So does this apply to crypto transactions too? I have a similar situation where I couldn't figure out some carryover basis amounts from previous years.

Crypto is actually handled differently in some ways. The IRS treats cryptocurrency as property rather than securities, so while you still report gains and losses, the AMT adjustments work differently. For crypto, accurate basis reporting is even more important because the IRS has been focusing enforcement in this area. If you can't determine your exact basis from previous years, you should try to make a good faith estimate based on transaction records. The Schedule D AMT carryovers would only apply if you had specific AMT adjustments in previous years related to your crypto trades.

Try FreeTaxUSA next year. I switched from TurboTax two years ago and never looked back. Only $15 for state filing and federal is completely free. They handled all my stock transactions perfectly, including those weird AMT adjustments.

What's the best way to document mileage? I've been using a paper logbook but it's such a pain to keep up with.

Personally, I use a mileage tracking app on my phone that automatically logs my trips using GPS. I just categorize each trip as business or personal at the end of each day - takes about 30 seconds. Most of these apps let you export detailed reports for tax time. If you prefer manual methods, the key elements the IRS wants to see are: date of trip, starting location, destination, business purpose, and miles driven. You can use a simple spreadsheet instead of paper if that's easier. Take photos of odometer readings if possible for additional support.

What app do you use to track your mileage? I'm terrible at remembering to log it.

This is really helpful advice. If I take this approach, should I let my current accountant know before tax season starts that I'll be requesting drafts for a second review? I don't want to spring it on them last minute and create tension.

Yes, definitely give them advance notice, ideally now, well before tax season gets into full swing. Frame it as a risk management practice for your business rather than a lack of confidence in their work. Most professionals understand that businesses your size often have multiple layers of review for important financial matters. When you do request the drafts, be specific about the timeline you need, allowing enough time for both the review and any potential revisions before filing deadlines. This approach keeps everything professional and gives your current accountant the opportunity to address any issues before another firm sees them, which they'll appreciate.

We did switch after a second opinion revealed our previous firm missed substantial R&D credits we qualified for over 3 years. It was awkward initially, but we framed it as our business needs evolving rather than dissatisfaction with their work. We still maintained a good relationship - even sent them a client referral later. Professional accountants understand business decisions aren't personal.

I did this last year! Had a $3400 tax bill with about $400 in penalties. Called the IRS, mentioned "First Time Penalty Abatement" specifically, and they checked my history. Since I had a clean record for the previous 3 years, they approved it on the spot. Still had to pay the tax and interest, but getting the penalties removed helped a lot. Definitely worth asking for!

Thanks for sharing your experience! That's really encouraging to hear. Did you have to fill out any specific forms or did you just request it verbally over the phone? I've been a good taxpayer for years and this is my first time owing, so hopefully they'll do the same for me. I'll definitely make sure to specifically mention "First Time Penalty Abatement" when I call. Did they give you any pushback or was it a pretty straightforward process?

OMG this!!! I made this mistake last year and got HAMMERED with the failure-to-file penalty. Ended up owing like 20% more just because I was scared to file without having the money to pay. Worst decision ever. File on time people, even if you can't pay a dime!

I had no idea about losing all those credits! That's super helpful info - I think we'd definitely lose more than we'd gain by filing separately. Can you explain more about the IRA contribution part? My husband maxes out his IRA every year.

For IRA contributions, when you're married filing separately, if you lived with your spouse at any time during the year, the income limit for deducting traditional IRA contributions is much lower - phasing out starting at just $10,000 of modified AGI. And for Roth IRAs, the contribution limit phases out between $0-$10,000 if you're MFS and lived together. So if your husband is making more than $10,000 (which it sounds like he is), his ability to make deductible traditional IRA contributions would be reduced or eliminated when filing separately. With a Roth IRA, he might not be able to contribute at all if filing separately. This is one of those "marriage penalties" built into the tax code that makes MFS disadvantageous for many couples.

We've done both over the years depending on our situation. You're right that the prep is way more involved for MFS. The year we did it, we had to literally create spreadsheets to divide household expenses appropriately. Our tax guy charged us more too because it was basically preparing two separate returns. The student loan IDR benefit can be huge though. My wife's payments dropped about $300/month, which more than made up for the slightly higher tax bill. Just weigh all the factors carefully!