This thread has been absolutely incredible to follow! As someone who's been quietly struggling with the Tax Returns section for weeks, I can't express how grateful I am to Derek for starting this conversation and to everyone who shared their experiences and solutions. Reading through all these insights has completely shifted my understanding of what I need to focus on. The revelation about the 80% passing threshold alone has lifted a huge weight off my shoulders - I've been driving myself crazy trying to achieve perfection on every single detail. And the emphasis on understanding the "story" behind each return rather than just mechanically filling forms is such a powerful perspective shift. I'm planning to implement several strategies mentioned here: starting with physical forms to visualize those crucial dependencies between schedules, creating my own flowchart for form sequencing, and most importantly, focusing on truly understanding WHY each entry makes sense rather than just memorizing procedures. The systematic review approach that multiple people described also sounds like exactly what I need to catch those cascading errors. What strikes me most about this discussion is how many different approaches led to success - it really shows that finding the right combination of strategies for your learning style is key. The community support here has been amazing, and this thread should honestly be required reading for anyone starting the Tax Returns section. Thank you all for turning one person's frustration into such a valuable resource for the entire community!

This thread has been an absolute game-changer for me! I've been lurking in this community for a while but felt compelled to finally comment after reading through everyone's incredible insights and success stories. Like so many others here, I was struggling with the Tax Returns section and feeling completely overwhelmed. The 80% passing threshold revelation has been huge - I had no idea and was literally trying to achieve 100% perfection on every practice return, which was creating so much unnecessary stress and analysis paralysis. What I find most encouraging is seeing how many different combinations of strategies have led to success. Some people found breakthrough with the physical forms approach, others with AI tools like taxr.ai, and still others by connecting with actual instructors through services like Claimyr. It really drives home that there's no one-size-fits-all solution, but having multiple tools available gives you options when you hit roadblocks. I'm particularly excited to try the "story" approach that several people mentioned - thinking about each tax return as telling a complete financial narrative rather than just filling out disconnected forms. That perspective shift makes so much more sense than trying to memorize procedures without understanding the underlying logic. Derek, thank you for having the courage to share your struggles so openly. You've created something truly valuable for this entire community. This thread should be pinned as essential reading for anyone approaching the Tax Returns section!

Has anyone had the IRS question this kind of mismatch? I filed with something similar (wrong distribution code) a couple years ago and never heard anything. I think this is pretty common and they don't really flag it as long as you pay whatever taxes you actually owe.

This is exactly the kind of situation that causes unnecessary stress during tax season! Your brother is actually in a pretty good position to fix this. The key thing to understand is that the IRS cares more about what actually happened with the money than what code appears on the 1099-R. Since he rolled the distribution into a Traditional IRA within 60 days, he should report it as a non-taxable rollover on his tax return. He'll need to: 1. Report the distribution as shown on the 1099-R 2. Use Form 8606 to properly document that this was a rollover to a Traditional IRA 3. Keep all documentation showing the rollover was completed within the 60-day window The tax software is flagging it because it's reading the code 2, but once he properly reports the rollover, it should calculate correctly. Make sure he has statements from both the 401k administrator and the IRA custodian showing the money transfer with dates. This documentation will be crucial if the IRS ever questions the rollover. He doesn't necessarily need a corrected 1099-R, though it would make things cleaner. The most important thing is accurate reporting on his actual tax return.

As someone who works in tax compliance, I want to emphasize that the IRS is actively reviewing NIL collective structures and may issue updated guidance soon. What's been shared here is generally correct - most NIL contributions are treated as gifts, not charitable donations. However, I'd strongly recommend documenting your contribution carefully. Keep records showing: 1) the amount you contributed, 2) the date of contribution, 3) any documentation from the collective about tax treatment, and 4) confirmation that funds are distributed among multiple athletes. If you're contributing more than a few thousand dollars annually, consider consulting with a tax professional who can review your specific situation and the collective's structure. The landscape is evolving quickly, and what's true today might change as the IRS provides more specific guidance on these arrangements. Also worth noting - some states have their own gift tax rules that might differ from federal treatment, so don't forget to consider state-level implications if you're in a state with gift taxes.

One thing I haven't seen mentioned yet is the potential business expense angle. If you own a business and the NIL contribution is part of marketing or advertising your business (like getting signage at games or social media mentions), you might be able to treat it as a business expense rather than a personal gift. I know some local business owners who contribute to NIL collectives and get advertising benefits in return - team social media shoutouts, logo placement, or mentions at events. In those cases, the contribution might be deductible as a business marketing expense rather than being treated as a non-deductible gift. Obviously this only applies if you actually have a legitimate business purpose and receive something of value in return. The IRS would expect the expense to be ordinary and necessary for your business. But it's worth considering if you're a business owner looking for ways to support local athletes while potentially getting a tax benefit. Anyone else dealt with the business expense vs. gift distinction for NIL contributions?

Don't overlook the timing factor here. Since you're newly retired and have multiple accounts to manage, getting professional help NOW can prevent expensive mistakes. I kept preparing my own taxes after retirement and messed up how I handled my inherited IRA distributions - ended up owing penalties and back taxes. What tax software did for simpler situations in your working years isn't adequate for retirement's complexity. Especially with the SECURE Act changes to inherited IRAs - those distribution rules have specific timelines you need to follow exactly. I'd find an EA specialized in retirement planning ASAP, before you make any major decisions about which accounts to draw from first. Their expertise on tax-efficient withdrawal sequencing alone can save you thousands over your retirement lifetime.

The complexity you're describing with military disability, inherited IRAs, and multiple retirement income streams definitely warrants professional help. I'd strongly recommend meeting with a tax professional BEFORE the end of this tax year, not waiting until filing time. Here's why timing matters: Any decisions you make about IRA distributions, investment sales, or tax withholding between now and December 31st will impact your 2025 tax liability. A qualified EA can help you model different scenarios - like whether to take larger distributions this year to fill lower tax brackets, or adjust your withholding to avoid underpayment penalties. For your situation specifically, I'd look for an EA who advertises expertise in military benefits and retirement planning. The National Association of Enrolled Agents website has a "find a practitioner" tool where you can search by specialty. Don't just go with the cheapest option - the money you spend on proper planning will likely save you multiples in optimized tax strategies. Also consider asking any potential EA about their experience with the new SECURE Act 2.0 provisions that took effect this year. There are additional planning opportunities for retirees that many tax preparers aren't fully up to speed on yet.

Your situation sounds completely normal for a first-year delivery driver! The 23k miles for $21k income ratio actually makes perfect sense when you factor in the learning curve and all the unpaid driving that's inherent to delivery work. What you've described - accepting lower-paying orders initially, driving to hotspots, returning from deliveries - is exactly what every new delivery driver goes through. The IRS is well aware that this type of work involves significant mileage relative to income, especially during that adjustment period. Your daily logging system is excellent documentation. The fact that you tracked contemporaneously (as it happened) rather than estimating later puts you in a very strong position. This is exactly the type of record-keeping the IRS wants to see from business taxpayers. My advice: don't second-guess your legitimate tracking or artificially reduce numbers out of fear. You did the work, you drove those miles for business purposes, and you have the documentation to support it. The worst thing you could do is underreport legitimate deductions you're entitled to claim. Keep those logs safe (consider backing them up in multiple formats) and file with confidence. Your documentation approach shows you're taking tax compliance seriously, which is exactly what matters if questions ever arise.

Your mileage tracking and documentation sound absolutely perfect! As someone new to this community, I've been following similar discussions about delivery driver taxes, and your situation is completely typical for someone starting out in the gig economy. That 23k miles for $21k earnings ratio is exactly what I'd expect to see from a new DoorDash/Spark driver who was still learning the business. The unpaid driving - to restaurants, back to hotspots, accepting those early unprofitable orders - really adds up quickly. Your husband's experience mirrors what most drivers go through in their first year. Your daily logging approach is gold standard documentation. The IRS specifically looks for contemporaneous records (tracking as you go rather than recreating later), and that's exactly what you've been doing. Never artificially reduce legitimate business expenses out of audit fear - you earned those deductions through actual work driving. The fact that you'll get a refund regardless really reinforces that you should claim every legitimate mile. You've done the hard work of proper record-keeping, so don't leave money on the table by under-reporting valid business expenses. Keep those logs safe and file with confidence. Your documentation demonstrates exactly the kind of responsible tax compliance the IRS wants to see!