I'm dealing with code 474 on my transcript right now too, and reading through everyone's experiences here has been really reassuring. It's frustrating when you're waiting for money you need, especially for medical expenses like you mentioned. From what I've gathered from this thread and my own research, the key things to remember are: • This is specifically for Injured Spouse processing - your refund is being manually reviewed to separate what belongs to each spouse • The timeline is typically 11-14 weeks from filing, though some people have reported shorter or longer waits • The IRS won't provide much communication during this time, which is the most stressful part One thing I'd add that hasn't been mentioned much - if you filed jointly but didn't submit Form 8379 (Injured Spouse Allocation), definitely call the IRS to make sure this code isn't an error. Sometimes returns get flagged incorrectly. Also, since you mentioned medical expenses, you might want to contact the Taxpayer Advocate Service if you're facing financial hardship. They can sometimes help expedite processing in urgent situations, though there's no guarantee. Hang in there - the waiting is brutal but you will get your portion of the refund eventually!

I went through code 474 last year and completely understand your frustration, especially when you're counting on that refund for medical expenses. The waiting period is really tough because there's so little communication from the IRS during the process. Here's what I learned from my experience: • Code 474 means your refund is on hold for Injured Spouse processing - the IRS is manually determining how to split the refund between spouses when there's a debt offset involved • The timeline is typically 11-14 weeks, but I've seen it vary from 8-16 weeks depending on the complexity • Your transcript will update weekly (usually overnight between Sunday-Monday), so checking daily won't show changes • The "Where's My Refund" tool won't be very helpful during this period since your return is in specialized processing A few practical tips: • If you didn't file Form 8379 with your return, call the IRS to verify this isn't an error • Keep records of which income/payments belong to which spouse in case they need documentation • Consider reaching out to the Taxpayer Advocate Service (1-877-777-4778) if your medical expenses create a financial hardship - they may be able to help The lack of updates during this process is maddening, but you will eventually receive your portion of the refund. In my case, it took 13 weeks and I received about 60% of the original refund amount. Hang in there!

Thanks for asking this question - I was in the same boat last year! The Box 14 HSA amount is just your employer tracking your payroll contributions, but here's something I learned that might help: make sure you have records of ALL your HSA contributions for the year, not just what's in Box 14. I made the mistake of only looking at my W-2 and missed some direct contributions I made to my HSA account outside of payroll. When you get to the HSA section in TaxFreeUSA, you'll need to enter your total contributions from all sources. Check your HSA account statements or year-end summary from your HSA provider - they usually send a form showing all deposits made during the tax year. Also, keep in mind that if you changed jobs during the year and had HSA contributions at multiple employers, you'll need to add up all the Box 14 amounts from each W-2. The software will help you calculate if you're under the contribution limits, but having all your documentation ready makes the process much smoother!

Great question! I ran into this exact same issue when I first started with an HSA. The Box 14 entry showing "HSA $2,850" is basically your employer's way of tracking how much you contributed to your HSA through payroll deductions during the year. Here's what you need to know: those contributions were already made with pre-tax dollars, which means your taxable wages (Box 1) are already reduced by that $2,850. So you've already gotten the tax benefit! In TaxFreeUSA, you'll need to navigate to the HSA section (usually under Health Savings Accounts or similar). The software will generate Form 8889 for you. You'll enter that $2,850 amount along with any other HSA contributions you might have made directly to your account outside of payroll. The key thing is that you're not getting an additional deduction for the Box 14 amount since it was already pre-tax. You're just properly reporting it. Make sure to check if you have any employer contributions too - those would show up in Box 12 with code "W" if they exist. TaxFreeUSA should walk you through this pretty smoothly once you find the right section. Don't stress too much - HSAs are actually one of the more straightforward tax-advantaged accounts to deal with!

Has anyone worked with a qualified personal residence trust (QPRT) instead of a regular irrevocable trust? I'm wondering if the basis rules are different with that structure.

This is such an important consideration that many people overlook when setting up irrevocable trusts! I made this mistake with my father's trust several years ago - we didn't properly structure it as a grantor trust, so when we sold his property after his passing, we ended up with a much higher capital gains tax bill than expected. One thing I'd add to the excellent advice already given: make sure your estate planning attorney specifically includes language in the trust that retains certain powers for your mom (like the power to substitute assets of equal value, or administrative powers) that will ensure grantor trust status under IRC Section 675. These powers don't affect the irrevocable nature for estate planning purposes but are crucial for maintaining the step-up in basis. Also, consider having the trust document reviewed periodically. Tax laws can change, and you want to make sure the trust continues to qualify for the tax treatment you're expecting. The potential tax savings from getting the step-up in basis (in your case, potentially avoiding capital gains on over $245,000 of appreciation) is definitely worth the extra planning effort upfront!

Just a quick tip - if you're doing a large Roth conversion, consider splitting it between tax years (December 2025 and January 2026) to spread the tax impact. Might help with your cash flow for tax payments. I did this last year and it was way easier to manage the tax hit. Especially helpful since the safe harbor rules reset each tax year.

Great question about catch-up payments! I went through something similar last year. You absolutely can make a catch-up payment to help with safe harbor, but keep in mind that the IRS calculates underpayment penalties on a quarterly basis. So if you make a larger payment now, it will help you avoid penalties for Q3 and Q4, but won't eliminate any penalties that may have already accrued for Q1 and Q2 if you underpaid those quarters. For your Roth conversion strategy, you're on the right track. If you can hit that 110% safe harbor threshold through your regular estimated payments (including any catch-up you make), then yes, you can wait until April 15, 2026 to pay the additional tax from the conversion without penalty. One thing to consider - since you mentioned your income fluctuates with the Roth conversion happening later in the year, you might also want to look into the annualized income method when you file. It can sometimes work out better than the equal payment safe harbor, especially when you have a large income spike late in the year. The key is making sure your total payments (withholding + estimated) hit 110% of last year's tax liability. Whether you get there through equal quarterly payments or a catch-up payment, the IRS is generally satisfied as long as you meet that threshold.

I went through a very similar situation last year when I wanted to help with my neighbor's daughter's private school tuition. After consulting with my CPA, here's what I learned: The direct payment to the school (as Luca mentioned) ended up being the cleanest approach for me. Even though kindergarten tuition might be under the $18k gift tax threshold, paying directly to the institution means it doesn't count against your annual exclusion at all - which preserves that $18k for other gifts you might want to make to the family. One thing I wish I'd known earlier: some private schools have "angel donor" programs where you can contribute to a fund that awards need-based scholarships. While you can't guarantee your specific friends will receive it, schools often work with donors to ensure their contributions align with their intentions within legal boundaries. Also, don't overlook the tax benefits of simply claiming the child as a dependent if the family qualifies and agrees - though this gets complicated with custody arrangements. The emotional satisfaction of helping this family is probably worth more than any tax deduction anyway. Sometimes the simplest approach (direct payment) is the best one, even without the tax benefit.

I've been following this thread with interest because I dealt with something very similar when I wanted to help fund a scholarship at my local community college. One approach that worked well for me was creating what's called a "field of interest" fund through my local community foundation. Essentially, you can establish a fund that supports education in your specific geographic area or for students meeting certain broad criteria (like "students facing financial hardship in [your city]"). The community foundation handles all the administrative work, ensures compliance with tax regulations, and awards scholarships based on legitimate selection criteria. The beauty of this approach is that you get the full charitable deduction since you're donating to a 501(c)(3) organization, but you can influence the focus area in a way that increases the likelihood your friends' child could benefit in the future (though there's no guarantee). Most community foundations will work with you to design criteria that align with your charitable intent while maintaining legal compliance. The minimum to establish such a fund varies by foundation but is often around $10,000-$25,000. If that's beyond your immediate budget, many foundations also have existing education funds you can contribute to that serve similar purposes. This won't help with this year's kindergarten costs, but it could be a long-term solution that provides ongoing educational support to kids in similar situations in your community.