Do you know if green card holders use their SSN or do they need an ITIN? My parents just got their green cards and are confused about filing next year.

Green card holders use their SSN, not an ITIN. When someone gets a green card, they're eligible for (and usually required to get) a Social Security Number if they don't already have one. ITINs are specifically for people who need to file taxes but aren't eligible for SSNs, like certain visa holders or non-resident aliens with US income. So your parents should use their SSNs on all tax forms where it asks for TIN.

Ohhhh that explains why I only saw the last 4 digits on my transcript! I was wondering about that too but didn't think to ask. Thanks for clearing that up!!

Which tax software were you using? I'm trying to file with TurboTax and it keeps insisting on using $3k of my losses even though I have no income. Is there a specific place where you had to override this?

I was using H&R Block's online software. The override was tricky to find - I had to go into the "Forms" view rather than using the interview process. Under Schedule D, there was an option to "override" the calculated loss deduction. I manually entered zero for the current year's deduction and preserved my full carryforward amount. With TurboTax, look for a similar "Forms" mode or "Tax Tools" section where you can directly edit Schedule D. The key is making sure that line 21 (the amount carried to Form 1040) shows zero while still documenting your full carryforward amount for next year in your records.

Capital losses don't expire! You can carry them forward indefinitely until they're used up. That's why it's so important not to "waste" them in years when you have no income to offset. I've been carrying some forward since 2016 and they're still valid.

This is so important! My brother got scammed by one of these companies that promised to settle his $40k tax debt for pennies on the dollar. Paid $4k upfront, they filed an offer in compromise that got rejected, and then they basically disappeared.

Exactly! These companies often advertise based on best-case scenarios that apply to very few people. The "pennies on the dollar" settlements (Offers in Compromise) have specific qualifying criteria - you have to prove you have no ability to pay the full amount now or in the foreseeable future. Most people don't qualify. The most frustrating part is that many of these companies know you won't qualify before they take your money. They collect their fee, file paperwork they know will be rejected, then tell you "well, we tried!" while keeping your money. Always ask for their success rate with cases similar to yours, and get clear details about what specific actions they'll take for the fee they're charging.

The Fresh Start program definitely helped me too. It's not actually a specific program you apply for - it's a set of policies that make it easier to settle tax debts. Made my payment plan much more manageable.

That's really interesting and something I hadn't considered. We did actually set up small trusts for each of our kids when they were younger (around $20,000 each). These trusts were designed to give them access when they turn 30. Would these definitely require filing Form 709 even though the amounts were under the annual exclusion limit at the time?

Yes, those trust contributions would almost certainly require filing Form 709, regardless of being under the annual exclusion amount. The key factor is that your children couldn't immediately access those funds (had to wait until age 30), which makes them "future interest" gifts rather than "present interest" gifts. The annual exclusion only applies to present interest gifts. For future interest gifts like the trusts you described, there is no annual exclusion - every dollar counts toward your lifetime exemption and must be reported on Form 709. This is one of the most misunderstood aspects of gift tax reporting.

For unfiled gift tax returns, the statute of limitations doesn't start running until you actually file the return. Unlike income taxes where there's generally a 3-year statute of limitations from the due date, with unfiled gift tax returns, the IRS can technically come after you indefinitely. That said, if you didn't owe any actual gift tax (because you were under the lifetime exemption), the practical risk is much lower. But technically, you should file for all years where you exceeded the annual exclusion, regardless of how long ago. This properly records your use of the lifetime exemption and starts the statute of limitations clock.

Thanks for the tip! I actually went back and checked my W-2 and you're right - the retirement plan box is checked but I definitely didn't select that in TurboTax. I didn't even notice that option when going through the questions. Do you remember where in TurboTax I need to go to fix this?

You should be able to find it by going back to the W-2 entry section in TurboTax. Look for a section that says something like "Does your employer offer a retirement plan?" or there might be a specific checkbox when entering your W-2 information. If you're not seeing it there, try looking in the "Deductions & Credits" section under retirement savings options. Sometimes TurboTax splits these questions into different sections which can cause these kinds of mismatches. Once you get the information entered correctly to match your W-2, the paper filing requirement might disappear.

This is a good point. I ran into this with New York one year because I'd moved mid-year and the address discrepancy triggered a paper filing requirement. Double check all your personal info matches what the IRS has on previous returns or communications.