Thanks for that tip about the adjustment code! I didn't even know I had to indicate why I was changing the basis. How detailed do I need to be with the explanation? Is it enough to just say "RSU vesting date FMV" or do I need to provide more documentation?

Code "B" is all you need on Form 8949 - you don't need to write a detailed explanation. However, I highly recommend keeping documentation that shows the fair market value on the vesting date. This could be your vesting statements, pay stubs showing the RSU income, or a statement from your company's equity portal. If you get audited (which is unlikely but possible), having that documentation ready will make the process much smoother. The IRS mainly wants to ensure you're not double-counting the income (once when it vested and again when you sold), or trying to avoid taxes by artificially increasing your basis.

You should definitely use the Supplemental Information! That's actually the correct data for your tax return. The official 1099-B often shows zero basis because that's what brokerages are required to report to the IRS, but the Supplemental Information shows the actual cost basis you should use. This is a really common issue with RSUs. The brokerage knows you need the adjusted basis information but they can't put it on the official 1099-B form due to IRS reporting requirements. That's why they provide it separately.

Doesn't that mean you have to pay for the tax software twice? Once for the estimate and once for actually filing?

No, you don't have to pay twice. With most tax software, you only pay when you actually file. You can go through the entire process, see your refund amount, and then just save your progress. When you're ready to file for real, you just pick up where you left off and submit. Some software even lets you create multiple scenarios without charging you. I've done this with TurboTax where I tried different filing statuses to see which gave a better refund before deciding which one to actually use.

Free File is great in theory but sometimes those "free" options hit you with fees at the last minute for state filing or certain forms.

Do you know if this exclusion was automatic or something you had to claim specifically? I'm wondering if I missed out on this when I filed.

At the federal level, if you filed after the exclusion was enacted (March 2021), most tax software automatically applied it. If you filed before that, the IRS was supposed to automatically recalculate and issue refunds to eligible taxpayers. For state taxes, it varied significantly by state. Some states automatically conformed to the federal exclusion, some explicitly didn't follow it, and others required you to file an amended return to claim it. You'd need to check your specific state's department of revenue website to see their policy. If your state did conform and you were eligible but didn't claim it, filing that amended return now could potentially save you a significant amount on this bill.

You can request tax transcripts from both the IRS (for federal) and your state tax department to see your filing and payment history. That would show if you already reported and paid tax on the unemployment income. Some states didn't follow the federal $10,200 exclusion like the previous commenter mentioned, so you might still owe state tax even if you were exempt from federal tax.

Thanks for bringing that up! I hadn't considered FATCA at all. My investments are pretty minimal, but I should definitely check if they exceed the threshold. Do you know if the 40% ownership in my small company would trigger any special filing requirements? It's definitely not a passive investment - we actively run the business together.

Your 40% ownership in an active business where you're actually working probably won't trigger PFIC concerns, but it might require you to file Form 8858 (for foreign disregarded entities) or Form 8865 (for foreign partnerships), depending on how your business is structured in Argentina. These forms basically just disclose your ownership interest to the IRS. Since you're actively involved in the business, you would report your income as self-employment income on Schedule C, and you'd need to pay self-employment tax unless there's a totalization agreement between the US and Argentina. The income itself might be excludable via the Foreign Earned Income Exclusion, but the SE tax often still applies.

This is so true! I moved from UK to Massachusetts and was shocked at how complicated everything is. In the UK, most people don't even file taxes - it's all done automatically through your employer. Here I had to learn about federal, state AND city taxes in some places.

I don't qualify as independent under any of those categories unfortunately. I'm 20, unmarried, and don't have kids. What's the professional judgment process? Is that different from the dependency override?

Professional judgment is different from dependency override. While dependency override changes your dependency status completely, professional judgment allows financial aid administrators to adjust your financial aid package based on special circumstances. In your case, you'd still need to file as dependent, but the financial aid office could potentially adjust your Expected Family Contribution based on the fact that you're not actually receiving support from your step-father despite what the FAFSA calculations assume. This might not solve your immediate filing problem, but could help with actual aid amounts if you do manage to submit your FAFSA.

This is good advice. I had a scholarship organization work directly with my school when my dad refused to file taxes. They arranged a temporary funding solution while I worked through the dependency override process.