This is such an important point that people miss! I had this exact situation where the refund from the school came in January 2024 but the original withdrawal was in December 2023. Created a huge headache with reporting. I ended up having to amend my 2023 return.

If anyone runs into this December/January situation, the key form you need is Form 8913 "Credit for Recontribution of Qualified Higher Education Expenses." You file it with your return for the year when you made the original withdrawal. The form essentially lets you take a tax credit in the withdrawal year for recontributions you make in the following year, as long as you meet the 60-day rule. Your tax software might not prompt you for this form automatically, so you might need to specifically look for it or get help from a tax professional.

This is really helpful, thank you! I hadn't thought about the Social Security Administration aspect for payroll reporting. We do have employees, so I'll need to add that to our checklist. Quick question - you mentioned Form W-2c corrections if W-2s were already filed under the old name. Since we're doing this name change mid-year, do we need to file amended W-2s for the portion of the year under the old name, or can we just use the new name going forward for the rest of the year's payroll reporting? Also, did you find the certified mail was necessary, or was that just for your peace of mind? I'm trying to decide if regular mail would be sufficient to save a few dollars.

For mid-year name changes with employees, you typically don't need to file amended W-2s for the portion of the year under the old name. The IRS allows you to use the new name going forward once it's officially changed. However, you should update your name with SSA using Form W-2c only if there are discrepancies that need correction - not just for the name change itself. The key is consistency in your quarterly 941 filings. If you file Q1 and Q2 under the old name, then Q3 and Q4 under the new name, just make sure your annual reconciliation on Form 940/941 reflects the current legal name. Regarding certified mail - I'd strongly recommend it, especially given current IRS processing delays. It's not just peace of mind; it provides legal proof of delivery if there are any questions about timing or if your submission gets lost. For a few extra dollars, it can save you weeks of wondering if your paperwork was received. Plus, you can track delivery online, which is helpful for your records.

This is such an important point that I wish I had known earlier! We ran into a similar issue with our quarterly payments. After reading through this thread, I'm realizing there are so many interconnected pieces to consider with a corporate name change. I'm curious - did you have to do anything special to update your EFTPS (Electronic Federal Tax Payment System) account, or did that automatically update once the IRS processed your Form 8822-B? We use EFTPS for all our business tax payments, and I'm wondering if there's a separate step required there or if it syncs with the IRS name change automatically. Also, for anyone following this thread who might be in a similar situation, it sounds like creating a comprehensive checklist upfront is crucial. Between the IRS, state agencies, SSA, banks, and payment systems, there are a lot of moving parts that need to stay coordinated during the transition.

I've used OLT for the past two years and it works great for claiming small foreign tax credits directly on Schedule 3. Their interface isn't as slick as TurboTax, but they include all forms in their basic package ($9.95 last time I used it) including Form 1116 if you ever need it.

This is really helpful clarification! I'm actually dealing with a taxable brokerage account like you mentioned, so the proportional method seems like the right approach for my situation. I hadn't realized how different the rules are for retirement accounts vs regular investment accounts. One follow-up question - when you say "keep detailed records," what specific information should I be tracking beyond just the purchase dates and amounts? Should I be documenting things like dividend reinvestments separately, or does my broker usually handle that automatically in their cost basis reporting?

Great question about record keeping! Beyond purchase dates and amounts, you should definitely track dividend reinvestments separately - each reinvestment creates a new "lot" with its own cost basis and date. Also keep records of any stock splits, spin-offs, or merger transactions as these can affect your basis calculations. While many brokers now provide decent cost basis reporting (especially for shares purchased after 2011), they don't always have complete historical data, particularly if you transferred accounts or held investments before the reporting requirements kicked in. I'd recommend keeping your own spreadsheet or using investment tracking software to maintain a complete picture. Also document any return of capital distributions (common with REITs and some funds) as these reduce your cost basis rather than being taxable income. Having this documentation will save you major headaches during tax season, especially if you're using methods like specific identification for tax optimization.

The investment interest expense rules are so confusing. I think those are reported separately on the K-1 in box 13 with code A? Do those actually count as itemized deductions? I never know if I should be taking those since I usually just take the standard deduction.

You're right about box 13 code A - that's where investment interest expense shows up on the K-1. And yes, these are itemized deductions reported on Schedule A. If you're taking the standard deduction, you won't get any benefit from them currently. However, any investment interest expense that exceeds your net investment income gets carried forward indefinitely. So even if you take the standard deduction now, if you itemize in future years, you can use those carried-forward investment interest expenses. Worth tracking even if you can't use them immediately.

This is really helpful information, especially about the Section 199A deduction potential! I hadn't considered that real estate funds might qualify for the QBI deduction. One follow-up question about the basis tracking you mentioned - if the fund takes on additional debt during the investment period, does that automatically increase my basis, or do I need to do something specific to claim that basis increase? And how do I actually track this if the K-1 doesn't clearly show the debt changes from year to year? Also, great point about asking for historical K-1s from their other funds. That seems like something any legitimate fund manager should be willing to provide to help investors understand what they're getting into.

Great question about basis tracking! Yes, increases in partnership debt automatically increase your basis as a partner, but tracking it can be tricky since K-1s don't always show the year-over-year debt changes clearly. Most real estate funds will include supplemental information or footnotes on the K-1 that show your share of partnership liabilities at year-end. You'll want to compare this to the prior year to see the change. Some funds also provide a separate basis calculation worksheet that breaks down all the components - contributions, income, distributions, losses, and debt changes. If your fund doesn't provide clear basis tracking information, you should absolutely request it. This is critical information for determining how much of your losses you can actually claim. I've seen investors miss out on thousands in deductible losses simply because they didn't realize they had sufficient basis from debt increases. For the QBI deduction, it's worth noting that not all real estate activities qualify equally. The fund needs to be conducting an active trade or business (not just passive rental activities) to generate QBI. Ask the fund managers specifically about their QBI qualification and whether they expect to generate qualifying income versus non-qualifying investment income.