Does anyone have experience with how the R&D credit works for pass-through entities like an LLC? My accountant mentioned something about our company needing to process it at the entity level first and then it flows to our personal returns, but I'm confused about the mechanics.

Just wanted to add a practical tip that might help - make sure to keep detailed project documentation throughout the year, not just at tax time. The IRS loves contemporaneous records for R&D credit audits. We learned this the hard way when we got selected for review. Having emails, technical specifications, and meeting notes that showed we were genuinely facing technical uncertainty and experimenting with solutions made all the difference. The IRS agent specifically mentioned that our real-time documentation was much more credible than trying to recreate everything after the fact. For your wife's software development company, I'd recommend keeping records of any technical challenges encountered, different approaches tried, and why certain solutions didn't work. Even failed experiments count as qualified research expenses if they were part of a systematic process to eliminate technical uncertainty. The combination of good documentation plus being able to take both the wage deduction AND the credit makes this one of the most valuable tax benefits for development companies. Just don't forget that the credit can carry forward for 20 years if you can't use it all in the current year!

Just adding a data point - I also never received my IP PIN this year despite getting it fine for the past two years. I ended up using the online tool mentioned above and was able to retrieve it. The system asked for info from my previous year's tax return for verification, so have that handy. Took about 10 minutes total. Definitely better than trying to call!

This thread has been incredibly helpful! I'm dealing with a similar situation where my IP PIN never arrived this year. Based on all the suggestions here, it sounds like the online "Get an IP PIN" tool is definitely the best first option to try. For anyone else reading this who might be in the same boat - it's reassuring to know this is a widespread issue this year and not just isolated cases. The IRS system seems to have had some delivery problems with the IP PIN letters. I'm going to try the online retrieval tool first thing tomorrow morning, and if that doesn't work, I'll call the specialized Identity Protection unit at 800-908-4490. Thanks everyone for sharing your experiences and solutions - this is exactly the kind of community help that makes dealing with tax issues less stressful!

I work in payroll and deal with this regularly. One thing nobody's mentioned - if the employee had any accrued vacation payout or final wages paid AFTER death, those should be treated differently tax-wise. Those payments go on a 1099-MISC to the estate or beneficiary, not on the W-2. Also, ask for the death certificate copy for your records - you'll need it. In Texas, if they're claiming common law marriage, have them complete a Declaration of Informal Marriage form (it's a Texas state form) if they haven't already filed one with the county clerk.

I'm sorry for your loss and the difficult situation you're navigating. This is definitely a complex area that requires careful attention to both federal and Texas state requirements. A few additional points that might help: **Timing considerations:** Since it's already December and the husband is asking about the W-2, you might want to proactively communicate the standard January 31st deadline for W-2 distribution. This can help manage expectations while you're gathering the proper documentation. **Documentation for common law marriage:** In addition to what others mentioned, Texas recognizes common law marriage if three elements are met: (1) they agreed to be married, (2) lived together in Texas as spouses, and (3) represented themselves publicly as married. Evidence could include joint utility bills, insurance policies listing each other as spouses, joint bank accounts, or sworn affidavits from friends/family who knew them as a married couple. **Estate considerations:** Even if you determine they weren't legally married, the W-2 still needs to be issued - it would just go to whoever is handling the estate (could be a parent, sibling, or court-appointed administrator). **Record keeping:** Make sure to document whatever verification process you use for your company's records. This protects you if questions arise later from other family members or during any potential audit. Consider reaching out to your company's legal counsel or tax advisor if you have access to one, especially given the complexity around the marriage status verification.

Just a heads up to everyone having PIN problems - if you end up missing the filing deadline because of PIN issues, make sure you file for an extension using Form 4868! This gives you until October to file your actual return while you sort out the PIN stuff. The extension doesn't give you more time to pay though, so you should still estimate and pay any taxes you owe by the regular deadline to avoid penalties and interest.

Just wanted to add another option for folks dealing with PIN issues - if you're in a rural area or don't have reliable internet, you can also file a paper return without needing your IP PIN at all. You'll just need to include Form 14039 (Identity Theft Affidavit) with your paper return to explain why you can't provide the PIN electronically. The paper filing takes longer to process (usually 6-8 weeks vs 2-3 weeks for e-filing), but it's a solid backup option if you absolutely can't recover your PIN and are running up against the deadline. Just make sure to mail it certified mail so you have proof it was sent on time. This saved me two years ago when I had a similar PIN nightmare right before the deadline!

I'm so very sorry for the loss of your father, Amina. What you're going through - navigating complex tax issues while still processing your grief - takes tremendous strength, and you're handling it with such thoughtfulness. The community has provided you with excellent guidance. Just to reiterate the most important points: you'll owe regular income tax on the inherited HSA amount, but fortunately the 20% penalty does NOT apply to death distributions like yours. The critical piece is determining when you actually received and deposited that check. Since your father passed in September 2021, if you received the distribution in late 2021, you'll need to report it on your 2021 tax return (possibly requiring an amended filing). If you received it in 2022, it goes on your current return. Your bank statements will show the exact deposit date - look for transactions labeled something like "HSA Distribution" or with the name of the financial institution that managed your father's account. When filing with FreeTaxUSA, make absolutely sure to select the option for "death distribution" or "inherited HSA" when entering your 1099-SA information. This is what prevents the software from incorrectly applying that 20% penalty. If this feels overwhelming - which would be completely understandable - please consider consulting with a tax professional who has experience with inherited accounts. Sometimes during life's most difficult transitions, having expert guidance provides invaluable peace of mind. You're clearly honoring your father's memory by handling his affairs with such care and integrity. Take this one step at a time, and know that it's okay to ask for help when you need it. This community is here to support you.

I'm so deeply sorry for the loss of your father, Amina. Losing a parent is one of life's most difficult experiences, and having to navigate complex tax situations while you're still grieving makes it even more overwhelming. The community here has given you absolutely excellent advice that I want to reinforce. The key takeaways are: 1. You will NOT owe the 20% penalty that normally applies to HSA withdrawals - this penalty doesn't apply to death distributions to beneficiaries 2. You WILL owe regular income tax on the full amount of the inheritance 3. The timing of when you received and deposited the check determines which tax year you need to report it on The most critical step right now is figuring out exactly when you deposited that check. Check your bank statements from late 2021 through early 2022 - the deposit will likely show up with a description like "HSA Distribution" or the name of your father's HSA administrator. That date determines whether you need to file an amended 2021 return or include it on your 2022 return. When you use FreeTaxUSA, be very careful to select the option indicating this was a death distribution or inherited HSA when entering your 1099-SA. This is crucial to prevent the software from incorrectly applying the 20% penalty. Please don't feel like you have to handle this alone. If it feels overwhelming, consulting with a tax professional who has experience with inherited accounts could provide tremendous peace of mind during this difficult time. You're handling your father's affairs with such care and responsibility - that's a beautiful tribute to his memory and the values he instilled in you. Take this one step at a time, and remember this community is here to support you through this process.