Do I have to do anything special with 199A dividends when using FreeTaxUSA instead of TurboTax? My 1099-DIV has about $32 in box 5 for Section 199A dividends.

Just wanted to add some clarity about the thresholds for Form 8995 vs 8995-A. If your taxable income is under $182,050 (single) or $364,100 (married filing jointly) for 2023, you can use the simplified Form 8995, which is much easier. Above those thresholds, you need the more complex 8995-A. For small amounts like yours ($5.45), you're definitely in simplified territory regardless of your income level. Most tax software like TurboTax will automatically determine which form applies to your situation and handle the calculations behind the scenes. The key is just making sure you enter that Box 5 amount from your 1099-DIV correctly when prompted. One thing to watch out for - if you have multiple 1099-DIVs with 199A dividends, make sure you add them all up. The 20% deduction applies to the total amount across all your qualified sources.

This thread has been incredibly helpful! As someone new to renting, I had no idea about the complexities around security deposit interest reporting. One question I haven't seen addressed - if I move out mid-year (say in August), and my landlord returns my deposit plus interest at that time, would the interest still be reported on a 1099-INT for that tax year? Or could it get reported the following year depending on when they process the paperwork? I'm trying to plan ahead since I might be relocating for work next fall and want to make sure I'm prepared for any tax implications when I file.

Just to add another perspective - I work in tax preparation and see this situation frequently during tax season. One thing that often catches people off guard is that some property management companies use third-party services to manage security deposits, and these services might have different reporting thresholds or timelines than what your lease specifies. I've seen cases where tenants expected to receive interest annually but the management company's vendor only processes interest payments when deposits are returned. Also, if you have multiple deposits with the same landlord (like if you have a pet deposit in addition to your security deposit), the interest from all deposits gets combined when determining if you've crossed the $10 reporting threshold. Make sure to ask your landlord specifically about their deposit management process and get it in writing if possible - it'll save you confusion later when tax forms arrive (or don't arrive when you expect them to).

This is a great breakdown of the pro-rata calculations! I want to emphasize one important timing consideration that could affect your situation: make sure you complete this reverse rollover before making any new IRA contributions or conversions in 2025. The pro-rata rule looks at your IRA balances at the end of the tax year, so if you're planning to do another backdoor Roth conversion in 2025, you'll want to get that pre-tax money out of your IRAs first. Otherwise, you'll be back to dealing with the same pro-rata complications. Also, since you mentioned your rollover IRA has grown to $85,000, double-check that your 401(k) plan doesn't have any limits on incoming rollover amounts. Some plans cap rollovers at certain dollar amounts or have waiting periods between rollovers. One last thing - keep detailed records of this entire transaction. The IRS sometimes gets confused about partial rollovers from mixed IRAs, and having clear documentation of your basis calculation and the specific amounts transferred can save you headaches if they ever question it during an audit.

Just wanted to add another perspective on the calculation method since I see some great advice here already. You're absolutely correct to go with Option 2 - the basis remains at the fixed dollar amount of $6,825. Here's a simple way to think about it: when you paid taxes on that $6,825 during your backdoor Roth conversion, you essentially "bought" that amount as your after-tax basis in traditional IRAs. Market gains and losses don't change what you already paid taxes on - they just affect the overall account value. One thing I'd recommend is calling your 401(k) plan administrator before initiating the rollover to confirm: 1. They accept partial rollovers from IRAs (as others mentioned, some don't) 2. Their process for handling the pre-tax designation 3. Any paperwork they need from you to properly code the incoming funds Also, when you request the rollover from your IRA custodian, be very specific that you're rolling over "$78,175 of pre-tax funds, leaving $6,825 of after-tax basis in the IRA." Some custodians will try to do a proportional distribution if you're not crystal clear about your intent. This reverse rollover strategy will definitely clean up your future backdoor Roth conversions - you'll essentially have a "clean slate" IRA situation going forward!

Based on your situation, you won't be able to deduct the $78,500 as alimony on your tax return for two key reasons: 1. **Post-2018 divorce rules**: Since your divorce was finalized in July 2024, it falls under the Tax Cuts and Jobs Act changes. For divorces finalized after December 31, 2018, alimony payments are no longer deductible by the payer (and not taxable income to the recipient). 2. **QDRO transfer mechanics**: When you transfer 401k funds via a QDRO, you're not actually taking a distribution yourself. The QDRO legally transfers both the assets AND the tax liability to your ex-spouse. She becomes responsible for any taxes when she withdraws the money (unless she rolls it into her own retirement account). The good news is that you also don't have to report this as a taxable distribution on your return, and you avoided the 10% early withdrawal penalty that would have applied if you had taken the money out yourself and then paid her. Your 401k administrator should have handled all the proper reporting to show this as a non-taxable QDRO transfer for you. Just keep the QDRO documentation with your tax records, but you don't need to file anything special with your return. This is actually a tax-efficient way to handle the settlement compared to taking a distribution yourself and paying her directly!

I'm going through a very similar situation right now with my own divorce settlement, so this thread has been incredibly helpful! My divorce was finalized in September 2024, and I also used a QDRO to transfer about $95,000 from my 401k to my ex-husband as part of our agreement. Like you, I was initially confused about whether this could be claimed as an alimony deduction. After reading through all the responses here and doing some additional research, it's clear that with post-2018 divorces, we're not eligible for alimony deductions regardless of how the payment is made. What I found particularly reassuring is learning that the QDRO transfer means I don't have to worry about the immediate tax consequences or early withdrawal penalties. My 401k administrator explained that they handle all the proper reporting to show this as a non-taxable event for me, which is a huge relief. One thing I'd add is that it's worth double-checking with your 401k plan administrator that they properly coded the transfer as a QDRO distribution. I made sure to get written confirmation from mine showing the transfer was processed correctly under the QDRO rules. This documentation will be important to have if there are ever any questions about the transfer later. Good luck with your tax filing! It sounds like you handled the settlement in the most tax-efficient way possible given the circumstances.

Great question! As someone who's been through this exact same confusion, I can confirm what others have said. Your Roth IRA basis is simply the total amount you've contributed with after-tax dollars - so in your case, it's just your $6,500 contribution for 2023. For the software issue with the year not being available, don't stress about it. This is super common and selecting "None" won't cause any problems. The IRS gets the real information from your custodian anyway via Form 5498. One thing I'd add that might help: when you enter your contribution amount, make sure you're entering it as a 2023 contribution even though you're filing in 2024. The tax year that matters is the year the contribution is designated for, not when you actually made it or when you're filing. You're doing everything right by maxing out your contribution! The confusion around these forms is totally normal for first-time IRA contributors.

I went through this exact same confusion last year with my first Roth IRA! The terminology in tax software can be really intimidating, but it's simpler than it seems. Your "Roth IRA basis" is just the total amount of your own money (after-tax dollars) that you've put into Roth IRAs over your lifetime. Since you just started with that $6,500 contribution for 2023, your basis is exactly $6,500. For the year selection issue - this happens literally every tax season! Software companies are always behind on updates. Selecting "None" is totally fine and won't cause any problems with the IRS. They get the correct information from your IRA custodian anyway. A few quick answers to your other questions: - Yes, enter $6,500 for "basis of contributions" since that's your total contribution history - Yes, enter $0 for "basis of conversions" since you didn't convert from another IRA type - Make sure you're reporting this as a 2023 contribution even though you're filing in 2024 The good news is that Roth contributions don't affect your taxes this year since they're not deductible, so even if you had to guess on some of these fields, it wouldn't change what you owe or get refunded. You're doing great by maxing out your contribution!