It's the combined total of all your foreign financial accounts at any point during the year. So if the aggregate (combined) maximum value of all your foreign accounts exceeded $10,000 at any time during the calendar year, you need to file an FBAR - even if no single account ever exceeded $10,000. For example, if you have three foreign accounts with maximum balances of $4,000, $3,000, and $4,000 during the year, your aggregate maximum would be $11,000, triggering the FBAR filing requirement. The key is to look at when all accounts were at their highest, even if that happened on different days.

Thank you for clarifying! I definitely need to file then. I've had 5 accounts in my home country for years and never filed because each one stays small, but together they're definitely over $10K. Better late than never I guess?

That's actually super helpful advice! I wouldn't have thought to document everything like that. Will definitely save all confirmation emails and screenshots when I submit. Did you mail your FBAR or file electronically? I'm assuming electronic is better for creating that paper trail?

Definitely file electronically - it's the only option now anyway. The FinCEN BSA e-filing system will give you a confirmation receipt with a BSA Identifier number immediately after submission. Save that PDF confirmation right away and also take screenshots of the successful submission page. Electronic filing creates a much better trail than paper ever did, plus it processes much faster. Just make absolutely sure all your information is accurate before submitting, especially account numbers. Simple mistakes can cause headaches later.

Can the custody agreement override the IRS rules? Like if the agreement says the non-custodial parent can claim the kids but they don't have the Form 8332, does that still work with the IRS?

The custody agreement itself doesn't override IRS rules, but it creates a legal obligation between you and your ex. For the IRS to recognize the non-custodial parent's right to claim the child, you still need Form 8332 or similar documentation. What works well is having the requirement to sign Form 8332 explicitly stated in your custody agreement. This way, if the custodial parent refuses to sign it when they're legally obligated to by the court order, you have recourse through family court. It's essentially a two-step process: the custody agreement creates the legal obligation between parents, and Form 8332 satisfies the IRS requirements.

That's exactly what I'm worried about! Did you try to get the Form 8332 signed after the fact or was it too late by then?

What about if I drive a lot but also had a major repair? I did about 20,000 business miles last year but also had to replace my engine for $7,000. Which method would be better for me?

For 20,000 business miles at the standard rate, you'd get about $13,400 in deductions (20,000 × $0.67). To determine if actual expenses are better, you need to add up everything: the $7,000 engine replacement plus all your gas, insurance, maintenance, repairs, and depreciation for the year. If your total actual expenses exceed $13,400, then the actual expense method would give you a better deduction. But remember, if you choose actual expenses in the first year you use the vehicle for business, you're generally stuck with that method for the life of the vehicle.

OMG when you put it that way ($32 per mile) it makes the error even more obvious! I went back and checked everything and found the problem. When entering my mileage, I also had "actual expenses" checked in a different section. Once I unchecked that and just used standard mileage, the number went from $128,439 down to $2,680. Huge difference! My refund is smaller now but at least I won't be getting audited for claiming I spent more on my van than it's actually worth 😅 Thanks everyone for the help!

That's an interesting point - I'll have to double check the paperwork. The financing company definitely framed it as a way to exercise without selling any shares (that was their main selling point), but now I'm wondering if there were any partial sales happening behind the scenes to cover taxes.

Definitely check the paperwork carefully. Some financing companies structure the transaction as a loan against the shares rather than a true cashless exercise, which preserves the tax treatment of a regular exercise-and-hold strategy. The key documents to look for would be any statements showing exactly how many shares you received versus how many you purchased, and confirmation of exactly what taxes were paid at the time. If they paid estimated taxes rather than withholding, that might explain part of the confusion too.

83(b) elections are for restricted stock, not ISOs. They don't apply in this situation at all. ISOs are governed by different tax rules.

You're absolutely right - thanks for catching that! I mixed up the amounts. It was definitely the $300 supplemental for 2021, not $600. Do you happen to know which states provided their own unemployment tax breaks for 2021? I'm in Michigan if that helps.

Several states did offer some tax relief for unemployment benefits in 2021. Unfortunately, Michigan wasn't one of them. The states that excluded some unemployment compensation from state taxes in 2021 included Colorado, Delaware, Georgia, Hawaii, Iowa, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Missouri, North Carolina, New Mexico, New York, and Oregon – but the amounts and qualifications varied significantly. For Michigan residents, unemployment compensation was fully taxable for 2021 at both federal and state levels. When you file your back taxes, make sure you have your 1099-G form showing all the unemployment you received. If you don't have it, you can usually retrieve it from your state's unemployment agency website.

Would filing an offer in compromise be an option for someone in this situation? I've heard that's a way to settle tax debt for less than what's owed if you can prove hardship.