Thanks for mentioning this! I told my mom right away and she checked her online account with the IRS. Her return was processed correctly with me as her dependent, which makes this even more confusing. Seems like different IRS systems aren't talking to each other properly.

That's definitely the issue then - the system that processes tax returns correctly marked you as a dependent, but the system that distributes stimulus payments didn't get that information. Classic government tech problems! Based on everything I've seen in similar cases, you're very likely in the "safe harbor" category where you can keep the payment without worry.

I'm so sorry about your daughter. Yes, deceased person payments are one of the few cases where the IRS explicitly tells you to return the money. For dependent status confusion like OP's situation, they've been much more lenient. I think they realized the administrative cost of processing returns would exceed the benefits.

Does anyone know if TaxAct is better or worse than TurboTax with these kinds of issues? I've used TurboTax for years but their prices keep going up, thinking of switching next year.

I've used both TaxAct and TurboTax over the years, and they each have pros and cons. TaxAct is definitely cheaper than TurboTax, which is why I switched. The interface isn't quite as polished, but it gets the job done and has all the same capabilities for most standard tax situations. Both have similar occasional issues with payment processing and confusing messages. I'd say TaxAct's customer service is a bit slower to respond, but you're saving like $40+ depending on which version you need. If you have a straightforward tax situation, TaxAct is a good value. If you need lots of hand-holding or have a complex situation, TurboTax might be worth the extra money.

100% agree. I work in UX design and this is a perfect example of terrible user communication. Using technical terms like "VPS" without explanation and implying it's an IRS payment when it's actually their service fee is just awful design.

I've heard about 1031 exchanges but wasn't sure if they applied to properties you build yourself. Do you know if there are any special rules for self-built investment properties? And do I need to identify the replacement property before I sell?

1031 exchanges absolutely can work for self-built investment properties. The fact that you built it yourself doesn't matter for exchange purposes - what matters is that it was held as an investment property. Yes, you must identify potential replacement properties within 45 days of selling your property, and you must close on one of those identified properties within 180 days. This is absolutely strict - miss those deadlines by even one day and the entire exchange fails. Also critical: you cannot touch the proceeds from your sale - they must go directly to a qualified intermediary who will hold them until you're ready to purchase the replacement property.

That's not how QBI works for real estate. You'd need to be classified as a real estate professional and spend 750+ hours annually in real estate activities. A one-off project like this wouldn't qualify unless OP is regularly in the business of building and selling properties.

Is there any way to just add a specific extra amount without recalculating everything? Sometimes I just want to bump up my withholding by a set amount without all this complexity.

Yes, you can use Box 4(c) on the W4 form which is specifically for extra withholding. If you want to add exactly $348 more per pay period without changing your current withholding base calculation, just put $348 in Box 4(c) and leave the rest of the form the same as your previous submission. Make sure you don't fill out Step 2 or check any different filing status boxes if you don't want the system to recalculate your base withholding. The Box 4(c) amount will be added on top of whatever your current calculation method is producing.

This happened to me too! It was a nightmare to fix because our payroll department kept insisting they were doing it right. Had to get a manager involved.

That's a great point I hadn't considered. The property is just the first part of a larger inheritance that will come in phases. Would the estate planner work alongside the CPA and attorney, or would they typically handle different aspects of the situation?

Estate planners often work collaboratively with your CPA and attorney. They typically focus on the big picture and long-term strategy while the attorney handles immediate legal matters and the CPA addresses current tax implications. For a phased inheritance situation like yours, an estate planner would be particularly valuable. They can develop a comprehensive strategy that takes into account both current and future assets, helping you avoid potential pitfalls specific to non-citizens. For example, they might suggest specific trust structures that work better for non-citizens or strategies to minimize estate tax exposure across multiple countries.

DO NOT use regular tax software for international inheritance! I tried that last year and it was a disaster. The software doesn't ask the right questions about foreign assets and doesn't include all the necessary forms. I ended up having to amend my return and pay penalties because I missed filing several required information returns.