You're right, there were additional pages with the K-1. Looking back at them, it says it's related to "business property partially destroyed in a natural disaster" but it doesn't give specific filing instructions. Would this change where I enter it?

That changes everything! A loss from business property damaged in a natural disaster is definitely a casualty loss from a federally declared disaster area, which gets special treatment. This should be reported on Form 4684 (Casualties and Thefts), Section B since it's business property. The good news is that these losses aren't subject to the usual personal casualty loss limitations and can be deducted even if you take the standard deduction. After completing Form 4684, the business casualty loss will then flow to your Schedule A, but in a different section than regular itemized deductions, potentially allowing you to claim both the standard deduction and this special loss.

This is correct. If it's from rental property, it would go on Schedule E. Schedule K-1 codes can be really confusing because the same code might be reported differently depending on the nature of the underlying asset or activity. My accountant spent hours sorting through similar issues with my K-1s last year.

But doesn't entering all those zeros trigger some kind of flag with the IRS? I've heard that too many zeros can lead to an audit.

That's actually a common misconception. Entering legitimate zeros for amounts that genuinely are zero won't trigger an audit. The IRS is looking for inconsistencies and unreported income, not properly reported zeros. What can raise flags is if you have foreign accounts on an FBAR but don't report them on Form 8938 when required, or vice versa. Consistency across your filings is more important than avoiding zeros.

Thanks for pointing to the actual instructions - I just checked and you're right. On page 2 it says "report the value of specified foreign financial assets and any income, gain, loss, deduction, or credit..." So reporting the asset with zero income is correct.

How exactly do I read these transcripts? I just downloaded mine and it's full of codes and dates that make absolutely no sense to me. How do I find what year the debt is from?

Tax transcripts can definitely be confusing! Look for transaction codes (TC) like "420" which means an audit adjustment, "300" series codes which are related to additional assessments, or "480" which indicates an adjustment due to examination. The date listed next to these codes shows when the adjustment was made. The cycle date (usually formatted like 20231405) tells you the processing year and week. You'll also want to look for any codes in the "500" series which indicate that collection activity has occurred.

Yep, happened to me too but with student loans. The worst part was that I thought I was current on payments, but apparently one payment hadn't processed correctly months earlier, which snowballed into a "delinquent" status. Always check your credit report too - sometimes these things show up there before you get official notices.

That's really helpful info about the education credits! Would claiming the American Opportunity Tax Credit require any cooperation from my ex-husband, or could I do that independently since I'm paying all the college costs?

You can claim the American Opportunity Tax Credit independently since you're paying the education expenses, even if you can't claim your son as a dependent. You'll need to use Form 8863 to claim the credit. The credit can be worth up to $2,500 per eligible student, which might actually be more valuable than the dependent exemption itself. You'll need to have the 1098-T form from the college showing tuition paid, and keep records of your payments for other qualified expenses like books and required supplies.

This is correct about the FAFSA changes. I work in college financial aid, and the new FAFSA is focusing on the "provider of more financial support" rather than the residency test. Since you're paying 100% of education costs, you'd likely be considered the supporting parent under the new rules.

Thanks for this info! I just checked my paystub and they did take out a small amount for federal taxes. So even though I made under $600, I should still file to get that money back? I didn't get a W-2 form yet though.

Yes, you should definitely file to get back any federal tax that was withheld! No matter how small the amount, that's your money being held by the government. Your employer is required to provide your W-2 by January 31st, so you should receive it soon if you haven't already. If you don't get it by early February, reach out to your employer. You'll need that form to file your return and claim your refund.

Exactly what I was thinking! Plus learning about taxes now when the situation is simple will make it easier when things get more complicated later. Took me until my 30s to really understand this stuff lol