I think there's definitely some confusion here about the line numbers. I just completed the Jennifer Taxpayer practice exam yesterday and can confirm that in the current version, you're asked about line 2b for taxable interest, not line 15. For anyone still working on this: the $1,250 from savings account interest plus the $875 from the Capital One 1099-INT should total $2,125 and go on line 2b. Any tax-exempt municipal bond interest would go on line 2a instead. It sounds like some people might be working with an older version of the practice exam that references outdated line numbers. I'd recommend downloading the most current version from Intuit's website to avoid this confusion. The actual 2022 Form 1040 has taxable interest on line 2b, and that's what the updated practice exam should be testing.

I'm so glad I found this thread! I was having the exact same issue with the Jennifer Taxpayer practice exam and getting really frustrated. After reading through all these responses, I realize I was making two mistakes: 1) I was looking at an older version of the practice exam that referenced line 15 instead of line 2b, and 2) I was accidentally including some tax-exempt municipal bond interest in my taxable interest calculation. Just to confirm for anyone else still struggling - on the current 2022 Form 1040, taxable interest goes on line 2b (not line 15), and for Jennifer's scenario it should be $1,250 + $875 = $2,125. The tax-exempt interest from municipal bonds goes separately on line 2a. Thanks everyone for sharing your experiences with the different tools and resources too. It's really helpful to know there are options like taxr.ai and even ways to reach actual IRS agents when you get stuck on these practice scenarios.

Just to share some additional insight on this topic - I'm a beneficiary of a trust that regularly uses the 65-day election. My understanding from speaking with our trust administrator is that while the trust reports these distributions on the prior year's return, beneficiaries report the income in the year they actually receive it. However, there's an important nuance: you need to understand the character of the income being distributed. If the distribution represents income that was already taxable to the trust in the prior year (like accumulated income), then the timing of your reporting might be affected. The K-1 you receive should clarify this, but it's often confusing since the K-1 will reference the trust's tax year.

I had this exact issue last year with a family trust. I received a distribution on February 28, 2022 that the trust counted toward their 2021 taxes using the 65-day rule. My tax preparer initially included it on my 2021 return, but after researching further, we amended to report it on my 2022 return instead, since that's when I actually received the money. The key document that clarified this for us was the explanation of the Section 663(b) election in IRS Publication 559. It specifies that the election only affects the trust's deduction timing, not the beneficiary's income recognition. The beneficiary includes the amount in income for the year in which it's received.

Has anyone here actually tried to get reimbursed from their FSA for foreign childcare? My FSA administrator is giving me a hard time about accepting receipts from my kid's program in Mexico even though I had them professionally translated. They keep insisting on a W-10 form which obviously a foreign provider won't have.

Just want to add another perspective here - I went through this exact situation last year when my son attended an international school in Singapore for 10 months. The key thing that helped me was getting everything documented upfront before making any payments. I contacted the school administrator and explained that I needed specific documentation for US tax purposes. They provided me with a letter on official letterhead that included their Singapore business registration number, their local tax ID, a statement that they don't have a US EIN, and confirmation of the services they provide (childcare/education during working hours). For payments, I made sure everything went through traceable methods - bank transfers or credit cards, never cash. This created a clear paper trail that both my FSA administrator and the IRS could verify if needed. One thing I learned is that different FSA administrators have varying levels of familiarity with foreign providers. If you're getting pushback, ask to speak with someone in their compliance department rather than general customer service. They're usually more knowledgeable about the actual IRS regulations versus just following standard scripts. The whole process was definitely more paperwork than domestic childcare, but it was absolutely worth it to get the tax benefits on those expenses!

As a government employee who has worked with tax policy implementation, I can confirm what several people have mentioned about the assessment requirement. The key distinction is between when a tax is legally imposed versus when you choose to pay it. The IRS has been pretty clear since the Tax Cuts and Jobs Act that prepaying future tax years doesn't accelerate the deduction. You can only deduct property taxes in the year they become a legal obligation - meaning the taxing authority has completed their assessment process and determined what you actually owe. What gets confusing is that different jurisdictions have different processes. Some counties assess quarterly, others annually. Some send "estimated" bills that later get finalized, while others send final assessments upfront. The timing of when YOU can deduct depends on when THEY complete their official assessment. The practical advice about calling your county assessor is spot-on. They can tell you exactly when taxes are considered "assessed" in your jurisdiction. Don't rely on when bills are mailed - ask specifically about when the assessment becomes legally binding. And yes, definitely check the SALT cap first! With the $10,000 limit, many homeowners hit that ceiling regardless of timing strategies. Combined with the higher standard deduction, fewer people benefit from itemizing these days anyway.

This has been such an informative discussion! As someone who's been dealing with this exact confusion, I really appreciate everyone sharing their experiences and expertise. What strikes me most is how much the rules vary by jurisdiction - it seems like the key is understanding your specific county's assessment process rather than trying to apply general rules. The distinction between "estimated" and "assessed" taxes appears to be crucial, and it's clearly something that trips up a lot of homeowners. I'm also grateful for the reality check about the SALT cap and standard deduction. It's easy to get caught up in optimization strategies without first checking if they'll actually provide any benefit. For many of us, especially in higher-tax states, these timing strategies may not matter at all under current tax law. The various tools and services mentioned here (taxr.ai for document analysis, Claimyr for reaching the IRS) sound like they could save a lot of time and confusion. It's frustrating that such basic tax questions can be so difficult to get answered through normal channels. I think the best takeaway is: 1) Call your county assessor to understand their specific assessment timeline, 2) Check if you'll hit the SALT cap anyway, 3) Verify you'll exceed the standard deduction threshold, and 4) Only then worry about prepayment timing strategies. Thanks to everyone who contributed their knowledge - this kind of community sharing is invaluable for navigating our complex tax system!

I'm going through something very similar with my mother's estate right now. One thing I learned that might help - make sure you document EVERYTHING related to the property's condition and any unique factors that might affect its value at the time of your father's death. When I got my appraisal done, the appraiser asked detailed questions about renovations, the neighborhood market conditions, and even things like whether there were any known issues with the property. Since you mentioned it's been 12 years since the last appraisal, the market dynamics in your area have probably changed significantly. Also, if your father made any improvements or if there were any problems with the house around the time he passed (like needing a new roof or having foundation issues), make sure the appraiser knows about these. They can affect the FMV determination either positively or negatively, and you want the most accurate picture possible for your stepped-up basis. The good news is that stepped-up basis really is designed to help heirs avoid being penalized for appreciation that happened during the original owner's lifetime. Getting that current appraisal is definitely the right move - it protects you and gives you solid documentation if the IRS ever has questions.

I'm dealing with a very similar situation right now after my grandmother passed away last month. One thing that's been really helpful is keeping a detailed timeline of everything - when she passed, when we started probate, when we got the appraisal, etc. The estate attorney we're working with emphasized that the stepped-up basis date is locked in at the date of death, regardless of when probate closes or when you actually get possession of the property. So even though we're still months away from completing probate, we got the appraisal done as soon as we could to establish that FMV. Something else to consider - if there are multiple heirs, make sure everyone is on the same page about the appraisal and sale timeline. We initially had some disagreement in our family about whether to sell quickly or hold onto the property, but once we understood how capital gains would work with the stepped-up basis, it made the decision much clearer. The tax implications really do favor selling sooner rather than later if you don't plan to keep the property long-term. Every month you hold it after the date of death is potentially more capital gains you'll owe when you eventually sell.