Does this also apply if the distribution was from a Roth IRA? I took money out in 2020 but thought Roth distributions aren't taxable anyway?

For Roth IRAs, it's a bit different. If you've had the Roth for at least 5 years and are over 59½, then qualified distributions are tax-free. However, if you took an early distribution from a Roth in 2020 that would normally be partially taxable (like earnings withdrawn before 5 years), you could still use Form 8915-E to spread any taxable portion over 3 years. If your Roth distribution was entirely from contributions (not earnings), then it wouldn't be taxable regardless, and the 3-year spread wouldn't apply since there's no tax to spread.

Form 8915-F is the new form for reporting qualified disaster distributions in 2021, but it's for NEW disaster distributions. If you're reporting the SECOND year of a 2020 coronavirus distribution that you already started reporting on 8915-E, you continue with 8915-E for all three years.

Do you know if there's a way to see if my forms are still being processed or if they're just not going to send them? The tax deadline is getting closer and I'm getting nervous.

You can check the status of your tax forms by going to the Tax Documents section I mentioned and looking for a notice about "Remaining Forms." Robinhood usually indicates if you have forms that are still being processed. If there's no indication of pending forms, you may want to contact support directly. Another option is to look at your "Account Statement" for the year - it will show all your activity including stock trades and dividends. While not a substitute for official tax forms, it gives you the information you need to report your taxes properly.

This is terrible advice. The threshold isn't $20 for stock sales reporting. Brokers are required to report stock sales on 1099-B regardless of amount. The $20 threshold is for interest income on 1099-INT.

I actually just checked my mail more carefully and found a letter from the IRS that I thought was junk! It's a CP12 like you mentioned. Looks like they disallowed part of my Schedule C deductions because they said I didn't provide enough documentation. Is there a way to appeal this or provide the documentation now?

Yes, you absolutely can appeal this decision! The CP12 notice should include instructions for how to respond if you disagree with their adjustments. Typically, you have 60 days from the date of the notice to submit your appeal. To appeal, you'll need to write a letter explaining why you disagree with their adjustment and include copies (never originals) of any supporting documentation for the deductions they disallowed. This might include receipts, invoices, bank statements, credit card statements, or other records that prove these were legitimate business expenses. Make sure to reference your tax ID number and the CP12 notice number in your response.

This happened to my sister too! They held her whole refund for like 2 months. The annoying part was they didn't clearly tell her it was for identity verification - she only found out when she finally got through to someone on the phone.

How risky is it to bring this up with an employer though? I've heard horror stories of people getting fired for questioning their 1099 status.

It can definitely be a delicate conversation. I recommend approaching it from an educational perspective rather than an accusatory one. Share what you've learned about the differences and express your concerns about proper classification. If you're worried about potential backlash, gather information about your specific situation first. The IRS has Form SS-8 that you can file to request a determination of worker status, and they'll evaluate whether you should be classified as an employee or contractor. This gives you official backing if you need to address it with your employer.

Don't forget that as a W-2 employee, you also get unemployment insurance protection and workers' comp coverage. Those benefits have real value even if they don't show up directly in your paycheck.

I hadn't thought about that. Do CPAs typically charge a lot for this kind of consultation? I'm trying to keep costs down for the beneficiaries since the estate isn't huge.

Most CPAs will offer a free initial consultation, especially for something straightforward like this. If you just need guidance on when forms will be available and how to prepare, that might be all you need. If you decide to have them handle the actual 1041 filing, costs typically range from $600-1200 depending on complexity and your location. If budget is a concern, another option is to check with your local library or community college - many offer free tax clinics staffed by accounting students and professionals during tax season. They often can handle trust returns if they're not extremely complex. This approach might save you significant money while still ensuring everything is filed correctly.

There are indeed new crypto reporting sections expected on several tax forms including the 1041 for 2024. The IRS has been expanding their digital asset compliance focus. If the trust liquidated bitcoin, you'll need to report it as a capital asset sale with basis information. The draft instructions released in November mentioned this specifically.