Did you claim EIC or child tax credit? Those usually trigger more reviews

I had the exact same thing happen to me last month! 570 code with no notices or letters. I was panicking thinking something was wrong, but it turned out to be just a routine review. Mine cleared after about 3 weeks and I got my refund shortly after. The key is to just be patient - I know it's frustrating when you're waiting for your money, but in most cases the 570 resolves on its own. Keep checking your transcript weekly rather than daily to avoid driving yourself crazy!

Aaron, based on all the discussion here, it really sounds like MFS is your best bet given your PSLF timeline. Just wanted to add one more consideration - make sure you document everything when you switch filing statuses! Keep copies of your tax returns, any correspondence with your loan servicer, and track your qualifying payment counts carefully. I'd also suggest reaching out to your loan servicer BEFORE you file to let them know you're changing from single to MFS. This way they can update your payment calculation as soon as your new tax info is available, rather than you having to chase them down later like some folks mentioned. With only 12-15 months left until forgiveness, you're in the home stretch! The temporary payment reduction from filing separately will definitely be worth more than the tax benefits you're giving up. Just make sure both you and your wife understand which deductions each of you can claim so there are no surprises come tax time.

Aaron, based on all the great advice here, filing MFS with your wife claiming the house definitely seems like the right move for your situation. The $960 difference ($1,389 vs $425) is significant, especially with PSLF so close. One thing I'd add - make sure you submit your updated tax info to your loan servicer ASAP after filing. They often take 2-3 months to process the change, and you want to maximize those lower payments before forgiveness kicks in. Also, keep detailed records of everything since servicers can be... challenging to work with. Since you're in Pennsylvania, the state tax impact should be minimal given their flat rate structure, but definitely double-check those numbers too. You're in a great position with PSLF almost done - this filing strategy should help you squeeze out every bit of savings in these final months!

I'm sorry for your loss, Brian. Navigating inherited IRAs is complicated even under normal circumstances, let alone while you're grieving. One thing I want to emphasize that others have touched on is the importance of understanding your current tax situation before making any distribution decisions. With your $110k income, you're likely in the 22% federal tax bracket, so any IRA distributions would be taxed at that rate (or higher if they push you into the next bracket). Here's a practical approach to consider: Calculate what your taxable income looks like in different scenarios. For instance, if you took $6,700 per year (1/10th of the inheritance) for 10 years, how would that affect your overall tax liability versus taking larger amounts in years when you might have lower income? Also, since you're in California, you'll want to factor in the 9.3% state income tax rate on those distributions as well. So you're potentially looking at around 31% total tax on any withdrawals (22% federal + 9.3% state), which makes timing even more important. One strategy some people use is to take smaller distributions in high-income years and larger ones if they ever have a year with reduced income - like if you change jobs, take unpaid leave, or have other life changes that temporarily lower your earnings. The 10-year flexibility really is your friend here. Don't feel pressured to make any immediate decisions while you're still processing everything else.

I'm really sorry for your loss, Brian. Losing a parent is incredibly difficult, and having to navigate complex financial matters on top of grieving makes it even more challenging. Everyone here has given you excellent advice about the tax implications and strategic planning. I wanted to add one more practical consideration that might help: since you mentioned you weren't financially prepared for this situation, make sure you're setting aside money for the taxes as you take distributions. With the combined federal and California tax rates Paolo mentioned (~31%), if you decide to take a $10,000 distribution, you'll want to set aside roughly $3,100 for taxes. This can catch people off guard if they're not planning for it upfront. Also, consider whether you want to have taxes withheld automatically from the IRA distributions or if you prefer to pay estimated quarterly taxes. Some people find it easier to have the custodian withhold 25-30% for taxes right when they take the distribution, so they're not tempted to spend that portion and then scramble to pay taxes later. The flexibility everyone mentioned really is key here. Take your time to process everything and don't feel rushed into making any immediate decisions. The 10-year window gives you plenty of time to plan strategically once you're ready to focus on the financial aspects. Take care of yourself first - the tax planning can wait until you're in a better headspace to tackle it.

Anyone know if leasing vs. financing makes a difference for depreciation on heavy vehicles? My dealer is pushing me to lease instead of finance.

Just wanted to add some clarity on the financing vs outright purchase question since I went through this exact scenario last year with my concrete business. You definitely can take 100% bonus depreciation on a financed heavy vehicle (over 6,000 lbs GVWR). The key thing to understand is that when you finance a vehicle, you're still the legal owner - the lender just has a security interest (lien) in it until you pay it off. For tax purposes, ownership is what matters, not how you paid for it. I financed an $78,000 F-450 dump truck and was able to deduct the full amount in year one using bonus depreciation. My accountant explained that the IRS views it as if you "borrowed money to buy an asset" rather than "renting an asset you don't own." Just make sure you: 1. Verify the GVWR is actually over 6,000 lbs (it should be on the door jamb sticker) 2. Use it more than 50% for business 3. Keep detailed mileage logs 4. Place it in service during the tax year you want to claim the deduction The cash flow benefit was huge for my business in year one, even though I'm still making monthly payments on the truck.

I found myself in this exact situation last year with my partnership. We dissolved in May 2023, and I was confused about whether to use 2022 or 2023 forms. I ended up filing the extension with Form 7004 and waiting for the 2023 forms to be released. It was annoying to have that hanging over my head for months, but in the end, it was the cleanest approach. The final return was accepted without issues once I filed it in January using the correct year forms. One tip I'd add - make sure you file final Schedule K-1s for each partner and clearly mark them as FINAL. Also remember to file any required state dissolution paperwork, which is separate from your tax obligations.

I went through this exact scenario with my LLC partnership that dissolved in August 2024. After calling the IRS and speaking with a tax professional, here's what I learned: You absolutely need to use the 2024 forms for your 2024 dissolution - using 2023 forms could create processing issues and potential penalties. The IRS considers this a 2024 tax year event regardless of when it occurred during the year. Here's my recommended timeline: 1. File Form 7004 by March 15, 2025 (the original due date) to get an automatic extension until September 15, 2025 2. Wait for the 2024 Form 1065 to be released (usually late December 2024 or January 2025) 3. File your final return using the 2024 forms During the waiting period, keep all your records organized and consider preparing a draft return using the 2023 forms just to identify any issues early. When the 2024 forms come out, you can quickly transfer everything over. Also don't forget - you'll need to distribute final Schedule K-1s to all partners and handle any state-level dissolution requirements separately. The wait is frustrating but it's worth doing it right the first time!