Thank you for pointing that out! I should have mentioned - he's definitely not a dependent on anyone else's return. He's 38 and has been living on savings during 2020. I was helping him with paperwork stuff and realized he never got his stimulus payments. I appreciate the advice from everyone!

Glad to hear that! It's just something that trips up a lot of people. Also, make sure your friend keeps a copy of the return and proof of mailing (like a certified mail receipt). The IRS has been really backed up with paper returns, especially for past tax years, so it might take several months for them to process it.

Some tax software does let you file prior year returns, but most only allow electronic filing for the current tax year and maybe the year before. For 2020 returns filed in 2025, you'll probably have to mail it in. I used FreeTaxUSA to prepare a prior year return but had to print and mail it.

It's the combined total of all your foreign financial accounts at any point during the year. So if the aggregate (combined) maximum value of all your foreign accounts exceeded $10,000 at any time during the calendar year, you need to file an FBAR - even if no single account ever exceeded $10,000. For example, if you have three foreign accounts with maximum balances of $4,000, $3,000, and $4,000 during the year, your aggregate maximum would be $11,000, triggering the FBAR filing requirement. The key is to look at when all accounts were at their highest, even if that happened on different days.

Thank you for clarifying! I definitely need to file then. I've had 5 accounts in my home country for years and never filed because each one stays small, but together they're definitely over $10K. Better late than never I guess?

That's actually super helpful advice! I wouldn't have thought to document everything like that. Will definitely save all confirmation emails and screenshots when I submit. Did you mail your FBAR or file electronically? I'm assuming electronic is better for creating that paper trail?

Definitely file electronically - it's the only option now anyway. The FinCEN BSA e-filing system will give you a confirmation receipt with a BSA Identifier number immediately after submission. Save that PDF confirmation right away and also take screenshots of the successful submission page. Electronic filing creates a much better trail than paper ever did, plus it processes much faster. Just make absolutely sure all your information is accurate before submitting, especially account numbers. Simple mistakes can cause headaches later.

Can the custody agreement override the IRS rules? Like if the agreement says the non-custodial parent can claim the kids but they don't have the Form 8332, does that still work with the IRS?

The custody agreement itself doesn't override IRS rules, but it creates a legal obligation between you and your ex. For the IRS to recognize the non-custodial parent's right to claim the child, you still need Form 8332 or similar documentation. What works well is having the requirement to sign Form 8332 explicitly stated in your custody agreement. This way, if the custodial parent refuses to sign it when they're legally obligated to by the court order, you have recourse through family court. It's essentially a two-step process: the custody agreement creates the legal obligation between parents, and Form 8332 satisfies the IRS requirements.

That's exactly what I'm worried about! Did you try to get the Form 8332 signed after the fact or was it too late by then?

Thanks for the advice on tracking expenses. I've actually been keeping all my gas receipts and noting my mileage in my phone. It was about 480 miles total over the two weeks just for work-related driving. I also had to buy some office supplies they claimed would be provided but weren't. Do you know if I can still claim these deductions if I file the misclassification complaint? I'm worried about doing something wrong on my taxes while this is all getting sorted out.

You can still document all these expenses while your misclassification complaint is pending. The best approach is to keep everything organized as if you will need to file Schedule C (self-employment), but hold off on actually filing until you get a determination on your status. If the IRS rules that you were misclassified as a contractor and should have been an employee, the company will be responsible for their portion of FICA taxes (the employer half of Social Security and Medicare taxes). In that case, you'd file as an employee with a W-2 that the company would be required to provide, and many of those business expenses wouldn't be deductible anymore under current tax law for W-2 employees.

Even with arbitration clauses, labor board complaints are still valid in most states! Companies can't contract around labor laws. Had this exact situation and still won my case through the state despite the arbitration clause.

You're absolutely right! I should have been clearer about that. Labor board complaints and tax filings with the IRS are still options regardless of arbitration clauses, as these are government agencies enforcing laws rather than private litigation. What I meant was that if the OP is considering a private lawsuit for things beyond just wage claims (like potential fraud or other civil claims), that's where arbitration clauses can create hurdles. But you're 100% correct that for the core issues of misclassification and wage theft, the state labor board is still a valid path forward regardless of what the contract says.

What about if I drive a lot but also had a major repair? I did about 20,000 business miles last year but also had to replace my engine for $7,000. Which method would be better for me?

For 20,000 business miles at the standard rate, you'd get about $13,400 in deductions (20,000 × $0.67). To determine if actual expenses are better, you need to add up everything: the $7,000 engine replacement plus all your gas, insurance, maintenance, repairs, and depreciation for the year. If your total actual expenses exceed $13,400, then the actual expense method would give you a better deduction. But remember, if you choose actual expenses in the first year you use the vehicle for business, you're generally stuck with that method for the life of the vehicle.

OMG when you put it that way ($32 per mile) it makes the error even more obvious! I went back and checked everything and found the problem. When entering my mileage, I also had "actual expenses" checked in a different section. Once I unchecked that and just used standard mileage, the number went from $128,439 down to $2,680. Huge difference! My refund is smaller now but at least I won't be getting audited for claiming I spent more on my van than it's actually worth 😅 Thanks everyone for the help!