I'm so deeply sorry for your family's loss, Aisha. Losing someone unexpectedly is incredibly difficult, and it's truly heartwarming to see how your community rallied together to support your aunt during this time. This thread has been absolutely invaluable - I've learned so much about GoFundMe tax implications that I never knew before. The consistent message from everyone with experience is reassuring: memorial fundraisers like yours are considered gifts, not taxable income, regardless of hitting the $15k 1099-K reporting threshold. What I find most helpful is how this discussion evolved beyond just answering the tax question to providing a complete roadmap for proper documentation. Mohamed's update about organizing everything in a spreadsheet really shows how all the advice comes together into actionable steps. The idea of keeping campaign page screenshots alongside expense receipts creates such a clear paper trail showing the charitable purpose. As someone who might need to organize something similar in the future (unfortunately, we all face unexpected losses), I'm bookmarking this entire conversation. The resources people shared for getting direct IRS guidance and tax help seem particularly valuable for anyone feeling overwhelmed by the technical aspects. Your cousin clearly touched many lives - 270 donors is a beautiful testament to their impact. Thank you for asking this question and sharing your journey. It's going to help countless families navigate similar situations while they're grieving.

I'm so sorry for your family's loss, Aisha. Losing a loved one unexpectedly is one of life's most difficult experiences, and it's incredibly touching to see how your community came together to support your aunt during this time. As a newcomer to this community, I'm amazed by the comprehensive guidance that's been shared in this thread. The consistent message from everyone with direct experience - tax professionals, people who've been through similar situations, and even those who've spoken directly with IRS agents - is very reassuring: memorial fundraisers like yours are considered gifts, not taxable income, regardless of the amount raised. What I find particularly valuable is how this discussion has evolved into a complete practical guide. The documentation strategies that have been shared - keeping campaign screenshots, organizing receipts in spreadsheets, and maintaining clear records of how funds were used for legitimate funeral expenses - create such a solid foundation for proper reporting. The clarification that the $15k threshold is purely for IRS reporting purposes, not taxation, is something I didn't fully understand before reading through all these responses. It's comforting to know that community generosity during times of tragedy won't create additional financial burdens for grieving families. Your cousin clearly had a profound impact on many people - the fact that 270 individuals contributed speaks volumes about the kind of person they were. Thank you for asking this important question and sharing your experience. This thread will undoubtedly help many other families navigate similar situations in the future.

This whole discussion has been incredibly educational! I'm new to this community and have learned so much from reading through everyone's responses. The clarity around gift vs. income taxation is exactly what I needed to understand. I'm actually in a similar situation where my parents are considering helping with some debt, and this thread has been like a comprehensive guide to family gift taxation. The key points about documentation, potential 1099-C forms, and coordination with parents on Form 709 filing are all things I never would have thought about. What really stands out to me is how this community goes beyond just answering the basic tax question - people have shared practical implementation advice, insurance considerations, and even broader financial planning perspectives. Emma, you're so fortunate to have such generous parents, and it's clear you can move forward confidently knowing this won't create any unexpected tax burden for you. Thanks to everyone who shared their expertise and experiences. This is exactly the kind of knowledge sharing that makes complex financial decisions feel manageable instead of overwhelming!

This thread has been absolutely fantastic to read through! As someone who's been following this community for a while, I'm consistently impressed by the quality and depth of advice shared here. Emma, you've received incredibly solid guidance from everyone - this is definitely a gift situation, not taxable income to you. The peace of mind from understanding this correctly must be huge, especially when dealing with such a significant amount. What I particularly appreciate about this discussion is how it evolved beyond just the core tax question. The practical tips about documentation, potential 1099-C issues, insurance updates, and even the broader estate planning considerations show how thoughtful this community is about helping people navigate all aspects of these situations. For anyone else reading this who might face similar family gift scenarios in the future, this thread is like a comprehensive guide to everything you need to think about. The consistency of the responses really reinforces how well-established this area of tax law is. Emma, congratulations on having such generous parents and on becoming mortgage-free! Make sure to enjoy that feeling of true homeownership. And to everyone who contributed their expertise - thank you for creating such a valuable resource for the community!

I've been helping expats with Form 1116 issues for several years now, and your situation is a textbook example of how the Foreign Tax Credit limitation works in practice. What you're experiencing isn't a bug - it's actually the system working as intended, though I completely understand why it feels backwards and frustrating. The core issue is that the FTC is designed to prevent "cross-crediting" - using foreign taxes paid on foreign income to offset US taxes owed on US-source income. Even though your UK tax rate is higher than the equivalent US rate, the limitation calculation on Line 19 ensures you can only credit foreign taxes up to the amount of US tax that would be owed specifically on that foreign income. Here's what I'd recommend checking: Look at Lines 1a through 8 on your Form 1116 and make sure you're correctly identifying what constitutes foreign-source income versus US-source income. Even small amounts of US interest, dividends, or other domestic income can significantly impact the limitation calculation. Also, double-check that you're properly calculating your foreign taxable income on Line 17 after accounting for the standard deduction. The good news is that any excess foreign tax credits carry forward for up to 10 years, so they're not wasted. If you continue earning foreign income in future years, you'll be able to use those credits. And if you move abroad permanently in the future, you might want to compare the FTC with the Foreign Earned Income Exclusion to see which gives you better tax results.

I've been following this thread with great interest as someone who's dealt with similar Form 1116 headaches. What really helped me understand the limitation calculation was realizing that Line 19 isn't trying to penalize you for paying high foreign taxes - it's actually protecting the US tax base. Think of it this way: the US wants to tax your worldwide income, but it also wants to be fair about double taxation. So the FTC lets you credit foreign taxes, but only against the US tax that would have been owed on that same foreign income. The ratio calculation ensures you can't use your UK taxes to wipe out US taxes owed on US-source income. In your case, that $1,750 you still owe is likely the US tax on your small amounts of US-source income (interest, etc.) plus any limitation effects. The system is working correctly - it's just not intuitive! One thing that might help for next year: consider timing when you realize US-source income if you have control over it. For example, if you have investments generating US dividends or interest, you might be able to minimize those during years when you have high foreign income to reduce the limitation effects.

I just wanted to chime in as someone who's been through this exact situation! I had a 922 code appear on my 2019 transcript in 2022, also showing $0.00, and I was absolutely convinced I had made some terrible mistake on my return. After months of worry (and reading threads like this one), I eventually learned that mine was triggered by my bank submitting a corrected 1099-INT form. Apparently they had initially reported my interest income with the wrong account number or something technical like that, but the dollar amount was correct all along. When they submitted the correction, the IRS system automatically flagged it for review, but since my original return already had the right numbers, the review concluded with no changes needed. The key thing I learned is that the $0.00 amount really is your friend here - it means the IRS has already completed their investigation and determined everything checks out. If there was actually a problem, you would have received official mail by now AND the transcript would show an actual dollar amount owed. It's been almost 3 years since that code appeared on my transcript and I've never heard another word about it. These codes are just the IRS's way of keeping records of their internal reviews, even when those reviews find no issues. Hope this helps put your mind at ease!

I just wanted to add my experience to this incredibly helpful thread! I discovered a 922 code on my 2018 transcript about 6 months ago, also showing $0.00, and I was completely panicked thinking I had somehow failed to report income or made a major error on my return. Like so many others here, I only had straightforward W-2 income that year and everything matched perfectly between my tax documents and what I reported. I spent weeks agonizing over it, convinced I was going to get audited or owe back taxes with penalties. After reading through all these similar experiences, I'm finally understanding that these codes are actually quite routine! It sounds like the IRS has automated systems that flag potential discrepancies for review, but when the review is complete and shows $0.00, it means they've already determined everything was filed correctly. What really resonates with me is how many people mentioned third parties (employers, banks, etc.) submitting corrected forms years after filing. I had a small CD that matured in 2018, and I'm now wondering if my credit union submitted some kind of technical correction that triggered this review, even though the interest amount I reported was correct all along. The consistency across everyone's stories is remarkable - 922 codes appearing 1-3 years after filing, showing $0.00 amounts, and never leading to any actual problems or correspondence. It's clear these are just administrative records of completed reviews rather than active issues requiring attention. Thank you to everyone who shared their experiences - this thread has turned what felt like a tax crisis into understanding that this is just normal IRS bookkeeping!

A lower refund usually means you had more money in your paychecks throughout the year. Check your final pay stubs from both years and compare the net pay. Bet you'll find you were bringing home more per check this year! A refund is just you getting your own money back that you overpaid, it's not free money from the government lol

I had almost the exact same thing happen to me! Expected around $2,000 and only got $750. After digging through everything, I found a few key things that changed between last year and this year: 1. My employer switched payroll companies mid-year and the new one used slightly different withholding calculations - even though my W-4 stayed the same, they were withholding about $15 less per paycheck. 2. I had a small amount of freelance income this year ($800) that I reported on a 1099, which pushed me just over a threshold for one of the tax credits I was getting last year. 3. The big one - last year I was still getting some pandemic-related tax benefits that expired. I didn't realize how much those were helping my refund until they were gone. My advice is to pull out last year's tax return and compare it line by line with this year's. Look especially at your credits section and any COVID-related items from last year. Also check if your employer changed anything about payroll - sometimes they don't announce small changes to withholding procedures. It's frustrating but you probably didn't actually pay more in taxes, you just got more money throughout the year in your paychecks instead of at refund time!