Does anyone know if TurboTax handles Form 1116 correctly with these HTKO adjustments? I've been using it for years but never really understood if it's doing the qualified dividend calculations properly.

I've been dealing with similar Form 1116 confusion for years with my international investments. After reading through all these responses, it's clear that the HTKO adjustment should use the GROSS amount before qualified dividend adjustments, but I wanted to add something that might help others. One thing that really helped me understand this was realizing that Form 1116 is essentially doing two separate calculations: (1) determining how much foreign tax credit you're eligible for based on ALL your foreign income, and (2) figuring out how that income gets taxed in the US (where qualified dividends get special treatment). The HTKO section is part of calculation #1 - you need the full gross amount to properly establish your foreign tax credit limitation. The qualified dividend preferential treatment happens later in the form when calculating your US tax liability on that income. For Grace's situation with $14,500 in foreign dividends, you'd report the full amount in the HTKO section, then let the form handle the qualified dividend portion separately. This ensures you get the maximum allowable foreign tax credit while still getting the benefit of qualified dividend tax rates where applicable.

I've been using Green Dot for tax refunds for about 4 years now and never had any problems! The IRS definitely accepts prepaid cards - they just need valid routing and account numbers, which Green Dot provides. A few things that might help ease your worry: - Green Dot actually processes IRS deposits pretty quickly, often within 24 hours of the IRS sending it - The deposit limits are high enough that unless you're getting a massive refund, you shouldn't hit any limits - Green Dot doesn't charge fees for receiving direct deposits like tax refunds Since you already filed with your Green Dot info, I'd stick with it rather than trying to change anything now. The IRS system is pretty reliable with prepaid cards, and if there were somehow an issue, they'd automatically mail you a check instead. You can use the "Where's My Refund" tool on the IRS website to track when they send the deposit, and then expect it to show up on your card within a day or two after that. Green Dot also sends text alerts when deposits hit your account if you have that set up. Don't stress about it - you made a good choice going with direct deposit, even to a prepaid card!

I went through this exact same worry last year with my Green Dot card! Filed in February and spent weeks stressing about whether it would work. Turns out I had nothing to worry about - the refund hit my Green Dot account perfectly and actually arrived 2 days earlier than my coworker's refund who used a traditional bank. The IRS processes hundreds of thousands of refunds to prepaid cards every tax season. As long as your routing and account numbers are correct (which they are if you got them from Green Dot), you should be totally fine. One tip - make sure to enable text notifications in your Green Dot app if you haven't already. I got an instant alert when my refund deposited, which was such a relief after all that worrying. The fact that you're concerned about this shows you're being responsible about your taxes. But honestly, prepaid cards like Green Dot are just as legitimate for IRS deposits as regular bank accounts. You made a smart choice going with direct deposit - you'll get your money way faster than waiting for a paper check!

As someone who's dealt with precious metals transactions for years, I want to emphasize something that hasn't been mentioned yet - make sure you're also considering the self-employment tax implications. Since you're doing freelance graphic design work, that gold coin income isn't just subject to regular income tax, but also the 15.3% self-employment tax on the fair market value. Also, don't forget that your client should be issuing you a 1099-NEC if the total value of payments (including these gold coins) exceeds $600 for the year. If they don't, you still need to report it, but it's worth having a conversation with them about proper reporting since they may need to report it on their end too. One more tip: consider opening a separate business bank account and depositing the cash equivalent of each coin's value when received. This creates a clear paper trail and makes record-keeping much easier for both accounting and tax purposes.

Just wanted to chime in as someone who's been through this exact situation! I'm a freelance web developer and had a client pay me with American Gold Eagles last year. Initially tried to report just the face value ($50 per coin) but my CPA immediately shut that down. Here's what I learned the hard way: the IRS doesn't care what the face value says or what you and your client agreed to - they want the actual fair market value reported. I ended up having to go back and recalculate everything based on the gold spot price on each date I received payment. Pro tip: I started using a gold price tracking app to screenshot the daily closing prices whenever I got paid. Also keep any documentation about the coin's condition since some Liberty coins have collector premiums beyond just the gold content. The good news is once you establish the fair market value as your basis, if you ever sell the coins later, you'll only pay capital gains tax on any appreciation above that amount. But yeah, expect to pay both income tax AND self-employment tax on the full market value - it definitely adds up!

As someone who went through a messy custody tax situation, I want to emphasize what others have touched on - you are NOT required to sign retroactive Form 8332s for years where you filed correctly. Your ex is being unreasonable demanding 7 years of retroactive forms. The IRS only cares about correcting actual errors, which in your case appears to be just 2021. For that specific year, you could consider signing a Form 8332 just for 2021 to help expedite resolution, but absolutely do not sign anything for the other 6 years where you followed your agreement correctly. Document everything - keep copies of your divorce decree, your tax returns for all years in question, and any correspondence with your ex about this issue. If he continues to be unreasonable or threatens legal action, this documentation will show you've been compliant with both your agreement and IRS rules. Your amended return for 2021 should eventually be processed (though yes, the delays are frustrating). Stay firm on your position - you're doing the right thing by only correcting the actual error year.

I went through something very similar with my ex a few years ago, and you're absolutely right to be cautious about signing retroactive forms. Here's what I learned from my experience: First, keep detailed records of EVERYTHING - every Form 8332 you've signed, when you signed them, and how you delivered them to your ex. I scan and email them so I have delivery confirmations. Also keep copies of all your tax returns showing you only claimed your designated children each year. For communication with your ex about refusing the retroactive forms, I'd recommend putting everything in writing (email or text) and keeping it factual and brief. Something like: "I've reviewed our tax filings for [years]. Since I correctly followed our agreement and only claimed my designated children during those years, I don't see a need for retroactive Form 8332s. I'm happy to sign a form specifically for 2021 to resolve the CPA error once my amended return is processed." The key is staying calm and fact-based. Don't get drawn into arguments about who's right or wrong - just stick to what the actual filings show. Your ex being "litigious" is likely just intimidation tactics. You've followed the agreement correctly for 6 out of 7 years, so you're in a strong position. One more tip: if this does escalate, having an IRS representative confirm in writing that only 2021 needs correction could be valuable documentation for any potential legal proceedings.

i tried jackson hewitt. got approved for half my refund amount but the fees were insane. like 40% APR or sumthing crazy

I'm in a similar situation - filed early and really need the cash flow. From what I'm reading here, it sounds like the fees are pretty brutal across the board. Maybe I'll just wait it out and check the IRS Where's My Refund tool obsessively like I do every year 😅 Has anyone had luck getting their refund faster by calling the IRS directly?