Wow, this has been such an incredibly thorough and helpful discussion! As someone who's been quietly following this community for a while, this thread perfectly showcases why this place is such a valuable resource for navigating complex tax situations. I'm actually in the very early stages of a similar situation - my aging parents are starting to talk about downsizing, and I can already see we'll need to sell decades of accumulated belongings. Reading through everyone's experiences here has given me a roadmap for how to approach this properly from the start. The key takeaways I'm noting: get written authorization early, document everything meticulously (including photos of maker's marks and items in their original locations), understand the distinction between acting as an agent versus earning income, consider the timing of sales strategically, and don't forget about state taxes and benefit eligibility issues. The resources mentioned throughout this thread - taxr.ai, Claimyr, and the advice to consult with elder law attorneys for Medicaid considerations - are incredibly valuable. It's clear that while this process has complexity, it's absolutely manageable with the right preparation and professional guidance when needed. Diego, thank you for asking such an important question that so many families face. The comprehensive discussion that followed has created what feels like the definitive guide for handling estate auction sales and their tax implications. This thread should be required reading for anyone dealing with similar family transitions!

This entire discussion has been absolutely incredible to read through! As someone who just joined this community, I'm blown away by the depth of knowledge and willingness to help that everyone has shown here. I'm currently facing a very similar situation with my late grandfather's estate - tons of tools, collectibles, and household items that need to be sold. Reading through all the experiences and advice shared here has been like getting a masterclass in handling estate sales properly. The progression of this conversation from Diego's initial question to covering every conceivable angle - tax implications, documentation strategies, agent authorization, Medicaid considerations, state taxes, timing strategies, and family coordination - is remarkable. It's exactly the kind of comprehensive guidance that families desperately need but can rarely find in one place. I'm particularly grateful for the specific resources mentioned like taxr.ai and Claimyr, as well as all the practical implementation tips about spreadsheets, photo documentation, and record-keeping. The advice about photographing items in their original locations and documenting maker's marks is brilliant - those are details I never would have thought of on my own. What really strikes me is how this thread demonstrates that these situations are becoming increasingly common as more families face aging and estate transitions, yet there's so little consolidated guidance available elsewhere. This community discussion has filled that gap beautifully. Diego, thank you for asking such an important question that clearly resonated with so many people. You've helped create what might be the most comprehensive resource available for families navigating auction sales and their tax implications!

Don't forget to look at the CPA exam pass rates for the schools you're considering! Some MST programs are fantastic at preparing you for the REG section specifically. My school (Bentley) has a REG pass rate well above the national average for their MST grads. Also check what kind of tax research tools they teach. Some programs still focus heavily on CCH while others use Bloomberg or Checkpoint. Firms sometimes prefer candidates who already know their preferred research platform.

As someone who went through a similar decision process a few years ago, I'd strongly recommend looking at the University of Alabama's MST program. It's often overlooked but has an excellent reputation in the Southeast and very reasonable admission standards - they focus more on your statement of purpose and career goals than just GPA. What really sold me on their program was the flexibility to tailor coursework to your interests. They have strong concentrations in both individual and business taxation, plus some unique offerings like state and local tax policy that many programs don't have. The faculty includes several former Big 4 partners and IRS attorneys, so you get real-world perspective alongside the academic foundation. Their career services team also has solid connections with regional and national firms - I had three internship offers before graduating. One practical tip: reach out directly to admissions counselors at schools you're interested in. Many MST programs are looking for motivated students and will work with you even if your GPA isn't perfect, especially if you can demonstrate genuine interest in tax through relevant work experience or coursework.

Just a heads up - I didn't report a $200 bank bonus a few years ago because I didn't understand what the 1099-INT was for. Ended up getting a letter from the IRS about underreported income. Had to pay the tax plus a small penalty. Not worth the headache! Better to just report it correctly the first time.

This is such a common surprise for people! I work as a tax preparer and see this confusion every single year. Banks are actually required by law to issue 1099-INT forms for any "interest" payments over $10, and the IRS defines promotional bonuses as interest income even though it feels weird to call it that. A few tips for next time: 1) When you see bank bonus offers, mentally add about 22-37% to your tax bill depending on your bracket, 2) Consider setting aside the tax money right when you get the bonus so it doesn't feel like a surprise bill later, and 3) Keep records of which banks you've gotten bonuses from since some have restrictions on how often you can get their promotions. The good news is $375 probably won't bump you into a higher tax bracket by itself, so you're just looking at your marginal rate on that amount. Still annoying when you weren't expecting it though!

Omg this exact thing happened to me last year! I freaked out because I thought I had to pay taxes on the entire refund amount. My accountant explained that you only have to report it if you itemized, AND only the amount that actually benefited you. Pro tip: if you change your W-4 to have the right amount withheld by your employer, you can avoid getting large refunds in the first place. Then you don't have to deal with this 1099-G nonsense the following year!

This is such a helpful thread! I'm dealing with the exact same situation - got my 2021 Form 1099-G showing a $3,200 state refund from 2020 and was totally panicking about having to report the whole amount as income. Reading through everyone's explanations really clarified things for me. I did itemize in 2020, so I'll need to figure out how much of that refund actually gave me a tax benefit. It sounds like the key is comparing what I saved by itemizing versus what I would have saved with the standard deduction. I think I'll start with checking if my tax software (FreeTaxUSA) has a worksheet for this calculation. If not, I might look into some of the tools mentioned here. Thanks everyone for sharing your experiences - this is way less scary now that I understand the logic behind it!

The babysitter is 100% trying to avoid paying taxes. I used to babysit and nanny through college and definitely didn't report anything because it was all cash. BUT if someone had asked for my SSN for their taxes, I would've given it because that's fair - they're entitled to their credit. Just make sure you have her LEGAL first and last name and correct address. The IRS will almost certainly follow up with her, not you. When I filed with a missing provider tax ID, I got my full credit and never heard anything about it. My guess is they went after the provider instead.

I went through this exact situation two years ago with my daycare provider. Here's what worked for me: 1. Send one final formal request via text AND email (if you have it) specifically stating: "I need your SSN or EIN to complete Form 2441 for the Child and Dependent Care Credit on my tax return. This is required by the IRS for the $3,100 I paid you for childcare services in 2024." 2. When she doesn't respond, file your return anyway. Complete Form 2441 with her full legal name and address, leave the SSN field blank, and attach a statement explaining your reasonable efforts to obtain the information. 3. Your statement should include: dates you requested the SSN, method of contact (texts/calls), copies of your payment records (Zelle transactions), and mention that she provides childcare services to multiple families. The IRS accepted my claim without any issues. They likely flagged her for not reporting the income rather than penalizing me for missing information I genuinely tried to obtain. You've done nothing wrong by claiming a legitimate tax credit you're entitled to. Don't let her tax evasion cost you $650!