Thanks for the warning about the standard deduction amounts changing. I totally would have missed that! Do you think it's worth paying for basic tax software rather than literally copying from paper forms? It sounds like there are enough changes that I could mess up.

Honestly, I'd definitely recommend using software even if it's a basic version. The software will have all the updated numbers, forms, and will do the calculations for you which reduces math errors. Plus it will walk you through questions that might trigger you to remember things like "oh yeah, I did start that savings account" or whatever. Basic tax software is usually around $50-70 for federal and state, which is MUCH cheaper than the $800 you were quoted. It's a good middle ground between completely DIY paper forms and paying a professional. I use FreeTaxUSA now and it's been great - only about $30 total.

Did you find it difficult to switch to doing it yourself? I'm scared I'll mess something up and get audited.

I just checked the SSA site like you suggested and was able to create an account! You're right, I can see my earnings there, though it only shows quarterly totals not the withholding info. Super helpful for figuring out what I made before January though! One more question - if I file using Form 4852 with my best estimates and later receive my actual W-2, do I need to amend my return?

Yes, if you receive your W-2 after filing with Form 4852 and notice any significant differences between your estimates and the actual W-2 amounts, you should file an amended return using Form 1040-X. However, if the differences are very small and don't affect your tax liability, the IRS generally doesn't require an amendment. The good news is that most employers electronically report W-2 information to the IRS, so even if you don't have the physical form, the IRS likely has your wage and withholding information in their system. This is why it's so helpful to speak with them directly about your situation.

This is good advice but just be careful with the January estimate. Tax withholding often changes at the beginning of a new year because of FICA limits and tax table changes. So your January withholding percentages might be slightly different than December.

Are the Tax Institute guides updated every year? My main concern is spending money on resources that might become outdated with tax law changes.

Yes, they update them annually to reflect the latest tax legislation and rulings. That's actually one of their big selling points - you're getting the most current information, which is crucial in tax accounting where rules change frequently. The recent editions include all the changes from the last federal budget and recent ATO interpretations. Even if you buy last year's edition at a discount, the core concepts remain valid, but for specifics like rates and thresholds, you'd want the current version.

I second this! PwC's summaries are gold. Also check out the free CCH IntelliConnect resources if your uni library subscribes - saved me heaps of $$ on books.

What about using a credit card that gives really good cash back rewards? Would that make sense even with the processing fee? I have a card that gives 2% on everything.

Even with a 2% cash back credit card, you'd basically break even or lose money. The payment processors that handle IRS payments typically charge 1.87% to 3.93% depending on which one you use. If you get 2% back on your card but pay a 2.5% processing fee, you're still losing 0.5% overall. It's generally not worth it unless you have a special promotion or really need to meet a minimum spend requirement for a big bonus on your card.

I filed last week using H&R Block Premium through Rakuten. The 16% cash back showed up in my Rakuten account within 2 days. I paid $89 for the software and got $14.24 cash back. Make sure you click through the Rakuten link directly and complete your purchase in the same session!

I didn't realize I needed to check box 15! I'll take another look at the 1099-DIV for that code. So assuming it is code "R" as you mentioned, I would just reduce the basis from $8,115 to $7,270 on Form 8949, right? Is there anywhere else I need to note this adjustment?

Yes, that's exactly right. On Form 8949, you'll enter the original cost basis of $8,115 in column (e), then in column (g) you'll enter the adjustment amount of -$845 with code "B" which stands for "Basis adjustment." Then your adjusted basis in the calculation becomes $7,270. Make sure to check the right box at the top of Form 8949 for long-term transactions reported on a 1099-B with basis reported to the IRS. The form has clear instructions for these adjustments, and this way you're documenting exactly why your basis is different from what was reported to the IRS on the 1099-B.

Does FreeTaxUSA handle K-1 forms too? I've got some partnership interests and those forms are a nightmare to deal with manually.