Has anyone tried running this scenario through different tax software? I know inheriting an IRA is complicated but most tax programs should be able to calculate your RMD correctly. I'm dealing with an inherited Roth IRA which apparently has different rules.

I went through this exact same situation when my grandmother passed in 2021 at age 78. The confusion you're experiencing is totally understandable because the SECURE Act created these hybrid rules that many financial advisors are still getting wrong. Here's what I learned after consulting with a CPA who specializes in retirement accounts: Since your uncle died in 2021 (post-SECURE Act) and was already taking RMDs, you're subject to BOTH rules simultaneously - you must take annual RMDs based on your life expectancy AND completely empty the account by December 31, 2031 (10 years after the year of death). The key thing your tax preparer got wrong is that you don't have to take exactly 1/10 each year. You take the higher of: (1) the annual RMD calculated using the Single Life Expectancy Table, or (2) whatever amount ensures the account will be fully distributed by the 10-year deadline. I'd recommend getting a second opinion from a CPA or Enrolled Agent who specifically deals with inherited retirement accounts. The penalty for getting this wrong is 50% of the amount you should have distributed, so it's worth paying for expert advice to get it right.

Has anyone used TurboTax to handle this kind of situation? My wife is in a similar situation with her employer paying for her master's degree, and I'm wondering if the standard tax software can handle these educational benefit exclusions correctly or if we need a professional tax preparer this year.

This is such a stressful situation, but you're not alone! I went through something similar when my employer paid for my PA program. The most important thing to understand is that even if the full amount shows up on your W-2, you may still be able to exclude a significant portion from taxation. First, gather all documentation about your hospital's education policies, especially anything mentioning BSN requirements or preferences. Since you're working as a clinical nurse and pursuing a BSN, this likely qualifies as job-related education under the "working condition fringe benefit" rules. I'd recommend taking a two-pronged approach: 1) Contact your HR department with documentation showing this education is job-related and request a corrected W-2, and 2) If they won't cooperate, you can still claim the proper exclusion on your tax return using Form 4852. Don't panic about the tax bracket issue - remember that only the income within each bracket gets taxed at that rate, not your entire income. And there are education credits available that can help offset any additional tax burden. You've got options here!

Has anyone actually had success getting a refund from Optima? I'm in month 5 with them, paid $3,900, and they keep saying they're "reviewing my case" but nothing happens. Starting to think I've been scammed too.

Carmen, you're absolutely not an idiot - these companies are predatory and specifically target people in stressful financial situations. The fact that you're taking action now shows you're being smart about protecting yourself. Here's my step-by-step recommendation based on what others have shared: 1) **Document everything immediately** - gather all contracts, payment records, emails, and notes from phone calls with Optima 2) **Send written termination notice** (email + certified mail) demanding immediate cancellation and an itemized list of actual services performed 3) **Contact your credit card company today** to dispute charges - explain that services were not rendered as promised 4) **File complaints with FTC, BBB, and your state attorney general** - this creates a paper trail and may help others The good news is you've already contacted a local EA/CPA, which is exactly the right move. They can often resolve IRS issues much faster and cheaper than these relief companies ever could. Don't let Optima string you along with more excuses. Be firm about cancellation and don't accept any "retention offers" - they're just trying to extract more money. You have consumer protection rights, especially if you paid by credit card. Stay strong - you're doing the right thing by getting out now before they take even more of your money.

I'm confused about one thing - what about property taxes and mortgage interest paid in the year of sale? Those ARE deductible on Schedule A, right? Or do those somehow get wrapped into this "basis" thing too?

This thread has been incredibly helpful! I was in the exact same boat as Chris - finding conflicting information everywhere about home sale deductions. After reading through all these responses, I finally understand that the confusion comes from articles using "deductible" loosely when they really mean "reduces taxable gain through basis adjustment." It's frustrating that so many sources don't make this critical distinction clear. For anyone else struggling with this: the key takeaway is that if your home sale profit is under the exclusion amount ($250K single/$500K married), your selling costs won't provide any tax benefit at all. They would only matter if you exceeded those thresholds. The exclusion itself is already a huge tax break, so we can't double-dip by also deducting the selling expenses separately. Thanks to everyone who shared their experiences and clarified the actual tax mechanics. This is definitely one of those areas where the IRS could make their guidance much clearer for regular homeowners!

Has anyone used TurboTax to handle this kind of situation? I'm wondering if it walks you through determining whether something is a repair vs improvement or if I need to figure that out ahead of time.

I just went through this exact situation last year with a $16k roof replacement on my rental property. After doing a lot of research and consulting with my CPA, here's what I learned: The IRS has specific criteria for distinguishing repairs from improvements, and unfortunately, a complete roof replacement almost always qualifies as an improvement that must be depreciated. The key factors are: 1. **Betterment** - Does it improve the property beyond its previous condition? 2. **Adaptation** - Does it adapt the property to a new use? 3. **Restoration** - Does it restore the property to like-new condition? A full roof replacement typically hits the "restoration" criteria since you're essentially putting a brand new roof on the property. However, don't give up hope on getting some immediate deduction! If you can document that portions of the work were repairs to the existing roof structure (like fixing damaged decking, replacing a few shingles, or repairing flashing), those specific costs might be immediately deductible while the bulk of the replacement gets depreciated. The key is having detailed invoices that break down the work performed. Generic "roof replacement" invoices make it harder to argue for any immediate deductions. I ended up depreciating mine over 27.5 years, but I was able to immediately expense about $2,800 in repairs that were clearly restoration work on the existing structure. Every bit helps when you're looking at a big expense like this!