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Former tax preparer here - a tip most people don't know: if you filed through ANY paid tax preparation service (H&R Block, Jackson Hewitt, local CPA, etc.), they are required by law to keep copies of your returns for at least 3 years. Call the office where you filed, and they can print you a complete copy, usually for a small fee (typically $25-50). This is often faster than going through the IRS, especially during busy periods. Just bring ID when you pick it up since it's sensitive information.
I appreciate the tip! Unfortunately I used TurboTax and did it myself online, but I'm still trying to figure out their system to download old returns. Their website navigation is not very intuitive. Do you know if online services like TurboTax have the same 3-year retention policy?
Online services like TurboTax typically store your returns for even longer than 3 years - many keep them for 7+ years. The challenge is usually navigating their interface to find them. For TurboTax specifically, after logging in, click on your name in the top right corner, then "Tax Returns & Documents." From that screen, you should see all your past returns with a "Download/Print PDF" option. If you're still having trouble, their customer support can guide you through it - they're pretty responsive if you use their chat feature.
If you're really in a pinch, call the Spanish university's international student office directly. I had a similar issue with a UK university, and when I explained the situation, they were willing to accept alternative documentation (my W-2 forms combined with the transcript). Sometimes they just need to verify your income/employment and can be flexible about the exact format. Worth a try before you go through all the hassle with the IRS!
Just to add a practical tip - when you mail in a return with zero income that's only claiming the recovery rebate credit, write "RECOVERY REBATE CREDIT ONLY" in big letters at the top of the first page of the 1040. This helps the IRS route it properly and can speed up processing. Also, use certified mail with tracking so you can prove when it was sent and received. The IRS is still dealing with massive backlogs, and these paper returns sometimes get lost in the shuffle.
Thanks for this advice! Would regular certified mail be good enough, or should I do certified mail with return receipt? And should my friend expect to wait a long time to get the rebate after filing?
Regular certified mail with tracking is sufficient - you just need proof it was delivered. Return receipt is extra protection but not strictly necessary. Your friend should definitely expect to wait several months for the rebate after filing. Zero-income returns claiming only the recovery rebate credit typically get flagged for manual review, which adds processing time. Current estimates I've seen suggest 3-6 months for these special case paper returns, though it could be shorter or longer depending on the IRS backlog at the time of filing. Make sure your friend keeps a complete copy of everything submitted so they can follow up if needed.
Has anybody had this experience? My sister filed a return like this last year just to claim her missing stimulus, and she got a letter from the IRS asking for ID verification before they would process it. She had to upload her ID through the IRS website and answer some questions to prove her identity.
One important thing I haven't seen mentioned yet - check whether your 2023 recharacterization was done before the tax filing deadline (plus extensions). If it was, you technically don't need to amend - you can just file the 8606 for 2023 as if you had made a traditional contribution originally. Recharacterizations done by the deadline are treated as if you made the contribution to the second account from the beginning. The 2024 conversion is still reported on your 2024 return, but the contribution basis is established on your 2023 return with Form 8606. I went through this exact scenario last year and confirmed this with my CPA.
I'm pretty sure my recharacterization was completed before the deadline (did it in mid-April 2024 for the 2023 contribution), but I had already filed my 2023 taxes in February. Does that mean I still need to amend to include the Form 8606, or can I just file the form separately?
You'll need to file an amended return (Form 1040-X) along with the Form 8606 for 2023. Since you already filed your original return without the 8606, you need to formally correct that with an amendment. If you hadn't filed yet when you did the recharacterization, you could have just included the 8606 with your original filing. But since you already filed without it, an amendment is necessary to establish your basis properly.
Has anyone used TurboTax to report backdoor Roth conversions? I'm in a similar situation but trying to DIY this since my accountant also seems confused by the process. Does the software walk you through the recharacterization and Form 8606 correctly?
Don't overlook checking if your original tax return was actually correct. I thought I owed $12k in back taxes until I had a tax professional review my return. Turns out I had missed several deductions as a self-employed person. Filed an amended return and my liability dropped to around $7,500. Worth spending a few hundred bucks on a CPA review if you did your taxes yourself originally. Even if you used software, it's only as good as the info you put in.
What kind of deductions did you miss? I'm self-employed too and worried I might be overpaying.
The biggest ones I missed were home office deductions (I was afraid of an audit so I skipped it entirely), health insurance premiums (which are deductible for self-employed people), and retirement plan contributions. I also hadn't properly calculated my business mileage. The CPA also helped me properly categorize some expenses I had lumped together as "miscellaneous" which gave me more legitimate deductions. Even things like a portion of cell phone bills and internet costs can be deductible if you use them for business.
Has anyone considered bankruptcy as an option for tax debt? I've heard that older tax debts can sometimes be discharged.
Yes, but there are very specific rules. Tax debts can potentially be discharged in Chapter 7 bankruptcy if they meet ALL these conditions: - The taxes are income taxes (not payroll or fraud penalties) - The debt is at least 3 years old (from the due date) - You filed your tax return at least 2 years before filing bankruptcy - The IRS assessed the tax at least 240 days before filing bankruptcy - You didn't commit fraud or willful evasion For 2022 taxes, you wouldn't meet the 3-year rule yet, so bankruptcy wouldn't help with this specific debt until at least 2026. Also, bankruptcy has serious long-term consequences for your credit and financial future.
Yara Haddad
One thing nobody's mentioned yet - make sure you keep documentation about your mom living there all these years. The IRS might question why you're selling a property that wasn't your primary residence but also wasn't a rental property. Utility bills in her name, mail addressed to her at that address, her driver's license showing that address, etc. would all help establish that she was the actual resident even though you were the owner. You should definitely keep these records with your tax documents.
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Keisha Robinson
ā¢Would this documentation help reduce any tax liability though? Or is it just to explain the unusual situation if questioned?
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Yara Haddad
ā¢It's primarily to explain the unusual situation if questioned during an audit. The documentation itself won't reduce your tax liability, as the property will still be treated as a non-primary residence for capital gains purposes. However, having this documentation ready could prevent potential complications if the IRS questions why you owned a property that wasn't your primary residence but also wasn't generating rental income. Without proper explanation, they might incorrectly assume it was an unreported rental property, which could trigger a more extensive audit.
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Paolo Conti
Don't forget to check if your state has any different rules about this kind of property sale! Federal is one thing but some states have their own wrinkles. In NY where I am, there were additional forms needed for non-primary residence sales that my accountant almost missed.
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Amina Sow
ā¢Good point! In California we have totally different rules for property tax reassessments when property transfers between family members. The fed and state systems barely talk to each other.
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