Dont forget that u still have to pay regular income tax on any IRA withdrawl even if u avoid the 10% penaltly! this hit me hard last yr when i did this for my kids college. my tax bill was WAY bigger than i expected!!

Great advice from everyone here! Just want to emphasize one more important point - make sure you understand the timing requirements. The IRA withdrawal needs to be made in the same tax year that you pay the qualified education expenses, OR in the year immediately before or after. So if you're paying tuition for the spring 2025 semester, you could make the withdrawal in 2024, 2025, or 2026. This timing flexibility can be really helpful for tax planning, especially if you want to spread the income tax impact across multiple years like Fatima mentioned. Also keep detailed records of all qualified expenses and your withdrawal - the IRS may ask for documentation if they review your return.

Somewhat related question - I have a property that I've been trying to rent out, but haven't found tenants yet. It's been vacant all year while listed for rent. Should I still be filling out Schedule E for this year even though I've had zero rental days and zero income?

Your CPA is absolutely correct to include Schedule E even with zero rental days! This is actually a common misconception that trips up many rental property owners. The key point is that Schedule E is required when you hold a property for rental purposes, not just when you have actual rental income. Since your property was previously a rental and you owned it during part of 2024 (even though it was vacant and under contract), it maintained its rental property status for tax purposes. Here's what you can still report on Schedule E even with $0 rental income: - Property taxes paid during the ownership period - Mortgage interest (if any) - Insurance premiums - Maintenance and repairs - Property management fees - Depreciation for the months you owned it - Other ordinary and necessary expenses related to holding the property This creates a proper paper trail showing the property's transition from rental to sold status, and ensures you're capturing all legitimate deductions during your ownership period. It also sets up the proper classification for when the sale gets reported (likely on Form 4797 as business property rather than Schedule D as personal property). Don't ask your CPA to remove it - she's following the correct tax treatment for your situation!

I went through something very similar last year! My tax preparer filed my 2021 return but completely missed my 2020 return that I specifically asked her to handle. I was panicking when I discovered it months later. The good news is you have plenty of time - you can file your 2022 return until April 2025 if you're owed a refund. No penalties at all in that case. I ended up filing mine myself using TurboTax and got my refund within a few weeks. My advice: Don't wait for your current preparer to respond. Go get your documents TODAY if possible. I made the mistake of waiting and it just delayed everything. Also, definitely ask for a refund of whatever you paid for the 2022 filing since she never did the work. This is totally her fault and completely unprofessional. You're not the first person this has happened to, and unfortunately you probably won't be the last. The important thing is just getting it filed now so you can get your refund and move on with a better tax preparer next year!

I'm really sorry this happened to you! As a tax professional myself, this kind of oversight is completely unacceptable. You absolutely can still file your 2022 return - you have until April 15, 2025 if you're owed a refund, and there are no penalties for filing late when the IRS owes you money. Here's what I'd recommend doing immediately: 1. Go to her office in person and collect ALL your 2022 documents - don't wait for a callback 2. If she's avoiding you, send a certified letter demanding your documents and a partial refund for services not rendered 3. File your 2022 return ASAP using reputable tax software or find a new CPA 4. Consider reporting her to your state board if she's licensed - this is a serious breach of professional duty The fact that she charged you for both returns but only filed one is essentially theft of services. Document everything - your payment records, communications, etc. You have every right to demand accountability here. Don't stress about the IRS side of things though - this is completely fixable and you're well within the timeframe to get your 2022 refund!

With 0 exemptions, your still getting hit with a penalty because of the captial gains + 1099 income. When i had a similar situation, i checked the box for "multiple jobs" on my W-4 AND put an extra $100 per paycheck in the additional withholding section (line 4c). haven't had a penalty since. Also you might qualify for first-time penalty abatement if this is your first penalty. Call the IRS and ask. they waived mine completetly!

I went through almost the exact same situation last year - multiple W-4 jobs throughout the year plus capital gains from stock sales, and got slammed with an underpayment penalty despite having 0 allowances/exemptions. It's frustrating because you think you're being conservative with your withholding! The issue is that each employer withholds based on annualizing just that job's income, not your total annual income from all sources. So if you made $30k at Job A (worked 4 months), $35k at Job B (worked 5 months), and $25k at Job C (worked 3 months), each employer calculated withholding as if you'd make $90k, $84k, and $100k respectively for the full year. But your actual combined income was much higher, pushing you into higher tax brackets. For this year, I'd recommend: 1) Use the IRS Tax Withholding Estimator whenever you change jobs, 2) Consider making quarterly estimated tax payments for any expected capital gains using Form 1040-ES, and 3) If you anticipate significant investment income again, add extra withholding on line 4(c) of your W-4. I now withhold an extra $75 per paycheck and it's kept me penalty-free. Also definitely look into First Time Penalty Abatement if this was your first underpayment penalty - the IRS will often waive it completely if you have a clean payment history!

Has anyone used both a professional appraiser and the IRS's Art Appraisal Services for valuable collectibles in an estate? My parents have some artwork that might need special handling on the 706.

This is exactly the kind of complex estate planning question that keeps me up at night! I'm dealing with a similar situation with my grandmother's estate planning. One additional consideration that might be worth discussing with your mother's financial advisor - the timing of when she passes could significantly impact the filing threshold since the basic exclusion amount changes each year (it's inflation-adjusted). For 2024, it's $13.61 million, and it will likely be higher in future years until the current law sunsets after 2025. Also, don't forget that if your mother remarries (I know this might seem unlikely, but it happens!), that could complicate the DSUE situation since she can only carry forward the DSUE from her last deceased spouse. Just something to keep in the back of your mind for comprehensive planning. Given the complexity here, I'd really recommend getting a second opinion from an estate tax specialist who deals with portability elections regularly. The peace of mind is worth the consultation fee, especially when you're dealing with estates of this size.