Do you know if green card holders use their SSN or do they need an ITIN? My parents just got their green cards and are confused about filing next year.

Green card holders use their SSN, not an ITIN. When someone gets a green card, they're eligible for (and usually required to get) a Social Security Number if they don't already have one. ITINs are specifically for people who need to file taxes but aren't eligible for SSNs, like certain visa holders or non-resident aliens with US income. So your parents should use their SSNs on all tax forms where it asks for TIN.

Ohhhh that explains why I only saw the last 4 digits on my transcript! I was wondering about that too but didn't think to ask. Thanks for clearing that up!!

Thank you for mentioning that! Yes, she's my biological daughter and lives with me full-time (her mom isn't in the picture). I'm definitely not married - been single for years now. I pay for everything related to her care and our home. Sounds like I'm on the right track then? This is such a relief!

Yes, you're definitely on the right track! With your daughter living with you full-time and you providing all her support, you're a textbook case for Head of Household filing status. And don't worry too much about making small mistakes - the IRS generally focuses on major issues like unreported income or fraudulent claims. An honest mistake about a dependent's income being $0 when it should be a few dollars of interest wouldn't trigger anything serious. Just answer the questions truthfully as you go through your tax software.

How far back should you keep those records? I've been filing HoH for 3 years now but haven't kept great documentation.

Which tax software were you using? I'm trying to file with TurboTax and it keeps insisting on using $3k of my losses even though I have no income. Is there a specific place where you had to override this?

I was using H&R Block's online software. The override was tricky to find - I had to go into the "Forms" view rather than using the interview process. Under Schedule D, there was an option to "override" the calculated loss deduction. I manually entered zero for the current year's deduction and preserved my full carryforward amount. With TurboTax, look for a similar "Forms" mode or "Tax Tools" section where you can directly edit Schedule D. The key is making sure that line 21 (the amount carried to Form 1040) shows zero while still documenting your full carryforward amount for next year in your records.

Capital losses don't expire! You can carry them forward indefinitely until they're used up. That's why it's so important not to "waste" them in years when you have no income to offset. I've been carrying some forward since 2016 and they're still valid.

Thank you for sharing your experience! That's really reassuring. Did you use any specific tax software to file your amended return or did you work with a professional? I'm trying to figure out the best way to handle this correctly.

I used TurboTax to prepare the amended return since that's what I'd used for my original filing. It walks you through the process pretty well. I just entered the additional income and it recalculated everything. For peace of mind, I did have a tax preparer review it before submitting just to make sure I did it right. It was worth the small fee to have a professional double-check my work. If your situation is fairly straightforward (just missing income), you can probably handle it yourself, but having someone review it isn't a bad idea.

This isn't great advice. While it's true the IRS prefers to collect rather than prosecute, deliberately not reporting income is tax evasion. Your cousin was lucky. The IRS can and does pursue criminal charges in some cases, especially when they can prove intent.

That would have been a good option, but it's too late now - I already sold the property about 6 months ago. I was just hoping there might be a way to avoid getting stuck with a big tax bill since I was basically just following my mom's instructions and didn't keep any of the profits.

That's unfortunate timing. For future reference (or for anyone else reading this thread), always consult with a tax professional BEFORE making property transfers between family members. These transactions are complex and can have significant tax consequences. Since the sale has already happened, your best option now is probably to gather all documentation showing that you were acting on your mother's behalf. While this doesn't eliminate your tax liability, good documentation might help if there's ever an audit. Make sure you have the quitclaim deed, documentation of the original basis (purchase price plus improvements), the sales contract, and proof that you transferred the proceeds to your mother and other family members.

The step transaction doctrine actually might work against OP in this case. The IRS could view the series of transactions (mother gifts to OP, OP sells and distributes money) as an attempt to avoid proper tax treatment. Since the legal ownership was transferred to OP before the sale, OP is technically the seller for tax purposes. The subsequent distribution of funds is considered separate. This arrangement actually creates more tax complications than if the mother had sold it directly and then gifted portions of the proceeds. What might help OP's case is documenting that they were acting under a power of attorney or as a fiduciary for their mother, but that would need to have been established properly before these transactions occurred.