Be careful with the limits for different types of improvements! Windows specifically have a $600 subcategory limit for 2023 (up to $1,200 in 2024-2025). This is within the overall $1,200 annual limit for most home improvements. But your pellet stove falls under a different category with a higher $2,000 annual limit. So you could potentially get: - Up to $600 for windows (30% of costs) - Up to $2,000 for the pellet stove (30% of costs) These are separate limits that don't count against each other.

Just to add some clarity on the documentation side - I work as a tax preparer and see these energy credit claims frequently. Beyond keeping receipts and manufacturer certifications, I'd strongly recommend taking photos of the actual installed items with their Energy Star labels visible, especially for windows. The IRS has been increasingly scrutinizing these credits, and having visual proof that you actually installed qualifying equipment can be invaluable if you're audited. Also, if you're doing multiple energy improvements over several years, keep a running spreadsheet tracking your cumulative credits claimed against the various annual limits - it gets complicated fast when you're dealing with carry-forwards and different credit categories. One more tip: if you're planning additional energy improvements, consider timing them strategically. Since some of these credits expire after 2032, and you have those annual limits, spreading improvements across tax years might maximize your total benefit.

Do tax software programs like TurboTax handle trust filings like 1041? This all seems really complicated.

I went through something very similar when my father passed and left a trust with just one property. The 1041 filing seems scary but it's actually pretty straightforward for simple trusts like yours. Since you're both executor and sole beneficiary, and the trust only holds the farmhouse, your 1041 will likely be quite basic. Here's what I learned: 1. You absolutely must file even if there's zero income - the IRS expects it once you have an EIN 2. Property taxes you paid are fully deductible on the 1041 3. Any maintenance or repairs you paid for are also deductible 4. Don't worry about the sale yet - you only report it in the tax year it actually closes For documentation, your bank statements showing property tax payments will be sufficient. The IRS understands that family trusts don't always have perfect recordkeeping. One tip: if you're really pressed for time, you can file for an extension (Form 7004) which gives you an extra 5.5 months. This might be worth considering given your tight deadline and the complexity of selling the property. The key is not to panic - simple trusts like yours are much more common than you think, and the IRS forms are designed to handle basic situations.

Quick question - if this turns out to be identity theft, should I file a police report too? Or is the FTC report enough?

This happened to my brother last year, but with a 1099-K from Etsy for supposedly selling $18k in merchandise. Turned out someone had created an Etsy shop using his stolen identity. The most frustrating part was that even after proving it wasn't him, the IRS computer systems still expected taxes on that income and automatically generated notices. Make sure whatever solution you use gives you physical documentation you can keep sending back every time another automated notice comes. It took about 6 months and 3 rounds of sending the same evidence package before the IRS fully resolved it in their systems.

Check if you can open a case with USPS. Sometimes they can track it down if its lost

Had the same issue last month - my check was mailed on Jan 15th and didn't arrive until Feb 3rd. That's almost 3 weeks! I called the IRS after 2.5 weeks and they said mail delays are super common right now. They can do a payment trace if it's been 4+ weeks, but honestly just hang tight a bit longer. The stress isn't worth it when most checks do eventually show up.

Is there a way to know in advance if Form 1116 would give a better result than the simplified credit? I have about $450 in foreign taxes paid across several funds, so I'm right in the middle where either might be better.

Looking at your specific numbers, I'd recommend starting with the simplified method since your foreign tax paid is only $6.28 (well under the $300 threshold). However, there's an important detail in your post that caught my attention - you mentioned the "Ordinary Dividends" shows nothing for 2024 but $765.84 paid/adjusted in 2025 for 2024. This timing difference might affect which tax year you can claim the credit. Generally, you claim the foreign tax credit in the year the foreign taxes were actually paid or accrued, not necessarily when the dividend was received. Since your foreign tax of $6.28 was likely withheld when the dividends were paid by the foreign companies, you should be able to claim it for 2024. For your situation, just take the $6.28 credit directly on Schedule 3 (Form 1040), line 1. No need to complicate things with Form 1116 unless you have other foreign investments that push your total foreign taxes over $300. The simplified method will give you the full credit amount in your case.