I haven't actually tried asking my company about this. Is there a specific way I should approach this conversation with HR? I'm not sure if they have an official policy, but it makes sense that they should help cover these costs since they're not providing an office space.

I'd suggest starting with an email to your manager or HR outlining your home office expenses related to work. Be specific about costs like increased utilities, internet requirements for work, and any furniture or equipment you've purchased to do your job effectively. Frame it as a question about whether the company has an accountable plan or stipend program for remote workers, rather than demanding reimbursement. Many companies have these policies but don't publicize them well. If they don't have a formal policy, this could prompt them to create one, especially if other remote workers have similar needs.

This is really helpful! I'm in California - does anyone know if CA allows home office deductions for W-2 employees? I've been working remote for 2 years and haven't claimed anything because I thought it wasn't allowed anywhere.

Where can you find these Certified Acceptance Agents? Are they at all H&R Blocks or is it a special place you need to go to?

Not all H&R Block locations have Certified Acceptance Agents (CAAs), but many do - you need to call and ask specifically. You can also find a complete list of CAAs on the IRS website by searching "IRS certified acceptance agent list" which shows all authorized agents by location. Some CAAs only work with certain types of clients though (like some only help businesses, others only help individuals), so make sure to ask if they handle individual ITIN applications when you call. Most charge a fee on top of any tax preparation services, usually around $50-100 for document verification, but it's worth it to avoid sending original documents.

Yes, you should notify the IRS when you switch from an ITIN to an SSN. Complete Form 8996 "Reconciliation of ITIN and SSN" and send it to the address on the form. You should file future tax returns with your SSN only and reference your previous ITIN on the form.

That's a good idea! I didn't even think to check my spam folder. I just found the notification email from February 1st buried in there. Clicked the link and got my form downloaded right away. Thanks everyone for the help! Between checking my spam folder and learning about those services if I need them in the future, this has been super helpful.

This is what I had to do last year. The transcript doesn't give you the actual form but at least tells you the amount and who reported it, which you can use on your tax return. The IRS "Get Transcript" online service is faster than mailing the form if you can verify your identity.

Good point about the online Get Transcript service being faster. I always forget that's an option since I had trouble verifying my identity in their system. The transcript does give you the box 1 amount (gross distribution) which is often all you need for basic tax filing if you know the distribution code. But you're right that it's not a replacement for the actual form if you need all the detailed breakdown.

That's a really good point about the income limits! Our household income is around $175,000, so we'd be in the phase-out range. My son's income (even with the tuition benefit counted) is well under the limit. Is there a calculator somewhere that would help us determine exactly how much we'd lose to the phase-out versus him claiming it?

The phase-out calculation reduces your eligible AOTC by a ratio based on how far into the phase-out range you are. Since your household income is $175,000 and the phase-out range for married filing jointly is $160,000-$180,000, you're 75% through the phase-out range ($15,000 of the $20,000 range). That means your maximum AOTC would be reduced by approximately 75%. So instead of the full $2,500 maximum credit, you'd be looking at around $625 remaining. Whereas if your son claims it on his own return, he could get the full $2,500 (assuming the qualified expenses are high enough). Many tax software programs have built-in calculators for this, but you can also use the IRS's Interactive Tax Assistant on their website to get a more precise calculation for your specific situation.

But LLC is less valuable than AOTC, right? AOTC gives you $2,500 for $4,000 in expenses (100% of first $2k, 25% of next $2k) while LLC only gives $2,000 for $10,000 in expenses (20% rate). Plus AOTC is partially refundable.

Is FreeTaxUSA actually user-friendly? I tried using the IRS free file system directly once and it was a nightmare to navigate. I ended up going back to paying for TurboTax because the interface was better, but I'd love to save some money.

FreeTaxUSA is surprisingly user-friendly! It's not as flashy as TurboTax, but the interface is clean and straightforward. It walks you through each section with simple questions and explanations. You can save and come back to it, and it has a good review system to catch common errors. The best part is they don't do that annoying bait-and-switch that some other "free" services do where they surprise you with fees at the end for slightly more complex returns. Federal is actually free for almost all personal tax situations, and state is a flat $15 fee.

Exactly! Tax evasion charges are for people hiding millions in offshore accounts or completely fabricating businesses, not someone who made a mistake entering their dividend income. Your friend needs to realize the IRS has bigger fish to fry than simple returns with minor errors.