I actually went through something similar after my divorce two years ago - totally understand the stress of navigating tax stuff solo! I had success calling the IRS about transcript codes, but here's what worked for me: call early in the morning (like 7-8 AM) to avoid the worst hold times, and ask to speak with someone in the "Accounts Management" department specifically. They tend to be more knowledgeable about transcript codes than general customer service. Before you call, write down all your codes and have your transcript in front of you. The rep I spoke with explained each code step by step and even told me what to expect next based on the sequence of codes on my account. Don't be afraid to ask them to repeat or clarify anything - they're used to people not understanding the codes. Also, if the first person you talk to seems unsure, it's totally okay to hang up and call back to get someone else. Good luck!

Hey Keisha! First off, sorry to hear about your divorce - that's tough to navigate alone. I've had mixed success with IRS phone reps on transcript codes. Some are really knowledgeable and will walk you through each code, while others just read the basic definitions you can find online. Here's my strategy that's worked: call the main IRS number (1-800-829-1040) and when prompted, say you need help understanding your account transcript. They'll transfer you to someone who should be able to explain the codes. Have your Social Security number, date of birth, and last year's adjusted gross income ready for verification. Also, write down the specific codes you're seeing before you call - like 150, 570, 971, etc. - so you can ask about each one directly. If the first rep seems unhelpful or uncertain, don't hesitate to call back and try again. Sometimes you just need to find the right person who knows their stuff. The call might take a while with hold times, but it's free and could save you the cost of a tax professional. Good luck with everything!

Based on my experience helping clients with 72t SEPP plans, I'd strongly recommend waiting for professional guidance rather than rushing into this with just the online calculator. The stakes are simply too high - one mistake can trigger penalties on ALL your distributions retroactively. Here's what I've seen go wrong when people DIY their SEPP plans: using the wrong account balance date, not properly documenting the interest rate selection, accidentally taking an extra distribution (even $1 over), or not realizing certain account features violate the rules. The IRS doesn't give second chances with 72t violations. If you absolutely can't wait for your regular accountant, consider getting a second opinion from another tax professional who specializes in retirement distributions. Many CPAs offer quick consultations specifically for 72t setups. The few hundred dollars you'll spend upfront could save you thousands in penalties later. The online calculator is a good starting point to see rough numbers, but don't use it as your final authority for setting up the actual plan. Document everything meticulously if you do proceed, and make sure you understand every single rule before taking your first distribution.

I've been through this exact situation and want to share what I learned. While the online calculators can give you the basic numbers, there are so many nuances that aren't immediately obvious. For example, I didn't realize that if you have any automatic dividend reinvestments or rebalancing in your chosen account, that could violate the 72t rules. Also, the timing of when you take your first distribution affects which interest rates you can use. What really helped me was creating a detailed checklist before starting: verify the account has no automatic features that could cause unintended transactions, document the exact balance on the calculation date, save screenshots of the interest rate I used and where I got it from the IRS website, and set up a system to ensure I take the exact same amount each year (down to the penny). If you do decide to use the calculator route, I'd suggest at least having a one-time consultation with a tax pro to review your setup before taking that first distribution. Once you start, you're locked in for years, so getting it right from the beginning is crucial. The peace of mind is worth the consultation fee.

I'm so sorry for your loss, Freya. Dealing with inherited financial products while grieving is incredibly overwhelming, and the tax implications of annuities definitely catch people off guard. You've gotten excellent advice here about getting the cost basis information from Nationwide. I want to add one important point that might help with your decision-making process: **timing matters more than you might realize**. Since your father passed last summer, you're approaching the one-year mark where some beneficiary options might expire. Many insurance companies have strict deadlines (typically 12 months) for certain distribution choices like stretch provisions or systematic withdrawals that could significantly reduce your tax burden. Before you make any withholding decision, I'd strongly recommend calling Nationwide immediately and asking specifically: - "What beneficiary distribution options are still available to me?" - "Are there any upcoming deadlines I need to be aware of?" - "Can I set up systematic payments instead of a lump sum?" If systematic withdrawals are still an option, you could potentially spread this $27,000 over several years, keeping yourself in a lower tax bracket and reducing the overall tax impact significantly. Regarding the withholding question - if you end up taking a lump sum, the 10% withholding is reasonable given your income level. But if you can spread the payments out, you might be able to do 0% withholding on smaller amounts and just plan for the taxes yourself. The key is getting all your options on the table before making any irreversible decisions. Time is not on your side here, so I'd make that call first thing tomorrow if possible.

I'm so sorry for your loss, Freya. Losing a parent is never easy, and having to navigate complex financial decisions during grief makes it even harder. You've received some excellent advice here, but I wanted to emphasize something that might get overlooked: **don't let the insurance company rush you into a decision**. While Lucas is absolutely right about potential deadlines, you still have some time to get the information you need to make an informed choice. When you call Nationwide tomorrow, here's a specific script that might help: "I'm a beneficiary on annuity policy [your policy number] and need to speak with someone who specializes in beneficiary distributions. Before I make any withholding decisions, I need three things: 1) A complete breakdown of the cost basis versus earnings, 2) All available distribution options with their respective deadlines, and 3) A projection of what my 1099-R will show for each option." If the first person can't provide all three, politely ask to be transferred to a supervisor or specialist who can. Don't accept "I don't know" or "you need to decide now." One additional consideration: since this is a one-time event and you're dealing with other estate matters, you might want to coordinate the timing with any other inherited assets or unusual income this year. A tax professional who handles estates could help you see the bigger picture and potentially save you significant money across all your inherited assets, not just the annuity. You're being smart to ask these questions and take your time to understand the implications. Trust your instincts and don't let anyone pressure you into a quick decision on something this important.

Has anyone used FreeTaxUSA for business losses? TurboTax is crazy expensive and I've heard mixed things about their business support.

I went through almost the exact same situation last year with my freelance writing business. Lost about $3,500 in the first year after expenses for software subscriptions, professional development courses, and marketing that didn't pan out. The good news is that your business losses will definitely offset your other income on your tax return. Since you're a sole proprietor, you'll file Schedule C to report your business income (even if it's zero) and all those legitimate expenses you mentioned. The net loss will reduce your overall taxable income, which should result in a refund if you had taxes withheld from other income sources. A few things that helped me: - Keep detailed records of everything - receipts, bank statements, business purpose for each expense - Document that you're genuinely trying to make a profit (save emails about client outreach, business plans, etc.) - Consider opening a separate business bank account if you haven't already to keep expenses clearly separated TurboTax Self-Employed should handle your situation fine. It walked me through all the business expense categories and automatically calculated my loss. Just make sure you're honest about the business purpose of each expense and you should be good to go!

One crucial aspect that hasn't been fully addressed is the potential impact of France's CFC (Controlled Foreign Corporation) rules on your US LLC. Even if you're not currently a French tax resident, if you return to France in the future, the French tax authorities could potentially look back at your LLC structure and apply CFC rules retroactively. Under French CFC rules, if you control more than 50% of a foreign entity (which you would with a single-member LLC) and that entity is subject to a tax rate below 50% of what French corporate tax would be, France may tax the LLC's profits directly. This could create complications even years down the road. Additionally, be aware that France has been increasingly aggressive about digital nomads and crypto/online entrepreneurs. They've been pushing for EU-wide coordination on taxing digital nomads, and there's ongoing discussion about creating a "digital nomad tax" framework. My recommendation would be to document everything meticulously - where you are physically located each day, what work you're doing, client locations, etc. This paper trail will be invaluable if any tax authority challenges your residency status or LLC structure later.

This thread has been incredibly helpful! As someone who's been navigating similar international tax complexities, I wanted to add a few practical considerations that might help. First, regarding the "zero tax" scenario you're hoping for - be very careful about this assumption. Even if you avoid French taxation due to non-residency and US taxation due to foreign ownership, you might still trigger tax obligations in countries where you're physically present while working. Many countries have "source rules" that can create tax liability based on where services are actually performed, regardless of where your business is incorporated. Second, consider the compliance burden even if your tax liability is minimal. Between US Form 5472 filings, potential FBAR requirements if your LLC accounts exceed $10K, and various foreign business reporting requirements in countries where you establish temporary residence, the administrative overhead can be significant. I'd also suggest looking into the Malta or Cyprus tax residency programs if you want a more structured approach to European tax planning. Both offer attractive tax regimes for non-domiciled residents and have clear rules that could provide more certainty than the nomad lifestyle. Finally, given the rapid changes in international tax law (especially around digital services), consider building flexibility into your structure from day one. What works today might need adjustment as regulations evolve.