Does anyone know if it matters that the land is undeveloped? I inherited a vacant lot from my dad in 2019 and haven't done anything with it. Does the stepped-up basis rule still apply the same way?

Brandon, congratulations on holding onto that land for 20 years - that's quite an investment! You're absolutely right about the stepped-up basis for inherited property. As others have mentioned, your cost basis would be the $60,000 fair market value when you inherited it in 2005, not your grandfather's original $8,000 purchase price. One thing I'd add is that you might want to double-check if there were any estate taxes paid on the property when your grandfather passed. Sometimes the estate tax return (Form 706) can provide additional documentation of the property's value at the time of death, which could be helpful for your records. Also, since you've held it for 20 years, you'll definitely qualify for long-term capital gains rates. Depending on your income level, you could pay 0%, 15%, or 20% on the $127,000 gain (assuming that $60,000 basis is accurate). If you're in a lower income bracket, you might even qualify for the 0% rate on some or all of the gain. Just make sure to keep good records of whatever documentation you use to establish that 2005 value - county assessments, comparable sales, or any appraisals from that time period. The IRS may want to see supporting evidence if they ever question the basis.

One thing to keep in mind: American Opportunity Credit can only be claimed for 4 tax years, so if you've already claimed it for 4 years, you might need to look at the Lifetime Learning Credit instead. Also, do you have any documentation showing you were enrolled in 2023 and that you paid in 2022? You'll want to keep those records (enrollment verification, payment receipts, etc.) in case you're audited, especially if you're claiming the credit without having a 1098-T for that specific year.

Pro tip: If you file an amended return to claim education credits, make sure you're specific about which semester the expenses were for! I made this mistake - claimed Spring 2023 expenses on my 2022 return (correctly, since I paid in Dec 2022) but didn't clearly document which semester it was for. Ended up getting flagged for review because it looked like I was claiming the same semester twice.

Anyone have advice on the best apps to track expenses for contractors? I'm terrible at keeping receipts and always scrambling at tax time.

This is such great advice in this thread! As someone who just transitioned from W-2 to contractor work, I had the same panic about taxes. One thing I wish I'd known earlier - you can also make your quarterly payments online through the IRS Direct Pay system (https://www.irs.gov/payments/direct-pay) which is free and way easier than mailing checks. Also, if you're just starting out and unsure about your income projections, you can use the "safe harbor" rule - pay 100% of last year's tax liability (or 110% if your prior year AGI was over $150k) spread across four quarterly payments, and you won't get hit with underpayment penalties even if you end up owing more at filing time. This takes a lot of the guesswork out of those first few quarters while you figure out your actual tax situation.

OMG I was freaking out about this exact same thing!! 😫 My refund amount disappeared from WMR yesterday and I've been checking my transcript hourly since then! So scary when you're counting on that money! I called the IRS this morning and waited FOREVER but finally got through. The lady was super nice and explained that the PATH Act verification is totally normal and my return isn't flagged for any issues. She said the 806 code usually appears 3-5 days before the actual deposit hits your account. Hope this helps someone else who's panicking like I was! 💕

Same situation here! Filed February 8th and still no 806 code on my transcript. WMR switched to the PATH Act message yesterday and my refund amount vanished too. I claimed EITC and CTC so I know I'm subject to the PATH Act hold. Based on what everyone's saying here, sounds like this is totally normal processing. Really appreciate all the helpful explanations - definitely puts my mind at ease knowing others are experiencing the exact same thing. Guess it's just a waiting game now until that 806 code finally shows up!

Has anyone noticed differences in how these tax programs handle QBI deductions specifically for multi-state 1099 work? That's been the biggest headache for me.

I've been through this exact scenario! Multi-state 1099 work can definitely cause major discrepancies between tax software. A few things to double-check that might explain your $2000 difference: 1. **State tax withholdings** - Make sure both programs are properly crediting any state taxes you paid throughout the year. Sometimes one software will miss withholdings from certain states. 2. **Business expense categorization** - Different software handles Schedule C expenses differently. One might be more aggressive with deductions while the other is conservative. 3. **Quarterly estimated payments** - If you made any estimated tax payments during the year, verify both systems are crediting these correctly. 4. **Multi-state allocation** - This is where things get tricky. Each software might allocate your income differently between states, which affects your overall tax liability. Before paying either amount, I'd suggest printing out the detailed tax forms (1040, Schedule C, state returns) from both programs and comparing them line by line. The difference should jump out at you. Don't just pay the higher amount hoping for a refund - the IRS will want to know why your return doesn't match their records if there's an error.