Don't forget about state tax returns! Depending on your state, you may need to file a state tax return for the trust as well. Some states have different filing thresholds than the federal $600 income requirement. Also, if the property has appreciated significantly since your mother purchased it, the stepped-up basis provision is HUGELY beneficial. The basis becomes the fair market value at date of death, which could save tens of thousands in capital gains taxes.

I'm so sorry for your loss, Lucy. Being an executor for the first time is overwhelming, especially when dealing with trust taxation. A few additional points that might help you: 1. **Get organized early** - Start gathering all necessary documents now: the trust document, your mother's death certificate, property appraisals, and any financial statements. You'll need these for multiple filings. 2. **Consider quarterly estimated taxes** - If the house sale generates significant capital gains and you're distributing the proceeds to yourself, you might need to make estimated tax payments to avoid underpayment penalties. 3. **Document everything** - Keep detailed records of all expenses related to maintaining and selling the property. Many of these costs can be deducted against the gain, including realtor commissions, staging costs, repairs, and legal fees. 4. **Timeline planning** - Since you're selling in 2023, you have until April 15, 2024 to file the trust's Form 1041. However, if you expect a large tax liability, consider making quarterly payments throughout 2023. The stepped-up basis is indeed a huge advantage here - your $30,000 potential gain is much better than what it could have been if calculated from your mother's original purchase price. Make sure to get a formal appraisal dated as close to her date of death as possible to support that basis.

One important thing to watch for with multiple W2s - Social Security tax. Each employer withholds 6.2% of your wages for Social Security up to the annual wage limit ($147,000 for 2022). If your combined income from both jobs exceeded that limit, you may have overpaid Social Security tax that you can get back when filing.

Just wantd to mention, when I had 2 w2s I just added the box 1 income from both, added the fed witholding together, and the state witholding together. Enter those on your 1040 and ur good to go! No need to complicate it imo.

This thread has been incredibly helpful! I work for a state agency and have been wrestling with this same question about my pension contributions. After reading through everyone's experiences, I think I need to take a closer look at my W-2 to see how my contributions are being handled. One thing I'm curious about - for those of you who discovered your pension contributions were pre-tax, did you notice any difference in how state taxes were handled versus federal taxes? I'm in a state with income tax, and I'm wondering if the treatment might be different at the state level. Also, has anyone dealt with situations where you move between states during your career? I'm wondering how that might affect the tax treatment of accumulated pension benefits. Thanks to everyone who shared their experiences with the various tools and services - it's clear there are good resources out there when you need help navigating these complex tax situations!

This is exactly the kind of confusion I had when I first started working for my state agency! After going through this myself, I can confirm what others have said - those mandatory pension contributions are almost certainly already being handled as pre-tax deductions. The easiest way to verify this is to look at your final paystub for the year and add up all your gross pay, then compare that to Box 1 on your W-2. If Box 1 is lower by roughly the amount of your annual pension contributions (plus health insurance and other pre-tax deductions), then you're already getting the tax benefit automatically. I made the mistake early on of thinking I needed to track these contributions for tax purposes, but it turns out the payroll system handles it all behind the scenes. You're essentially getting the same tax treatment as someone maxing out a traditional IRA or 401(k), just through a different mechanism. The key difference is that with voluntary retirement contributions, you see them as deductions on your tax return, but with mandatory pension contributions, the tax benefit happens before your W-2 is even generated. One tip: keep your year-end paystub that shows your total pension contributions for the year. While you won't deduct it, it's good to have for your records and helps you understand how much you're actually saving for retirement through the pension system.

Just wanted to add one important point that might help with your manual calculations - don't forget about the Additional Medicare Tax if you earn over certain thresholds! If you're single and earn over $200,000 (or married filing jointly over $250,000), there's an additional 0.9% Medicare tax on the excess amount. This won't show up in your regular FICA withholdings and might require estimated tax payments or additional withholding to avoid underpayment penalties. Also, when doing manual calculations, make sure you're using the correct year's tax brackets and standard deduction amounts - they change annually with inflation adjustments. The IRS publishes these tables on their website, and using the wrong year's numbers can throw off your entire calculation. Good luck with your manual tax prep! It's actually a great way to really understand how the tax system works, even if it takes more time than using software.

This is exactly the kind of confusion I had when I first started doing my own taxes! The key thing to remember is that these are three completely separate tax systems running in parallel: 1. **Federal Income Tax**: The progressive brackets (10%, 12%, 22%, etc.) that everyone talks about 2. **Social Security Tax**: Flat 6.2% on wages up to $168,600 (2024 limit) 3. **Medicare Tax**: Flat 1.45% on all wages, plus that extra 0.9% on high earners When you see your paycheck, all three are being calculated and withheld separately. Your W-2 will show the withholdings for each in different boxes, as others have mentioned. For your refund calculation, you're mainly focused on comparing your federal income tax withholding (Box 2) against what you actually owe based on your taxable income and filing status. The FICA taxes (Social Security and Medicare) are usually spot-on since they're straightforward percentage calculations. One tip for manual calculation: Start with your gross income, subtract your standard deduction and any pre-tax contributions to get your taxable income, then apply the tax brackets step-by-step. Don't forget that the brackets are marginal - you don't pay your highest bracket rate on all your income!

This is a really comprehensive discussion that covers most of the key issues for your situation! Just wanted to add one practical tip that helped me when I was in a similar position. Since you mentioned you're stressed about getting this right, consider using IRS Publication 519 ("U.S. Tax Guide for Aliens") as your primary reference. It has specific examples and flowcharts for determining resident status that are much clearer than the general IRS website content. Also, keep detailed records of your entry/exit dates from the US - not just for this year's filing, but for future years too. The Substantial Presence Test is a rolling 3-year calculation, so having accurate travel records will save you headaches down the road. One last thing - if you do end up filing as a resident alien for 2024 (which seems likely based on your 320 days in the US), make sure you understand the implications for estimated tax payments in 2025. As a resident, you may need to make quarterly estimated payments if you have significant income that doesn't have taxes withheld. The good news is that once you work through this first year, subsequent years become much more straightforward if your residency status remains consistent!

This thread has been incredibly helpful! I'm dealing with a similar situation but with a twist - I moved to the US in August 2024 from Canada and I'm trying to figure out if the US-Canada tax treaty affects my Substantial Presence Test calculation. I was physically present in the US for about 145 days in 2024, so I definitely don't meet the SPT for 2024. But I'm concerned about 2025 - if I stay the full year, I'll easily pass the test and become a resident alien for tax purposes. What I'm confused about is the timing. If I become a resident alien partway through 2025 based on the SPT, do I file as a dual-status alien for 2025? And does the US-Canada tax treaty have any provisions that might affect this determination? Also, since Canada and the US both tax worldwide income, I'm worried about getting hit with double taxation once I become a US tax resident. I know there's the Foreign Tax Credit, but I'm not sure how it works when you're transitioning between tax systems mid-year. Has anyone dealt with US-Canada tax issues specifically? The treaty seems really complex and I'm not sure if I need professional help or if there are good resources to figure this out myself.