The thing that most people miss with RSUs is the basis reporting on Form 8949. When your RSUs vest, the FMV becomes your W-2 income AND becomes your cost basis for those shares. If you sold shares to cover taxes, you need to report those sales with the adjusted basis. Here's how to fix this: 1) Get your original Form 8949 that you filed 2) Create a corrected version showing the proper basis for each RSU transaction 3) Include a statement explaining the connection between your W-2 RSU income and the 1099-B transactions 4) Reference IRS Publication 525 which specifically addresses RSU taxation The most important part is proving that you're not trying to avoid taxes - you already paid them through your W-2 withholding at vesting.

I had almost the EXACT same situation last year! My CP3219A was for $12,450 in supposedly unreported income from RSUs. Here's what worked for me: 1. I called my broker and had them create a special statement that specifically showed which 1099-B transactions were from RSU vesting events 2. Got a letter from my employer confirming the exact RSU value included in my W-2 Box 1 3. Created a spreadsheet matching each RSU transaction to the corresponding vesting date and W-2 income 4. Wrote a cover letter explaining the double-counting mistake 5. Filed Form 8949 with a statement in column (f) for each transaction saying "BASIS ALREADY REPORTED AS INCOME ON W-2" The IRS accepted everything and closed the case. Don't panic - this is fixable!

Something else to consider: check if you were actually due a refund for 2018 before assuming you owe money. Even if your employer didn't withhold, you might have qualified for credits like the Earned Income Credit depending on your situation. If you were owed a refund, there's no penalty for filing late (though you only have 3 years to claim a refund, which has passed for 2018 now). But definitely file regardless. Not filing when required is a much bigger problem than owing and not paying. The IRS is generally willing to work with people who file but can't pay right away.

I had almost the exact same thing happen (didn't file 2016 taxes, state came after me first). The IRS eventually found me about 2 years after the state did. They sent a bunch of scary letters and the penalties were pretty rough. Something nobody mentioned yet - if you owe a lot and don't pay, they can eventually place a lien on your property, garnish wages, or seize tax refunds from future years. They can also report to credit bureaus which tanked my credit score for a while. Just file the return and get on a payment plan if needed. The mental relief is worth it. Living with tax anxiety hanging over you is miserable.

Just to simplify AGI calculation: 1. Start with ALL income (wages, 1099, interest, dividends, capital gains, etc) 2. Subtract ONLY "above-the-line" deductions: - Traditional IRA contributions - Student loan interest - HSA contributions - Self-employed health insurance - SEP/SIMPLE/401k contributions for self-employed - Alimony paid (for pre-2019 divorces) - Educator expenses - Some business expenses Taxes withheld throughout the year have NOTHING to do with AGI. And standard/itemized deductions come AFTER AGI calculation.

One thing that helped me understand AGI is looking at the 1040 form itself. If you look at the first page of your 1040, everything above the "adjusted gross income" line (line 11 on recent forms) is part of the AGI calculation. This includes all your income sources at the top, then all those adjustments/deductions in the "Income" section. Anything listed in the "Adjusted Gross Income" section gets subtracted to arrive at your final AGI. Standard/itemized deductions and qualified business income deductions all come AFTER the AGI line, so they don't affect AGI calculation at all.

My sister is a CPA and does remote consultations. She primarily works with small business owners and individuals with investment income. Very reasonable rates and super knowledgeable. DM me if you want her contact info!

Have you considered using a tax professional who isn't necessarily a CPA? Enrolled Agents (EAs) are also certified by the IRS to represent taxpayers, and they often specialize more in tax issues than CPAs who might focus more broadly on accounting. Sometimes they're more affordable too. I've been using an EA for years for my tax planning and she's been fantastic.

Something I don't see mentioned here - make sure you're coordinating with your girlfriend about this. Even though she's not filing taxes, if she's receiving certain benefits like Medicaid, SNAP, or other assistance programs, claiming her as your dependent could potentially affect her eligibility. Also, remember that since you're not married, you'd need to file as "Single" or "Head of Household" if you qualify. Head of Household could give you better tax rates, but you'd need to meet the requirements (like paying more than half the cost of keeping up a home where a qualifying person lives).

Don't forget about other tax benefits beyond just the dependency exemption! If you can claim the child as a dependent (even as a qualifying relative), look into: 1. Child Tax Credit - worth up to $2,000 per qualifying child under 17 2. Credit for Other Dependents - $500 for dependents who don't qualify for CTC 3. Child and Dependent Care Credit - if you pay for childcare while you work 4. Earned Income Tax Credit - depending on your income The rules for each of these are slightly different, so you might qualify for some but not others.