Definitely this! Also reach out to the SEC and FINRA if this "advisor" claimed any professional credentials. Even if they were overseas, these agencies track these scams and sometimes can help with recovery.

Thanks for this advice. We did file a police report but I didn't know about adult protective services or the IC3. I'll definitely look into those resources today. Mom is so embarrassed about all this that she's been reluctant to tell anyone, but I'm trying to get her all the help possible.

Good point about wash sales, but it likely doesn't apply here since this wasn't a normal market transaction where she sold at a loss. This was essentially theft through transfer. But you're right that she should avoid buying substantially identical securities within 30 days if she wants to ensure the loss deduction isn't deferred.

Thanks for this suggestion! Which tax software were you using? I'm on TaxAct for Business, and I'm wondering if that might be the issue.

I was using ProSeries when I had that issue. With TaxAct, you should be able to check for updates by going to the Help menu and looking for "Check for Updates" or something similar. If you're using their online version rather than desktop software, try clearing your browser cache or using a different browser entirely. Sometimes these issues can also be related to the subscription level you have - some tax years might not be available if your subscription doesn't cover that period. Might be worth checking with TaxAct support directly if the update doesn't resolve it.

I filed our partnership extension last week using UltraTax and had no issues selecting the 2023 tax year (for filing in 2024). Everything processed normally. So I don't think it's an IRS-wide system issue.

We're in Illinois. Do you know if there are any special requirements here? The commercial was for a regional grocery chain, and I don't think they mentioned anything about special accounts when we signed the contracts.

Illinois doesn't have a specific Coogan Law like California or New York, so you don't have the same legal requirement to set up a blocked trust account. However, it's still a good practice to save some of your children's earnings for their future. Since the commercial was for a regional grocery chain and the earnings were relatively modest ($1,200 each), you're mainly just dealing with the standard tax considerations that have been discussed in other comments. Just make sure to check those W-2s to see if any taxes were withheld, as that would be a good reason to file returns for them to get those withholdings back.

Do kids who act in commercials need an agent? And how does that work with taxes if the agent takes a percentage? Does that count as a deduction?

That's interesting - my company definitely sets my hours and tells me exactly how to do the work. They even monitor my computer activity during work hours. Does that mean I should be classified as an employee instead? What would happen if I filed those forms you mentioned?

Based on what you're describing, it sounds like you're likely misclassified. When a company sets your hours, dictates how you perform your work, and monitors your activity, those are strong indicators that you should be classified as an employee, not an independent contractor. If you file Form SS-8, the IRS will review your situation and make a determination about your proper classification. This process can take several months, but it's free. If the IRS determines you are an employee, your employer would be responsible for paying their share of Social Security and Medicare taxes (the 7.65% you're currently paying as part of your self-employment tax). You could then file Form 8919 instead of Schedule SE to report those uncollected taxes on your income tax return, which would reduce your tax burden.

I'd recommend FreeTaxUSA over TurboTax for self-employed people. It does basically the same thing but costs like $15 instead of $120+ for the self-employed version of TurboTax. I've used both and FreeTaxUSA actually explained the self-employment deductions better.

Is this true even for inherited properties? I thought the primary residence exclusion only applied if you actually owned the home, not if you inherited it?

The primary residence exclusion applies to any home you own and use as your main home, regardless of how you acquired it. If you inherited the property and then lived in it as your primary residence, those years of use count toward the 2-out-of-5 year requirement. What matters is ownership and use, not how you originally obtained the property. If you inherited it and immediately sold it without living there, then no, you wouldn't qualify. But if you lived in the inherited house after receiving it, those years absolutely count toward potential primary residence exclusion.

You can get a retroactive appraisal! I was in this exact situation. Find a qualified appraiser who specializes in retroactive valuations - they'll research comparable sales from that time period to establish what the property was worth when you inherited it. It costs a few hundred dollars but can save you thousands in taxes by properly establishing your basis.

That's super helpful - I had no idea retroactive appraisals were even a thing! Did you have any issues with the IRS accepting a retroactive appraisal when you filed your taxes? I'm worried they might question it since it wasn't done at the actual time of inheritance.