I just went through this exact same situation last month! Filed my taxes with an incorrect home office calculation and realized it about 10 days later. I was also torn between the simplified method vs. actual expense method. Here's what I learned: definitely amend if the difference is significant (sounds like yours would be). The IRS processing time for amendments is currently running about 16-20 weeks, but the extra refund was worth the wait for me. I ended up getting back an additional $780. One thing to keep in mind - when you file next year with the correct square footage, just make sure you have good documentation (photos, measurements, etc.) in case they do ask questions. But honestly, they're more concerned with people overclaiming deductions than underclaiming them. The Form 1040-X isn't too complicated if you use tax software to generate it. Just make sure to clearly explain in Part III what you're changing and why. I wrote something like "Correcting home office deduction calculation - using proper square footage and simplified method per IRS guidelines." Good luck with your amendment!

Based on the details you've provided, I'd definitely recommend filing the amendment. A $2,440 additional deduction could result in significant tax savings - potentially $300-600+ depending on your tax bracket. Since you're already showing a business loss, the additional deduction would reduce your taxable W2 income, likely resulting in a meaningful refund increase. Don't worry about the IRS flagging the square footage increase next year. Business spaces genuinely change, and as long as you have proper documentation (measurements, photos), you'll be fine. The IRS is much more concerned with overclaimed deductions than underclaimed ones. For the amendment process, I'd recommend using the same tax software you used originally to generate the 1040-X - it'll be much easier than doing it manually. Make sure to clearly explain the changes in Part III of the form. Something like "Correcting home office deduction: updated square footage from 108 to 122 sq ft and changed from actual expense method to simplified method per IRS Publication 587." Keep good records of your current office setup with photos and measurements. The simplified method at $5 per square foot is often the better choice for smaller spaces, so you made the right calculation switch. Yes, it's annoying to catch this after filing, but at least you caught it early enough to amend easily. The processing time is long (4-5 months typically), but the extra money is usually worth the wait.

Has anyone considered the state tax implications of MFS vs MFJ? Some states have different rules than federal. My wife and I found that while federal was slightly better filing jointly, our state taxes were significantly better filing separately because of how our state handles itemized deductions.

Something nobody's mentioned yet - you should consider future tax planning too. If you think your income might change significantly next year (like one person taking time off work or getting a big promotion), that could affect which filing status makes sense this year due to things like AMT planning and tax loss harvesting across years.

This is a great question and I'm glad to see so many helpful responses already! I went through this exact scenario with my rental property business last year and learned a lot through trial and error. One thing I'd add to the excellent advice already given - make sure you're paying your kids a truly reasonable wage for the work they're doing. The IRS scrutinizes family employment situations closely, so paying your 15-year-old $50/hour for basic cleaning would definitely raise red flags. I researched what other teens in my area were earning for similar work and kept my kids' pay within that range. Also, consider having them open their own business checking accounts to deposit their paychecks. It creates a cleaner paper trail and helps teach them financial responsibility. My kids love watching their Roth IRA balances grow - it's been a great way to get them interested in investing and long-term financial planning. The documentation is key though. I keep detailed logs of not just hours worked, but specific tasks completed, materials used, and even photos of the work being done. Better to over-document than under-document when it comes to family employment!

This is such a smart financial strategy! I wish my parents had thought to do this when I was younger. One thing I'd add that hasn't been mentioned yet - make sure you understand the kiddie tax rules if your children have other investment income. While earned income from working in your business is generally taxed at their own rates (likely 0% or very low), if they have significant unearned income from other sources (like dividends, interest, or capital gains over $2,650 in 2025), it could be taxed at your marginal rate instead of theirs. This usually isn't an issue for most families, but it's worth being aware of as their investment accounts grow over time. The Roth IRA strategy is fantastic though - starting retirement savings at 15-17 gives them such a huge head start with compound growth. Even if they never contribute another dollar after age 18, those early contributions will be worth a fortune by retirement. You're setting them up for financial success in a big way!

I went through this exact same struggle last year with my J-1 visa from Canada! The language barrier definitely makes these forms even more confusing than they already are. One thing that really helped me was finding the actual treaty text between the US and Spain on the IRS website. Search for "United States Spain Income Tax Treaty" and look for the PDF. Article 20 is usually the one that covers students and trainees - it should give you the exact language you can reference in your Form 8833. Also, don't feel bad about calling the IRS multiple times if you need to. I called three different times and got three different answers, but the third agent was really knowledgeable about international treaties and walked me through everything step by step. For what it's worth, I found that keeping my answers in the boxes simple and straightforward worked better than trying to be too detailed. The IRS just wants to understand your situation clearly. ¡Buena suerte! You've got this - it's definitely intimidating but once you get through it the first time, next year will be much easier.

I completely understand your frustration with Form 8833 - I went through the same struggle when I was on my J-1 visa from the Netherlands a couple years ago. The language barrier definitely makes these already complex forms even more challenging. Here's what worked for me: Start by finding your specific treaty article on the IRS website. For Spain, you'll want to look up the US-Spain Income Tax Treaty and find Article 20, which typically covers students and trainees. This will give you the exact language to reference in your form. A few practical tips that helped me: - Keep your explanations in each box concise and factual rather than overly detailed - For Box 4, only include income that's specifically exempt under the treaty (like stipends or scholarships related to your J-1 program) - Don't be afraid to call the IRS international tax line multiple times - I found some agents much more knowledgeable than others One thing I wish I'd known earlier: if you're receiving any payments from Spanish institutions or organizations as part of your J-1 program, those are typically the amounts you'd claim exemption for, not any side income from US sources. The first year is definitely the hardest, but once you get through it and understand the process, subsequent years become much more manageable. ¡Ánimo!

Real talk - once you see code 150, look for cycle code next to it. That can tell you what day of the week updates happen for your account. Major 🔑 to watching your transcript!

Code 150 is definitely one of the most important ones to understand! It's basically the IRS's way of saying "we've processed your return and here's what we calculated." The date next to it shows when they finished processing, and the amount shows your total tax liability. From there you can track if you have credits, payments, or refunds coming by looking at the other transaction codes that follow. It's like the foundation that everything else builds on!