Has anyone dealt with filing a tax return for a 4-year-old? Like what tax software even allows this? I'm trying to help my sister with her kid's acting income and we're confused about the logistics.

Just wanted to add my experience as someone who went through this exact situation! My 5-year-old son earned about $35k from a recurring role on a kids' show last year, and I was initially panicked about the tax implications. The good news is that you can absolutely still claim her as a dependent - the income threshold that disqualifies dependents only applies to "qualifying relatives" (like adult children or other family members), not "qualifying children" under 19. Since she's your 4-year-old daughter living with you, she meets the qualifying child test regardless of her income. A few practical tips from our experience: 1. Keep detailed records of ALL her work-related expenses - acting classes, headshots, travel to sets, etc. Many of these can be deducted on her return. 2. The "kiddie tax" rules might apply to any unearned income she has (like interest from her earnings), but her acting income is earned income and taxed normally. 3. Make sure to set aside money for estimated taxes if she'll have similar earnings next year - child actors often don't have enough withheld. Also, definitely look into your state's Coogan Law requirements if applicable. We had to set up a blocked trust account for 15% of his earnings here in California. It's actually a good thing long-term since it ensures she'll have money saved for when she's older!

Has anyone here used Form 982 when dealing with S-corp debt issues? I've been reading that canceled S-corp debt can sometimes be excluded from income under certain circumstances, and Form 982 might apply. Seems related to this basis discussion but I'm not clear on how it all fits together.

This is exactly the kind of S-corp basis question that keeps me up at night! I've been dealing with a similar situation where my client has multiple years of suspended losses and we're trying to figure out the optimal timing for debt basis restoration. From everything I've researched and discussed with other practitioners, the consensus seems to be that Isaac Wright is correct - the "net increase" calculation under Reg §1.1367-2(c) looks only at current year items before considering carryforward losses. The restoration happens first, then suspended losses are applied against the restored basis. What's been tricky for me is documenting this properly on the returns. I've started creating detailed basis tracking schedules that show the step-by-step calculation: current year income/loss, net increase determination, debt basis restoration, stock basis restoration, then application of suspended losses. It helps clients understand why their tax liability might be different from what they expected. One thing I'd add to this discussion - make sure you're also considering the impact of distributions during years when you have suspended losses. The ordering rules get even more complex when you layer in distributions alongside the basis restoration calculations.

I work at a brokerage firm (not as a tax pro, just operations) and see this confusion ALL THE TIME. Your advisor is flat-out wrong. Here's the simple version of what happens with an inherited IRA and RMDs: 1. Year of death: Beneficiaries must satisfy any remaining RMD the original owner hadn't taken. 2. Years after death: Beneficiaries follow the 10-year rule (completely empty the account within 10 years) unless they qualify for an exception. The only exception to taking the year-of-death RMD is if the original owner died BEFORE their required beginning date for RMDs (which is age 73 for people born between 1951-1959, and 75 for people born in 1960 or later). Tell your advisor to check IRS Notice 2022-53 if they don't believe you.

Quick practical tip - if you're close to year-end and worried about getting the RMD done in time, most custodians have a "year of death RMD" form or process specifically for this situation. I went through this with my dad's IRA last year. Call the financial institution where the IRA is held and specifically ask about the "deceased owner's RMD" process. Different from the regular inherited IRA withdrawal forms. Also, make sure the custodian establishes the inherited IRA correctly in your wife's name - it should say something like "John Smith (deceased) FBO Jane Smith, Beneficiary" - this proper titling is important for tax reporting purposes.

One thing to consider - if you're in a high-tax state, the state tax savings could be substantial too! Everyone always focuses on federal, but don't forget to factor in state tax savings when deciding if a dedicated home office is worth it. In my case (California), the state tax savings added another 30% on top of the federal savings from my home office deduction.

Just wanted to add something that might be helpful - make sure you understand the record-keeping requirements if you do set up that dedicated space. The IRS expects you to maintain detailed records showing the exclusive business use. I keep a simple log of my business activities in the space, take dated photos of the setup, and maintain receipts for any office-related purchases. It might seem like overkill, but if you're ever audited, having thorough documentation makes the process much smoother. Also, consider the timing - if you're setting up the space mid-year, you can only deduct expenses for the portion of the year it was actually used for business. So if you convert the space in July, you'd only get 6 months of deductions for 2025. With your numbers ($920 federal + $190 state), even a partial year could be worthwhile, and you'd get the full benefit starting in 2026.

Question for anybody who's filed Form 8828 before... Does turbtax handle this form correctly? I tried putting in my info and it's calculating a really high recapture amount that doesn't seem right based on what I've read.

Based on your situation, you're absolutely in the clear! Since you owned your home for 11+ years after getting your MCC in 2013, you're well past the 9-year recapture period. The recapture tax under Form 8828 only applies to homes sold within 9 years of receiving the mortgage credit certificate. You don't need to file Form 8828 at all, and you don't need to worry about any recapture tax liability. The 9-year timeline you mentioned is exactly right - it's designed to protect homeowners who stay in their homes long-term, which is exactly what you did. Just to put your mind at ease: even if you hypothetically needed to file the form (which you don't), married couples filing jointly would only need to submit one Form 8828, not separate forms for each spouse. But again, since you're past the 9-year mark, this is all academic for your situation. Congratulations on being a long-term homeowner - the MCC program worked exactly as intended in your case!