One additional consideration that hasn't been mentioned yet - make sure you understand the timing of when your mom needs to report any capital gains. Even though she may qualify for the $250,000 exclusion on her primary residence, she'll still need to report the sale on her tax return for the year it closes. Since you're managing her finances with the POA, you'll likely be responsible for ensuring this gets reported correctly. The sale should be reported on Schedule D and Form 8949, even if no tax is owed due to the exclusion. Also, if your mom has any cognitive decline that affects her ability to understand financial matters, you might want to consider having a tax professional handle her return for the year of the sale. The documentation requirements and potential complexity of reporting a home sale while managing someone else's finances through a POA can be tricky to navigate solo.

I went through this exact situation with my father's house last year and learned a few hard lessons that might help you. One thing that caught me off guard was the timing of when you need to establish the cost basis - make sure you're collecting all improvement receipts NOW, not after the sale closes. Also, regarding transferring money to your personal account - I'd strongly recommend against doing this directly. Instead, keep the proceeds in an account that's still in your mom's name but that you manage with the POA. This creates a much cleaner paper trail and avoids any potential gift tax complications. If you do need to access the money for her care expenses, transfer smaller amounts as needed with clear documentation of what each transfer is for (medical bills, care facility payments, etc.). This approach protects both of you and makes it much easier if you ever need to account for how the money was used. The tax reporting is also more straightforward when the money stays in her name - you'll just report the sale on her return without having to worry about gift tax implications on your end.

Coming from a similar situation (different states IL/WI) - here's what really matters for you: where you each EARN the money, not just where you live. If one of you works in the other's state, it gets more complicated. You might need to file: - Joint federal - Resident state return for each of you - Non-resident state return(s) if either of you earn income in the other state Each state has different rules about credit for taxes paid to other states too, so don't assume anything. PA and NJ do have a reciprocal agreement that might help simplify things. My suggestion: find a CPA who specializes in multi-state taxation. It's worth the money for at least the first year to get everything set up correctly.

Your tax professional was definitely wrong - you absolutely can file jointly for federal while filing separately for your respective states. This is actually a very common situation for couples living in different states. Federal and state tax systems are completely independent. You can choose married filing jointly for federal (which usually provides better tax benefits) while each filing as residents in your respective states - you in PA and your wife in NJ. The key things to consider: - File joint federal return reporting all income - Each file resident state returns in your home states - If either of you works across state lines, you may need non-resident returns too - PA and NJ have reciprocal agreements that can simplify things depending on work locations That $8,000 federal tax bill when filing jointly sounds unusually high - there might be withholding issues or other factors at play. I'd strongly recommend getting a second opinion from a CPA who specializes in multi-state taxation. Don't let one incorrect professional cost you thousands in overpayment. The fact that your gut told you something was off was right on target. Trust that instinct and find someone with proper multi-state experience.

Anyone else just keep everything forever because they're paranoid? Lol. I have tax records going back to my first job in 2002 😂 My spouse thinks I'm crazy but I've seen too many horror stories of people getting randomly audited for stuff from 6+ years ago!

I've been dealing with this exact same situation! After years of hoarding every piece of tax-related paper, I finally developed a system that works. Here's what I learned from my CPA and some trial and error: **Basic rule**: 3 years for most stuff, but keep these longer: - Investment records (stocks, bonds, crypto): Until 7 years after you sell - Property records: Forever (or until 7 years after you sell) - Business/self-employment records: 7 years - Records supporting permanent disabilities or retirement contributions: Forever **My purging strategy**: I go through my files every January and create three piles: 1. "Safe to shred" (older than 3-7 years depending on type) 2. "Scan and shred" (stuff I want digital copies of) 3. "Keep physical" (property deeds, some investment docs) The key is being systematic about it. I was amazed how much space I freed up once I actually followed the IRS guidelines instead of just keeping everything "just in case." You'll probably find that 80% of what you're keeping can safely go! Pro tip: Before you toss anything, take a photo with your phone of documents you're unsure about. That way you at least have something if you realize later you needed it.

Has anyone tried calling the IRS Identity Protection Specialized Unit at 800-908-4490? I had to do this last year when I lost my PIN and they were able to help me verify my identity to efile.

I went through this exact same frustration last year! Here's what worked for me without having to wait on hold with the IRS: First, try the AGI method that others mentioned - it's definitely the easiest if you can find your 2023 tax return. But if you're like me and had moved/lost everything, here's a backup plan: You can create an account on IRS.gov and use their "Get Transcript Online" tool. They'll ask you some identity verification questions (like previous addresses, loan amounts, etc.) and if you pass, you can immediately see your prior year AGI. I was able to do this at 11 PM when I was panicking about my deadline. If the online verification doesn't work, you still have options before resorting to paper filing. Some tax software will let you print and mail just the signature pages while still preparing everything electronically, which can speed up processing compared to a fully paper return. The key thing is don't stress too much - you have multiple paths to get this resolved and it shouldn't significantly delay your refund as long as you can verify your identity one way or another. Good luck getting it sorted this weekend!

After struggling with this exact issue last filing season, I found that the IRS Interactive Tax Assistant (www.irs.gov/help/ita) has a specific tool called "Who Can I Claim as a Dependent?" It walks you through all the requirements step by step. In my case, I was able to claim my disabled brother (32) even though my parents provided some support. The key was documenting that I covered over 50% of his total support costs. I created a spreadsheet tracking every expense, including a portion of my mortgage, utilities, food, medical costs not covered by insurance, and transportation. Make sure to print and save this documentation in case of audit.

As someone who went through a similar situation with my disabled adult child last year, I can confirm what others have said about documentation being absolutely critical. One thing I didn't see mentioned is that you should also check if your sister qualifies for the disabled dependent credit in addition to the regular dependency exemption. Since you mentioned she's 30 and disabled, she might qualify for this additional benefit if she's permanently and totally disabled. Also, make sure to factor in the fair market rental value of the room she occupies in your house - this is often the largest single support item and can easily push you over the 50% threshold. I used Zillow's rental estimates for comparable rooms in my area to calculate this. The IRS accepts reasonable estimates as long as you can justify your methodology.