Has anyone used a Backdoor Roth IRA in this situation? My income is too high for regular Roth contributions, but my financial advisor mentioned this strategy with my severance.

Another option to consider is opening a Solo 401(k) if you do any freelance or consulting work while receiving severance. Even small amounts of self-employment income can qualify you, and the contribution limits are much higher than IRAs - up to $70,000 for 2025 if you're under 50. I was in a similar situation and started doing some freelance work on the side. The Solo 401(k) allowed me to shelter a significant portion of both my freelance income AND make additional contributions beyond what I could with just an IRA. You can contribute both as the employee (up to $23,500) and as the employer (up to 25% of net self-employment income). Just make sure to set it up before December 31st if you want to make contributions for this tax year. The paperwork is pretty straightforward and many brokerages offer them with minimal fees.

I've been following this thread as someone who also struggled with Line 20 when I first started doing my own taxes. What really helped me understand it was realizing that Line 20 is intentionally designed to be blank for most people! As others have mentioned, since you're doing Uber and delivery work as an independent contractor, all your business expenses (mileage, phone bills, delivery equipment, etc.) belong on Schedule C, not on any part of Schedule 1. This is actually much better for you tax-wise because Schedule C expenses reduce your business income before it gets subject to both income tax and self-employment tax. The key insight is that Line 20 is truly a "miscellaneous" line for weird edge cases. If you're not dealing with jury duty pay repayment, performing artist expenses, or other highly specific situations, then leaving Line 20 blank is exactly what you should do. Don't let the tax forms intimidate you - they seem overwhelming at first, but most lines simply won't apply to your situation. Focus on getting your Schedule C accurate for your gig work expenses and reporting your W-2 income correctly, and you'll have covered the important stuff. Line 20 being blank doesn't mean you missed anything!

I totally get your confusion about Line 20! I went through the exact same thing last year when I switched from using a tax preparer to doing my own return. As everyone else has mentioned, Line 20 is really just a catch-all for unusual situations that don't have their own specific lines elsewhere on the tax forms. Since you're doing Uber and delivery work as an independent contractor, here's what you need to know: all your business-related expenses (car expenses, phone bills, delivery bags, gas, etc.) should go on Schedule C, not anywhere on Schedule 1. This is actually better for you because Schedule C expenses reduce both your income tax AND your self-employment tax. For your W-2 job income, that just gets reported directly on Form 1040. Line 20 would only come into play if you had something really unusual like jury duty pay that you had to return to your employer, certain performing artist expenses, or repayment of unemployment benefits. Since you mentioned you're doing gig work and have a W-2 job, you almost certainly don't have any of these rare situations. Don't stress about trying to find something to put on Line 20 - if it doesn't apply to you, just leave it blank or enter zero. Focus your energy on making sure your Schedule C is accurate for your gig work, as that's where your real tax savings will be!

Has anyone used TurboTax or H&R Block for filing estate tax returns? I'm wondering if the software can handle Form 1041 or if I should just hire a professional.

I went through this exact situation when my mother passed away last year. Based on what you've described, you'll definitely need to file Form 1041 since the estate had income from the house sale and the CD interest that exceeded $600. A few important points to remember: 1. The house sale will likely qualify for stepped-up basis, meaning the estate's "cost" for tax purposes is the fair market value on the date of your dad's death, not what he originally paid. This could significantly reduce or eliminate the taxable gain. 2. Make sure to get a professional appraisal of the house as of the date of death if you don't already have one - you'll need this to establish the stepped-up basis. 3. The estate's first tax year can end on December 31st of the year of death, or you can choose a fiscal year ending up to 12 months after the date of death. This gives you flexibility on when the first return is due. 4. Don't forget that if you distribute any income to beneficiaries during the tax year, you'll need to prepare Schedule K-1s for them. The good news is that with the stepped-up basis, you may owe very little or no tax on the house sale. I'd recommend consulting with a CPA who has estate experience, especially for the first year - the peace of mind is worth it.

I just want to echo what everyone else has said here - this is almost certainly a scam! The fact that they're directing you to a non-.gov website is the biggest red flag. I fell for something similar a few years ago and learned the hard way. One thing I haven't seen mentioned yet is that you can actually check if you owe the IRS any money for FREE by creating an account on the official IRS website (irs.gov) and looking at your "Tax Account" section. It will show you exactly what you owe, if anything, and any payments you've made. This way you'll know for sure if there's a legitimate debt before you even call them. Also, keep that fake letter as evidence when you report it to the IRS fraud department. They use these samples to help identify and shut down scam operations. Stay safe out there!

I'm dealing with something very similar right now! Got a letter yesterday with a CP503 notice code claiming I owe $3,247 from my 2022 return. Like yours, it had a suspicious website (irs-taxresolution.net) instead of the official irs.gov site. The letterhead looked convincing but something felt off about the whole thing. After reading through all these responses, I'm definitely not going to that website or calling their number. Going straight to the official IRS website to create an account and check my actual tax records. It's so frustrating that scammers are getting this sophisticated - they're really preying on people's fear of the IRS. Thanks to everyone who shared their experiences and tips here. This thread is going to save a lot of people from falling for these scams!

Is anyone else confused about why the OP received $1000 in distributions when their 1% share of the partnership showed a $5100 loss? How can the partnership distribute cash if it's operating at a loss?

This is a great example of how confusing K-1s can be for new partners! The key thing to remember is that partnership accounting follows the "conduit" theory - the partnership doesn't pay taxes, it just passes through its income and losses to the partners. Your $1,000 in distributions should be reported in Box 19 (code A) of your K-1, and these reduce your basis in the partnership rather than creating taxable income. The $5,100 loss you're seeing is your 1% share of the partnership's total loss, which likely includes depreciation on the rental property. Since you mentioned you're completely passive in this investment, your losses are subject to the passive activity loss rules under Section 469. This means you can only use these losses to offset passive income from other sources. If you don't have other passive income, the losses get suspended and carry forward until you either generate passive income or dispose of your entire interest in the partnership. Make sure to keep good records of your basis and any suspended losses - you'll need this information for future tax years and eventually when you sell or dispose of your partnership interest.