One thing I haven't seen mentioned - check your state tax rules too! I had a parent pass away mid-year and found out that while the federal rules allowed me to claim them as a dependent, my state had different requirements. Cost me an extra $375 in state taxes I wasn't expecting!

I'm so sorry for your loss, Ava. Dealing with taxes after losing a parent is incredibly difficult on top of everything else you're going through. The good news is that yes, you can absolutely still claim your mother as a dependent for 2024. The IRS allows you to claim a qualifying dependent who passes away during the tax year as long as they met all the dependency requirements for the time they were alive. Since your mom lived with you for those months and you provided more than half her support, you're entitled to claim her. A few important things to remember when filing: - Include her full SSN and mark "deceased" with the date of death on your return - Keep all documentation of the support you provided (medical bills, funeral expenses, living costs) - You may also be able to deduct qualified medical expenses you paid for her on Schedule A if you itemize - Don't forget that you'll likely need to file a final tax return for her as well to report her Social Security income for January through April The $12,000 in funeral expenses you mentioned shows just how much financial responsibility you took on. The tax code recognizes this kind of support, which is exactly what the dependent deduction is meant to acknowledge.

This might be a stupid question but how do you know if you even need to fill out Form 4952? I have some margin interest from my brokerage account but my tax software hasn't prompted me to complete this form.

Great thread everyone! I just wanted to add a few practical tips for anyone working through Form 4952: 1. Keep detailed records of what constitutes your investment income vs. other types of income throughout the year. It makes tax time much easier. 2. If you're unsure about whether to make the election for qualified dividends or capital gains, calculate both scenarios before deciding. Sometimes the math doesn't work out in your favor even when you have excess investment interest expenses. 3. Don't forget that any investment interest expense you can't deduct this year carries forward to future years, so it's not completely lost if you don't have enough investment income this year. The distinction between investment income and business income (like rental properties) can be tricky, but it's crucial for getting Form 4952 right. When in doubt, consult the instructions or speak with a tax professional - the rules can be quite nuanced depending on your specific situation.

Has anyone tried the two-earner worksheet on the W4? My partner and I tried using it last year and still ended up owing about $2k at tax time. So frustrating!

The commission income definitely adds complexity to your W4 setup! Here's what's worked for me in a similar situation: Since your wife has the higher, more stable income at $78k, I'd recommend having her claim both kids on her W4 in Step 3. This keeps things simpler and more predictable for withholding calculations. For your commission income, here's the key: estimate your total annual commission and divide by your number of paychecks, then use that amount in the IRS withholding calculator. The calculator will tell you exactly how much extra to withhold on line 4(c) of your W4. One trick that's helped me - I actually slightly overestimate my commission income when doing these calculations. Better to get a small refund than owe money! You can always adjust mid-year if your commission patterns change significantly. Also, since commission income can push you into higher tax brackets unexpectedly, consider having a flat extra amount withheld from each of your paychecks (like $100-200) just as a buffer. This has saved me from surprise tax bills multiple times. The bottom line: use the IRS withholding calculator quarterly to stay on track, especially with variable income in the mix.

Does anyone know if theres a minimum amount required to get tax benefits from donations? I probably only donate like $100-200 worth of stuff a year, is it even worth tracking?

Just wanted to add that if you're donating larger items like furniture or appliances, it's worth doing a quick search on Facebook Marketplace or Craigslist to see what similar used items are selling for in your area. I donated a dining table set last year and was able to justify a $200 deduction based on comparable listings. Also, don't forget about non-clothing items that can add up - books typically value at $1-3 each, DVDs around $2-5, and household items like small appliances can be worth $5-25 depending on condition. I keep a simple spreadsheet throughout the year to track everything, and it usually adds up to more than I initially thought. One last tip: if you're close to the itemizing threshold that @Sophia mentioned, consider bunching your donations into one tax year instead of spreading them out. You might be able to push yourself over the standard deduction limit and actually benefit from claiming them.

Try checking your tax transcript instead. It'll give you way more info than the WMR tool or turbotax

This is totally normal! The IRS "Where's My Refund" tool is always going to be more accurate than what TurboTax shows. TurboTax just confirms they successfully submitted your return, but the IRS tool shows the actual processing status. "Received" means they have it and are working on it - you should see it update to "approved" once they finish processing. Usually takes 21 days or so for e-filed returns.