


Ask the community...
Something similar happened to me but it turned out to be identity theft! Someone had stolen my kid's social security number and was using it for tax fraud. Make sure you check your son's credit report just to be safe. Kids shouldn't have any credit history, so if there's anything on there, that's a major red flag. Also, contact the IRS Identity Protection Specialized Unit at 800-908-4490. They can put special markers on your son's social security number to prevent future issues.
I hadn't even considered identity theft! That's terrifying. Do you know if there's a way to lock my son's credit report to prevent anyone from opening accounts in his name?
Yes, you can place a security freeze on your son's credit reports at all three major credit bureaus (Equifax, Experian, and TransUnion). This prevents anyone from opening new accounts in his name. It's free to do, though you'll need to provide documentation proving you're his parent/guardian. Each bureau has a specific process, but generally you'll need to mail in a request along with copies of your ID, your child's birth certificate, and proof of address. I did this for my kids after our incident and it gave me peace of mind. Just remember you'll need to temporarily lift the freeze if you ever need to open legitimate accounts for him in the future.
Could it be a simple error with the social security number? Sometimes people transpose digits when entering SSNs on their tax returns. Maybe someone accidentally entered your son's SSN instead of their dependent's by mistake.
Have you tried using a different tax program? I had similar issues with TaxSlayer and switched to FreeTaxUSA this year. They have a much more straightforward way of entering multiple local taxes from Box 19. Their interface makes it really clear where to add the second locality without trying to add another state.
I've been thinking about switching too. Does FreeTaxUSA charge extra for state returns though? And can you import last year's TaxSlayer return or would I need to start from scratch? This Box 19 issue is making me consider other options.
FreeTaxUSA does charge for state returns, but it's only about $15 compared to the much higher fees some other services charge. The federal filing is completely free for all tax situations. You would need to start from scratch unfortunately. They don't have a direct import from TaxSlayer, but honestly, it might be worth the extra time to enter everything manually if you're dealing with complex local tax situations. Their interface for handling multiple localities in Box 19 is much more intuitive - there's a clear "Add another locality" button right on the W-2 entry screen.
I noticed nobody mentioned that sometimes the two numbers in Box 19 could be from the same locality but for different time periods if you moved during the year. In my case, one was for Jan-July and the other was Aug-Dec after our city slightly changed their local tax rate mid-year. Make sure you check if that's your situation before you assume they're from different localities.
One thing nobody's mentioned yet - the Qualifying Surviving Spouse status is only available for the two tax years following the year of death. Since the husband died in 2021, the 2023 tax return (filed in 2024) would be the LAST year your mom could use QSS. Also, make sure you're looking at the right income threshold for your brother. It's not just whether he files his own return, but whether his gross income exceeds the threshold for being a qualifying relative ($4,700 for 2023 taxes). If he made more than that, he can't be your mom's qualifying person regardless of how much support she provides.
Thanks for pointing that out about the two-year limit! I think I got the year wrong in my original post - stepdad actually passed in 2021, not 2022, so this would indeed be the final year mom could use QSS status. My brother's income is definitely over that $4,700 threshold - he works part-time and makes around $18,000. Sounds like that automatically disqualifies him as a "qualifying person" for mom's QSS status then? So she'll have to file as single?
Yes, if your brother's income is around $18,000, that unfortunately means he cannot be considered a qualifying relative for tax purposes, regardless of how much support your mom provides. The gross income test is a firm threshold. Since he can't be a qualifying person for QSS purposes, your mom will need to file as Single for her 2023 tax return. For 2024 and beyond, she'll continue filing as Single unless her circumstances change (like remarriage).
Friendly suggestion - even though it sounds like your mom won't qualify for QSS based on your brother's income level, she should look into whether she qualifies for Head of Household status instead! It's not as beneficial as QSS but still better than Single. For HOH, the rules are a bit different. She would need to pay more than half the cost of keeping up the home where a "qualifying person" lived for more than half the year. A qualifying person can be a qualifying child OR qualifying relative. Your brother probably fails the gross income test for being a qualifying relative, but if there are other relatives living with her (like a parent, or maybe a different child), they might qualify her for HOH.
This is actually a really good point - a lot of people don't realize there's still hope for HoH status! I work at a tax prep office and see this misconception all the time. One correction though - for Head of Household, if you're trying to qualify using a relative who isn't your child, that person MUST be your dependent. So the brother still needs to meet the qualifying relative tests including the gross income test.
I'm surprised nobody mentioned the Qualified Business Income deduction (Section 199A)! As a 1099 contractor, you'll likely qualify for this deduction, which allows you to deduct up to 20% of your qualified business income. This is HUGE and can offset a good chunk of that self-employment tax. Of course, there are income limitations and other rules, but for someone at your income level, you should be able to take advantage of it. This deduction alone can make a big difference in your overall tax situation compared to being a W2 employee.
Don't make the mistake I did by not understanding the difference between a solo 401k and a SEP IRA. They sound similar but have different contribution limits. For my situation, the solo 401k was WAY better because I could put more away. Also check if your state has additional taxes for self-employed people. Here in California we have an additional 1.5% for the State Disability Insurance that caught me by surprise my first year.
Ava Garcia
Just want to add that I went through this exact situation last year. For a simple capital gains reporting on a 1041, you might qualify for the "simple trust" treatment if all income was required to be distributed. Makes the form much easier to complete. Also, check if your state requires a state trust return too - that caught me by surprise and caused a headache later.
0 coins
Liam Fitzgerald
ā¢Thanks for mentioning this! How do I know if my trust qualifies as a "simple trust"? The trust document says all income should be distributed annually, but the capital gains were technically reinvested. Does that disqualify it from simple trust treatment?
0 coins
Ava Garcia
ā¢A simple trust is one that requires all income to be distributed currently and doesn't provide for charitable contributions. The tricky part is that capital gains are typically considered principal, not income, unless your trust document specifically defines them as income. If your trust instrument treats capital gains as principal and they were reinvested, you would likely still qualify as a simple trust. You'd report the capital gains on the trust return, but they would generally remain as part of the principal of the trust, not distributed as income. This is a fairly common arrangement, but check your trust document's specific language about how capital gains are classified.
0 coins
Miguel Silva
For anyone still looking, here's the direct link to ALL 2021 forms related to 1041: https://apps.irs.gov/app/picklist/list/priorFormPublication.html?value=1041&criteria=formNumber&submitSearch=Find I just had to file one for my dad's estate and the IRS actually has pretty decent instructions. Saved myself $450 in CPA fees by just reading through their guide!
0 coins
Zainab Ismail
ā¢Thank you for sharing this link! I've been looking all over. Did you use any specific tax software to help you complete the form, or did you just fill out the PDF directly?
0 coins