I switched from an accountant to TurboTax last year for a similar situation with foreign dividends. Just a tip: make sure you're using TurboTax Premier or above, as the Deluxe version doesn't handle Form 1116 properly. Also, does anyone know if H&R Block software handles foreign tax credits better than TurboTax? I've heard mixed things.

Your experiment comparing TurboTax vs. your accountant is brilliant! I did something similar a few years ago and it really opened my eyes to what I was actually paying for. Regarding the "amount used" confusion - you're right that it corresponds to "foreign taxes claimed" on your accountant's statement. The key thing to understand is that Form 1116 calculates a limitation based on the ratio of your foreign source income to total income. If your foreign taxes paid exceed this limitation, the excess carries forward to future years. Your accountant's detailed carryover tracking is actually quite valuable - it ensures you don't lose any credits over the 10-year carryforward period. When TurboTax shows "amount used," it's applying the current year limitation and automatically carrying forward any excess. One suggestion: before making the switch, double-check that TurboTax is properly importing or allowing you to enter all your carryover amounts from previous years. This is often where DIY software falls short compared to a good accountant who maintains detailed records across multiple years. The decision isn't really subjective - it's all based on the Form 1116 calculations. But the expertise comes in ensuring nothing falls through the cracks over multiple years of filings.

This is exactly the type of complex basis calculation that trips up so many people with inherited property. Just to add one more important consideration - make sure you also factor in any depreciation that may have been claimed on the property during the life estate period. If the second wife ever rented out the property or used any portion of it for business purposes during her life estate, any depreciation claimed would reduce the basis for the remaindermen. This is something people often overlook, but it can significantly impact your capital gains calculation. Also, since you mentioned the property values increased dramatically in your area, you might want to document the local market conditions and any major developments that occurred between 2009 and 2023. While it won't change your basis calculation, having this context can be helpful if the IRS ever questions why there's such a large difference between your basis and the sale price. The good news is that with proper documentation of the 2009 FMV and any qualifying improvements made afterward, you should have a solid foundation for your tax return.

I'm dealing with a very similar situation right now with my father's property that had a life estate for his second wife. One thing I learned from my tax attorney that might be helpful - make sure you get a formal estate tax return filed (Form 706) even if the estate wasn't large enough to require it, because this officially establishes the stepped-up basis values with the IRS. In our case, we filed the return even though the estate was under the filing threshold, and it created an official record of the property's fair market value at the date of death. This gives you much stronger documentation if you're ever audited, since the IRS has already accepted those values. Also, don't forget to check if your state has any additional requirements for basis step-up. Some states handle inherited property differently than federal law, which could affect your overall tax liability when you file both federal and state returns. The key thing I've learned is that with life estates, the IRS really scrutinizes the basis calculations because of the potential for large gains, so having rock-solid documentation from day one is crucial.

As someone who navigated this exact situation five years ago, I want to emphasize something crucial that might ease your worries: your dedication to protecting your children financially is admirable and completely achievable even after marriage. Here's what I wish I'd known earlier - the Child Tax Credit follows the child, not your marital status. Since you're clearly providing more than half their support (paying 80% of household expenses plus all child-related costs), you'll maintain eligibility regardless of how you file. The real question is optimizing your filing strategy. I'd recommend creating a simple spreadsheet tracking all child-related expenses for a few months before your wedding - this documentation will be invaluable for tax purposes and gives you concrete numbers to work with when consulting a tax professional. One strategy that worked well for me was keeping our first year of marriage simple by filing separately, which maintained my established tax patterns while we figured out our long-term approach. This gave us time to understand our combined financial picture without disrupting the college savings routine I'd established. The fact that you're already putting the Child Tax Credit directly into college accounts shows you're thinking long-term. Consider meeting with both a CPA and a financial aid counselor before your wedding - the small upfront cost for professional guidance could save you thousands over the years and help you make informed decisions that protect your children's financial future. Your children are lucky to have someone so thoughtful about their financial security. Getting married doesn't have to disrupt that - it just requires some strategic planning.

I'm a tax professional who works with many blended families, and I want to address a few key points that haven't been fully covered yet. First, regarding your Head of Household status - you're right to be concerned about losing it, as it does provide significant tax advantages. However, the loss might not be as devastating as you think. When married filing separately, you can still claim your children as dependents and receive the Child Tax Credit, since you clearly meet the support test. Here's something important: consider the timing of your wedding within the tax year. If you marry on December 31st, you're considered married for the entire tax year. But if you marry on January 1st, you can still file as Head of Household for the previous year. This could be worth hundreds or even thousands in tax savings. Also, I'd strongly recommend running a tax projection now, before your wedding, using both your current situation and various married scenarios. This will give you concrete numbers to work with rather than speculation. Many tax software programs allow you to run "what-if" scenarios, or you can work with a tax professional to model different outcomes. One final point about your college savings strategy - since you're keeping finances separate and your fiancé isn't contributing to child expenses, make sure any 529 plans remain in your name only. This maintains your control over the funds and could help with financial aid calculations when your children apply for college. Your instinct to plan ahead is exactly right. With proper preparation, you can absolutely protect your children's financial interests while enjoying the benefits of marriage.

2 Has anyone used Koinly for this purpose? I'm looking at options for sorting out my crypto taxes and that's one I've heard mentioned.

One thing I haven't seen mentioned yet is checking if you have any old email confirmations from your 2021 purchases. Coinbase used to send detailed transaction confirmations that included the exact amount, price, and fees for each purchase. I was in a similar situation last year and found these emails buried in my Gmail - they were a lifesaver for reconstructing my cost basis. Even if you can't find the emails in your inbox, try searching for "Coinbase" or "You bought" in your email from 2021. Also, if you linked a bank account for your purchases, your bank statements from 2021 will show the exact dollar amounts you transferred to Coinbase on specific dates. You can then cross-reference those dates with historical crypto prices to get a pretty accurate cost basis estimate. The IRS accepts reasonable reconstruction methods when original records are unavailable, so don't stress too much about getting it perfect down to the penny. Just document your methodology clearly.

This is really encouraging to hear! I'm in a very similar situation - filed 2/5/24 with a straightforward joint return and just saw the status change to "still processing" yesterday. Based on everyone's experiences here, it sounds like this is actually a positive development rather than something to worry about. I've been checking WMR obsessively (probably like most of us here), but it sounds like I should focus more on monitoring my bank account for the next week or so. Thanks for sharing your experience - it's posts like this that make navigating tax season so much less stressful when you realize others are going through the exact same thing!

This is really helpful to see everyone's experiences! I filed on 2/7/24 with a simple return (married filing jointly, standard deduction) and my status just changed to "still processing" today. Reading through all these responses has been so reassuring - especially hearing from people who had the exact same timeline and got their refunds within days of seeing this status change. I've been that person obsessively checking WMR multiple times a day, but it sounds like I should shift my focus to monitoring my bank account instead. The part about transcripts staying blank while refunds still arrive is particularly interesting since I've been worried about that too. Thanks to everyone who shared their experiences - this community is such a lifesaver during tax season stress!