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Rent paid in 2023 - are they asking for the monthly amount? Or truly for the year?

I feel like this is such a dumb question but I don't want to mess up my taxes. When they ask for "rent paid in 2023" on the tax form, is that supposed to be my monthly rent amount or the total for the entire year? I would naturally assume they want the yearly total, but some friends told me different things and now I'm second guessing myself. Just need to be 100% sure before I submit anything. This is my first time claiming any rent-related stuff on my taxes and I really don't want to screw it up.

Don't forget that in some states you can get a tax credit for rent paid! I'm in Minnesota and we have a "renter's credit" where you can get money back based on your income and how much rent you paid during the year. Not everyone knows about it. Definitely report the FULL year amount and check if your state has any rent-related benefits.

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Oh that's good to know! I'm in Pennsylvania - does anyone know if we have something similar here? How would I find out if my state offers rent credits?

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Pennsylvania has what's called a "Property Tax/Rent Rebate Program" that might apply to you depending on your age, income, and other factors. It's primarily designed for seniors, widows/widowers over 50, and people with disabilities, but it's worth checking if you qualify. The best way to find out about rent-related tax benefits in your state is to visit your state's department of revenue website - for PA, it would be the Pennsylvania Department of Revenue site. They usually have specific sections about rebates and credits available. You can also use the IRS's Interactive Tax Assistant or contact your state tax agency directly to ask about rent-related tax benefits.

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Guys I'm extremely confused. My landlord gave me a statement showing my 2023 rent as $14,400 but when I add up my actual payments it's $13,200. Should I go with what I actually paid or what my landlord says?

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You should report what you actually paid, not what was scheduled or what your landlord claims. Check if there's a reason for the discrepancy - did you miss a payment? Did you prepay January 2024 rent in December 2023 (which would count for 2023)? Ask your landlord to explain the difference.

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Can entire paycheck be withheld for taxes? Is this legal for part-time workers?

My husband works as a bartender at a local restaurant on a part-time basis with fluctuating hours. He doesn't receive any benefits since he's hourly. During his most recent pay period, he only picked up a single shift, and I was shocked when he showed me his paystub - literally his ENTIRE paycheck was taken out for taxes! Nothing left for him! Is this even normal? Does it make sense that the amount they take out for taxes each paycheck is some fixed amount regardless of how many hours he actually worked? What happens in situations where he earns less than whatever amount they've calculated should be withheld? Will they take more out of his next paycheck to "catch up" so that his total withholding for the year matches some predetermined amount based on his W-4? Is there any way to fix this without claiming complete exemption from withholding? We still owe the IRS from last year and are on a payment plan, so I'm pretty sure we can't claim exemption since we have tax liability, right? It just seems crazy that he's basically working shifts for free sometimes and won't see that money until we file our taxes next spring. Any advice?

Have you looked at line 4(c) on the W-4 form? You can actually specify an additional amount to withhold per paycheck. Maybe your husband could put a NEGATIVE number there to reduce withholding for his situation?

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Just to clarify, you cannot put a negative number on line 4(c) of the W-4. That line only allows for additional withholding, not reduced withholding. To reduce withholding, you'd need to use line 4(b) to indicate deductions that would lower your taxable income, or line 3 for tax credits and dependents. The IRS won't accept a form with negative values in those fields.

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Is your husband paid weekly, bi-weekly, or monthly? That can make a huge difference with variable hours. My company switched from bi-weekly to weekly paychecks and it totally fixed this problem for me.

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He gets paid every two weeks. I hadn't thought about how the pay frequency might affect things! Does getting paid weekly really help that much with the withholding calculations?

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Sold a parcel of land - capital gains tax confusion, need help!

I recently sold a piece of land that I had originally purchased with plans to build on it someday. Ended up making about $20,000 profit on the sale. I know I need to pay capital gains tax - 15% federal and 5.57% state on that profit amount. But here's where I'm confused... my relatives are telling me conflicting things. Some are saying I only pay tax on the profit portion (the $20k), but others are insisting I have to report the ENTIRE sale amount on my tax return as income and pay regular income tax on the whole thing, in addition to the capital gains tax. This seems like double taxation to me, but I don't want to mess up my 2025 filing. Can someone please clarify how this actually works? Do I really need to claim the full sale amount as income too? Or just pay the capital gains on the profit portion? I'm so confused and don't want to get in trouble with the IRS!

Just wanted to add something important - if you owned the land for LESS than a year before selling, the profit would be taxed as ordinary income, not at the lower capital gains rate. This can make a huge difference in your tax bill. Make sure you're clear about your holding period!

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Does the holding period start from the day you sign the purchase papers or the day the sale officially closes? My closing took almost 2 months!

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The holding period is generally calculated from the day the first sale closes (when you acquired the property) to the day the second sale closes (when you sold it). The date on the closing documents is what matters, not when you signed the purchase agreement. So in your case, the 2-month closing period would count toward your holding time, which is good if you're trying to reach that 1-year mark for long-term capital gains treatment.

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Has anyone here used TurboTax to report a land sale? I'm trying to figure out if I need their premier version or if the deluxe can handle this type of transaction.

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You'll need at least Premier for capital gains from land sales. Deluxe won't handle Schedule D properly. I tried last year and had to upgrade mid-filing.

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Thanks for saving me the headache! I'll just go straight for the Premier version then.

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Filed for TurboTax extension - do I need separate extension for my 1042-S filing?

Hey everyone, this is driving me crazy! I received a 1042-S this year for a research grant I got at my university, and I'm totally confused about the filing process. I've decided to use TaxSlayer to handle both my W-2 and 1042-S together since I couldn't figure out if I'm allowed to file these documents separately. I'm currently traveling abroad for work until August, so I already filed an extension through TurboTax to get until October 15th. My question is: does that extension automatically cover the 1042-S form too, or do I need to file a separate extension specifically for the 1042-S? I can't find clear info on when the actual tax return for the 1042-S is due. The only date I keep seeing is March 15, 2025, but I think that's just when my university was supposed to send me the form and submit it to the IRS. Any guidance would be super helpful! This is my first time dealing with a 1042-S and I want to make sure I don't mess anything up.

Something that tripped me up with my 1042-S last year - make sure you check if you need to file Form 8833 to claim treaty benefits! If your university already applied a treaty exemption on your 1042-S (check Box 3 and 4 on your form), you might need to file this additional form with your return to properly report the treaty position. Also double check your withholding on the 1042-S. Many universities withhold at 30% if they don't have proper documentation, which could be way higher than your actual tax rate. You'll get this back as a refund when you file, but it's good to know what to expect.

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Thank you so much for mentioning Form 8833! I just checked my 1042-S and they did apply a treaty benefit (there's something in Box 3 and 4). Will that form be available in regular tax software or do I need something special to file it?

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Most major tax software packages like TurboTax, H&R Block, and TaxSlayer have Form 8833 available, but you might need to specifically search for it as it's not always included in the standard interview process. Some of the free filing options might not include this form. When you complete Form 8833, you'll need to reference the specific treaty article that applies to your situation. This information should be mentioned on your 1042-S in Box 13j typically. You'll also need to provide a brief explanation of the treaty benefit you're claiming. Don't worry too much about the technical language - just clearly state what type of income is covered (scholarship, fellowship, etc.) and which country's treaty applies to you.

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Quick tip from someone who's dealt with 1042-S forms for the past 3 years - the extension you filed covers everything on your personal return (including 1042-S income), but double check that you don't also need to file Form 8843 if you're a nonresident alien or were one during part of the tax year! That form has a different deadline and isn't automatically extended with Form 4868.

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Is that form 8843 required even if you're just getting a small amount on a 1042-S? I got one for a $500 prize from a contest but I'm a US citizen. Do i still need that form?

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My 1095-A shows I owe $845 due to incorrect income reporting on healthcare application - can I make retroactive changes to reduce what I owe?

I'm in a really frustrating situation with my health insurance and taxes right now. Last October I got booted from my state's Medicaid because they said my income was too high. They told me I could get private insurance through the marketplace with the premium tax credit to help with costs. When I filled out the application, I put down what I was bringing home every two weeks AFTER taxes (around $1,150). The instructions weren't clear at all about whether they wanted gross or net income, and I honestly thought they meant take-home pay. Now I'm doing my taxes and my 1095-A form is showing that I owe $845! I'm pretty sure it's because I reported my income wrong initially, plus I ended up making about $3,200 more this year than expected. My total income is definitely still below the 400% poverty line threshold for premium tax credit eligibility (I'm at about 275% of poverty level), but I don't know if that even matters at this point. I've been searching online and found some stuff suggesting you can make "retroactive changes" if you input your income incorrectly on your initial application. This would apparently adjust how much I owe the IRS, but I can't find anything definitive on how to actually do this. I'm really stressed because there's no way I can afford to pay $845 right now. This is exactly why I was nervous about getting marketplace insurance with the tax credit in the first place - I was worried something like this would happen at tax time. Does anyone know if retroactive changes are possible and how I would go about making them? Or am I just stuck owing this money?

One thing nobody's mentioned yet - have you checked if you qualify for any deductions or credits that might lower your MAGI? Things like student loan interest, retirement contributions, or the self-employed health insurance deduction can all reduce your MAGI, which might put you in a lower repayment cap bracket. I was in a similar situation last year and realized I could make a retroactive IRA contribution for the tax year, which lowered my MAGI just enough to qualify for a lower repayment cap. Saved me about $400!

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That's a really smart idea I hadn't considered! I do have student loans and I've been making payments. Would those interest deductions help in this situation? Also, is it too late to make retirement contributions that would count for last year?

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Student loan interest can definitely help lower your MAGI, which is exactly what you want in this situation. You can deduct up to $2,500 in student loan interest depending on your income level. As for retirement contributions, you can still make IRA contributions for 2024 until the tax filing deadline in April 2025. If you have self-employment income, you might also be eligible for a SEP IRA which has higher contribution limits. Just make sure you specify that the contribution is for tax year 2024 when you make it. This is one of the few "retroactive" moves you can make that legally affects your previous year's taxes.

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Has anyone actually had success making retroactive changes to their marketplace application after the year is over? I'm in a similar situation but when I called my state marketplace, they told me it was too late to make changes for last year's coverage.

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Yes! I successfully did this. The key is that you need to contact the marketplace and specifically request an "income adjustment review" for the previous year. The regular customer service reps often don't know about this process. Ask to speak with a supervisor or advanced resolution team. Explain that you made an honest mistake in reporting your income (confusing net vs. gross) and request the review. They may have you submit documentation of your actual income. In my case, they adjusted my 1095-A and issued a corrected one, which significantly reduced what I owed.

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