I think you're all missing a key detail - using FSA money for a child doesn't automatically mean you have to claim that child as your dependent. FSA funds can be used for any qualifying dependent, even if your ex claims them on their taxes. The real question is: did your divorce decree specify who claims which child? Many divorce agreements include language about alternating years or assigning specific children to each parent. That would override any tax tiebreaker rules.

Just wanted to add one more consideration that might affect your decision - make sure you're both tracking your household expenses carefully to meet the "keeping up a home" test for head of household status. Each of you needs to pay more than half the cost of maintaining the home where your respective child lives for more than half the year. This includes rent/mortgage, utilities, food, repairs, and other household expenses. With 50/50 custody, you'll want to document which expenses each of you is paying for each household. Also, since you mentioned you're on good terms with your ex, I'd suggest running the numbers for different scenarios before deciding who claims which child. Sometimes the parent with higher income benefits more from certain credits, while the lower-income parent might get a bigger boost from the Earned Income Credit. A tax professional could help you optimize the overall tax savings for both families combined. One last tip - make sure whatever arrangement you agree on is documented in writing (even just an email between you two) in case the IRS ever questions your filing status. Good luck!

I'm so sorry for your loss, Lily. Losing a parent unexpectedly is devastating, and it's completely understandable that you're feeling overwhelmed by the tax implications on top of everything else you're dealing with. You absolutely did not make a mistake! What you've created is exactly what many families set up during difficult times like this - a temporary memorial fund. The IRS actually has established guidance for these situations, and what you're describing is what tax professionals call a "conduit" or "pass-through" arrangement. Here's what should give you peace of mind: • The EIN was necessary for banking purposes, but it doesn't automatically create a taxable business entity • Since you're collecting donations temporarily and distributing them all for memorial purposes (scholarship and funeral costs), this isn't considered a profit-making enterprise • The donations aren't taxable income to you or the fund • Money going to the college for the scholarship won't create tax complications • Funds used for legitimate funeral expenses are generally not taxable Since you plan to distribute everything and close the account, you most likely won't need to file any business tax returns with that EIN. The key is keeping detailed records of all donations received and distributions made - save copies of checks, keep receipts, and get documentation from the college. Your father would be so proud of how you're honoring his memory through this scholarship and covering funeral costs. Please don't let tax worries overshadow this beautiful tribute you've created during such a difficult time.

I'm so deeply sorry for the loss of your father, Lily. What you're going through right now - managing grief while trying to understand complex tax implications - is incredibly difficult, and your concerns are completely understandable. Please know that you absolutely did not make a mistake. What you've set up is actually very common and is recognized by the IRS as a legitimate temporary memorial arrangement. The banker was correct that you needed an EIN to open the account, but this was purely for banking compliance requirements, not because you were creating a business entity that needs to file tax returns. What you have is called a "conduit arrangement" - you're temporarily collecting donations from family and friends to distribute them for specific memorial purposes. Since you're planning to give half to the scholarship fund and use half for funeral expenses, and then close the account entirely, the IRS generally doesn't consider this taxable activity. Here's what should ease your worries: - The donations aren't considered income to you or the fund - Money going to the scholarship (through the college) won't create tax issues - Funeral expense distributions are typically not taxable - You likely won't need to file any business returns with that EIN The most important thing is to keep good records of everything - copies of donation checks, receipts for funeral costs, and documentation from the college when you make the scholarship donation. Your father would be so proud of how thoughtfully you're honoring his memory. Focus on that beautiful tribute rather than letting tax concerns add to your grief during this already difficult time.

Great question! I went through this exact confusion last year when I started trading more actively. The consolidated 1099 from TradeWave is definitely what you want - it's much better than getting separate forms for each type of transaction. One thing I'd add to the helpful responses here is to double-check that your consolidated 1099 includes ALL your trading activity from the year. Sometimes if you had positions at multiple brokers or transferred accounts mid-year, you might need statements from each institution. Also, keep an eye out for any supplemental or corrected 1099s that might come later - brokers sometimes issue corrections in February or March. The consolidated format saves so much time during tax prep. I remember my first year trying to match up individual 1099-B forms with my actual trades and it was a nightmare. The consolidated version having everything in one place with clear summaries makes the whole process much smoother.

As someone who also recently started more active trading, I can confirm that what you received from TradeWave is indeed a consolidated 1099, and Omar's explanation is spot-on! You don't need to fill out separate forms - the consolidated version combines all your investment activity into one comprehensive statement that makes tax filing much easier. One additional tip I'd suggest: before you start entering information into your tax software, take a few minutes to review each section of the consolidated 1099 to make sure you understand what types of income are included. The sections are usually clearly labeled (like "Proceeds from Broker Transactions" for your stock sales, "Dividend Income" for dividends received, etc.), and this will help you navigate your tax software more confidently. Also, since this is your first year with significant trading activity, you might want to consider keeping a simple spreadsheet or notes about your major trades throughout the year going forward. While the consolidated 1099 handles the tax reporting requirements, having your own records can be helpful for investment planning and tracking your performance over time.

Just wanted to add another perspective on the gift splitting strategy mentioned earlier. If you and your spouse decide to split the gift to maximize the annual exclusion ($38,000 total), make sure you're both actually participating in the gift. The IRS requires that both spouses consent to gift splitting, and you'll need to indicate this on Form 709 if you file one. Also, consider the timing carefully - if you make the gift late in the year, you might want to wait until January to make additional gifts so you can take advantage of the next year's exclusion amounts. This is especially relevant since the annual exclusion amounts are indexed for inflation and tend to increase over time. One last tip: if your son is planning to use this money for major purchases like a house or education, keep records showing the source was a gift from settlement funds. Some lenders or schools might ask about large deposits, and having clear documentation will make those processes smoother.

One aspect that hasn't been covered yet is the importance of keeping contemporaneous records of your gift decisions and timing. The IRS has been increasingly scrutinizing large gifts, especially when they come from settlements, so documentation is key. I'd recommend creating a simple gift log that includes: the date of each transfer, the amount, the recipient, and a note referencing your settlement as the source. If you're splitting gifts across multiple years, this becomes even more critical to show clear intent and proper timing. Also, if your settlement was structured (meaning you receive payments over time rather than a lump sum), the gift tax implications apply each year you make gifts, not just when you received the settlement. This could actually work in your favor for staying under annual exclusion limits if you have flexibility in your payout schedule. Consider consulting with a CPA who specializes in gift tax issues, especially given the complexity of settlement funds and the amounts involved. The cost of professional advice upfront could save you significant headaches later if the IRS has questions about your transfers.

Has anyone tried calling the IRS directly to get wage info? Is that even possible or do they just tell you to wait for the W2?

Another option that worked for me is checking if your employer uses a third-party payroll service like Paychex, Gusto, or Paycom. Even if they don't use W2express, these services often have their own employee portals where you can access your tax documents. You can also try contacting your employer's HR or payroll department directly - they're required to provide you with a copy of your W2 if you request it. Most companies can email you a PDF copy pretty quickly, especially if you explain you're having trouble with their online system. If all else fails and you're really in a time crunch, you can file your taxes using your final paystub from each job. The IRS allows this if you can't get your W2 by the filing deadline, though you'll want to make sure your numbers are as accurate as possible to avoid any issues later.