Is there a significant difference between the old and new versions? I found one from a few years ago in my files and was planning to use that as a template.

That's a good point about tax-advantaged accounts! But no, these are definitely regular taxable investment accounts they've had for years, not IRAs. The 1099s were issued by their bank and a brokerage firm for normal taxable accounts. I think at this point it's pretty clear the CPA made a mistake. Do you think this kind of oversight indicates my parents should look for a new tax preparer, or is this the kind of mistake anyone might make occasionally?

Based on your confirmation that these are regular taxable accounts, this is definitely an error that shouldn't have happened. While everyone can make an occasional mistake, missing multiple 1099 forms is concerning because it's such a fundamental part of tax preparation. I would suggest having a conversation with the CPA first. Their response will tell you a lot - a good professional will acknowledge the error, fix it promptly at no additional cost, and explain what steps they'll take to prevent similar mistakes in the future. If they're defensive or try to charge for fixing their own mistake, that's a red flag. What makes this particularly troubling is that tax software and even manual checklists that CPAs use are specifically designed to prompt for 1099 income. This suggests either carelessness or possibly that some documents were misplaced during preparation.

That's not how tax reporting works though. Interest income and dividends aren't netted against capital losses on Schedule D. They're entirely separate types of income reported on different lines of the 1040. Capital losses can offset capital gains, but not interest or dividend income.

This is incorrect. There's no minimum income requirement to file as Head of Household. You need to meet the requirements about marital status, providing support, and having a qualifying person live with you. The IRS doesn't care if your support comes from current income, previous income, gifts, loans, or inheritance. The confusion might be that you need income above certain thresholds to be REQUIRED to file taxes at all, but that's different from being ELIGIBLE for a certain filing status.

Thanks for the correction - I was mixing up the requirements for being required to file with the requirements for filing status eligibility. You're right that there's no minimum income requirement specifically for claiming Head of Household status. The key factors are the ones mentioned earlier about maintaining a household and supporting a qualifying dependent. The OP should be eligible based on what they've described, regardless of whether they had positive income in the current tax year.

Thanks for bringing this up. My son is definitely my dependent - he's 9 years old and I provide 100% of his support. He lives with me full-time. I do have some small side income from freelance work (about $8,000 for the year) that I didn't mention in my original post since it's minor compared to what I was living on from previous crypto gains. I also had some interest income from my savings where I keep my previous crypto profits. Would that help establish that I had some income for the year?

Thanks for the perspective! I did double-check my AGI from last year since I switched from paper filing to electronic. I actually had to dig out my old return to make sure I had the number right. Sounds like I just need to be patient for a couple more days.

Glad you verified that! Another tip is to create an account on the IRS website if you haven't already. Sometimes you can see the status of your return there before your tax software updates. The "Where's My Refund" tool won't help until your return is accepted, but having the account set up now will save you time later.

I've used both and noticed the same thing! I think TurboTax only updates their status a few times a day while some of the others check more frequently. The actual processing time at the IRS is probably the same.

We probably don't qualify for that one then, since our combined income is still around $78k even with my wife's unpaid leave. But thanks for mentioning it! Are there any other credits or deductions we should look into as new parents?

You might still qualify for the child and dependent care credit I mentioned earlier if you're paying for childcare. Also look into whether you can deduct any medical expenses related to the birth - if your total medical expenses for the year exceed 7.5% of your adjusted gross income, you can deduct the amount over that threshold if you itemize deductions. Some employers also offer dependent care FSAs which let you set aside pre-tax money for childcare expenses. It's too late for 2024, but something to consider for 2025. And start looking into 529 college savings plans - there's no federal tax deduction for contributions, but earnings grow tax-free when used for education expenses.

I used the IRS Free File system last year to claim the child tax credit for my son. It was actually pretty straightforward - it asks clear questions about dependents. If your income is under $73,000, you can use it for free. If you make more, TurboTax or H&R Block might be easier, but they'll charge you for the forms needed to claim child-related credits.