Has anyone actually tried just calling H&R Block's customer service? I've used them for years and they've always been pretty straightforward about cancellations.

Just wanted to add another perspective here - if you do decide to cancel with H&R Block, make sure you get confirmation in writing (email) that you've cancelled and won't be charged. I've heard stories of people thinking they cancelled but still getting billed later. Also, since you mentioned owing $13k, definitely look into setting up an IRS payment plan if you need it. The IRS actually has pretty reasonable payment plan options, and the fees are way lower than what you'd pay in credit card interest. You can set it up online at IRS.gov and it's much easier than people think. Just make sure to file your return on time even if you can't pay the full amount - the failure-to-file penalty is much worse than the failure-to-pay penalty.

Great question about Schedule L! You're absolutely right that the cash increase of $57,000 goes on the asset side. For the equity side, here's how it breaks down: The $135,000 business income increases Retained Earnings, but then you have two reductions: - The $52,000 officer salary is already accounted for as an expense (reducing the net income that flows to RE) - The $26,000 distribution directly reduces Retained Earnings So your net increase to Retained Earnings should be $57,000 ($135,000 income - $52,000 salary - $26,000 distribution). One tip: Make sure your beginning and ending retained earnings on Schedule L tie to your prior year return and current year activity. The IRS computers automatically check these relationships, so any discrepancies can trigger correspondence. Also, don't forget that the $26,000 distribution reduces the shareholder's stock basis on their personal records, which will be important for future years' tax planning and any potential loss limitations.

As someone who's been preparing S-Corp returns for several years, I wanted to add a practical tip that might help with your Schedule L balancing act. When you're working through the equity side of Schedule L, it's helpful to think of it in terms of "what happened to the company's money." Your business earned $135,000, but $52,000 went to pay the officer (which reduces the earnings available to retain), and $26,000 was distributed to the shareholder. That leaves $57,000 that stayed in the company - hence the increase to Retained Earnings. One thing I always double-check is making sure the K-1 ordinary income ties back to the 1120-S net income after all deductions (including that officer compensation). In your case, the K-1 Line 1 should show $83,000 ($135,000 - $52,000) assuming no other deductions. Also, keep detailed documentation of that $52,000 officer salary justification. The IRS has been increasingly aggressive about challenging "unreasonable compensation" in S-Corps, especially when distributions are involved. Document the officer's duties, hours worked, industry salary surveys, and any other factors that support the reasonableness of the compensation amount. Good luck with your first 1120-S - it gets easier once you understand how all the pieces fit together!

Great question! You're dealing with a common banking vs. tax law confusion. While banks typically issue 1099-INTs based on whose SSN is on the account (often splitting 50/50 for joint accounts as Dmitry mentioned), the tax reporting responsibility depends on who legally owns the income. For minor children, parents are indeed responsible for reporting the child's income, but they have options on HOW to report it - either on the child's separate return or on the parent's return using Form 8814, as Mei Wong explained earlier. The key issue here is determining the true legal ownership. If you added your child as joint owner purely for estate planning convenience (so the account passes to them automatically), but you're still the one funding the account and controlling it, then you might have grounds to ask the bank to issue corrected 1099s in your name only. However, if the account was intended as a gift to your child or set up for their benefit, then the current 1099 reporting might be correct, and you'd need to handle it on the tax side using one of the methods already discussed. I'd recommend talking to both the bank about the account setup AND possibly consulting a tax professional to make sure you're handling this correctly going forward.

This thread has been incredibly helpful! I'm dealing with a very similar situation with my 15-year-old son's CD that was set up as joint ownership. One thing I want to add based on my recent experience: if you do decide to have the bank correct the 1099-INT reporting, be prepared for some pushback initially. I went to my credit union last month to request this change, and the first person I spoke with said it wasn't possible. I had to escalate to a supervisor who understood the difference between joint ownership for convenience vs. true beneficial ownership. What helped me was bringing documentation showing that I was the sole source of funds for the account and that my son was added only as a beneficiary for estate planning purposes. The supervisor was able to make the change going forward and issued a corrected 1099-INT for the previous year. Also, for anyone considering the Form 8814 route (including child's income on parent's return), be aware that this can affect your eligibility for certain tax benefits. In my case, it would have pushed my AGI high enough to start phasing out my child tax credit, so filing separately for my son was definitely the better choice. The tax planning tools mentioned earlier in this thread (like taxr.ai) can really help you run the numbers both ways to see which approach saves you more money in your specific situation.

One more thing to consider with the timing of RMDs and Roth conversions - if your mom is planning to make Qualified Charitable Distributions (QCDs), those count toward satisfying the RMD but aren't taxable income. That could give you more room for Roth conversions in lower tax brackets. Just make sure the QCDs are processed BEFORE the Roth conversions, since they need to count toward the RMD first.

Great discussion everyone! I just wanted to add one practical tip that helped me when I was in a similar situation with my father's accounts. We found it really helpful to create a simple spreadsheet tracking his monthly RMD withdrawals alongside our planned Roth conversion timeline. Each month, we'd update how much of the annual RMD had been satisfied, which made it crystal clear how much "room" we had for conversions without violating the RMD-first rule. Also, don't forget that if your mom has multiple traditional IRAs, the RMD can be satisfied from any combination of them, but the conversions need to come from accounts that have already satisfied their proportional RMD share. This gave us more flexibility in our timing and allowed us to be more strategic about which accounts to convert from based on their investment performance. The key is just staying organized and keeping good records. We kept a simple log showing RMD satisfied to date, remaining RMD obligation, and conversion amounts by account. Made tax time much easier too!

One thing to consider is whether your brother and sister-in-law are claiming any home office or rental deductions for the basement on their taxes. If they're claiming depreciation or expenses for that space as a rental property, it actually strengthens your case for HOH because it establishes the basement as a separate rental unit. You might want to talk to them about how they're planning to handle the rental income they receive from you on their taxes. This affects both of you - they need to report the income, but it also helps confirm your status as a renter maintaining your own household.

I went through a very similar situation when I moved into my sister's converted garage apartment with my two kids. The key thing that helped me qualify for HOH was establishing that we truly had separate households, even though we were on the same property. Here's what worked for me: - We had our own entrance (important!) - I paid a fixed monthly amount that covered utilities for our space - I bought all groceries and household items for my kids and myself - We had our own kitchen and bathroom facilities The IRS considers you to be "keeping up a home" when you pay more than half the costs of your household. Since you'll be paying rent that covers your portion of the mortgage plus presumably handling your own food, personal expenses, and care for your daughter, you should meet this requirement. Just make sure to keep detailed records of all your payments and expenses. I kept a simple spreadsheet tracking my rent payments, grocery receipts, and any other costs for our living space. Having that documentation gave me confidence when filing and would be helpful if there were ever any questions. The separate entrance you mentioned is actually a big plus - it really helps establish that you're maintaining an independent household rather than just contributing to a shared family home.