The bonus was paid separately with the 22% supplemental rate when I first received it. My employer hasn't mentioned anything about Social Security or Medicare taxes being returned to me - is that something I need to specifically ask them about?

Yes, you should definitely ask your employer about the Social Security and Medicare taxes. When you repay wages in the same year you received them, employers typically adjust everything including those taxes. But for repayments that cross tax years (like yours), the employer is only required to provide documentation of the repayment. For the Social Security (6.2%) and Medicare (1.45%) taxes withheld on that bonus, you'll need to specifically request a refund of those amounts from your employer. They're not automatically included in the Claim of Right calculation. If your employer won't refund these directly, you may be eligible to claim them as a credit on your tax return using Form 8919, but that gets complicated so you might want to consult with a tax professional about the specific process.

This is super important! My brother had to repay a bonus and his company didn't provide proper documentation. He got audited and it was a huge mess. Make sure to get everything in writing from your employer.

Thank you all for the advice! I feel much better about waiting now. Quick follow-up question - once I do get my refund, should I file the amendment immediately or is there any benefit to waiting a bit longer? And will FreeTaxUSA walk me through the process step by step?

I'd recommend waiting about 2-3 weeks after receiving your refund just to be sure everything has fully processed in the IRS systems. That timing worked well for me with no issues. Yes, FreeTaxUSA has a pretty straightforward amendment process. When you log in to your account, there should be an option for "Amend Return" that will walk you through each step. It will pull all your original information and then guide you through adding the 1099-G details. It automatically generates the 1040-X form with the correct before/after columns that the IRS requires.

Georgia does the same thing! I had to go hunting for mine this year too. They claim they send an email notification but I never got one. I think most states are moving this direction to save money on postage.

Thanks for confirming I'm not alone! Makes me feel slightly better about missing it. I really wish they'd at least send a text or email reminder that the forms are available. Seems like states are saving money at the expense of taxpayer convenience.

Thanks for this perspective. For the active business exception, what level of operations would typically satisfy this requirement? Would having 2-3 employees in Dubai be sufficient, or do tax authorities look for more substantial local presence?

The requirements vary by jurisdiction, but generally, 2-3 employees might not be sufficient unless they're performing core business functions. Tax authorities increasingly look at the nature of activities, not just headcount. Key factors include whether strategic decisions are made locally, whether the local employees have the skills and authority to conduct the core business, and whether the activities in that jurisdiction generate the income being reported there. Documentation is crucial - maintain evidence of local board meetings, decision-making processes, and business operations.

That approach is extremely risky and likely ineffective. Most tax jurisdictions now require disclosure of ultimate beneficial ownership, and using nominees specifically to avoid tax obligations could potentially cross the line into tax evasion. Modern tax authorities share information internationally and have sophisticated methods to look through nominee arrangements. If discovered (and the chances are high), you could face severe penalties beyond just the taxes owed.

Where did you find your crypto-friendly accountant? I've been looking for someone who won't charge me these insane rates but have had trouble finding anyone who seems knowledgeable about crypto tax rules.

I found mine through a local crypto meetup group. There are also some online directories specifically for crypto-friendly accountants - try searching "crypto tax professional directory" and you'll find a few options. The key questions to ask are: what software do they use for crypto tax preparation, how do they handle missing cost basis information, and if they have a flat fee structure for crypto reporting regardless of transaction count. Any accountant who acts like crypto is some mysterious new technology or charges by the transaction is probably not your best option in 2025.

This is really good advice. I'd add that you should sit down with your accountant and go through the forms together before filing to make sure everything transfers correctly. And keep copies of EVERYTHING, including all the work you did to calculate your crypto basis. The IRS has been focusing more on crypto compliance lately.

I've never even heard of that! What's a Mortgage Credit Certificate and how do I know if I got one? I bought my townhouse in 2023 if that matters.

An MCC is a certificate issued by certain state or local governments for first-time homebuyers or buyers in specific areas. You would definitely know if you had one - it's something you apply for through your state housing agency before or when closing on your home, and they provide you with an actual certificate. If you didn't specifically apply for one when buying your home, you probably don't have it. They're typically offered through first-time homebuyer programs or for properties in designated "target areas" that the government wants to encourage homeownership in. The credit lets you claim a percentage (typically 10-50%) of your mortgage interest as a direct credit rather than a deduction.

Points from a refinance are actually deducted differently than points from an initial mortgage purchase. With a refi, you have to spread the deduction of those points over the life of the loan (like 15 or 30 years) instead of taking them all at once like you can with an initial home purchase. That could definitely affect tax calculations!