What about California? My mom passed with an estate around $1.5M (mostly her house value). Do they have a lower threshold I should worry about?

California is actually one of the states that doesn't have a separate estate tax, so you don't need to worry about that specific filing. They rely on picking up tax revenue in other ways, particularly through property tax reassessments when property transfers at death. If your mom's estate includes a home in California, you'll want to look into Proposition 19 rules about property tax reassessments rather than estate taxes. The rules changed recently regarding inherited properties, so that's where your focus should be rather than an estate tax return.

Not a stupid question at all! For estate tax purposes, the "gross estate" generally includes everything the person owned or had certain interests in at death - so yes, all those assets you mentioned would count toward the total value, even accounts with named beneficiaries. However, since the total value you mentioned is approximately $1.02 million, that's still well below the federal threshold of $13.61 million, so no federal estate tax return would be required. But as others have mentioned, check your state requirements if you're in a state with its own estate tax, as those thresholds can be much lower.

Thanks! I didn't even think about being able to deduct things. I did drive the kids to soccer practice twice a week and bought art supplies a few times. Would I need receipts for all of that? I definitely didn't keep them...

For the driving, you don't need receipts - you can use the standard mileage rate (around 67 cents per mile for 2025). Just make your best estimate of how many miles you drove for work purposes. Keep a better log going forward! For supplies, receipts are ideal but not absolutely required. If you have bank or credit card statements showing purchases at relevant stores, that can help substantiate your claims. Make reasonable estimates of what you spent - just be prepared to explain your calculations if ever questioned. Going forward, keep all receipts and maybe use a separate payment method for work expenses to make tracking easier.

This is actually bad advice. The Voluntary Disclosure Program is for OFFSHORE accounts and much more serious tax evasion. What OP would want is just to file an accurate return, possibly with a "reasonable cause" statement explaining the mistake.

I actually asked about that last year, but my company said they can't do it because of how they control my schedule and work processes. Something about the IRS having specific tests for who qualifies as an independent contractor vs. employee. They also mentioned it would mean losing my benefits like health insurance and 401k matching.

That makes sense. The classification rules are pretty strict and the IRS looks at factors like behavioral control, financial control, and relationship factors. If the company controls when and how you work, provides tools/equipment, offers benefits, etc., they're probably correct that you should be classified as an employee. Be careful pushing for 1099 status just for tax deductions - if misclassified, it could create bigger headaches down the road for both you and the employer. The accountable plan route others suggested is probably your best option at this point.

This is what I did too. My company was resistant to dealing with expense reports, so they just increased my commission structure. Just make sure you do the math first - calculate what your annual mileage reimbursement would actually be (miles × IRS rate) and make sure the commission increase at least covers that amount.

1 That's a really good point I hadn't considered. If I amend 2021 to show the losses, would any unused losses potentially carry forward to the 2022 return? I'm trying to figure out the right sequence here.

3 Yes, exactly. Any disallowed passive losses from 2021 (amounts that exceed what you're allowed to deduct due to the income limitations) would carry forward to 2022. So first figure out your 2021 situation - how much loss you can actually claim after the Form 8582 calculations, then carry any remaining disallowed losses to 2022. Even if you can't deduct all the losses in either year due to the $150K phaseout, having them properly documented and carried forward is important because you can eventually claim them when you dispose of the property. That's why doing them in the right order matters.

10 I used TaxAct for a similar amendment last year. It was decent with Schedule E but the Form 8582 calculations were confusing. Had to basically understand the form myself to make sure it was done right. Not super user-friendly for rental property amendments.

How far back should you keep student account statements? I'm worried I might be missing some documentation if I need to go back and check my 2021 stuff.

I'd recommend keeping all student account statements for at least 3-4 years, which aligns with the general IRS record-keeping recommendations for tax documents. This gives you enough time to address any issues that might come up with education credits or if you're audited. For accessing past statements, most schools keep these records accessible in your student portal for several years after graduation. If you can't find them online, contact your school's bursar office - they can usually provide account histories going back many years.

Yes! The IRS actually says you should claim based on when you paid, not necessarily what's on the 1098-T. I had to override my tax software warnings last year because my December payment for Spring semester wasn't reflected properly. Just make sure you have documentation (bank statements, receipts, etc.) showing when you actually made the payments.