Switched from TurboTax to Free Tax USA this year and I'll NEVER go back! Even with the state filing fee and Deluxe upgrade, I paid $22 total instead of the $120+ TurboTax wanted. The interface isn't as polished but it got the job done perfectly. I actually went with Deluxe because it was my first time using the software and I was nervous about making mistakes. The priority support came in handy when I had questions about entering some stock sales. For $7, the peace of mind was worth it for me as a first-timer, but I'll probably just use the free version next year now that I'm familiar with how everything works.

For someone with just W-2 income, bank interest, and standard deduction like you described, the free version will absolutely handle everything you need. I've been using Free Tax USA's free version for years with a similar tax situation and never felt like I was missing anything important. The audit assistance in Deluxe sounds nice in theory, but with your straightforward return, the audit risk is practically zero. The IRS typically flags returns with unusual deductions, unreported income, or business expenses - none of which apply to you. I'd save the $6.99 and put it toward something else! One thing to keep in mind is that you'll still need to pay around $15 for state filing regardless of which federal version you choose, so your total cost would be either $15 (free federal + state) or about $22 (deluxe federal + state). For most people in your situation, that extra $7 just isn't worth it.

This is why I stopped using Robinhood for crypto completely. They're not actually designed primarily as a crypto platform and their tax reporting for it is terrible. Most dedicated crypto exchanges have much better tracking systems for transfers. For your current situation tho, make sure you're keeping all your transaction receipts and transfer confirmations. The blockchain itself is your friend here since all those transactions are recorded. You might want to consider using dedicated crypto tax software next year that can scan wallet addresses and consolidate everything across platforms.

I work as a tax preparer and see this exact issue multiple times every tax season. What's happening is that Robinhood's system doesn't maintain cost basis tracking when you transfer crypto off their platform - they treat it as a disposal event in their internal accounting. Here's what you need to do: Keep detailed records of your original Bitcoin purchase from Robinhood (date, amount, price per coin, any fees). When you file your taxes, you'll report the actual transaction on Form 8949 using YOUR records, not what Robinhood reports on the 1099-B. On Form 8949, you'll enter the sale with your correct cost basis and use adjustment code "B" to indicate that the basis reported to the IRS was incorrect. Include a brief note like "Cost basis per taxpayer records of original purchase." The key thing to remember is that transferring crypto between wallets you own is NOT a taxable event - it's just moving your property from one location to another. Only the actual sale triggers a tax obligation. Don't let Robinhood's poor record-keeping system trick you into overpaying taxes on gains you didn't actually make.

Does anyone use any good spreadsheets or apps to track all this? I'm making about $5,500/month freelancing and setting aside 25% for taxes but have no idea if that's right. Honestly tax time is so stressful every year.

Setting aside 25% might be close, but it really depends on your specific situation! With $5,500/month ($66k annually), you'll want to factor in the QBI deduction which can significantly reduce your income tax burden. Here's a rough breakdown for your income level: - Self-employment tax: ~15.3% of net income (after the 0.9235 adjustment) - Federal income tax: Varies by deductions/credits, but likely 12-22% bracket - State tax: Depends on your state I'd recommend using a more precise calculator or spreadsheet that accounts for the QBI deduction, standard deduction, and any business expenses you have. You might actually be over-saving, which means you're missing out on cash flow you could be using for business growth or personal expenses. The stress is real though - I used to lose sleep over whether I was setting aside enough. Having a more accurate system has been a game changer for my peace of mind.

Has anyone tried just using the IRS Tax Withholding Estimator online? It's supposed to handle all these complicated situations but when I input our info (very similar to yours - W2 income plus self-employment), it gave me a completely different number than what the worksheet method showed. Now I don't know which one to trust!

I went through this exact same situation last year and it was such a headache! After trying multiple approaches, here's what ended up working best for us: The key thing I learned is that you need to be really careful about which "income" number you're using. Don't just put his gross $145k on line 4(a) - you need his NET self-employment income (after business deductions) MINUS the self-employment tax deduction. Here's the process that worked for me: 1. Estimate his net profit after business expenses 2. Calculate SE tax (net profit × 0.9235 × 0.153) 3. The deductible portion is half of that SE tax 4. Subtract that deduction from his net profit 5. THAT number goes on line 4(a) Also, don't forget about the child tax credit on Step 3 - with three qualifying kids, that's $6,000 in credits that will reduce your tax liability significantly. I'd recommend running your numbers through the IRS Withholding Estimator AND doing the manual worksheet calculation to double-check. If they're close, you're probably on the right track. If they're way different, dig deeper into which estimates might be off. The peace of mind is worth the extra effort to get it right!

I'm going through something very similar with my mother's estate right now. One thing I learned that might help - make sure you document EVERYTHING related to the property's condition and any unique factors that might affect its value at the time of your father's death. When I got my appraisal done, the appraiser asked detailed questions about renovations, the neighborhood market conditions, and even things like whether there were any known issues with the property. Since you mentioned it's been 12 years since the last appraisal, the market dynamics in your area have probably changed significantly. Also, if your father made any improvements or if there were any problems with the house around the time he passed (like needing a new roof or having foundation issues), make sure the appraiser knows about these. They can affect the FMV determination either positively or negatively, and you want the most accurate picture possible for your stepped-up basis. The good news is that stepped-up basis really is designed to help heirs avoid being penalized for appreciation that happened during the original owner's lifetime. Getting that current appraisal is definitely the right move - it protects you and gives you solid documentation if the IRS ever has questions.

I'm dealing with a very similar situation right now after my grandmother passed away last month. One thing that's been really helpful is keeping a detailed timeline of everything - when she passed, when we started probate, when we got the appraisal, etc. The estate attorney we're working with emphasized that the stepped-up basis date is locked in at the date of death, regardless of when probate closes or when you actually get possession of the property. So even though we're still months away from completing probate, we got the appraisal done as soon as we could to establish that FMV. Something else to consider - if there are multiple heirs, make sure everyone is on the same page about the appraisal and sale timeline. We initially had some disagreement in our family about whether to sell quickly or hold onto the property, but once we understood how capital gains would work with the stepped-up basis, it made the decision much clearer. The tax implications really do favor selling sooner rather than later if you don't plan to keep the property long-term. Every month you hold it after the date of death is potentially more capital gains you'll owe when you eventually sell.