Did you consider filing an amended return after you noticed the issue? I'm wondering if I should do that since I just found this bug on my already-filed 2024 return.

I didn't file an amended return, and I wouldn't recommend doing so in your case either. An amended return should be used for substantial errors that affect your tax liability, not for missing information that doesn't impact the final calculations. Since the sale details are correctly reported elsewhere on Form 4797 and your tax calculation is accurate, filing an amended return would likely just create unnecessary complexity and potentially delay any refund you're expecting. In my case, the IRS processed my return without any issues despite the blank line 1a.

From my experience talking with the IRS (mentioned in my comment above), they're well aware of this TurboTax bug. The agent I spoke with said they see this frequently and it doesn't trigger any compliance issues as long as the property sale is fully reported with the correct amounts elsewhere on Form 4797.

3 Wait, so even if the form wasn't blank, you still don't need to include it with your return? I'm confused because I thought health insurance was required for taxes.

22 You never need to attach any 1095 forms (A, B, or C) to your tax return - they're information documents only. You use the information from them to fill out your tax return correctly, but the actual forms stay with your personal records. The health insurance requirement for tax purposes (the individual mandate) had its penalty reduced to $0 at the federal level starting in 2019. So while technically the requirement still exists, there's no federal penalty for not having coverage. Some states do have their own penalties though, so it depends on where you live.

20 TurboTax will ask you about health insurance during the filing process, but you don't need to physically enter the 1095-C if it's blank. The software mainly needs to know if you had coverage and for what months. If you already told TurboTax you didn't have coverage through your employer (which matches your blank 1095-C), then you're fine - no amendment needed.

Oh wow, I didn't realize there was an additional tax on top of regular income tax. Does TurboTax factor all this in automatically? And is that 15.3% on the $42,000 she made after expenses or on the full $73,000?

TurboTax will absolutely calculate this automatically for you, so don't worry about figuring it out manually. The self-employment tax applies to her net earnings after expenses (so the $42,000 figure you mentioned), not the gross income. The one good piece of news is that you can deduct half of the self-employment tax on your 1040, which helps offset some of that additional tax burden. Also, don't forget to look into whether you qualify for the Qualified Business Income deduction (Section 199A), which could give you a deduction of up to 20% of qualified business income. TurboTax should walk you through this as well.

How do you organize all of that? I have a shoebox full of receipts and I'm already dreading next year's taxes.

That's a great suggestion! Do you find that the time zone differences are manageable? And did you find them through a referral or some other way?

The time zone difference is honestly not a big deal. We schedule video calls that work for both of us - usually early morning my time, late afternoon Seattle time. Most of our communication happens through email anyway, and she's really responsive. I found her through an American expats in Thailand Facebook group. That's usually my first recommendation - join Facebook groups or forums for expats in your specific country and ask for CPA recommendations. You'll get feedback from people in very similar situations to yours.

This is good advice. I used an EA who specializes in expat taxes last year after a regular tax preparer completely messed up my return. The EA fixed everything and the difference in knowledge was night and day. Cost me about $550 for a pretty complex situation with income from three countries.

Thanks for this advice! I just started downloading all my bank statements. I'm realizing I had way more little side jobs than I remembered. Should I be separating the income by different clients/sources or just lumping all 1099 work together when I get organized?

For organization purposes, it's good to separate income by different clients, especially if you received actual 1099 forms from them. This makes verification easier if the IRS has questions. When you actually file though, all your self-employment income will be reported on Schedule C (Profit or Loss from Business). You'll list the total income there, but keeping records of which client paid what is important for your own documentation. If you earned more than $600 from any single client, they should have issued you a 1099, and the IRS will be expecting to see that income reported on your return. The more organized you are by client source now, the easier it will be to match everything up when filing.

Be really careful with tax relief companies. Most of them charge thousands upfront and just do what you could do yourself by calling the IRS directly. They advertise "pennies on the dollar" settlements (called Offers in Compromise) but most people don't qualify for those. For unfiled returns, you're much better off working with a local EA or CPA who charges a reasonable hourly rate rather than a tax relief company charging huge fees.