my crypto transactions throughout the year. Good CPAs view the relationship as ongoing tax optimization, not just a once-a-year filing service.

I used CoinTracker last year and it was decent for basic stuff but struggled with some DeFi transactions and NFTs. It helped organize everything but I still needed to make a lot of manual adjustments. Better than nothing though!

That's really interesting and might explain part of our situation. My husband was making around $6,000/month, then was unemployed for about 2.5 months, but when he returned to work, his new position paid about $7,200/month. So his income pattern was definitely uneven. Would the software automatically check for this "annualized income installment method" or do I need to specifically tell it to use this calculation?

Most tax software doesn't automatically check the annualized income installment method - you typically need to select it manually. Look for a checkbox or option labeled something like "Use Annualized Income Installment Method" or "Special calculation for uneven income" when you're in the estimated tax/penalty section. If your husband's income pattern was uneven as you described, this method might reduce or eliminate any remaining penalty after you fix the decimal point error. The annualized method essentially tells the IRS "I didn't make this money evenly throughout the year, so don't expect my tax payments to be even either.

I've used both TaxHawk and FreeTaxUSA, and I've found FreeTaxUSA to be more accurate with penalty calculations. When I had a similar issue last year, TaxHawk calculated a $1,200 penalty while FreeTaxUSA showed only $340. I ended up filing with FreeTaxUSA and the IRS never questioned it.

Does anyone know if you have to wait for the IRS to process the federal amendment before filing the state amendment? Or can you do both at the same time?

You can generally file both federal and state amendments at the same time - you don't need to wait for the federal to be processed first. However, you should make sure the information matches on both amendments. Some states do want you to include a copy of your federal amendment with your state amendment, so have that ready when you prepare your state forms. And definitely check your specific state's deadline - while many follow the federal 3-year rule, quite a few have different timeframes that could work in your favor.

The only exception I know of is if you were physically or mentally unable to manage your financial affairs during that time. It's called "financial disability" and requires certification from a doctor. It's in Internal Revenue Code section 6511(h) if you want to look it up.

I've heard military members deployed in combat zones get extensions too, and there might be something for people in federally declared disaster areas. But from everything I've read, they're super strict about that 3-year limit for regular situations.

Thank you for the insider perspective! That's really helpful. Do you know if there's any way I can request that they issue a proper W-2C instead of just this "updated W-2"? I'm worried about potential issues with my amended return without the proper documentation.

You should contact your payroll department again and specifically request a W-2C, explaining that you've already filed using the incorrect W-2 and need the proper correction form for your amended return. Mention that this is the standard procedure according to IRS guidelines. If they continue to refuse, you can still file your amended return with the documentation you have. Include a written explanation that you requested a W-2C but the employer only provided an updated W-2. The IRS is familiar with employers not always following proper procedures, and your explanation should help prevent any issues with your amended return.

Does H&R Block software handle this too? I'm in a similar situation but using H&R Block and can't figure out how to enter the correction.

Good point about the dependent status. I'm 25 and completely support myself, so my parents definitely aren't claiming me as a dependent. And I'm filing as single. With my $29k AGI, do you know which percentage tier I'd fall into exactly?

For a single filer with a $29,000 AGI in tax year 2024 (filing in 2025), you'd qualify for the 10% Saver's Credit tier. The 50% tier cutoff for single filers is $21,750, the 20% tier goes up to $23,500, and the 10% tier extends to $36,500. So with your contribution to your Roth IRA, you'd get a tax credit worth 10% of your contribution amount, up to a maximum credit of $200 (which would be based on a $2,000 contribution). Every bit helps when it comes to tax savings!

I used H&R Block last year and it handled the Saver's Credit correctly. The software asked if I was a full-time student for at least 5 months during the year (yes/no question) rather than asking for all the specific months. Make sure you're answering based on the 5-month rule, not just whether you were in school.