Don't forget about state taxes too! My daughter had scholarship money that was taxable federally but exempt on our state return. The rules vary by state, so make sure you check your state's specific treatment of scholarship income.

This is such a complex situation! I'm dealing with something similar with my college sophomore. One thing I learned that might help is to look carefully at Box 5 on the 1098-T form your daughter should receive from her college - that shows scholarships/grants received. Then compare it to qualified expenses (tuition, required fees, required books) to figure out exactly how much scholarship money is taxable. Also, don't forget that if you do claim her as a dependent, you might be eligible for the American Opportunity Tax Credit worth up to $2,500, which could be more valuable than her using the standard deduction. The credit phases out at higher income levels though. One more thing - if she had taxes withheld from her summer job, she'll need to file a return anyway to get those refunds, regardless of whether you claim her or she files independently. So she'll be filing either way, the question is just about dependency status and who gets which tax benefits. Have you checked if your income level affects eligibility for education credits? That's usually the deciding factor in these situations.

I'm so sorry for your loss. Having gone through this process myself when my grandmother passed away, I completely understand how overwhelming it can feel to navigate all these tax requirements while grieving. You're absolutely correct to file Form 56 with the 1040 - attach it to the front of the return when mailing. One additional tip that really helped me: create a simple checklist of all the forms and documents you're including before sealing the envelope. I actually wrote on the outside of my mailing envelope "Final Tax Return for [Name] - Deceased [Date]" which helped ensure it got routed properly at the IRS. Since you mentioned using FreeTaxUSA, double-check that the software calculated any final year medical expenses correctly. Sometimes there are additional deductions available in the year of death that regular tax software doesn't automatically catch. Also, if your sister had any retirement account distributions or life insurance payouts, make sure those are handled appropriately on the return. Take care of yourself during this process - you're doing something really important and difficult, and it's okay to take breaks when you need them.

I'm so sorry for your loss. I went through this exact situation when my brother passed away last year, and I remember feeling completely overwhelmed by all the tax requirements on top of everything else. You're absolutely right to file Form 56 with the 1040 - definitely attach it to the front of the return when you mail it in. One thing that really helped me was making copies of everything before mailing. I kept a complete set of copies in a dedicated folder, which came in handy months later when I needed to reference some of the information for estate-related matters. Since your sister passed in August, make sure FreeTaxUSA is calculating the correct filing period (January 1 through her date of death). Also, if she had any bank accounts that earned interest after her death, that income would need to be reported on a separate estate return rather than her final personal return - but FreeTaxUSA should guide you through that distinction. One last tip: consider sending everything via certified mail with return receipt. It costs a little extra but gives you proof of delivery and peace of mind during an already stressful time. You're doing a wonderful thing by taking care of her final tax obligations so carefully.

Thanks everyone for all the detailed responses! This has been super educational. I had no idea about the direct donation requirement or the itemization issue. Based on what I'm reading here, it sounds like I can't deduct the 1-800-GOT-JUNK pickup, but I'm definitely going to look into those charity pickup services for future donations. The "donation bunching" strategy that Max mentioned is really interesting too - maybe I should plan my donations more strategically. One follow-up question: if I have items that are too worn for charity donation but still have some value, is there any tax benefit at all? Or is it just a loss either way? I'm thinking about some older electronics and appliances that work fine but have cosmetic issues.

Great question! Unfortunately, you cannot claim a tax deduction for items picked up by 1-800-GOT-JUNK, even if they eventually donate them to charity. The IRS requires that you donate directly to a qualified 501(c)(3) organization to claim any deduction - you can't use a middleman service. Here's what you need to know for future donations: - Donate directly to qualified charities like Goodwill, Salvation Army, or Habitat ReStore - Get proper documentation from the charity (written acknowledgment for donations over $250) - Items must be in "good used condition or better" - You can only deduct if you itemize deductions on Schedule A Since your furniture was in good condition, you might want to consider charity pickup services next time. Many legitimate charities offer free pickup and provide proper tax documentation. This way you'd get the same convenience as 1-800-GOT-JUNK but with the added benefit of a potential tax deduction. For your current situation, keep that receipt from 1-800-GOT-JUNK for your records, but unfortunately it won't help with your taxes.

Has anyone tried using Credit Karma Tax (now called Cash App Taxes) for previous years? I know they're free for the current year, but I'm not sure if they offer past years or what they charge.

I just went through this exact situation a few months ago! Had to file my 2018 and 2019 returns for a mortgage application. Here's what I learned: For H&R Block, yes they do prior year returns but their online service for old years is around $70-80 per return, which adds up fast. I ended up going with FreeTaxUSA like someone mentioned - it was only $15 for federal and worked perfectly for both years. One tip nobody mentioned: if you're really pressed for time, you can request a "Record of Account" transcript from the IRS online at irs.gov. This shows your filing history and is often accepted as proof of non-filing if you need to show you haven't filed yet. Takes about 5 minutes to get it online versus waiting weeks for mailed returns to process. Also, don't stress too much about the old tax law changes between those years - most tax software handles the year-specific rules automatically. The main thing that changed between 2018-2019 was some small adjustments to tax brackets and standard deduction amounts, but the software calculates all that for you. Good luck getting it sorted out!

3 has anyone dealt with the 1098-T form in this situation? my daughter's school sent her the form with HER ssn on it since she's the student, but if i'm claiming her and the education credit, do i need to somehow get that form reissued to me? how does this work with electronic filing?

This is such a helpful thread! I'm in a similar situation with my college sophomore who paid about $12,000 in tuition from her summer job earnings. One thing I learned from my tax preparer last year is to keep really detailed records of what you're paying for your kids' support - not just the big things like housing and health insurance, but also groceries, phone bills, car insurance, etc. The IRS "more than half support" test includes ALL living expenses for the year. I created a simple spreadsheet tracking what I pay vs what she pays, and it was eye-opening. Even though she paid her own tuition, I was still covering about 65% of her total support costs. This documentation gave me confidence to claim her as a dependent and take the American Opportunity Credit on my return. The key is looking at TOTAL support for the year, not just who paid the biggest single expense. Tuition might be the largest line item, but when you add up housing, food, insurance, transportation, etc., parents often still provide the majority of support even for working college students.