That's a good idea! I just checked and they do have an investor portal, but unfortunately, it also says the K-3s aren't ready yet. The message says "K-3s will be available by June 15th" which is the same thing the phone rep told me. I did email my contact at the partnership to ask if they could provide draft numbers, but haven't heard back yet. Do you think it would be bad to file an extension, then amend later if the numbers change significantly?

Filing an extension and then potentially amending later is absolutely fine and very common, especially with these K-1/K-3 situations. Many partnerships and investment firms routinely issue K-1s close to or even after the filing deadline, and the IRS fully expects that investors will need to file extensions. If the numbers end up being close to what you estimated, you might not even need to amend. You only really need to consider amending if there's a significant difference that would affect your tax liability. The threshold for "significant" varies, but generally a few hundred dollars difference in foreign tax credits might not warrant an amendment unless you're trying to maximize every credit.

TurboTax does have a section for K-1s but honestly it's not great with these special situations. Last year when this happened to me, TurboTax kept flagging it as an error that I couldn't resolve without the missing info. I ended up having to file an extension anyway. H&R Block's software actually handled it better - they have a specific option for "K-3 not yet available" that lets you proceed with filing while flagging which items might need to be amended later. Might be worth switching if you're not too far along in TurboTax.

Thanks for the tip about H&R Block! I haven't gotten too far in TurboTax yet so switching wouldn't be a big deal. I'm just so annoyed that these partnerships can just decide not to provide necessary tax forms until after the filing deadline and somehow that's completely legal. Seems like the IRS should hold THEM accountable rather than making all of us jump through hoops.

Do you remember what specifically changed on Schedule C? I'm working on mine now and want to make sure I get it right.

The main differences weren't dramatic, but there were some COVID-related options that existed only for 2020 returns. For example, there were special provisions for the Employee Retention Credit and paid sick/family leave credits that appeared on that year's forms. The core expense categories stayed the same (advertising, car expenses, insurance, etc.), but some of the instructions and limitations were different due to pandemic relief provisions. Your best bet is to download the actual 2020 Schedule C form and instructions directly from the IRS website rather than using any current year references. That way you'll be working with the exact form as it existed then.

Not to mention the possibility of having to amend your state return too depending on where you live. Some states require you to file a state amendment if you change your federal return.

How quickly should I do the conversion after contributing? Mine sat for about 2 weeks and earned like $12 in interest. Is that going to cause issues?

A couple weeks is totally fine, and $12 in interest isn't going to cause major issues. You'll just need to pay taxes on that $12 when you do your 2024 taxes (since that's when the conversion happened). The real problems happen when people contribute to a traditional IRA and then wait months or even a year before converting, allowing significant earnings to accumulate. Some people have their traditional IRA in investments that could grow substantially before conversion, creating a larger tax bill.

I've used TurboTax for backdoor Roth for the past 3 years. It works but is a bit confusing. When it asks if you want to deduct your traditional IRA contribution, make sure to say NO. Then it will guide you through the Form 8606 for non-deductible contributions. The next year, it'll help you report the conversion with the 1099-R.

Doesn't the tiebreaker rule mean that if two people can claim a child, the person with the higher AGI gets the claim? Or is that only when both people are equally eligible?

The tiebreaker rules only come into play when BOTH people are eligible to claim the dependent under all the qualifying child or qualifying relative tests. They're essentially the "last resort" when two people legitimately could claim the same dependent. In most disputes like this, the IRS determines only one person actually qualifies under the support and residency tests. If the child lived with the grandparent for more than half the year and the grandparent provided more than half the support, then the tiebreaker rules won't even be needed - the other person simply doesn't qualify regardless of their AGI.

You don't need proof for all that. IRS Publication 501 clearly states that for the support test, you only need to show you provided MORE than half of the child's total support for the year. You don't need to document every single expense.

ur right but in an audit they ask for everything. my cousin had to make a spreadsheet showing all expenses for the kid and who paid what. better to have too much proof than not enough! in a normal year ya don't need all that but when someone else also claimed the same kid its different. they check everything super carefully.

Doesn't the IRA limit what kind of options strategies you can use though? I thought you couldn't sell naked calls or do certain spreads.

You're absolutely right about the limitations. In an IRA, you generally can't sell naked calls or puts because they have undefined risk and require margin. Most brokers only allow covered calls, cash-secured puts, and certain defined-risk strategies like vertical spreads. The exact permissions depend on your broker and your approved option level within the IRA. Fidelity, for example, is pretty conservative and might restrict you to just covered calls, while some others allow vertical spreads if you have enough experience and account value.

I got a "review" (not technically an audit) last year because my 1099-B didn't match what I reported. Turns out my broker didn't have the correct cost basis for some options I traded. Make sure you're keeping your own records and don't just rely on the broker forms.