23 Quick question - how big was this lump sum payment roughly? Because Social Security Disability payments are only taxable if your total income exceeds certain thresholds. For an individual, if your combined income (adjusted gross income + nontaxable interest + half of Social Security benefits) is under $25,000, then 0% of benefits are taxable.

This is such a stressful situation, and unfortunately your cousin got some really bad advice from whoever she spoke with at Social Security or the IRS. Large lump sum disability back payments can definitely trigger tax liability even when regular monthly payments aren't taxable. The good news is there are several options available. First, she should absolutely file the required tax return even if she can't pay - the penalties for not filing are much worse than for filing and not paying. Then she can pursue payment options like an installment agreement or potentially an Offer in Compromise if she truly can't afford the full amount. Most importantly, she might be able to use the "lump sum election" to allocate the back payments to the years they were originally intended for, which could significantly reduce the tax burden by spreading it across multiple years instead of having it all count as income in one year. I'd strongly recommend she contact the Taxpayer Advocate Service (they're free and specialize in hardship cases) or get help from a tax professional who understands disability payments. Don't let her ignore this - the IRS is actually pretty reasonable about working with people on disability who genuinely can't pay, but she needs to be proactive about communicating her situation to them.

This is such a helpful thread! I'm in a similar position - been doing individual returns through VITA but want to expand to business taxes. One thing I'm wondering about is the time commitment for each program. Nina, with your corporate accounting background, you're probably already familiar with a lot of the underlying concepts that trip up people without that experience. I'd be curious to hear from others who made this transition - did having corporate accounting experience make the business tax courses easier to get through? Also, for those who've taken either program, what's the typical timeline from starting the course to feeling confident enough to prepare your first real business return? I'm trying to plan this around my current work schedule and want to set realistic expectations.

I went through both programs and can speak to the time commitment question. Intuit Academy's business tax courses are completely self-paced, which was perfect for my schedule. I was able to knock out most modules in about 6-8 weeks dedicating roughly 12 hours per week. The courses are broken into bite-sized segments so you can easily fit them around work. H&R Block has more structure - some of their business tax modules have scheduled webinars and group sessions, though they do offer recorded versions. It took me closer to 10-12 weeks to complete their program at a similar time commitment. For someone with corporate accounting experience like Nina, I'd estimate you could probably move through either program faster than average. The concepts around depreciation, basis calculations, and financial statement integration will already be familiar to you. My background was purely individual tax prep, so I had to learn a lot of the underlying accounting concepts from scratch. One tip: whichever program you choose, try to schedule your completion so you finish right before tax season starts. That way the knowledge is fresh and you can immediately start applying it in a real environment, whether through part-time work or volunteer opportunities with small business clients.

This thread has been incredibly helpful! I'm dealing with a similar situation where my Roth IRA was transferred between firms in September, and I've been getting conflicting information from both companies about who's responsible for the 1099-R. One thing I discovered that might help others - if you have online access to both your old and new accounts, check the "Tax Center" or "Tax Documents" section on both websites. Sometimes the forms are available for download before they're mailed, and you can see if there are any pending corrections or amendments. Also, for anyone waiting on complex investment forms (like K-1s from REITs or partnerships), those can legally come as late as September 15th if the investment company files extensions. I learned this the hard way last year when I filed early and then had to amend my return three times as corrected forms kept trickling in. The IRS wage and income transcript tip from Andre is golden - I just checked mine and found a 1099-INT from a bank account I'd completely forgotten about that earned $12 in interest. It's amazing how these small forms can slip through the cracks!

This is such a comprehensive thread - thank you everyone for sharing your experiences! As someone who's been through multiple account transfers over the years, I wanted to add a few more practical tips that have saved me headaches: First, if you're dealing with transferred accounts, create a simple spreadsheet tracking what forms you received last year versus what you've gotten so far this year. This helps you spot patterns - for example, if you got a 1099-DIV from XYZ mutual fund last year but haven't seen one yet, that's a red flag. Second, don't overlook small amounts. I once spent weeks trying to reconcile my taxes because I was missing a $3 1099-DIV from a fractional share that got liquidated during a transfer. The IRS computers don't care if it's $3 or $3000 - they just want the numbers to match. Finally, if you have a tax preparer, give them a heads up about the account transfers BEFORE your appointment. They can often spot missing forms that you might not think of, and they may have contacts at the major brokerages who can expedite missing forms. My CPA has saved me from filing incomplete returns multiple times just by asking the right questions about my investment activity. The tools mentioned here like taxr.ai and Claimyr sound really helpful - I'm definitely going to check them out for next year's tax season!

Don't forget to check if you qualify for the Earned Income Tax Credit! If your income is low, you might qualify for this credit which could give you money back even if you didn't pay any taxes. I only worked for 6 weeks in my first year in the US and still got about $560 back because of this credit.

As someone who also just moved to the US recently, I want to add that it's really important to keep track of ALL your tax documents from your first year here. Beyond just your W-2, make sure you save records of any foreign income you might have earned before arriving in the US, especially if you're from a country that has a tax treaty with the US. Also, if you opened any US bank accounts that earned interest (even just a few dollars), you'll get 1099-INT forms that you'll need for filing. I made the mistake of not keeping track of a small savings account and had to scramble to get the documents later. One more tip - if you're planning to stay in the US long-term, consider getting familiar with tax software or services now while your situation is relatively simple. It only gets more complicated as you establish more financial ties here (buying a house, investing, etc.).

I went through something very similar about 3 years ago and want to share a few things I learned that might help you avoid some pitfalls I encountered. First, the cost basis calculation everyone's discussing is correct - your new basis will be roughly $1,147,500 (your original $497.5K plus the $650K buyout). But here's what caught me off guard: make sure you get a professional appraisal done RIGHT when the buyout happens, not just rely on estimated market values. I used a rough estimate and later had issues when I sold because the IRS wanted documentation of the actual fair market value at the time of transfer. Second, regarding the loan from your parents - definitely structure it as a formal loan with proper interest rates and documentation. I made the mistake of doing an informal arrangement and it created complications later. The IRS has specific "Applicable Federal Rates" that change monthly - make sure you use at least the minimum rate for the month you close the loan. Also, consider the timing of when you might sell. If you're planning to sell within a few years, you might want to think about whether it makes financial sense to buy her out at current market value versus just selling now and splitting the proceeds. With your numbers, if you sell in 2-3 years and the house appreciates much more, you could end up with a significant capital gains tax bill even with the $250K exclusion. One last thing - make sure your divorce attorney coordinates with a tax professional on the property transfer language. The exact wording in your decree can impact how the IRS treats the transaction.

I'm going through a very similar situation right now and this thread has been incredibly helpful! One thing I wanted to add that I've learned from my tax attorney - make sure you understand the difference between a "transfer incident to divorce" under IRC Section 1041 versus a regular property purchase when structuring this buyout. If the buyout is properly structured as part of your divorce settlement (meaning it's clearly documented in your divorce decree as division of marital property), your ex-wife won't owe any capital gains taxes on her portion when she transfers it to you. This is different from if you were just buying her out outside of divorce proceedings. Also, I'd strongly recommend getting everything finalized before your divorce is actually final. My attorney explained that Section 1041 protections are strongest when the transfer happens as part of the actual divorce process rather than afterward, even if it's clearly related to the divorce settlement. The cost basis calculation everyone has discussed is spot on, but the tax-free transfer aspect for your ex-wife is something worth mentioning to make sure she's comfortable with the arrangement. It might help with negotiations if she knows she won't face immediate tax consequences.