This is such a comprehensive discussion! As someone who just went through this exact situation with my partner last year, I want to emphasize how important it is to get this right from the start. We initially just had a casual agreement about splitting costs, but realized we needed to formalize it when tax season came around. One thing I'd add that hasn't been mentioned much is to consider what happens if your financial situations change significantly. When my partner got a promotion and started earning much more, we had to revisit whether a 50/50 split still made sense or if we should adjust to income-proportional sharing. The key was updating our documentation to reflect the new arrangement rather than just informally changing how we handled payments. Also, don't underestimate the value of having a brief written agreement even for expense sharing. It doesn't need to be a formal lease - just a simple document outlining that you're contributing to household expenses as a domestic partner rather than paying rent. We used bullet points listing who pays what (mortgage, utilities, groceries, etc.) and included a line stating this is expense sharing between domestic partners, not a rental arrangement. The peace of mind from knowing we're handling this correctly has been worth every minute we spent setting it up properly. Good luck with your move-in!

This has been such an incredibly thorough discussion! As someone who's been navigating this exact situation for the past year, I want to add one more perspective that might be helpful. One thing that really helped us was setting up what we call "expense categories" from day one. We divided all housing costs into clear buckets: mortgage/rent equivalent, utilities, maintenance, groceries, and discretionary home expenses. This made it super easy to track what fell under our expense-sharing arrangement versus what were individual expenses. For example, we split mortgage, utilities, and basic maintenance 50/50, but things like my partner's premium cable package or my fancy coffee subscription stayed individual expenses. Having these categories defined upfront prevented any confusion about what should be shared versus personal. Also, something I learned the hard way - make sure you're both on the same page about how to handle unexpected major expenses like emergency repairs. We had our water heater die unexpectedly, and having to figure out the expense-sharing approach in the middle of that crisis wasn't ideal. Now we have a simple rule: emergency repairs under $500 get split immediately, anything over that we discuss first. The documentation suggestions throughout this thread are spot-on. We keep a simple monthly spreadsheet and take screenshots of our major bill payments. Takes maybe 10 minutes a month but gives us complete peace of mind that we can clearly demonstrate our expense-sharing pattern if ever needed. Really glad to see so many people sharing practical solutions for what can be a confusing situation!

Had the exact same issue last year! The verification letters can get lost in mail or delayed. Here's what worked for me: I called the IRS Identity Protection Specialized Unit at 800-830-5084 early morning (around 7:15 AM EST) and got through after about 45 minutes on hold. They were able to verify my identity over the phone using personal info and tax details. Way faster than waiting for a letter to arrive. Also bring your prior year tax return, Social Security card, and a government-issued ID if you decide to go the in-person route. The phone verification saved me weeks of waiting!

I went through this exact situation a few months ago! The IRS verification system is frustrating when you never got the letter in the first place. Here's what I learned from my experience: 1. **Phone verification is your best bet** - Call 800-830-5084 (Identity Protection Specialized Unit) early in the morning. I called at 7:05 AM EST and waited about 30 minutes. They can absolutely verify you without the 14-digit control number using alternative methods. 2. **Have these documents ready**: Previous year's tax return (they'll ask for your prior year AGI), Social Security card, government ID, and W-2s from the tax year in question. 3. **The "resend letter" option** takes 2-3 weeks typically, but honestly the phone route is much faster if you can get through. 4. **In-person appointments** at Taxpayer Assistance Centers are also an option, but you need to schedule ahead and they're often booked out 2-3 weeks. The phone agents have different verification protocols than the online system - they can use your tax history, personal information, and other security questions to confirm your identity without needing that letter. Don't give up on the phone option even if it's busy - persistence pays off with early morning calls!

This situation is definitely confusing, but you're not alone! I went through something similar when I had multiple interview processes last year. The key thing to understand is that even though it feels wrong, the company is treating the reimbursement as income to you by issuing the 1099-NEC. However, as others have mentioned, you can handle this by reporting it on Schedule C and then deducting the exact travel expenses that were reimbursed. This effectively zeros out any tax impact while still properly reporting everything to the IRS. Before diving into the Schedule C route though, I'd definitely recommend calling the company first to see if they made an error. Sometimes companies incorrectly issue 1099s for pure expense reimbursements when they should handle it differently. If they won't correct it, then the Schedule C approach is your best bet. For the multi-state question, check that state's non-resident filing threshold. Most states only require filing if your income there exceeds $1,000-$3,000, so your $950 might not even trigger a requirement. Keep all your documentation from the interview - flight receipts, emails about the reimbursement, etc. Even though this will likely net to zero tax impact, having a clear paper trail is crucial for your records.

This is a really frustrating situation, but you're definitely not alone! I went through something very similar when I was job hunting last year. The company is essentially treating you as if you were an independent contractor for that one transaction, which feels weird but is unfortunately how some companies handle interview reimbursements. Here's what worked for me: First, try calling the company's HR or accounting department to ask if they made an error. Sometimes they'll admit they weren't sure how to handle interview reimbursements and will correct the 1099-NEC. It's worth a shot before doing the tax gymnastics. If they won't correct it, you can report the $950 on Schedule C as non-employee compensation income, then deduct the exact same amount as business travel expenses. This zeros out any tax liability while still properly reporting everything. Make sure you have all your receipts - flight confirmation, any hotel bills, etc. For the multi-state issue, check that state's non-resident filing threshold. Most states only require filing if you earn over $1,000-$3,000 in their state. Your $950 might be under their threshold, which would save you from filing there at all. Keep all your documentation - emails about the reimbursement, flight receipts, everything. Even though this should net to zero tax impact, having a clear paper trail is crucial if questions ever come up later!

Quick question about Form 8938 filing thresholds - I have about $95,000 in foreign assets. Do I need to file 8938 as part of my SDOP if I never hit the $100k threshold? The FBAR threshold is lower at $10k so I definitely need those, but I'm confused about whether I need to include 8938s with my amended returns.

I went through the SDOP process two years ago and wanted to share my experience since there seems to be a lot of anxiety here (which I totally understand - I was terrified too!). My situation was almost identical to Drew's - I had foreign accounts that exceeded reporting thresholds in years that fell outside the 3-year amendment window but within the 6-year FBAR requirement. I was convinced the IRS would come after me for those "gap years." Here's what actually happened: I filed all 6 years of FBARs and amended my last 3 tax returns with Form 8938s. About 8 months later, I received standard processing notices for my amended returns showing refunds where I had overpaid estimated taxes. No audit, no additional questions, no penalties. The key thing I learned is that the SDOP is specifically designed to handle these exact situations. The IRS knows there will be gaps between FBAR years and amended return years - that's built into the program structure. They're not trying to trap people; they want voluntary compliance. My advice: if you qualify for SDOP and have been non-willful in your non-compliance, just do it. The peace of mind is worth it, and in my experience, the IRS processed everything smoothly once I followed all the requirements correctly.

I found myself in this exact situation last year with my partnership. We dissolved in May 2023, and I was confused about whether to use 2022 or 2023 forms. I ended up filing the extension with Form 7004 and waiting for the 2023 forms to be released. It was annoying to have that hanging over my head for months, but in the end, it was the cleanest approach. The final return was accepted without issues once I filed it in January using the correct year forms. One tip I'd add - make sure you file final Schedule K-1s for each partner and clearly mark them as FINAL. Also remember to file any required state dissolution paperwork, which is separate from your tax obligations.

I went through this exact scenario with my LLC partnership that dissolved in August 2024. After calling the IRS and speaking with a tax professional, here's what I learned: You absolutely need to use the 2024 forms for your 2024 dissolution - using 2023 forms could create processing issues and potential penalties. The IRS considers this a 2024 tax year event regardless of when it occurred during the year. Here's my recommended timeline: 1. File Form 7004 by March 15, 2025 (the original due date) to get an automatic extension until September 15, 2025 2. Wait for the 2024 Form 1065 to be released (usually late December 2024 or January 2025) 3. File your final return using the 2024 forms During the waiting period, keep all your records organized and consider preparing a draft return using the 2023 forms just to identify any issues early. When the 2024 forms come out, you can quickly transfer everything over. Also don't forget - you'll need to distribute final Schedule K-1s to all partners and handle any state-level dissolution requirements separately. The wait is frustrating but it's worth doing it right the first time!