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One thing to consider that hasn't been mentioned is a Dependent Care FSA if your employer offers one. If your father lives with you and qualifies as your dependent for care purposes (different rules than tax dependency), you might be able to set aside pre-tax money to pay for his care while you're working. There are specific requirements - he would need to be physically or mentally incapable of self-care and live with you for more than half the year. The maximum is $5,000 per year, but that's still a nice tax savings if you qualify.
That's interesting - I hadn't heard about the Dependent Care FSA option. My dad is generally independent but has mobility issues that require some help. Would occasional home health aides or transportation assistance qualify, or does it need to be full-time care?
It doesn't have to be full-time care to qualify. If your father has legitimate mobility issues that require assistance, expenses for home health aides, adult day care, or transportation to and from care facilities while you're working would generally qualify. The key requirements are that the care must be necessary for your wellbeing (allowing you to work), and your father must live with you for more than half the year and be physically unable to fully care for himself. You'll need a doctor to document his condition and care needs. Keep in mind the $5,000 annual limit applies to all dependent care expenses combined, so if you have children also using this benefit, that's the total cap.
Has anyone used a QPRT (Qualified Personal Residence Trust) for aging parents? My accountant mentioned it as a tax strategy but I don't fully understand how it works or the benefits.
QPRTs are typically used for estate planning, not really for current tax benefits. It's where someone puts their house in a trust but retains the right to live there for a set period. After that period ends, the house goes to the beneficiaries (like children). The main benefit is reducing estate taxes by getting the house out of the estate at a discounted value. But it's complex and probably overkill unless your dad has a very valuable home and a large overall estate that might exceed the federal estate tax exemption (currently $13.61 million).
Thanks for explaining! That makes sense - my dad's house is only worth about $220k so probably not worth the complexity. I'll focus on the more immediate tax benefits mentioned above instead.
I'm a tax preparer and this is actually a common issue I see with various tax software. Here's the simple explanation: Both programs are technically doing it right, but FreeTaxUSA is showing you more of the calculation process. State taxes paid (whether through withholding or estimated payments) are deductible as itemized deductions on Schedule A. BUT, you only benefit from itemizing if your total itemized deductions exceed the standard deduction ($14,600 single, $29,200 married for 2024). TurboTax tends to hide the "losing" calculation from you if the standard deduction is clearly better. FreeTaxUSA shows you both calculations more transparently, which sometimes makes people think they're getting a bigger refund when actually both would give you the same amount in the end.
Does this mean I should always double check if software is making the right choice between standard and itemized? I've just been accepting whatever the software recommends.
Yes, you should always verify which deduction method is better for your situation. Most software will choose correctly, but understanding why is important. The standard deduction is simple - a fixed amount based on filing status. Itemized deductions add up your qualifying expenses (state/local taxes up to $10K, mortgage interest, charitable donations, certain medical expenses, etc.). If itemized > standard, use itemized. If not, use standard. Both programs will ultimately pick the higher option, but they differ in how clearly they show you the "losing" calculation.
Has anyone tried using Credit Karma Tax (now Cash App Taxes)? It's completely free and I've found it does a good job with state tax withholding deductions. I've compared it with both TurboTax and FreeTaxUSA.
Don't forget to check if you qualify for the Earned Income Tax Credit (EITC) with that income level! At around $24k/yr, you might be eligible for a decent credit, especially if you have any dependents. Even if the dental deduction doesn't work out, the EITC is refundable, meaning you can get money back even if you don't owe any taxes. It's often overlooked and could be worth more than the dental deduction anyway.
Thanks for bringing up the EITC! I actually don't have any dependents, it's just me. Would I still qualify? And would that be instead of the dental deduction or in addition to it?
You can still qualify for EITC without dependents, though the amount is smaller. For 2025, if you're single with no children and income around $24k, you might qualify for a small EITC (around $600-700 depending on your exact income). The EITC is completely separate from the dental deduction issue. You can claim both if you qualify for both. The EITC is a credit while the dental expense would be a deduction if you itemize. Credits directly reduce your tax bill dollar-for-dollar, while deductions just reduce your taxable income, so credits are generally more valuable.
Has anyone considered that OP might qualify for the medical expense FSA through work? If your employer offers it, you can contribute pre-tax dollars up to $3,200 for 2025. Even though it wouldn't help with expenses already paid, it's something to consider for future medical costs.
Good point about the FSA, but it sounds like OP might not have benefits if they're making around $24k. Might be part-time or gig work. The FSA is only helpful if you have access to employer benefits.
Another thing to consider for the wall oven donation - if it's worth over $500 (which it sounds like it is), make sure you complete Section A of Form 8283. And if it's over $5,000, you need a qualified written appraisal and must complete Section B instead. In your case, since you're looking at around $1,870 value, Section A is fine, but make sure to include a detailed description of the oven (brand, model number, condition, etc.). I got audited over a furniture donation a few years back because I didn't properly document everything on Form 8283.
Thanks for the heads up about Form 8283! Would I need to attach any documentation about the original price when I file, or just keep that information in case of an audit? And do you know if I need the charity to fill out part of the form?
You don't need to attach the original price documentation when you file - just keep all that info in your records in case of an audit. The IRS recommends keeping tax documentation for at least 3 years after filing. Yes, the charity needs to complete Part IV of Section A on Form 8283 to acknowledge receipt of the donated property. Make sure to get this filled out when you drop off the item or shortly after. They'll need to include their name, EIN, signature of an authorized official, and date of the donation. Some charities are familiar with this requirement, but smaller ones might need you to explain what you need.
Something no one has mentioned yet - remember that for 2025 taxes you need to itemize deductions to claim charitable donations. The standard deduction is pretty high now ($13,850 for single, $27,700 for married filing jointly in 2025), so unless your total itemized deductions (state/local taxes, mortgage interest, charitable donations, etc.) exceed your standard deduction, you won't get any tax benefit from the donation.
Keisha Taylor
Something nobody mentioned yet - check if TurboTax actually DID generate the form but just didn't tell you to mail it. In the tax return PDF that TurboTax generated, search for "8453" and see if the form is included somewhere in there. Sometimes TurboTax generates forms but doesn't make it clear what you're supposed to do with them. I've had situations where I found forms buried in my final tax PDF that I didn't even know existed!
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Sofia Torres
ā¢Just checked the full PDF and you're right! Form 8453 is actually in there on page 37, but there were no instructions about mailing it. So does this mean I DO need to send it in? Now I'm even more confused...
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Keisha Taylor
ā¢If the form is in your tax return PDF, then yes, you should have mailed it. Form 8453 isn't filed electronically - it's a paper form that you're supposed to mail separately after e-filing your return. Look at the form in your PDF - if it's filled out with your information and has the consolidated crypto transactions referenced, then TurboTax determined you needed to file it. You should mail it as soon as possible with a brief explanation noting that it was inadvertently omitted from your original filing. It's better to send it late than never at all.
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Paolo Longo
The rule of thumb I've been told by my accountant is: if you don't have a 1099-B from your crypto exchange, but you DO have transactions that would typically be reported on a 1099-B, then you should submit Form 8453 with a statement explaining your situation. Even though it's months later, I would still file it. Write a cover letter explaining that TurboTax didn't properly instruct you to file Form 8453, include a printout of your detailed transactions (not just the summary), and mail it to the IRS. Better to voluntarily provide more information than have them come asking for it later!
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Amina Bah
ā¢I disagree. Form 8453 is for situations where you have signed documents or third-party issued documents that can't be e-filed. If Coinbase didn't issue you a 1099, you don't have third-party documents to attach. Sending random printouts of your transaction history isn't what Form 8453 is designed for. You're just creating confusion by sending documents the IRS isn't expecting.
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