Has anyone tried just going to a different Walmart? I had a similar issue with my PayPal prepaid card where one Walmart charged tax on the reload fee but another one 5 miles away didn't. Turns out it was just misconfigured at the first store. Maybe try reloading at different locations and see if the tax is consistent? Could save you a lot of hassle if it's just one store's mistake.

This is a frustrating situation that highlights how inconsistent retail tax systems can be. From what I've seen, the issue often comes down to how different prepaid products are classified in the merchant systems. One thing that might help is documenting exactly when this started happening with your Bluebird card. If Walmart recently changed how they categorize Bluebird reloads in their system, that could explain the sudden appearance of sales tax. Keep your receipts and note the dates - this pattern could be useful evidence if you need to pursue a refund. You might also want to check if the tax is being applied based on your location versus the card type. Some states have different rules for different types of financial services, and it's possible that Bluebird falls under a different classification than other prepaid cards in Texas tax code. The suggestions others made about contacting your state tax authority are solid. Texas Comptroller's office should be able to give you a definitive answer about whether reload fees should be taxed, and having that official confirmation will make any conversation with Walmart much more productive.

Does anyone know if other tax software handles this Section 121 exclusion for former primary residences better than FreeTaxUSA? I have a similar situation but haven't started my taxes yet.

I went through this exact same situation last year with FreeTaxUSA and it was definitely tricky to navigate. After trying several approaches, I found that Mei Zhang's workaround actually works well, but I'd add one important tip: make sure to print out and review your final forms before filing. When I used the "Sale of Home" section with my adjusted basis (original price minus depreciation taken), FreeTaxUSA correctly generated both Schedule D for the capital gain eligible for Section 121 exclusion and Form 4797 for the depreciation recapture. The key is being very careful with your basis calculation. I also recommend keeping detailed records of all the depreciation you claimed during the rental period - you'll need this for the recapture calculation. The IRS requires you to recapture depreciation even if you didn't claim it, so make sure you're accounting for all allowable depreciation during the rental years. One last thing - if your gain after the Section 121 exclusion is substantial, consider whether you need to make estimated tax payments since the depreciation recapture is taxed at 25% rather than the lower capital gains rates.

Don't forget that if your mother was married, her spouse might have special filing options. They can file jointly for the year of death if they haven't remarried before the end of the tax year. This often results in a lower overall tax burden.

I went through this exact situation with my father last year and want to emphasize a few important points that might help: First, don't stress too much about the "Personal Representative" signature issue while probate is pending. The IRS is generally understanding about this timing gap, and you can always file an amended return later if needed once you're officially appointed. Second, regarding the estimated payment with your extension - err on the side of caution and pay a bit more rather than less. The IRS charges penalties and interest on underpayments, but they'll refund any overpayment when you file the actual return. Given your mom's history of owing $11k in 2021, I'd estimate conservatively high for 2022. One thing I wish someone had told me: keep meticulous records of everything you pay on behalf of the estate, including any tax payments. You can reimburse yourself from estate funds later, and good documentation makes the probate process much smoother. Also, consider whether your state has any specific requirements for deceased taxpayer filings - some states have different rules than the federal process. You're doing the right thing by being proactive with the extension. Better to file late with an extension than miss the deadline entirely.

If you do any work from home for this 1099 income, dont forget to track utility bills, internet, part of your rent or mortgage that can be deducted as home office. And keep all reciepts for anything you buy for the work! I deducted a new laptop and even office furniture last year. The IRS let's you write off a lot more than most people realize.

Another strategy to consider is bunching deductions if you're close to itemizing. Since you have this unexpected 1099-MISC income, you might want to accelerate some deductible expenses into this tax year - things like charitable donations, state tax payments, or medical expenses if you're close to the threshold. Also, don't overlook the self-employment tax aspect. You'll owe SE tax on that $8,500 (about 15.3%), but you can deduct half of it as an above-the-line deduction. And if you set up a business entity like an LLC, you might have additional planning opportunities for future years. One last thing - if this consulting work might continue, consider setting up a separate business checking account and getting a business credit card. Makes tracking expenses so much easier and looks more professional if you ever get audited.

I'm currently in week 14 of waiting for my amended return processing and can relate to your frustration about cash flow impact. One thing I discovered that might help is checking if your state offers any emergency business assistance programs for independent contractors - some states have bridge funding or micro-loans specifically for situations like this where you're waiting on legitimate tax refunds. Also, if you haven't already, make sure you're checking your IRS online account transcript (not just the "Where's My Amended Return" tool) as it sometimes shows status changes a few days earlier. The transcript will show specific transaction codes that give you a better picture of what's happening behind the scenes. I know it's frustrating when you did everything correctly - the system just wasn't designed with small business cash flow in mind. Hang in there!

I've been through this exact scenario twice - once in 2022 and again last year. The 60-day notice is essentially the IRS saying "we acknowledge your paperwork exists" but doesn't reflect the actual timeline. My 2022 amendment took 23 weeks total, and my 2023 one took 19 weeks. Here's what I learned that might help: First, set up IRS online account access if you haven't already - the transcript updates are more reliable than the "Where's My Amended Return" tool. Look for your Account Transcript, not the Return Transcript. You'll want to watch for transaction code 971 (notice issued) followed eventually by code 846 (refund issued). Second, document everything with dates - when you filed, when you got the 60-day letter, etc. This becomes crucial if you need to escalate later. Third, as a fellow independent contractor, I totally get the cash flow stress. Consider reaching out to SCORE or your local Small Business Development Center - they sometimes have resources for short-term business financing while waiting on legitimate refunds. The waiting sucks, but hang in there. The money will come, just probably not within 60 days despite what the letter implies.