The key thing to remember is that the IRS calculates underpayment penalties on a quarter-by-quarter basis, not just your total for the year. So even if you're overpaid overall, you could still face penalties for specific quarters where you didn't meet the minimum requirements. However, there are some exceptions that might help in your situation. If your applied overpayment from last year is substantial enough, it might cover the required minimum for multiple quarters. The safe harbor rule generally requires you to pay 25% of your required annual amount each quarter (either 90% of current year tax or 100%/110% of prior year tax depending on your AGI). I'd recommend calculating exactly how much your Q1 payment plus the applied overpayment covers in terms of quarters. If it's enough to satisfy both Q1 and Q2 requirements under the safe harbor rules, you might be able to skip or reduce Q2. But don't just wing it - the underpayment penalty interest rate is currently pretty high, so it's worth doing the math properly. You might also want to consider making a smaller Q2 payment just to be safe, rather than skipping it entirely. Better to overpay slightly than deal with penalty notices later.

I went through this exact situation two years ago and can confirm what others have said - you absolutely can adjust your Q2 payment downward to account for being overpaid from Q1 plus your applied refund. The IRS doesn't require equal quarterly payments, just that you meet the minimum thresholds each quarter. One thing I'd add that hasn't been mentioned yet - make sure you keep really good records of all your payments and the applied overpayment amount. I recommend downloading your tax account transcript from the IRS website (you can get it instantly online) to verify that your applied overpayment is showing correctly in their system. Sometimes there can be delays in how these get processed. Also, when you do reduce your Q2 payment, I'd suggest making a note in your tax records about why you adjusted it. While you don't need to file any special forms, having documentation of your reasoning will be helpful if you ever need to explain it to the IRS or your tax preparer next year. The penalty avoidance math can definitely be tricky, so don't hesitate to use the tools others mentioned or consult with a tax professional if the numbers are substantial. A small consultation fee is usually worth it to avoid underpayment penalties, especially with how high the interest rates are right now.

Did you and your spouse consider whether filing separately is actually saving you money overall? I did this for 3 years because of my wife's student loans, but we finally ran the numbers both ways and realized we were paying about $1,800 more in taxes just to save about $1,200 in student loan payments. Worth double-checking with your actual numbers - sometimes the tax hit from MFS is bigger than the student loan savings!

Great question! I went through this exact same situation last year. The $375k limit applies to each spouse individually when filing MFS, so you're in good shape. Since your mortgage is $560k total and you're splitting it 50/50, each of you would be claiming $280k of mortgage debt, which is well under the individual $375k limit. This means you can each deduct your full portion of the $31,000 interest ($15,500 each). One thing to keep in mind - make sure you're consistent with how you split all home-related expenses (mortgage interest, property taxes, etc.). Also remember that if one spouse itemizes, the other must also itemize, but it sounds like you're both planning to do that anyway. The approach you're taking should work perfectly for your situation!

I'm so sorry for the loss of both your parents - that's an incredibly difficult situation to navigate while also dealing with complex tax issues. Based on what you've shared, there are several concerning aspects to your tax preparer's advice. The suggestion to "roll over" the refund to next year is fundamentally incorrect for deceased taxpayers. Once someone passes away, the IRS doesn't maintain ongoing tax accounts for them, so there's no mechanism to carry forward a refund to future tax years that won't exist. The $6,800 refund from your parents' joint return legally belongs to your mother's estate since she was the surviving spouse. To properly claim this refund, you'll need to file Form 1310 as the estate executor. Your stepbrother's potential claim would depend entirely on whether he's named as a beneficiary in your mother's will or estate planning documents - his rights through your father's separate trust don't automatically extend to your mother's estate assets. Given the significant amount involved and the family dynamics at play, I'd strongly recommend consulting with an estate attorney or a CPA who specializes in deceased taxpayer returns before proceeding. You want to ensure you're following the proper legal procedures and protecting yourself from any future disputes. The current accountant's advice suggests they may not have sufficient experience with estate tax matters, which could create problems down the line.

I'm really sorry for the loss of both your parents so close together - that must be incredibly overwhelming to deal with while also trying to navigate these complex tax and estate issues. Based on what you've described, your tax preparer has given you some fundamentally incorrect advice that could create serious problems. You absolutely cannot "roll over" a tax refund for deceased taxpayers to future years because the IRS doesn't maintain accounts for people who have passed away. This is a major red flag that suggests your accountant may not have adequate experience with deceased taxpayer situations. Here's what you need to know: The $6,800 refund from your parents' joint return legally belongs to your mother's estate since she was the last surviving spouse. To claim it properly, you'll need to file Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) along with supporting documentation like the death certificate and proof that you're the authorized executor. Regarding your stepbrother's potential claim - this depends entirely on whether he's named as a beneficiary in your mother's will or estate documents. His connection through your father's separate trust doesn't automatically give him rights to assets from your mother's estate. However, given that he's asking questions and uses the same accountant, I'd be concerned about potential confidentiality issues and would recommend notifying the accountant in writing that estate tax matters should only be discussed with you as the executor. I'd strongly suggest getting a consultation with an estate attorney or CPA who specializes in deceased taxpayer returns before proceeding further. The amount is significant enough to warrant proper legal guidance, and you want to protect yourself from family disputes while ensuring you follow the correct IRS procedures.

I work as a tax preparer and want to clarify something that might save you time and headaches. While the IRS Free File Fillable Forms is definitely your best option for avoiding the interview-style questionnaires, there's an important limitation to be aware of: you can only use it if your adjusted gross income is below certain thresholds (it changes yearly, but it's typically around $79,000 for 2024 returns). If your income is above that threshold, you'll need to use commercial software or paper filing. However, there's a lesser-known workaround: many of the major tax software companies are required by the IRS to offer a "Free File" version of their software for qualifying taxpayers, but they also have separate "free editions" available to everyone that cover basic tax situations. The key is to look for the software company's "free edition" (not their "Free File" version) which usually allows you to prepare and e-file simple returns without the income restrictions. These versions typically handle Form 1040 with standard deductions and common schedules, though they might not support every form you need. Since you've already done the work of figuring out which forms you need and completing them, you should be able to breeze through any of these options much faster than starting from scratch with the interview process.

As someone who's been through this exact frustration, I completely understand your situation! The good news is there are several viable options that don't require you to start over with those annoying interview questionnaires. Your best bet is probably the IRS Free File Fillable Forms (accessible directly through irs.gov). It's essentially the digital version of the paper forms you've already completed - you'll see the same Form 1040 and schedules in web format, and you can just transfer your numbers directly. No interviews, no upsells, just straightforward data entry. If you don't qualify for Free File Fillable Forms due to income thresholds, consider FreeTaxUSA's basic version, which allows more direct form entry without extensive questionnaires. You can jump straight to entering your data rather than answering lifestyle questions. One important tip: always access these services directly through the official websites (irs.gov for Free File, or the company's direct site) to avoid getting redirected to paid services that look similar. The process should be much faster since you've already done the hard work of determining which forms you need and completing the calculations. You're essentially just copying numbers from your PDFs to identical online forms. Just double-check your entries since these systems have minimal error checking compared to the full interview-style software.

anyone else notice the massive amount of 570/971 codes lately?

@Liam O'Sullivan check your account transcript on the IRS website - look for the 8-digit cycle code (usually starts with 2025). If it ends in 01-04 you get daily updates, if it ends in 05 you're on weekly (Fridays). The cycle code tells you which processing center you're at and when they batch your return. Don't panic about no movement - some returns just take longer especially if there are any reviews or verifications needed. Keep checking Friday mornings if you're on weekly cycle!