Is there any way to check this information online instead of calling? I have hearing problems and phone calls are really difficult for me.

Unfortunately, there's no fully online method to check for all potential offsets. The IRS online account will show if you owe the IRS specifically, but won't show other agency debts that might cause offsets. You might try using the chat feature with the IRS if available, though it has limited functionality. Another option is to authorize a friend or family member to call on your behalf using Form 8821, or work with a tax professional who can make these calls for you.

For hardship consideration, they typically look at whether offsetting your refund would prevent you from meeting basic living expenses. This includes rent/mortgage, utilities, food, medicine, etc. You'd need to submit financial documentation showing your income and expenses to prove the hardship is real. The standards vary by agency - student loan hardships might be evaluated differently than child support offsets. Contact whichever agency holds your debt directly and specifically ask about their hardship procedures for tax refund offsets.

Thanks so much for the detailed info. I'm going to call that Treasury offset number tomorrow and see what I'm dealing with first. If there is an offset, I'll definitely look into the hardship options!

Whether you need to make estimated quarterly tax payments depends on your overall tax situation, not just the property sale. Generally, you need to pay estimated taxes if you expect to owe $1,000 or more when you file your return AND your withholding and credits will cover less than 90% of your current year tax or 100% of last year's tax (110% if your income is over $150,000). For a small property sale of $5,800 with a stepped-up basis, the taxable gain might be small enough that it wouldn't trigger the estimated tax requirement, especially if you have enough withholding from other income sources.

Thanks for explaining that! So it really depends on my overall tax situation rather than just automatically needing to make a quarterly payment because I received a 1099. That makes sense. I'll look at how much I'm already having withheld from my regular job and see if it's likely to cover any additional tax from the sale.

Oh jeez that sounds stressful. What kind of documentation should I be keeping? I honestly don't think my grandmother ever had the property formally appraised when she died.

If you don't have a formal appraisal from the time of your grandmother's death, try to gather: 1. Property tax assessments from around the time she passed away (county tax assessor websites often have historical data) 2. Comparable sales data for similar properties in the area from that time period (a real estate agent might be able to help with this) 3. Any documentation about the property's condition at that time (photos, insurance documents, etc.) 4. Create a written explanation of how you determined the fair market value based on this information The key is having a reasonable basis for whatever value you claim as your stepped-up basis and being able to explain your methodology. Even if it's not perfect, showing you made a good-faith effort to determine the correct value goes a long way in case of questions later.

Do you know if green card holders use their SSN or do they need an ITIN? My parents just got their green cards and are confused about filing next year.

Green card holders use their SSN, not an ITIN. When someone gets a green card, they're eligible for (and usually required to get) a Social Security Number if they don't already have one. ITINs are specifically for people who need to file taxes but aren't eligible for SSNs, like certain visa holders or non-resident aliens with US income. So your parents should use their SSNs on all tax forms where it asks for TIN.

Ohhhh that explains why I only saw the last 4 digits on my transcript! I was wondering about that too but didn't think to ask. Thanks for clearing that up!!

Which tax software were you using? I'm trying to file with TurboTax and it keeps insisting on using $3k of my losses even though I have no income. Is there a specific place where you had to override this?

I was using H&R Block's online software. The override was tricky to find - I had to go into the "Forms" view rather than using the interview process. Under Schedule D, there was an option to "override" the calculated loss deduction. I manually entered zero for the current year's deduction and preserved my full carryforward amount. With TurboTax, look for a similar "Forms" mode or "Tax Tools" section where you can directly edit Schedule D. The key is making sure that line 21 (the amount carried to Form 1040) shows zero while still documenting your full carryforward amount for next year in your records.

Capital losses don't expire! You can carry them forward indefinitely until they're used up. That's why it's so important not to "waste" them in years when you have no income to offset. I've been carrying some forward since 2016 and they're still valid.

This is so important! My brother got scammed by one of these companies that promised to settle his $40k tax debt for pennies on the dollar. Paid $4k upfront, they filed an offer in compromise that got rejected, and then they basically disappeared.

Exactly! These companies often advertise based on best-case scenarios that apply to very few people. The "pennies on the dollar" settlements (Offers in Compromise) have specific qualifying criteria - you have to prove you have no ability to pay the full amount now or in the foreseeable future. Most people don't qualify. The most frustrating part is that many of these companies know you won't qualify before they take your money. They collect their fee, file paperwork they know will be rejected, then tell you "well, we tried!" while keeping your money. Always ask for their success rate with cases similar to yours, and get clear details about what specific actions they'll take for the fee they're charging.

The Fresh Start program definitely helped me too. It's not actually a specific program you apply for - it's a set of policies that make it easier to settle tax debts. Made my payment plan much more manageable.