Just a heads up - make sure the financial institution that issued the 1099-R has your correct address and personal info. I had a similar inherited IRA situation last year but never received the 1099-R because it went to my dad's old address. Ended up with a CP2000 notice from the IRS and had to sort it out after the fact. Also, keep records of when you closed the account and withdrew the funds. The IRS sometimes gets confused with inherited IRAs when the distribution code doesn't match what they expect to see.

I went through something very similar when I inherited my father's 401(k) that was rolled into an IRA. A few additional things to keep in mind: First, make sure you have documentation showing you were the proper beneficiary. Sometimes the IRS will ask for proof of your relationship to the deceased and confirmation that you were designated as the beneficiary on the account. Second, if your grandmother had already started taking Required Minimum Distributions (RMDs) before she passed, there might have been a remaining RMD for that year that needed to be satisfied. Since you withdrew the entire amount, this shouldn't be an issue, but it's worth knowing for future reference. Finally, consider the timing of when you report this income if you're planning to get married next year. Since you're filing as single this year, your tax brackets will be different than if you were married filing jointly. The $7,200 might actually be taxed at a lower rate this year depending on your other income sources. The distribution code 4 is definitely correct and will save you from the early withdrawal penalty. Just double-check that TurboTax is calculating your tax correctly - the software should automatically recognize the code and not apply the 10% penalty.

I'm in Maryland too and just got my refund yesterday after 22 days in processing! I know the wait feels endless when you're checking every day. One thing that helped me was creating a simple calendar reminder to check only once every few days instead of obsessively refreshing. The Maryland system is actually pretty reliable - they just don't update their status very frequently. Since you're at 15 days, you're getting close to that typical 2-3 week window most people seem to experience. Try to hang in there a bit longer before calling, but if you hit 30 days definitely give them a ring!

I'm also dealing with the Maryland refund waiting game right now - currently on day 11 of processing status. Reading through everyone's experiences here is both reassuring and nerve-wracking at the same time! It sounds like most folks are getting their refunds somewhere in that 15-25 day range, which gives me hope. I've definitely been guilty of checking the "Where's My Refund" tool way too often, but I'm going to try that calendar reminder approach someone mentioned. Thanks to everyone for sharing their timelines - it really helps to know we're all in this together and that the wait is pretty normal for Maryland!

Settlement dates can definitely be confusing, especially when you're counting on that money! From my experience, the settlement date is more of a banking term than an IRS thing. Once the IRS sends your refund, it's really up to your bank's policies on when they release the funds. Since you're with Wells Fargo, you might actually get lucky - they sometimes release tax refunds a day or two before the official settlement date, especially if it's a straightforward direct deposit from the IRS. The "pending" status you're seeing is actually a good sign that the money is on its way. My advice would be to check your account first thing in the morning - sometimes these deposits post overnight even before the settlement date. And definitely give Wells Fargo a call to ask about their specific policy for IRS refunds. Each bank handles it differently, but many will give you access before that April 17th date. Hope you get your money sooner than expected!

I went through this exact same thing last year and it drove me crazy! The settlement date is basically just when the transaction officially clears between banks - it doesn't always mean you have to wait until then to access your money. With Wells Fargo specifically, I've noticed they usually make tax refunds available 1-2 business days before the settlement date. Since yours shows 4/17 (Thursday), there's a decent chance you might see it Tuesday or Wednesday. They tend to process these overnight, so definitely check your account first thing in the morning. One tip: if you have the Wells Fargo app, sometimes the money shows up there before it appears if you check online. Also, their customer service can tell you their exact policy for your account type if you call the number on the back of your card. The waiting is the worst part, but once you see that "pending" status, the money is basically guaranteed to hit your account. Just might be sooner than that settlement date suggests!

This is exactly why divorce and taxes get so complicated! Your friends' accountant is being smart about timing. Here's the key issue: while married filing jointly, they can exclude up to $500k in capital gains from their primary residence. But once divorced, they each get their own $250k exclusion. The tricky part is the "use test" - both spouses need to have used the home as their primary residence for 2 of the last 5 years before the sale. If one moves out during divorce proceedings and they sell while still married, they might lose the full $500k exclusion if the moved-out spouse doesn't meet the use test. By waiting until after divorce and having proper language in the divorce decree (as others mentioned), they can ensure both qualify for their individual $250k exclusions. With $450k in gains, this covers them completely. Also consider: if their income drops after divorce (filing separately vs jointly), they might have better options for using those rental property losses. The passive activity loss rules at higher income levels can be brutal.

Another angle to consider - if they're selling multiple properties in the same year, they might want to look into a 1031 exchange for the rental properties instead of taking the losses all at once. Even though they're divorcing, they could potentially defer the capital gains on the rentals by exchanging into new investment properties. This could simplify the tax planning around the primary residence sale since they wouldn't be trying to coordinate the rental losses with the home sale timing. Plus, if one spouse wants to stay in real estate investing post-divorce, the 1031 could set them up better for the future. Of course, 1031 exchanges have their own complexity and strict timing requirements, but it might be worth discussing with their accountant as an alternative strategy. The key would be making sure the exchange is completed before the divorce is finalized so they can act as a unified entity for the exchange process.

Has anyone mentioned state taxes yet? Remember you'll need to handle those too! Some states have different rules for dependents filing their own returns.

Just wanted to add something that might help with your photography business - make sure you're tracking ALL your business expenses from day one! Things like camera equipment, editing software subscriptions, travel to photo shoots, even a portion of your phone bill if you use it for business calls can be deductible. I started a small videography business at 19 while my parents still claimed me, and I wish someone had told me to keep better records earlier. Even small expenses add up and can significantly reduce your taxable self-employment income. Get a separate bank account for your photography business if possible - it makes tracking so much easier come tax time. Also, don't forget about potential business use of your home if you do editing work there. You might be able to claim a home office deduction even while living with your parents, though the rules are pretty specific about exclusive business use of the space.