Thanks for this suggestion! I didn't realize there was an income threshold for free filing options. My income is actually around $78,000 so I just miss that cutoff, but $49 sounds way more reasonable than what H&R Block quoted me. Did you find TaxSlayer easy to use? I'm not super tax-savvy but can follow clear instructions.

TaxSlayer is pretty user-friendly with a straightforward interface. It walks you through everything step by step with explanations along the way. The questions are clear and it imports W-2s if you have your employer's EIN number. For mortgage interest, you just enter the information from your Form 1098. Even if you're not tax-savvy, these programs are designed for regular people. They have help sections and explanations for almost everything. And if you get stuck, most have support options where you can chat with a tax pro for specific questions.

Is the Peace of Mind guarantee even worth it? I've always wondered if these audit protection plans are just a way to scare people into paying more.

Does this mean I might not need to file if I was living outside the US for part of the year? I was actually working in Asia for about 4 months last year on a project. How does that affect my filing requirements?

You would need to qualify as a foreign resident under either the physical presence test (330 days outside the US in a 12-month period) or the bona fide residence test (established residence in a foreign country for an entire tax year). Based on what you described - just 4 months abroad - you wouldn't qualify for the higher foreign resident thresholds. You'd still use the standard domestic thresholds ($50,000 on last day/$75,000 any time for single). The higher thresholds are really designed for Americans who are living abroad permanently or for extended periods.

The most reliable source is the actual Form 8938 instructions document from irs.gov. Publication 54 is more general for Americans abroad. The specific rules for what counts as a "specified foreign financial asset" are detailed in the 8938 instructions. Generally includes: - Financial accounts at foreign financial institutions - Foreign stock or securities not held in a financial account - Interest in a foreign entity - Financial instrument with a foreign issuer or counterparty

This is such a good point! My partner and I used to split our mortgage interest deduction, but last year we realized only one of us had enough other deductions to make itemizing worthwhile. Now I claim 100% of the mortgage interest (with his documented agreement) and itemize, while he takes the standard deduction. Saved us about $900 combined!

Exactly! Tax optimization is about looking at your complete situation, not just following generic rules. If one partner has significant charitable contributions or state/local taxes while the other doesn't, concentrating the mortgage interest with that person can create much bigger combined savings. Just make sure to document your agreement in writing. A simple signed statement explaining that one partner is claiming 100% of the deduction despite shared ownership, with both signatures, should be sufficient documentation. Keep copies with both tax records.

I did this with TurboTax last year! You enter the full 1098 amount when prompted, then later there's a screen asking if you paid all the mortgage interest yourself. Select "No" and it'll let you enter the percentage you're claiming. TurboTax then generates a statement explaining the situation to attach to your return. Super easy!

Thanks for bringing this up! My understanding was that since my husband was a US citizen, I don't need to file Form 3520 even though the property is in the UK. Is that correct? Are there any other international forms I should be aware of besides FBAR and the Form 8938?

You're correct. Since your husband was a US citizen, you don't need to file Form 3520 for this inheritance, even though the property is located in the UK. The form is specifically for gifts or inheritances from foreign persons (non-US citizens/residents). Beyond FBAR (FinCEN Form 114) and Form 8938, you might want to be aware of Form 8833 if you're claiming benefits under the US-UK tax treaty, but that's typically not needed for straightforward inheritances. Also, if you maintain any financial accounts in the UK after settling the estate, remember you'll need to continue reporting those on FBAR and potentially Form 8938 in future years if they meet the threshold.

Good point! What exchange rate date did you end up using? Date of death, date of distribution, or something else?

This happened to my mom too! She got a text message with a link to "update direct deposit info" and almost fell for it. These scammers know exactly when tax season is and target people waiting for refunds. The IRS will NEVER text or email you asking for bank information.

The Taxpayer Advocate Service is really only for serious hardship cases or if you've tried multiple times to resolve an issue with the IRS without success. For a simple returned direct deposit that's being converted to a check, they probably won't take the case since the IRS has a standard procedure already in place.

Thanks for the clarification. Guess I'll just have to be patient and wait for the paper check to arrive. Seems like there's no way to speed up the process once the direct deposit has been rejected.