Anyone know if the IRS has a program for servers specifically? My tax guy mentioned something called the "Voluntary Disclosure Program" but wasn't sure if it applies to simple tip reporting issues.

I'm going through something similar right now and wanted to share what I've learned from my tax attorney. The most important thing is to act quickly but methodically. Here's what worked for me: 1. **Gather ALL your records** - bank statements, work schedules, even old pay stubs. You'd be surprised how much you can reconstruct from these. 2. **Calculate conservatively** - The IRS expects servers to report at least 8% of food sales as tips. If you can't prove exact amounts, use this as your baseline but try to be as accurate as possible. 3. **File Form 1040-X for each year** - Don't try to lump everything together. Each year needs its own amended return. 4. **Write a clear explanation** - Include a statement explaining this was an honest mistake, not intentional fraud. The IRS appreciates transparency. For your mortgage situation, consider asking your lender about a "bank statement loan" program if they offer it. Some lenders will accept 12-24 months of bank statements showing regular deposits instead of tax returns for self-employed or commission-based workers. The amendment process typically takes 3-4 months, so your 45-day timeline might be tight. But being proactive about fixing this now is absolutely the right move. Good luck!

I know everyone's focused on the rollover part, but don't forget about the tax reporting part of this. When you do get this sorted out, you'll get a 1099-R from the original institution (Vanguard in your case) showing the distribution. Make sure that when you file your taxes, you properly code this as a rollover so it's not counted as income. Also, if you do exceed the 60-day window, look into whether you qualify for a waiver. The IRS does allow waivers in certain hardship situations - financial institution errors can sometimes qualify.

I'm dealing with a very similar situation right now - inherited IRA from my father who passed 3 years ago, and the original custodian just sent me a check without warning. One thing I learned that might help you is to contact the original institution (Vanguard) immediately to see if they can reverse the distribution and transfer the funds directly to your new inherited IRA custodian instead. Some institutions will work with you on this if you explain it was an error on their part to close the account without proper notice. A direct trustee-to-trustee transfer would avoid all the complications with the 60-day rollover rules and the estate check issue entirely. If that's not possible, definitely follow the advice about reopening the estate temporarily. I had to do this and while it was a hassle, it was much better than dealing with the tax consequences of a failed rollover. The probate attorney who handled the original estate should be able to help with a simplified reopening just for this specific asset. Also document everything - keep records of when you received the check, all your communications with both financial institutions, and any steps you take to complete the rollover. The IRS can be understanding about institutional errors if you have good documentation showing you acted promptly once you discovered the issue.

When I was filing taxes last year, my accountant told me that the rules for claiming F1 students changed recently! Has anyone else heard this? My stepdaughter is on an F1 visa and we claimed her last year but now I'm worried we did it wrong.

The F1 visa dependent situation is definitely complex, but here's what I've learned from dealing with this myself: The key is understanding that there are two separate dependent tests - "qualifying child" and "qualifying relative" - and F1 students typically can only meet the "qualifying relative" test. For your stepchildren to qualify as dependents under the qualifying relative test, they need to meet these requirements: 1. You provide more than 50% of their support (sounds like you do) 2. Their gross income is under $4,700 for 2024 (or $4,800 for 2025) 3. They can't file a joint return with a spouse 4. They must be related to you (stepchildren qualify) 5. They must be US citizens, nationals, or residents of the US, Canada, or Mexico The tricky part is #5. F1 students are generally considered non-resident aliens for their first 5 calendar years in the US, which would disqualify them. However, there are exceptions - if they've been in the US previously or meet certain other conditions, they might qualify as residents. Given the complexity, I'd strongly recommend consulting with a tax professional who specializes in international student tax issues. The rules have nuances that can significantly impact your situation, and getting it wrong could trigger an audit or penalties. Regarding in-state tuition, that's completely separate from federal tax dependency status and varies by state and institution.

Dont forget you might also need to file estimated quarterly taxes throughout the year depending on how much youre making. The IRS expects you to pay taxes as you earn income, not just once a year. Since you dont have an employer withholding taxes from your paychecks, you gotta do it yourself. I learned this the hard way and got hit with penalties my first year of self-employment :

Quick tip - make sure your tax software is calculating your Qualified Business Income Deduction (Section 199A). This is a deduction that lets self-employed people deduct up to 20% of their business income in addition to regular business expenses. Some free tax software might not include this automatically.

Has anyone just asked their tax preparer about this? When my wife and I file jointly, our accountant actually includes a breakdown of how much each of us contributed to the total tax liability and what portion of the refund "belongs" to each of us.

This is such a relatable situation! My partner and I went through the same thing our first year filing jointly. We ended up using the withholding proportion method that Fatima mentioned - it felt the most fair since it directly reflects what each person "overpaid" during the year. One thing that helped us was also considering our different tax situations beyond just income. For example, I had more pre-tax deductions through my employer (401k, health insurance), which reduced my taxable income but also meant my withholding rate looked lower. We factored that into our discussion. For this year, I'd suggest going with the withholding-based split since it's straightforward and fair. But definitely consider setting up a system for next year - whether it's a joint tax account like Connor suggested or just agreeing on a method upfront so you're not debating it every April!