I'm a tax professional who works with a lot of creative freelancers, and this is one of the most common questions I get! The frustration is totally understandable - it does seem unfair that you can't deduct donated professional services. Here's the key principle: the IRS only allows deductions for "out-of-pocket" expenses when volunteering. Since you never actually received payment for your donated time, there's no income to deduct against. Think of it this way - you can't deduct something you never had. What you CAN deduct for your church event: - Art supplies used specifically for the charity work - Mileage to/from the event (currently 14 cents per mile for volunteer work) - Any materials you purchase that get left with the charity - Parking fees or tolls related to the volunteer work One strategy I often suggest to clients in your situation: instead of thinking purely about tax deductions, consider the business development value. Charitable work often leads to referrals, portfolio pieces, and community connections that can boost your $32k annual income significantly. Sometimes that indirect business benefit is worth more than any tax deduction would be. Also, make sure you're maximizing other deductions available to creative professionals - home office expenses, professional development, art supplies for paying work, etc. Those might give you more tax savings than donated services ever could!

As someone who's been through this exact situation, I want to echo what the tax professionals have said - you unfortunately can't deduct donated services, but there are still ways to make charitable work worthwhile. I'm a freelance graphic designer and I've found that being strategic about which charitable opportunities I take on has been key. I now look for events where: 1. **The audience matches my target market** - If I'm doing portrait work for a church fundraiser attended by families with disposable income, that's prime networking territory 2. **I can showcase new skills** - Charity events are perfect for trying techniques I wouldn't risk on paying clients 3. **There's potential for documentation** - Good photos/video of me working that I can use for marketing 4. **The organization has strong community ties** - Churches, schools, and established nonprofits often have members who become repeat clients For your mom's church event specifically, I'd suggest asking if they can: - Include your business info in event programs - Allow you to display business cards near your setup - Tag your business in any social media posts - Provide a written testimonial afterwards Keep detailed records of your actual expenses (supplies, mileage) for deduction purposes, but also track the marketing value you receive. Sometimes that "free" event ends up generating thousands in future revenue! The key is treating charitable work as a business development opportunity rather than just a tax play. The networking and portfolio benefits often far exceed any deduction you could have claimed.

Don't forget about education credits too! Since he's in college and you're claiming him as a dependent, YOU would be the one eligible to claim any education credits for his expenses (like the American Opportunity Credit) on your return, not him. Could be worth up to $2,500 if he has qualified education expenses.

Based on what you've described, you should definitely be able to claim your brother as a dependent! Since he's 19 and a full-time college student, he can qualify as a "qualifying child" rather than just a "qualifying relative" - which is actually better for you because there's no gross income limit for qualifying children under 24 who are students. The key tests you need to meet are: 1. Relationship - ✓ (he's your brother) 2. Age - ✓ (under 24 and full-time student) 3. Residency - ✓ (lived with you more than half the year since February) 4. Support - ✓ (sounds like you're covering all his major expenses) His $9k income won't disqualify him since he's a student under 24. Just make sure when he files his own return that he checks the box indicating someone else can claim him as a dependent. And definitely keep good records of all the support you're providing - rent, utilities, food, etc. - in case you ever need to prove you're covering more than half his total support for the year. You're being really generous helping him get started in life!

One thing to remember is that even with zero income/expenses, if your foundation has assets (like money in a bank account), you'll still need to report those on the balance sheet section of the 990-PF. Many first-time filers get hung up on the income portions being zero but forget about reporting the assets. Also, don't forget the minimum distribution requirements for private foundations! Even if you had no income this year, you might still be required to distribute 5% of your investment assets. If you truly have zero assets and zero income, that's different, but make sure you're clear on which situation applies to you.

As someone who's dealt with this exact situation, I completely understand your frustration! The key issue you're running into is that the 990-PF has mandatory sections that must be completed even with zero activity - you can't just leave them blank. For TurboTax Nonprofit, try entering "$0" explicitly in those flagged fields instead of leaving them empty. The software often interprets blank fields as incomplete rather than zero. Also, make sure you're filling out Part VIII (Information About Officers, Directors, etc.) completely - this section is required regardless of financial activity. That said, if you continue having issues with TurboTax, you might want to consider switching to software specifically designed for 990-PF forms. The general tax software packages sometimes struggle with the unique requirements of private foundation returns, especially for inactive organizations. One last tip - double-check that you actually need to file a 990-PF and not a 990-EZ or 990-N. The filing requirements depend on your foundation's gross receipts and total assets, not just current year activity. If you qualify for a simpler form, that might solve your headache entirely!

I had this exact same issue a couple years ago! In addition to Form 8822 that Carmen mentioned, you might also want to contact your old address (if possible) to see if the check is still there. Sometimes neighbors or the new residents are helpful about forwarding mail. Also, if it's been more than a few weeks since the check was issued, you can request a trace on it by calling the IRS. Just have your SSN and tax info ready when you call. The whole process is annoying but totally fixable!

Hey Yuki! I went through this exact same thing about 6 months ago. Here's what worked for me: First, definitely fill out Form 8822 like Carmen suggested - that's the most important step. But also call the IRS refund hotline at 800-829-1954 and let them know what happened. They can put a stop payment on the original check and reissue it to your new address once they process your address change. The whole thing took about 6-8 weeks total for me, but at least I didn't have to worry about someone else cashing my check. Also pro tip: set up direct deposit for next year so you don't have to deal with this again! Good luck!

Does anyone know if this $600 rule applies to 1098-E student loan interest forms too? I paid about $450 in interest last year and haven't received anything from my loan servicer.

This is really helpful information! I had no idea about the $600 threshold rule. I'm in a similar situation - took two online courses last semester totaling around $480 and was wondering why I hadn't received my 1098-T yet. My tax software kept asking for it and I was getting worried I was missing something important. Good to know I can still claim the Lifetime Learning Credit with just my payment receipts. I have all my transactions saved from my student account portal, so I should be all set. Thanks for posting this question - probably saved me a lot of stress and confusion!