I just want to mention that amended returns can't be e-filed - you'll have to mail them in. And with 1099-R situations, I strongly recommend including a brief explanatory statement with your 1040-X to clarify what you're amending and why. Something like "Amending to include previously unreported 1099-R with $0 taxable amount from direct rollover (Code G)." This helped me avoid follow-up questions when I had to amend for a similar situation. The IRS processing centers are dealing with massive backlogs, so anything you can do to make your amendment crystal clear will help speed things up.

Katherine, you're absolutely right to be confused - this situation trips up a lot of people! The short answer is yes, you should file an amended return to report the 1099-R, even though it won't change your tax liability. Here's what's happening: Your code G indicates a direct trustee-to-trustee transfer, which is why the taxable amount is $0. However, the IRS computer systems automatically match all 1099-Rs they receive against tax returns. When they don't find your form reported anywhere, it can trigger correspondence or even an audit down the line. The good news is that reporting it is straightforward on Form 1040-X. You'll show $23,450 on line 5a (total retirement distributions) and $0 on line 5b (taxable amount). Make sure to include the distribution code G when you enter it - this tells the IRS why it's not taxable. One tip: include a brief statement with your amendment explaining that you're adding an unreported 1099-R with $0 taxable amount from a direct rollover. This can help prevent follow-up questions from the IRS processing center. It's a hassle, but much better to handle it proactively than deal with IRS notices later asking why the form wasn't reported!

Has anyone used TurboTax to report home sales? I'm wondering if it handles all the calculations correctly or if I should go to a CPA this year.

Just wanted to add one important detail that hasn't been mentioned yet - make sure you keep excellent records of ALL improvements you've made to the home, not just major ones. Even smaller improvements like new appliances, flooring, landscaping, or exterior painting can add up and increase your basis significantly. I learned this the hard way when I sold my first home and couldn't find receipts for about $15,000 worth of improvements we'd made over the years. Those would have further reduced my capital gain, but without proper documentation, I couldn't claim them. For your situation with a $290,000 gain that's already under the $500,000 exclusion, this might not matter for federal taxes, but it's still good practice and could help with state taxes or future property sales. Start gathering those receipts now while you're preparing to list!

Has anyone actually looked at the new W4 lately? It's so different from the old version! No more claiming "0" or "1" allowances. I got confused with the dependents section (Step 3) and that's exactly why I ended up owing this year. For 3 kids under 17, you should be able to claim $6,000 in tax credits on line 3 of the W4 ($2,000 per qualifying child). That alone should increase your refund significantly.

Great advice from everyone here! I just wanted to add that timing can also matter with your W4 adjustments. Since you're already in April, if you make changes now, you'll have fewer paychecks left in the year to spread out the additional withholding. With about 8 months left in the tax year, you might need to withhold slightly more per paycheck than the annual calculation suggests to catch up. So if the math says you need $15k extra withheld annually, you'd need about $1,875 per month for the remaining months rather than $1,250 if you had started in January. Also, don't forget to review and potentially adjust your W4 again in January 2026 once you've got a full year of data from your current employer. Your withholding needs might change based on any raises, bonus structures, or life changes.

One thing I learned the hard way - don't forget about state taxes! Depending on your state, they might not follow the same rules as federal for foreign property transactions. I sold a vacation home in Costa Rica and properly reported everything on my federal return, but California had different rules for how they wanted the currency gain/loss reported. Ended up having to amend my state return and pay penalties.

Great thread everyone! I'm dealing with a similar situation but with a twist - I owned the UK property jointly with my spouse (50/50). We're filing married filing jointly in the US. Do we need to split all the calculations 50/50 for reporting purposes, or can we report the full amounts since we're filing jointly? Also, if one spouse is a US citizen and the other is a permanent resident like the OP, does that change anything for the reporting requirements? The foreign asset reporting forms mentioned by @MidnightRider have me particularly concerned since I'm not sure if joint ownership affects the thresholds or if we each need to report separately even when filing a joint return.

As someone who went through this exact situation when I started freelancing, I can confirm that using a separate personal account temporarily is totally fine! The key is keeping it 100% separate from your personal finances. A few practical tips from my experience: 1. When you open the separate personal account, tell the bank representative it's for business use. Some banks will note this on your account and it can help avoid issues later. 2. For the healthcare stipend specifically, make sure you're documenting that properly since it's a bit different from regular contract payments. You'll want clear records showing what portion is for services vs. healthcare. 3. Consider getting that EIN sooner rather than later even if you haven't fully committed to the LLC yet - it's free, takes 15 minutes online, and having it opens more doors for business accounts and payment processors. 4. Keep all your invoices and documentation super organized from day one. When you do eventually switch to a business account, you'll thank yourself for having clean records. The liability protection aspect is important too - using a dedicated account (even if personal) shows you're treating the business as separate, which helps maintain that corporate veil protection once you do form the LLC. You're not missing anything major - this is a very common approach for people testing the waters with independent contracting!

I went through this exact same decision process about 8 months ago when I started doing contract work for a marketing agency. Here's what I learned from talking to both my CPA and a small business attorney: You absolutely can use a personal account temporarily for a Single Member LLC - the IRS doesn't require a specific account type. What they care about is proper record keeping and clear separation of business vs personal expenses. However, I'd strongly recommend getting that EIN now even if you're unsure about the LLC. It's completely free through the IRS website (takes maybe 10 minutes), and having it gives you more flexibility. Some clients prefer to have an EIN for their records, and it makes opening a business account later much smoother. For the healthcare stipend specifically, make sure your contract clearly states what portion is for services vs healthcare benefits. This will be important for tax reporting regardless of what account type you use. One thing that pushed me to get a business account sooner was that my client's AP department had issues cutting checks to my personal name for what they considered business services. Having a business account with the LLC name made their processes much smoother. The good news is you can start receiving payments right away with a dedicated personal account, then transition to a business account when you're ready. Just keep meticulous records of everything business-related from day one!