Btw, this question is also on Form 1120-S (S-Corp return) and the same rule applies - check each number separately against the $250k threshold.

Thank you everyone for the detailed explanations! This clears up so much confusion. I was definitely overthinking it by trying to add the numbers together. So just to confirm my understanding: since my gross receipts ($176,892) AND my total assets ($143,246) are BOTH individually under $250,000, I should answer "Yes" to Line 13 on Schedule K. This means I'll need to complete the balance sheet portion of the return. I really appreciate all the different resources mentioned here - it's reassuring to know there are options like taxr.ai and Claimyr when the IRS instructions aren't crystal clear. The tax code can be so confusing even for what seems like simple questions! Going to mark this resolved and get back to finishing my 1120. Thanks again for saving me from a potential filing error!

I dealt with almost the exact same situation last year and wanted to share what I learned. The joint account aspect actually simplifies things quite a bit - since you're already a named account holder, the IRS typically views transfers between accounts you're on as internal movements rather than gifts. The key thing that helped me was treating this properly as debt repayment from the start. I created a simple spreadsheet listing all the expenses I'd covered for my parents (medical bills, home maintenance, utilities, etc.) with dates and amounts. Then I had my parents sign a one-page acknowledgment that they owed me this money and were repaying it. One thing I wish someone had told me earlier - keep records of how you originally paid these expenses. Bank statements showing transfers from your personal account to pay their bills, credit card statements if you used your cards, etc. This creates a clear paper trail showing you genuinely fronted the money on their behalf. Since you mentioned $130k over a couple years, that's substantial but completely reasonable for ongoing family support. Just document everything well and you should be fine. The IRS understands these family arrangements happen all the time - they just want to see that it's legitimate debt repayment rather than gift tax avoidance.

I've been following this thread and wanted to add my perspective as someone who works in banking compliance. The joint account situation actually works in your favor here - transfers between accounts where you're already a named holder rarely trigger gift tax scrutiny. However, I'd strongly recommend getting ahead of any potential banking flags by giving your bank a heads up about the transfer, especially since $130k will definitely trigger Currency Transaction Reports. Most banks appreciate when customers explain large transfers in advance rather than having to investigate them after the fact. One thing I haven't seen mentioned is that you might want to consider the timing of this transfer relative to your tax year. Since this is debt repayment rather than income, the timing shouldn't affect your taxes, but having it settled before year-end can make your record-keeping cleaner. The documentation everyone's suggesting is spot-on - create that paper trail showing the original expenses you covered, get your parents to sign an acknowledgment, and keep everything organized. Banks see these family financial arrangements constantly, so as long as you can explain the legitimate purpose of the transfer, you shouldn't have any issues.

This has been such an educational thread! I've been making donations through various crowdfunding platforms for years without really understanding the tax implications. The clarity everyone has provided about 501(c)(3) requirements versus personal gifts is incredibly valuable. I wanted to add something that might help others - I recently discovered that some legitimate charities actually run their own GoFundMe campaigns through the verified Charity program, but they also have direct donation options on their websites. In those cases, I've found it's often better to donate directly through the charity's website because: 1) You get immediate tax documentation 2) The charity doesn't pay GoFundMe's platform fees (so more of your money goes to the cause) 3) You can often set up recurring donations more easily 4) Some organizations offer additional perks for direct donors That said, the GoFundMe Charity option is still completely legitimate for tax purposes if that's more convenient for you. One thing I'm still learning about is corporate matching programs. My employer matches charitable donations, but only to verified 501(c)(3) organizations. So now when I want to maximize my impact, I look for established charities that work in the areas I care about rather than donating to individual campaigns. That way I can potentially double my contribution through employer matching while still getting the tax deduction. Thanks to everyone who shared their experiences and tools - this community knowledge is invaluable!

This thread has been absolutely fantastic! As someone who's been casually donating to various GoFundMe campaigns throughout the year, I had completely misunderstood the tax implications. The distinction between personal gifts and charitable donations is so much clearer now thanks to everyone's explanations. I'm particularly grateful for the practical tools and strategies that have been shared here. The IRS Tax Exempt Organization Search tool, the three-step verification process from @Katherine Shultz, and @Lucy Taylor's spreadsheet tracking idea are all going into my toolkit immediately. I've already bookmarked the IRS search page and started setting up my own donation tracking spreadsheet. @Liam Fitzgerald's point about platform fees and employer matching programs has me rethinking my entire approach to giving. I need to check with my HR department about our matching program - I could have been doubling my charitable impact all this time! It's also eye-opening to learn that donating directly through charity websites often means more money actually reaches the cause. One thing I'm realizing is that I've been very reactive in my giving - just responding to campaigns that pop up on social media without much strategy. Moving forward, I want to be more intentional: research established 501(c)(3) organizations in areas I care about, set up some recurring donations to maximize employer matching, and keep a separate budget for personal gifts to individuals who need help (knowing those won't be deductible). Thanks to everyone who shared their experiences, especially those who were honest about their mistakes. It's so helpful to learn from others' trial and error rather than having to figure all this out the hard way!

I went through this exact same nightmare last year! What finally worked for me was requesting an "escrow analysis" statement directly from my mortgage servicer - this is different from your regular mortgage statements and shows a detailed breakdown of all payments made from your escrow account throughout the year. Most servicers are required to provide this annually, but you can request it specifically. It will show every property tax payment made, even if your 1098 shows zero. I had to escalate past the first-level customer service (they didn't even know what I was talking about), but once I got to someone in the escrow department, they sent it right over. Also, keep your closing documents handy - they often show prorated property tax amounts that you paid at closing, which are also deductible but easy to overlook. Between the escrow analysis and closing docs, I found over $4,200 in deductible property taxes that weren't on my 1098.

This is such a common and frustrating issue! I went through the same thing when we refinanced our home mid-year. Here's what I learned from my CPA: the 1098 only reports what the lender considers "qualified" property tax payments, and sometimes there are timing issues or coding errors on their end. Your best bet is to get a complete payment history from your county tax collector's office (not just the assessor). They can provide an official statement showing all property tax payments made on your properties during the tax year, regardless of who made them. Most counties now have online portals where you can download these reports instantly using your property address or parcel number. Don't forget about the property taxes you may have prepaid at closing for your new home, or any prorated amounts you were credited for when you sold your old home. These are often overlooked but are legitimate deductions. The key is having documentation that shows the taxes were actually paid during the tax year - the IRS doesn't care that your 1098 is wrong, they just need proof the payments were made.

The key thing to remember is that the IRS doesn't need real-time reporting to verify your solo 401k contributions - they have other ways to check during audits or reviews. Your financial institution maintains detailed records of all transactions, and these can be requested by the IRS at any time. What's really important is maintaining a clear paper trail. This means keeping bank statements showing transfers from your business account to your solo 401k, your contribution calculation worksheets (especially for the employer portion based on net self-employment earnings), and your account statements showing when deposits were received. Also, the IRS has data matching capabilities that can flag inconsistencies. If you're claiming large retirement contributions but your reported business income doesn't support those amounts, that's likely to trigger additional scrutiny. Make sure your claimed contributions align with your actual net earnings from self-employment - the employer contribution portion is limited to 25% of your net self-employment earnings (after deducting half of your self-employment tax). I'd recommend keeping both digital and physical copies of all documentation, and consider working with a tax professional if your situation is complex. The peace of mind is worth it when dealing with retirement account compliance.

Based on my experience as a solo 401k participant, the IRS verification process is actually quite straightforward once you understand what they're looking for. While they don't receive automatic reporting for accounts under $250k, they have several verification methods during audits. The most important thing is maintaining proper documentation. I keep a dedicated folder (both physical and digital) with: 1) Monthly account statements from my solo 401k provider, 2) Bank statements showing transfers from my business checking to the 401k, 3) My annual contribution calculation worksheet showing how I determined my limits, and 4) Copies of any contribution confirmations or receipts. For the calculation piece, remember that your employer contribution is limited to 25% of your net self-employment earnings (after deducting half of your SE tax). So if you had $150k in net earnings and paid $10k in SE tax, your compensation would be $145k ($150k - $5k), and your max employer contribution would be $36,250. One thing that surprised me - the IRS can also cross-reference your claimed contributions with your overall financial profile. If you're claiming maximum contributions but your lifestyle or other financial indicators don't align, that could trigger additional questions. The key is being consistent and honest in your reporting. Your $28,500 contribution sounds reasonable for someone with sufficient self-employment income. Just make sure you have the documentation to back it up!