Wait, so when my work says I have an annuity plan option, I might not actually get guaranteed income for life? That's literally the only reason I was considering it!

That's exactly right. Many employer "annuity plans" are really just tax-qualified retirement savings vehicles that give you the option to convert to an income annuity when you retire, but don't require you to. When you retire, you typically have several options for what to do with the money - take a lump sum, set up systematic withdrawals, roll it over to an IRA, OR convert it to an income annuity. Unless you specifically choose the annuity option at retirement, you won't automatically get guaranteed lifetime income. I'd suggest asking your HR department for the Summary Plan Description which should clarify exactly what options will be available to you at retirement.

That's exactly what I was thinking of doing! Did you find any downsides to splitting contributions this way?

Can you have both a 401k and qualified annuity at the same company? I thought it was usually one or the other. Do they share the same annual contribution limit?

Do you know if the Child Tax Credit amount changed too? I have 3 kids and that makes a huge difference in my refund every year.

Yes, there are changes to the Child Tax Credit for 2025 as well. The maximum credit amount remains $2,000 per qualifying child, but the refundable portion (Additional Child Tax Credit) maximum has been inflation-adjusted to $1,700 per qualifying child (up from $1,600 in 2024). The income thresholds where the credit begins to phase out have also been adjusted upward. For 2025, phaseout begins at $210,000 for married filing jointly and $160,000 for other filers. With 3 kids, that could potentially mean an extra $300 in refundable credits depending on your income level.

The premium tax credit thresholds are definitely adjusted for 2025. The amount of premium you're expected to contribute based on your income percentage has been adjusted downward slightly. Also, the federal poverty level guidelines used to calculate the credit will be the updated 2025 numbers, which typically means larger subsidies for most people. If you're near 400% of the federal poverty level, the American Rescue Plan provisions that removed the "subsidy cliff" have been extended through 2025, so you'll still benefit from that regardless of income.

The good news is that penalties for corrections typically apply from when the correction is due, not the original deadline. Since you filed the original forms on time, and you're correcting within 30 days of the original deadline, you should be in the lowest penalty tier if they assess one at all. Often the IRS is reasonable about corrections, especially for small businesses making good-faith efforts to correct mistakes promptly. Make sure to keep documentation of when you discovered the error and how quickly you acted to correct it in case you need to show reasonable cause.

Oh no, I didn't even think about penalties! My original forms were sent before the deadline, but the correction is happening about 2 weeks after. Do they count the

Totally agree. I e-filed mine and even those took forever. I heard they're still catching up from staffing shortages and budget cuts.

Did you amend your 2020 return as well then? I'm in a similar situation where my 2019 amendment might affect my 2020 filing and I'm not sure if I should wait until the 2019 amendment is processed before filing my 2020 amendment.

I actually didn't need to amend 2020 in my case. The AGI change only affected my Recovery Rebate Credit calculation, which the IRS adjusted automatically when they processed my 2020 return. They sent a letter explaining the adjustment. However, your situation might be different depending on what's changing on your 2019 return and how it impacts 2020. If you have credits or deductions that carry over between years, you might need to amend both. I'd recommend completing your 2019 amendment first, calculating what your correct 2020 return should have been, and then determining if the difference warrants filing another amendment. You don't need to wait for the 2019 amendment to be fully processed before filing the 2020 amendment, but it helps to do them in order.

You generally have 3 years from the original filing deadline to file an amended return for a refund. For 2017 taxes, the original deadline was April 15, 2018, so you had until April 15, 2021 to amend for a refund. If you owe additional tax, the IRS has up to 6 years to assess if you underreported income by more than 25%.

Do they still try to sell you that "audit protection" add-on? They always made me feel like I was crazy for not wanting it.

Yes, they push the audit protection hard! It was an extra $45 last year. The preparer made it sound like I was practically guaranteed to get audited without it. I've declined it every year and (knock on wood) never been audited. They also try to upsell their "tax pro review" service which is another $89. Isn't that what I'm already paying them for by going to their office instead of using their software?

I use FreeTaxUSA for my rental properties and small business. It handles Schedule E perfectly and only costs $15 for state filing (federal is free). For casualty losses, they have a pretty good walkthrough. Saved me at least $600 compared to HRB.

Thanks for the suggestion. I've never heard of FreeTaxUSA - do they offer any support if you get stuck or have questions during the process?