I was laid off in 2020 due to my company closing down during the pandemic. I planned to work until the required age but couldn't find a suitable job while caring for my elderly mother. In 2020, I received unemployment and used my severance pay to contribute to a combined IRA for prior and current year deductions. In September 2021, after failing to find work, I started collecting Social Security. I prepared my taxes and now I'm hearing that one needs to be working to use an IRA deduction for tax reduction, with possible exceptions. If a person is collecting Social Security and not working, can they claim an IRA deduction, and are there any exceptions to this rule? Can I claim the IRA deduction for 2021 taxes after already opening the IRA last year, and what should I do?

December 20th, 2023

Regarding the taxation of a Round-Up settlement, my mother passed away in 2012, and I placed her name into a class action lawsuit in 2019 due to her death from non-Hodgkins lymphoma. I received an award letter in November last year, and we started forming an estate for my mother to receive the award. I have been appointed as the Personal Representative of my mother’s estate. The attorney mentioned that if the Estate receives income or retains income-producing assets after the date of death, the Estate may be required to file a Form 1041, U.S. Fiduciary Income Tax Return, and the filing of IRS Form 56. The estate's first fiscal year would be from January 27, 2012, through December 31, 2012, and each year thereafter until the estate is closed. The attorney also provided a document to be filed in court of the inventory of my mother's estate, which is zero except for the unknown amount of the Round-Up settlement after any Medicare liens are processed. Do I need to file a Form 1041 for the estate at this time, or should I do it next year for 2022?

May 4th, 2024

How do I get a corrected copy of my 2020 taxes from the IRS after they corrected a mistake I made? I need the AGI for this year’s taxes.

January 11th, 2023

How can I find my 2020 Adjusted Gross Income (AGI) figure if I don't have access to my IRS account and have forgotten my username and password?

February 20th, 2024

What is the status of my 2020 tax return, and how can I check it if I am having difficulty accessing my account online due to being technically challenged?

December 17th, 2024