Make sure you keep ALL documentation related to your settlement! My friend had a similar discrimination case, and the IRS questioned her attorney fee deduction because she couldn't provide enough supporting documentation showing that the lawsuit was specifically for workplace discrimination. Save your settlement agreement, any court filings that describe the nature of your claim, communications with your attorney about the case, and especially the fee agreement showing the contingency percentage. The IRS can request all of this if they decide to review your return.

One thing I haven't seen mentioned yet is the timing of when you actually receive the settlement money versus when it's taxable. Since you mentioned they'll issue a 1099, that suggests you'll likely receive the funds this year (2025), which means it would be taxable income for 2025. However, if any portion of your settlement is for back wages or lost income from previous years, you might be able to use income averaging rules to spread the tax burden across multiple years. This is especially helpful if the settlement pushes you into a much higher tax bracket than you'd normally be in. Also, don't forget about estimated tax payments! If this settlement significantly increases your 2025 income compared to 2024, you might need to make quarterly estimated payments to avoid underpayment penalties. The IRS generally wants you to pay as you go, not wait until April to pay a large tax bill. I'd definitely recommend running some tax projections with the settlement included to see how it affects your overall tax situation for the year. You might want to adjust your withholdings at work or make estimated payments to avoid any surprises.

I'm really sorry for your loss and the additional stress this is causing your family during such a difficult time. This situation is unfortunately more common than it should be, and you're absolutely right to question what Nationwide is telling you. As a surviving spouse, your mother-in-law has special rights under federal tax law that supersede the specific contract provisions. Even though the survivor option wasn't selected in the original paperwork (which sounds like an error by the financial advisor), she can still do a tax-free spousal rollover under IRC Section 402(c)(9). The W-4R form requirement doesn't necessarily mean it's a taxable event - insurance companies often require this form even for non-taxable transfers as part of their standard process. The key is making sure they process it as a "direct trustee-to-trustee transfer" rather than a distribution to her first. I'd recommend having her call Nationwide and specifically ask to speak with their "qualified plan specialist" or "tax department" rather than general customer service. Use the exact phrase "spousal continuation" or "direct rollover under IRC Section 402(c)(9)" - this should get you to someone who understands the tax implications properly. If they continue to insist it's taxable, ask them to provide the specific tax code or regulation they're relying on, because the law is very clear that surviving spouses have these rollover rights regardless of contract language.

I'm so sorry for your family's loss, and it's frustrating that you're dealing with this confusion during an already difficult time. The good news is that as a surviving spouse, your mother-in-law absolutely has the right to transfer this qualified annuity without triggering taxes, regardless of whether the survivor option was originally selected. The key is ensuring this gets processed as a direct rollover under IRC Section 402(c)(9), which gives surviving spouses special transfer rights. When she contacts Nationwide, she should specifically request to speak with their "retirement services" or "qualified plan specialist" department - not general customer service. Use these exact phrases: "direct trustee-to-trustee transfer" and "spousal rollover under IRC Section 402(c)(9)." The W-4R form is often just a procedural requirement and doesn't necessarily indicate a taxable event if processed correctly. Make sure she emphasizes that she wants NO tax withholding and that this should be a direct transfer to Lincoln Financial. If Nationwide continues to resist, ask them to cite the specific regulation that would make this taxable for a surviving spouse - they won't be able to, because the law is clear on spousal rollover rights. You might also consider having her mention that she's prepared to file a complaint with the state insurance commissioner if they don't process this correctly. Also document that financial advisor error about the survivor option - that could be grounds for compensation if this situation ends up costing additional fees or complications.

Has anyone used the R&D credit module in TurboTax Business? I'm wondering if it provides enough guidance for a smaller claim.

I've been wrestling with the same decision for my tech startup. After reading through everyone's experiences here, I'm leaning toward a hybrid approach - using one of the AI tools like taxr.ai to help structure the documentation properly, but then having a CPA review it before submission. The key insight from this thread seems to be that it's not just about having a template, but understanding how to connect your specific technical work to the IRS requirements. @Ravi Choudhury's point about contemporaneous records is crucial - I realized I have tons of Slack conversations, GitHub commits, and design documents that could serve as supporting evidence. For anyone else considering the DIY route, I'd recommend starting by documenting your current development process before diving into the credit calculation. If you can't clearly articulate the technical uncertainties you're solving and the systematic approach you're taking, the credit probably isn't worth pursuing without professional help.

Don't forget about the business use percentage! If you're using your Santa Fe for both personal and business purposes, you can only depreciate the business portion. For example, if you use it 70% for business and 30% personal, you can only take depreciation on 70% of the cost. Also, have you considered just taking standard mileage for 2022 and 2023 instead of actual expenses with depreciation? With your low income, it might be simpler and possibly more beneficial.

Your situation is more common than you think! The good news is that filing late doesn't disqualify you from bonus depreciation - what matters is when you actually placed the vehicle in service for business use. Since you bought the Santa Fe in March 2022 and presumably started using it for business then, you can still claim 100% bonus depreciation for 2022. However, you'll face late filing penalties and interest on any taxes owed. Given your low income across 2022-2023, I'd strongly recommend running the numbers on a few different scenarios: 1. **100% bonus depreciation in 2022** - This will likely create a large NOL that carries forward 2. **Section 179 election** - You can choose exactly how much to deduct (maybe just enough to zero out your 2022 income) 3. **Standard mileage method** - Might be simpler and more beneficial given your income levels With three Schedule Cs and varying income levels, the optimal strategy isn't obvious. You'll need to track business use percentage carefully and allocate between your different businesses based on actual mileage. Consider getting professional help given the complexity - whether that's a tax software that can model different scenarios or speaking with a tax professional who can run the numbers for your specific situation.

I've been dealing with this exact same issue for months! What finally worked for me was requesting Form 4340 (Certificate of Assessments and Payments) directly from the IRS. This form explicitly shows your CSED dates for each tax year, unlike the regular transcripts that make you hunt for assessment dates and do the math yourself. You can request it by calling the IRS or by submitting Form 4506-T and specifically asking for Form 4340 in the remarks section. It takes about 10 business days to receive, but it's worth it because it removes all the guesswork. The form clearly lists "Collection Statute Expiration Date" for each liability, so there's no confusion about calculating 10 years from various transaction codes. Just be aware that if you've had any collection suspensions (bankruptcy, OIC, CDP hearings, etc.), those will extend your CSED beyond the basic 10-year period. But at least with Form 4340, you'll have the baseline dates to work from.

I've been in your exact situation and found that the key is understanding that the CSED information is there on your transcripts, but it's not labeled as such. You need to look for specific transaction codes and dates, then do some calculation. On your Account Transcript, look for these key codes: - TC 150: This shows when your original return was processed - TC 290/300 series: Additional assessments - TC 530: Shows if there were any collection holds The tricky part is that various events can pause or extend the 10-year collection period. I had a similar experience where I thought my CSED was one date, but it turned out I had missed a collection suspension that added several months. If you're still struggling after checking for these codes, I'd recommend either requesting Form 4340 (as mentioned in another comment) or calling the IRS directly. Form 4340 explicitly shows CSED dates without requiring you to interpret transaction codes, which eliminates the guesswork entirely. It's been a lifesaver for people dealing with complex collection histories.