Good point! Do states typically have the same 3-year refund window as federal? And would penalties be similar if I did end up owing?

Many states follow the same 3-year refund window as the federal government, but there are definitely exceptions. For instance, some states like California can look back and collect for much longer periods than the IRS typically does. Regarding penalties, they vary widely by state. Some states have lower penalty rates than federal, while others can be more aggressive with collections for even small amounts. It's definitely worth checking your specific state's department of revenue website or calling them directly. In my experience, state tax agencies are actually often easier to reach by phone than the IRS.

This is accurate. I work in a financial aid office, and we do occasionally request tax transcripts for verification purposes. While we primarily use the prior-prior year for determination, having unfiled taxes can sometimes create issues during verification or if there are special circumstances reviews.

Thanks for bringing this up! Would the Saver's Credit still apply if I'm being claimed as a dependent though? I thought I read somewhere that dependents aren't eligible.

You're absolutely right - I should have clarified that important detail. Dependents are NOT eligible for the Saver's Credit, regardless of their income level. So in your specific situation, this wouldn't apply while you're being claimed by your parents. Once you're no longer a dependent, definitely look into this credit as it could give you a nice tax break for your retirement contributions. But for now, your original approach makes sense - contribute to get that employer match without complicating your tax situation.

The match is definitely worth taking advantage of, but I think OP should clarify what they mean by "matches .5% up to 6%". That wording is confusing. Usually employers say something like "50% match up to 6% of your salary" meaning if you put in 6%, they add 3%. A ".5% match up to 6%" would be extremely low if literal.

Thank you so much for breaking it down like this!! This makes perfect sense now. I was getting so confused because our accountant kept saying "inheritance isn't taxable" (which seems correct) but wasn't addressing the actual problem of how to deposit the check. I just got the EIN online following your steps and have an appointment with the bank tomorrow to open the estate account. Will the final 1041 be complicated to file? Or is it pretty straightforward since there's no tax due?

The 1041 for this situation is very straightforward. Since there's no income being generated by the estate (just passing through the inheritance), it's basically just identifying information and zeros for the income portions. Many people do it themselves for simple cases like yours. The form asks for the EIN, estate name, when it was opened/closed, beneficiaries, and income details. Since inheritance isn't income, you'll show the money coming in and going out to the heir(s) with no taxable amount. It's mainly filing it to show the IRS that the estate was opened and closed properly. Your accountant can do this very simply, or there are templates online if you want to DIY.

I used TurboTax Business for my mother's estate last year. It worked fine for a simple estate situation. The software walks you through all the questions and it's pretty straightforward if you're just dealing with passing inheritance through. Make sure you get the Business version though, the regular TurboTax doesn't do 1041s.

This is why I always take the extra step to get a win/loss statement from gambling sites that offer them. Does your crypto gambling site provide any kind of statement or summary you can download for tax purposes?

Most legit crypto gambling sites do offer some form of win/loss statement or transaction history you can download. It's not always as detailed as traditional casinos, but it's better than nothing. For sites that don't provide good documentation, I've started keeping a spreadsheet with dates, amounts, screenshots of balances before and after significant wins/losses, and the withdrawal transactions. The more documentation you have linking the gambling activity to the crypto you received, the easier it is if questions come up later.

Thanks for breaking it down like this! The gift card to gambling site to ETH withdrawal path had me so confused. And yes, it was about $1000 worth when I cashed out, so the 10.1% decrease tracks with the market dip after I withdrew. I'm going to double check the exact date and ETH price to make sure my software has it right.

How long did it take you to get through to the Practitioner line? Last time I tried it took me over 2 hours of waiting...

Thanks everyone for the helpful responses! This definitely clears things up for me. I'll go ahead and file the 8809 without the 2848 since I already have a service agreement with this client. And I'll look into getting 2848 forms for all my clients going forward as a best practice. Really appreciate all the insights!