This is such a complex situation and I really feel for your family going through this during an already difficult time. From what I'm reading in the other responses, it sounds like you're getting some solid advice about the stepped-up basis and the importance of finding your grandmother's previous tax returns. One thing I wanted to add - since you mentioned the cattle sale should bring in around $65,000 total, make sure the family keeps detailed records of the sale prices and dates. Even though you'll likely have minimal taxable gain due to the stepped-up basis, the IRS will want to see documentation if they ever audit. Also, consider having the family meet with a tax professional together before finalizing the cattle sales. With five heirs involved, it's really important that everyone understands their tax obligations and that you're all reporting things consistently. The last thing you want is for one sibling to handle their portion differently than the others and create issues down the road. The fact that you're asking these questions now shows you're thinking ahead, which is great. Better to spend a little money on professional advice upfront than deal with IRS problems later when the stakes are much higher.

I'm sorry for your family's loss. Dealing with farm inheritance taxes can be really overwhelming during an already difficult time. From what you've described, it sounds like your grandmother was running a legitimate cattle breeding operation, which is good news tax-wise. The key thing here is that inherited assets generally receive what's called a "stepped-up basis" to their fair market value on the date of death. This means your dad and his siblings won't pay taxes on any appreciation that occurred during your grandmother's lifetime. Since they're selling the cattle relatively soon after her passing, there should be minimal capital gains between the inheritance date and sale date. However, you'll want to make sure someone gets proper documentation of the cattle values as of the date of death - this becomes your new tax basis. A few important steps I'd recommend: - Locate your grandmother's recent tax returns, especially any Schedule F forms - Get written appraisals of the cattle herd as of the date of death if possible - Have all five siblings work with the same tax professional to ensure consistent reporting - Keep detailed records of all sale transactions and dates The fact that this was likely a breeding operation (rather than just raising cattle for immediate sale) may actually work in your favor, as breeding livestock held over 24 months typically qualifies for capital gains treatment rather than ordinary income rates. Given the complexity and the number of heirs involved, I'd strongly suggest having everyone meet with a CPA who has experience with farm estates before proceeding with the sales.

I went through this exact same situation about 6 months ago! The EFTPS warning for new business enrollments is really common and usually nothing to worry about. What helped me was calling the EFTPS customer service line (1-888-353-4537) and having them verify my account status before proceeding with the payment. The representative confirmed that even though I was seeing the warning, my account was properly set up for Form 941 payments. She explained that there's often a lag between general EFTPS enrollment and when all the form-specific permissions show as fully active in their system. I proceeded with the payment despite the warning, got my confirmation number, and everything processed normally. The key is to make sure all your business information (EIN, banking details, etc.) is correct before hitting submit. Keep that confirmation number as proof you made the payment on time - that's what matters for avoiding penalties. One tip: if you're still nervous about it, you can always do a small test payment first to make sure everything works before submitting your full quarterly amount.

I actually just went through this same EFTPS warning situation last month! The warning message can definitely be scary when you're new to handling payroll taxes, but in my experience it's almost always just a timing issue with their system. What worked for me was taking a screenshot of the warning message first (for my records), then proceeding with the payment anyway. The key things to double-check before clicking continue are: your EIN matches exactly what's on file with the IRS, your bank routing and account numbers are correct, and you're selecting the right tax period dates. I got my confirmation number and the payment processed perfectly fine within 2 business days. The warning disappeared completely by my next quarterly payment, so it really was just their system catching up with my enrollment status. If you're still feeling nervous about it, you could always call the EFTPS help line at 1-888-353-4537 before proceeding. But honestly, as long as your business info is accurate in the system, you should be good to go. Better to get that payment submitted on time than to miss the deadline while waiting for the warning to clear!

Just wanted to jump in as someone who's been through this process twice now. The injured spouse form really is like navigating uncharted waters the first time! I filed my Form 8379 both times electronically with my joint return, and both years took right around 12-13 weeks to process. The first year I was constantly checking "Where's My Refund" and driving myself crazy, but the second time I knew to just be patient and check my transcript around week 10. One thing I learned is that the IRS actually has a separate department that handles injured spouse allocations, which is why it takes so much longer than regular returns. They have to manually calculate how much of the refund belongs to each spouse based on income, withholdings, and payments made. It's not just a computer automatically processing it like normal returns. The good news is that once they complete the allocation, the refund usually deposits pretty quickly. Both times I got my money within a week of seeing the final processing codes on my transcript. Hang in there - I know the waiting is stressful when you're counting on that money, but it will come through!

I'm currently at week 16 of waiting for my injured spouse refund and finally have some positive news to share! After following all the excellent advice in this thread about checking transcripts and understanding those TC codes, I can confirm that persistence pays off. Like many others here, I pulled my account transcript around week 12 and found TC 570 and TC 971 codes that showed my case was in manual review. What really made the difference was calling the IRS with those specific codes and cycle dates from my transcript - instead of getting the usual "still processing" runaround, the agent could see exactly where my case stood and confirmed my injured spouse allocation had been approved and was in final release. My refund finally deposited yesterday, and honestly, this community discussion was more valuable than any official IRS resource throughout this entire process. The realistic timeline expectations (11-16+ weeks during busy season), the importance of transcript codes for actual progress tracking, and just knowing that these lengthy waits are completely normal - all of this knowledge came from people sharing their real experiences here. For anyone still in the thick of the waiting game - pull your transcript if you haven't already, don't panic if you're past the 14-week mark during busy season, and know that the money does eventually come through even when it feels like you're stuck in bureaucratic quicksand forever!

I'd definitely recommend starting with the IRS withholding calculator that Emma mentioned - it's free and will give you the most accurate picture for your specific situation. With your combined income of around $133k and filing separately, there are definitely some nuances to consider. One thing I haven't seen mentioned yet is timing. If you do decide to change your withholding, consider doing it at the beginning of a quarter so you can more easily track the impact. Also, since you mentioned your incomes are stable, you might want to do a mid-year check using the calculator again to see if you're on track. The child tax credit coordination that Miguel mentioned is crucial - whoever claims your 2-year-old will get up to $2,000 in credit, which can significantly impact your withholding needs. This should definitely factor into your decision about whether to change from 0 to 1. Given that you've successfully avoided owing taxes in previous years, I'd lean toward being conservative. Maybe try the IRS calculator first, and if it shows you're significantly over-withholding, then consider the change. You can always adjust again later in the year if needed.

One thing I'd add to all this great advice is to consider setting up quarterly estimated tax payments if you do switch to claiming more allowances. Since you're both W-2 employees, you might not think about estimated payments, but they can be a great safety net when you're in a complex filing situation like married filing separately. If the IRS calculator shows you might owe a bit at tax time with increased allowances, you could set up small quarterly payments (maybe $50-100 per quarter) to cover the gap. This way you get more money in each paycheck throughout the year but still avoid any surprises come April. Also, since you mentioned stable incomes, this is actually the perfect scenario for fine-tuning your withholding. People with variable income have to guess, but you can calculate pretty precisely what you'll owe. Just remember that if you do end up owing more than $1,000 at tax time, you might face underpayment penalties, so the conservative approach others have mentioned is definitely wise. The student loan angle makes this more important too - you want to keep your AGI as low as possible for income-driven repayment calculations, so getting your withholding just right helps you avoid giving the IRS an interest-free loan while also not creating cash flow problems.

Welcome to the community! This has been such an educational thread to read through as someone new here. I'm dealing with a property situation after a flood damaged my home last year, and seeing all the different experiences and strategies shared here has been incredibly valuable. One thing I wanted to add that might help others is about timing your documentation gathering. I learned the hard way that some records become harder to access over time - my insurance company only keeps detailed settlement breakdowns readily available for a certain period before they get archived. Same with some county offices that digitize older records differently. If anyone reading this thread is in the early stages after a casualty loss, I'd recommend requesting and organizing all your documentation sooner rather than later. The specific breakdown of insurance payments (structure vs. contents vs. additional living expenses vs. loss of use) that several people mentioned can be crucial for tax planning, but insurance companies sometimes summarize these details differently in later correspondence. Also, for those considering the various tax strategies discussed here - the 1031 exchanges, Opportunity Zone investments, installment sales - it's worth noting that some of these have planning requirements that need to be set up well before you actually sell. Having your documentation organized early gives you more time to explore these options properly. Thanks to everyone who shared their experiences and knowledge throughout this discussion. This community is an amazing resource for navigating these complex situations!

As a new member of this community, I've been following this incredibly detailed discussion and wanted to share a perspective from someone who's currently in the middle of a similar situation. My house was destroyed in a tornado 18 months ago, and I've been holding onto the vacant lot while living in a rental property. Reading through all the experiences shared here has been both enlightening and a bit overwhelming - there are clearly so many factors to consider! One thing I'm curious about that I haven't seen addressed directly: how do you handle the emotional side of selling the land where your home used to be? I know this is primarily a tax-focused discussion, but I'm finding that the financial planning is only part of the challenge. There's something psychologically difficult about letting go of that piece of ground, even though there's nothing left there. From a practical standpoint, I'm taking notes on all the documentation tips shared here - especially the suggestion to contact the title company for old assessment records. That seems like it could save me weeks of trying to track down the land-to-structure ratio I need for my basis calculations. I'm also intrigued by the various tax deferral strategies mentioned throughout this thread. The 1031 exchange possibility is particularly interesting since I was already considering investing in rental property. It sounds like the key is getting all the documentation organized first, then exploring which strategy makes the most sense for my specific situation. Thanks to everyone who has shared their knowledge and experiences here. This discussion has given me a much clearer roadmap for moving forward!