Just wanted to point out something about the Simplified Method for folks in this situation. If your 1099-R does change to code 7 (from the disability code 3), AND you made contributions to your pension plan with after-tax dollars, THEN you'll need the Simplified Method Worksheet to figure out what portion of your payments is taxable. If you didn't make any after-tax contributions (most people don't), then the full amount is usually taxable no matter what code is on the form. Code 3 vs Code 7 mainly affects WHERE you report the income on your return, not necessarily HOW MUCH is taxable.

This is such a common source of confusion! I went through something similar when I turned 70 and was still receiving disability payments. Here's what I learned after consulting with a tax professional: At 71, you should definitely verify with your plan administrator whether you've reached your plan's minimum retirement age. Many plans set this at 62 or 65, so at 71 you may have already passed that threshold. If so, your 1099-R should show code 7 instead of code 3, and the payments would be reported as pension income rather than disability income. The key question is whether you made any after-tax contributions to your pension plan during your working years. If you did, then yes, you'd need the Simplified Method Worksheet to calculate the non-taxable portion of each payment. If all your contributions were pre-tax (which is most common), then the entire distribution is taxable regardless. I'd recommend calling your plan administrator first to clarify the minimum retirement age and whether your distribution code should have changed by now. That will help determine the correct way to report this on your return.

I used to work in payroll. The backslash in box 14 is sometimes used for state-specific items. What state do you work in? Some states have mandatory disability insurance or other programs that get reported there. Check your state's tax department website - they often have guides explaining common box 14 entries. For example, California has SDI (State Disability Insurance), New Jersey has SUI (State Unemployment Insurance) contributions, etc.

I work in manufacturing payroll and can offer some insight here. The backslash symbol (\) in box 14 is often used by manufacturing companies for safety-related deductions or equipment rentals, which matches what you mentioned about the $873 amount and your biweekly deductions. Since you figured out it's likely safety equipment rental based on your bank statements, you're on the right track. In TurboTax, this would typically go under "Other" in the box 14 dropdown, and you can describe it as "Safety equipment rental" when prompted. The key thing to remember is that if this was deducted pre-tax from your paychecks (which equipment rentals usually are), it already reduced your taxable wages shown in box 1 of your W2. So you're not getting an additional deduction - you're just properly categorizing what the employer reported for informational purposes. If you want to be 100% certain, a quick call to your company's payroll department would confirm this, but based on the amount and your industry, safety equipment rental is very likely what the \ symbol represents.

Don't forget to check if your state has any inheritance tax too! Federal and state tax treatments can be different. I'm in Pennsylvania and was surprised to learn we have an inheritance tax even when there's no federal estate tax due. Cars might be exempt depending on your state, but it's worth checking.

This is a great question that highlights how inheritance tax rules can create unexpected situations! Just to add one more consideration - make sure you keep detailed records of everything: the loan payoff amount, sale documentation, and whatever evidence you can gather for the car's fair market value at the time of inheritance. Since you sold relatively quickly after inheriting, you might also want to consider whether there were any additional costs involved in the transfer process (title fees, registration, etc.) that could be added to your basis. These aren't usually large amounts for vehicles, but every bit helps when calculating your actual gain. Also, depending on the total amount of your capital gains for the year, you might want to consider the timing of any other asset sales to manage your overall tax situation. If this puts you over certain thresholds, it could affect other parts of your tax return.

Anyone else feel like the government is just trying to squeeze more tax money out of regular people with these new 1099-K rules? Most people using Venmo and CashApp are just normal folks splitting bills, not businesses trying to evade taxes! 😡

This is such a timely question! I went through the same panic last year when I first heard about the 1099-K changes. Here's what I learned after doing a lot of research and talking to a tax professional: The $600 threshold only applies to payments you RECEIVE that are marked as "goods and services" - not personal transfers like splitting dinner bills or paying rent to roommates. So if you're mostly sending money TO friends rather than receiving it FROM customers, you're probably fine. For the money you received from selling stuff on Facebook Marketplace, you'll only owe taxes if you made a profit. If you sold your old couch for $200 but originally paid $500 for it, that's actually a loss and not taxable income. My suggestion is to go through your transaction history ASAP and categorize everything: - Personal transfers (splitting bills, paying friends back) - Sales where you lost money (sold for less than you paid) - Actual profit from sales Keep screenshots and receipts as documentation. The IRS isn't trying to tax you on money that was never really income in the first place, but having good records will save you stress if questions come up later. Don't panic - most casual users aren't going to owe anything significant even if they do get a 1099-K!

I went through an audit for this exact situation about 3 years ago, so I can share what actually happened. I had been filing HOH while living with my grandmother and supporting my two kids. The IRS selected my return for review (I think because my income seemed low for HOH status). They requested documentation showing I was maintaining a household for my qualifying dependents. I provided: - Bank statements showing regular payments to my grandmother for "rent" - Grocery receipts (I had saved most of them) - Utility bills that showed I was paying the electric and internet - School records showing my kids lived at that address - Medical records showing I was taking my kids to appointments The auditor explained that they needed to verify I was paying more than half of the household expenses for me and my kids. Since I was paying $600/month to my grandmother plus utilities and groceries, and my kids' total support was clearly more than half from me, I qualified. The key was having some documentation, even if informal. The auditor didn't care that I didn't own the house - they just wanted proof I was financially responsible for maintaining the household where my qualifying dependents lived. The audit took about 4 months but resulted in no changes to my return. Start keeping better records now if you're worried - even simple things like taking photos of receipts with your phone can help establish a pattern of support.

This is really helpful information from everyone who's shared their experiences! As someone who's been in a similar situation, I wanted to add that it's also worth checking if your state has any specific requirements or interpretations for HOH filing status that might differ from federal guidelines. I discovered that my state tax agency had slightly different documentation requirements during an audit a few years back. While I qualified for federal HOH status living with my parents and supporting my daughter, the state wanted additional proof that I was maintaining a separate household unit within the family home. The lesson I learned is to keep records not just of your financial contributions, but also evidence that you're running an independent household for you and your dependents - things like being the one who takes your kids to school, handling their medical appointments, buying their clothes, etc. This helps establish that you're truly the head of your own household, even if it's located within someone else's property. Also, if your parents are filing their own tax return, make sure they're not claiming any expenses that you're actually paying for. The IRS can cross-reference returns, and you want to avoid any conflicts between what you're claiming and what your parents are deducting.