Don't forget to check if either partner had a negative capital account before the final distribution! This can create unexpected tax consequences. If one partner's capital account went negative during operations (meaning they took out more than they put in plus their share of profits), that negative balance is treated as income to that partner when the partnership dissolves. Also, make sure you file Form 8594 (Asset Acquisition Statement) if the partnership is selling any assets as part of the dissolution. And don't forget to file Form 966 to formally dissolve the entity with the IRS.

One more thing - check if either partner had any unreimbursed business expenses (UBE) they paid personally. These can be reported on Schedule E of their personal returns rather than being treated as capital contributions on the K-1. This is often better tax treatment since capital contributions don't directly reduce tax liability but UBEs can.

One practical thing to consider - are you planning to continue the business with Tony's heirs? If they inherited his 50% interest, you should review your operating agreement ASAP. Many partnership agreements have buy/sell provisions that trigger upon death. This could impact whether you even need to worry about the step-up basis if you're required to buy out their interest at the agreed value.

I'm sorry for your loss, Chris. This is a complex situation that requires careful planning beyond just the tax implications. One important point that hasn't been mentioned yet - you'll want to determine Tony's basis in his partnership interest at the time of death. His heirs will receive a stepped-up basis in their inherited partnership interest equal to the fair market value of that interest ($340,000 based on the 50% share of the $680,000 property value). However, this is separate from the partnership's election under Section 754. The stepped-up basis for the heirs applies to their partnership interest, while the Section 754 election creates a special basis adjustment for the partnership's assets. Also, consider the timing carefully. You have until the due date of the partnership return (including extensions) for the year of Tony's death to make the Section 754 election. But as others mentioned, check your operating agreement first - there may be mandatory buyout provisions that could change your entire approach. Given the complexity and the significant dollar amounts involved, I'd strongly recommend consulting with a tax professional who specializes in partnership taxation before making any elections or decisions.

Thanks for all the detailed responses everyone! This is super helpful as a first-time filer. I went ahead and checked out that "Where's My Refund" tool Ben mentioned and it's showing "Return Received" so far. I filed electronically with direct deposit about 10 days ago, so sounds like I'm still within the normal timeframe. One question though - I did claim some education credits for my college expenses. Based on what Caesar mentioned about certain credits causing delays, should I expect this to take longer than the standard 21 days? I'm not in a huge rush but it would be nice to know what to realistically expect. Also really appreciate the tip about Wednesday morning deposits Kara - I'll definitely keep that in mind once it gets approved!

Hey Marcus! Welcome to tax season! Based on my experience over the past few years, education credits like the American Opportunity Tax Credit or Lifetime Learning Credit typically don't cause major delays like EITC does. You should still be looking at roughly 2-3 weeks total processing time. Since you're already at 10 days and showing "Return Received," you're right on track. The education credits might add a few extra days for verification, but nothing like the automatic hold that happens with EITC. I'd expect to see your status change to "Refund Approved" within the next week or so. One thing I learned - the IRS tends to batch process returns with similar credits together, so education credit returns often get processed around the same timeframe. Keep checking that tracker every few days (but not obsessively - I made that mistake my first year!). You picked a good time to file too - January/February filers definitely get faster service than the April rush crowd. Sounds like you've got this adulting thing figured out pretty well!

Has anyone actually successfully claimed the Lifetime Learning Credit for Coursera courses before? I tried last year with TurboTax and it kept asking for a 1098-T which I didn't have. Ended up not claiming anything because I was worried about triggering an audit.

I actually went through this exact situation last year with my Coursera IT certificate! Here's what I learned: You absolutely can claim these expenses without a 1098-T. The key is documenting everything properly. I kept screenshots of my course enrollment showing the required computer specs, all my monthly payment receipts from Coursera, and the computer purchase receipt with a note explaining why it was needed for the course. For the Lifetime Learning Credit, what matters is that the course helps you acquire or improve job skills - which IT Help Desk training definitely does. The computer counts as a qualified expense if it's required for the course (not just convenient). I ended up claiming about $1,800 total between the course fees and my laptop. No audit issues, got the credit approved. Just make sure you can show the computer was actually required, not just a personal upgrade you wanted to make anyway. The IRS doesn't require a 1098-T for the Lifetime Learning Credit - they just want proof you paid qualified educational expenses. Keep those receipts organized and you should be fine!

I'm currently at week 6 with this exact same "additional review" message and finding this thread has been such a relief! It's incredible how widespread this issue is - clearly Illinois has some serious systemic problems with their tax processing this year. What really stands out to me from reading everyone's experiences is how the timeline seems pretty consistent: most people wait 8-16 weeks, never receive the mysterious letter they keep mentioning, and eventually get their refund without any explanation of what was actually being "reviewed." My refund is $2,100 which definitely fits the pattern others mentioned about larger amounts being held longer. The lack of transparency is what bothers me most. They basically say "we're reviewing something but won't tell you what, and maybe we'll contact you but maybe we won't" - it's like being stuck in bureaucratic purgatory with no way out except waiting indefinitely. Based on everyone's advice here, especially @Jacinda Yu's professional insight, I'm going to wait until the 12-week mark before trying to call or use one of those callback services people mentioned. At least now I have realistic expectations instead of checking the status obsessively every day wondering if I made some terrible mistake on my return. Thanks to everyone who shared their timelines and outcomes - this community support makes dealing with this mess so much more bearable!

I'm at week 5 with this exact same message and honestly, finding this thread has been such a relief! It's crazy how many of us are dealing with identical situations - definitely confirms this is a widespread Illinois system issue rather than problems with individual returns. My refund is $1,850, which fits right into that pattern everyone's mentioning about larger amounts being held longer. The most frustrating part is their whole "we'll send you a letter if we need something" approach when it seems like most people never actually receive any letter - they just eventually get their refund after months of waiting. What I find particularly annoying is how they specifically tell you NOT to contact them or send additional info, but then provide absolutely zero transparency about what's actually happening or realistic timelines. It's like they want to keep you in the dark while they hold onto your money. Based on all the experiences shared here, I'm going to follow the consensus and wait until the 12-week mark before trying to call or use one of those callback services. At least now I have realistic expectations (8-16 weeks seems to be the norm) instead of refreshing that status page every day hoping for some miracle update. Thanks to everyone who shared their timelines - this community support makes dealing with this bureaucratic nightmare so much more manageable! The Illinois tax system may be broken, but at least we're all in this together.