Thanks for this advice. What kind of documentation did they specifically want to see during your audit? Just invoices or something more detailed? I'm worried because I'm not sure we've been tracking things that carefully.

This is so true! My brother-in-law used his resale certificate to buy a TV for his "office" and got caught in an audit. Ended up paying the tax plus a 25% penalty! Not worth the risk.

You need to submit a new W-4 form to your employer. It's fairly straightforward: 1. You can get the form from your HR department or download it from irs.gov 2. The current W-4 doesn't use "allowances" anymore - instead you directly enter dollar amounts 3. If you want less withheld (bigger paychecks, smaller refund), you'd use Line 4(b) to list deductions or use the worksheet to calculate an additional withholding amount Most payroll systems also have an online tool where you can update your W-4 electronically without filling out the paper form.

Thank you, that makes sense! I had no idea it was called a W-4, I was looking for some kind of "withholding adjustment request" or something. Will definitely talk to our HR person tomorrow.

Not odd at all - I've heard financial advisors call this "defensive financial planning." Sometimes the mathematically optimal choice isn't the best one when you factor in real-world complications. As long as you're making an informed choice rather than just defaulting into it, I think that's totally reasonable.

Yes! We did this last year and it worked great. Donated to our usual charities plus prepaid some planned donations for this year. Itemized last year and will take standard deduction this year. Saved about $2,300 in taxes by concentrating deductions in one year instead of spreading them out.

That's a good point! Do you know if I can open an HSA myself as a contractor? My health insurance is a high-deductible plan but it's not through an employer since I'm self-employed.

Absolutely you can! That's actually one of the great things about HSAs - you don't need an employer to open one. As a self-employed person with a qualifying high-deductible health plan (HDHP), you can open an HSA through many banks, investment companies like Fidelity or Vanguard, or specialized HSA providers. Just make sure your health plan qualifies as an HDHP under IRS guidelines. For 2025, that means a minimum deductible of $1,600 for individual coverage or $3,200 for family coverage. The maximum 2025 contribution is $4,150 for individual coverage or $8,300 for family coverage, with an extra $1,000 catch-up contribution if you're 55 or older.

Where exactly do you find the AGI on the account transcript? I'm looking at mine and see the line 150 for total tax, but I don't see anything labeled as AGI. Is it under a different code?

You're right, it's not explicitly labeled as AGI on the transcript. Look for line item 150 (tax per return) first to orient yourself. Then look for the code 11701 which usually appears above that - it shows your "Adjusted Gross Income Per Return". The number next to that code is what you want to use. If you don't see code 11701, you may need to check for any transaction codes like 290 or 291 which indicate adjustments were made to your original return. These adjustments could be why your known AGI doesn't match what the IRS has on file.

This is the correct answer for my situation! I didn't need to file last year because I was a student with minimal income. Tried putting 0 as last year's AGI and my return was accepted immediately. Thanks for mentioning this!

Thank you for this suggestion - I didn't know about Form 14157 or that I could request a copy of the return. Would getting the return also show who actually prepared it? I'm worried the "friend" may have used someone else's information too.

The tax return copy will show who signed as the preparer, though in fraud cases, they sometimes leave that section blank or use fake information. However, it will definitely show all the forms and schedules that were filed, which helps you understand the full extent of the fraud. When you file Form 14157 to report the preparer, you can include any information you have about them - full name, address, phone number, etc. If your brother received any paperwork from this person or has text messages discussing the tax preparation, include copies of those as evidence.

Do you recommend getting a specialized tax attorney who has experience working with people with disabilities? I had a similar situation with my sister and found that regular tax pros weren't very helpful with the special considerations.