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Another option is to just file a paper amended return instead of using software. I had to do this last year when I messed up my filing situation. Form 1040-X isn't that complicated if you have a simple tax situation. Just make sure you attach all your documents (W-2s, 1099s, etc.) and write a brief explanation that you accidentally filed part of your return through the IRS free file and part through TurboTax. It takes longer to process (like 4-5 months) but it works.
I'm worried about messing something up if I try to do it on paper. Is there a good tutorial somewhere for filling out 1040-X? Also, do I need to redo all the calculations from scratch or can I use what TurboTax already calculated?
The IRS has a decent tutorial on their website with instructions for Form 1040-X. Just search "how to file 1040-X IRS" and it should come up. You don't have to redo everything from scratch. Use the calculations from both your accepted 1099 return and the rejected W-2 return as starting points. The 1040-X has three columns: A (original figures), B (net change), and C (correct amount). Column A would be your accepted 1099 return amounts, column B shows the changes from adding your W-2 income, and column C is the final combined total. It sounds more complicated than it is when you're actually looking at the form.
Whatever route you choose, do this ASAP. I waited too long to fix a similar issue last year and ended up with penalties. The longer you wait after knowing there's an issue, the less sympathetic the IRS will be about waiving any potential penalties. Just a friendly warning from someone who learned the hard way!
Totally agree. And make sure you keep copies of EVERYTHING - both returns, all your documents, and any communication with the IRS. I had a similar issue resolved but then got a notice 6 months later questioning my amendment. Having all my paperwork saved me from a huge headache.
As a tax preparer, I'll add another way to check: look at your bank statement! If the payment you submitted with your return was cashed by the Treasury, that's a pretty good indicator everything is fine. If there were issues with your return, they typically would hold the payment until those issues are resolved. Also, no news is good news with the IRS. If you don't hear from them, you're generally in the clear.
Thanks for this advice! I just checked my bank account and the payment did go through about 10 days ago. That's a huge relief! I kept thinking there might be some official "approved" notification I was missing. Do you know roughly how long I should keep documentation for self-employment taxes?
You're welcome! Yes, that payment clearing is usually a good sign that everything is proceeding normally. Most people don't realize the IRS generally only contacts you if there's a problem. For self-employment tax documentation, you should keep all records for at least 7 years. This includes receipts, mileage logs, home office measurements, client invoices, and bank statements showing income and expenses. The IRS can typically audit returns up to 3 years back, but for some situations like substantial underreporting, they can go back 6 years or more.
just wanna point out that "accepted" and "approved" aren't official IRS terms. they don't "approve" returns in the way we think. they process returns and either agree with what you submitted or they don't. if they disagree, they'll send you a letter. i've been self employed for 12 yrs and never once got an "approval" notification. no news is good news with the IRS lol
In case anyone's curious about other valid methods for determining land vs building value for depreciation purposes, the IRS accepts several approaches: 1) Tax assessment ratio (what others have mentioned) 2) Property appraisal that separates land and improvements 3) Insurance replacement cost (for the building portion) 4) Land-to-building ratio typical for your specific neighborhood I'm a real estate investor with multiple properties and have used different methods depending on what documentation I had available. Just be consistent and keep good records of how you made the calculation.
Do you need to get a new appraisal specifically for this, or can you use the appraisal from when you purchased the property? My purchase appraisal has a land value listed but it's way higher than what the tax assessment suggests.
You can absolutely use the appraisal from when you purchased the property, assuming it breaks out the land value separately from improvements. That's actually one of the best documents to use since it's specific to your property and was done around the time of purchase. If your purchase appraisal shows a higher land value than the tax assessment suggests, you can use either method - but the appraisal might be more accurate since tax assessments can sometimes be outdated. The key is to pick a reasonable method and be consistent. Just document your reasoning and keep the appraisal with your tax records in case of questions later.
Um, I think everyone's overlooking something super basic here. The assessed values are usually WAY lower than market values bcuz counties use weird formulas and don't update them often. In my state (TX) assessed values are like 10% of actual value. So $21,000 ร 10 = $210,000. That matches your county's market value estimate! The ratios still work like everyone said, but the raw assessed numbers aren't supposed to add up to market value.
Here's a simple breakdown of RMD calculations for inherited IRAs as of 2025 filing: 1. Find the account value as of December 31 of the previous year 2. Locate your life expectancy factor in IRS Publication 590-B (Table I) 3. Divide the account value by your life expectancy factor 4. That's your RMD for this year For example, if you're 43 and the account was worth $275,000 on Dec 31, your life expectancy factor would be approximately 40.7. So your RMD would be about $6,757 ($275,000 รท 40.7). The reason it seems "crazy low" is because the distribution is designed to stretch over your lifetime. Each year, you'll use your life expectancy factor minus 1 from the previous year.
But doesn't the SECURE Act eliminate the stretch IRA approach you're describing? I thought that's what the 10-year rule was about - that I have to empty the account within 10 years now instead of spreading it over my lifetime. I'm so confused because different sources say different things!
You're right to be confused - the SECURE Act did eliminate the lifetime stretch for many beneficiaries, replacing it with the 10-year rule. However, there are exceptions based on when the original owner died and your relationship to them. Since your father died in 2022 and hadn't yet reached his required beginning date (age 72), you might still qualify for special treatment under certain circumstances. This is why your calculation seemed low - if you do qualify for the life expectancy method, you'll get a much smaller initial distribution than if you were simply dividing by 10 years. I'd recommend getting professional tax advice specific to your situation to confirm which method applies to you. The penalties for getting this wrong are significant (25% of the underpayment).
Has anyone else had issues with their financial institution giving them conflicting info about RMDs? Fidelity told me one thing, then Vanguard told me something completely different for the exact same situation with my dad's inherited IRA.
OMG yes! TD Ameritrade told me I had to take all the money out in 5 years, then Schwab said 10 years, and my tax guy said I could stretch it over my lifetime. I ended up requesting a private letter ruling from the IRS which cost me $10,000 but was worth it to get a definitive answer for my situation. The rules are so complicated now with all the SECURE Act changes.
Amina Diallo
The comments about software vs CPAs made me wonder - does anyone have recommendations for the best tax software for someone with a relatively basic 1040 but with some stock trades? I used FreeTaxUSA last year but wasn't super impressed with how it handled my investments.
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Oliver Schulz
โขI switched from TurboTax to TaxSlayer this year because TurboTax kept upselling me. TaxSlayer handled my stocks and mutual funds really well, and it was about half the price. Might be worth checking out.
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Natasha Kuznetsova
I'm a licensed CPA and I'll tell you the honest truth - if your return is truly simple (just W-2s and standard deduction), there's not much value we can add beyond what tax software provides. We mainly help people with: 1) Complex situations like business income, rental properties, investments 2) Tax planning throughout the year (not just filing) 3) Representation if you get audited 4) Peace of mind knowing a professional reviewed everything Most of our clients have complexities beyond a basic 1040. For simple returns, you're probably fine with software. But be honest about how "simple" your taxes really are. Many people think their return is simple when it actually has complications they're overlooking.
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