Just to add a practical tip - when my wife and I were in a similar situation (I make $150k, she makes $60k), we found that using tax software to run a "what-if" scenario in January helped us make adjustments early in the year. We took our previous year's return, updated the expected income for the current year, and then looked at the projected result. It showed us we'd be short about $3,200 in withholding, so I updated my W-4 to withhold an extra $275 per month. Worked perfectly - we got a small refund instead of owing money.

Great question! I went through this exact same situation last year when my spouse and I had a similar income gap ($140k vs $75k). One thing that really helped us was understanding the "marriage penalty" concept - when both spouses work, the combined income can push you into higher tax brackets than either would face individually. This is especially true with your income levels. For your W-4 forms, definitely choose "married filing jointly" as others have mentioned. However, I'd strongly recommend using the IRS Tax Withholding Estimator mid-year to check if you're on track. We discovered we were under-withholding by about $2,800 and were able to adjust before it became a problem. Also consider having the higher earner (you at $145k) make the withholding adjustments rather than splitting it between both W-4s. It's often simpler administratively and gives you more control over the process. You can always adjust quarterly if needed. The key is being proactive about it rather than getting surprised at tax time!

Don't forget that if your mother was married, her spouse might have special filing options. They can file jointly for the year of death if they haven't remarried before the end of the tax year. This often results in a lower overall tax burden.

I went through this exact situation with my father last year and want to emphasize a few important points that might help: First, don't stress too much about the "Personal Representative" signature issue while probate is pending. The IRS is generally understanding about this timing gap, and you can always file an amended return later if needed once you're officially appointed. Second, regarding the estimated payment with your extension - err on the side of caution and pay a bit more rather than less. The IRS charges penalties and interest on underpayments, but they'll refund any overpayment when you file the actual return. Given your mom's history of owing $11k in 2021, I'd estimate conservatively high for 2022. One thing I wish someone had told me: keep meticulous records of everything you pay on behalf of the estate, including any tax payments. You can reimburse yourself from estate funds later, and good documentation makes the probate process much smoother. Also, consider whether your state has any specific requirements for deceased taxpayer filings - some states have different rules than the federal process. You're doing the right thing by being proactive with the extension. Better to file late with an extension than miss the deadline entirely.

I'm currently in week 14 of waiting for my amended return processing and can relate to your frustration about cash flow impact. One thing I discovered that might help is checking if your state offers any emergency business assistance programs for independent contractors - some states have bridge funding or micro-loans specifically for situations like this where you're waiting on legitimate tax refunds. Also, if you haven't already, make sure you're checking your IRS online account transcript (not just the "Where's My Amended Return" tool) as it sometimes shows status changes a few days earlier. The transcript will show specific transaction codes that give you a better picture of what's happening behind the scenes. I know it's frustrating when you did everything correctly - the system just wasn't designed with small business cash flow in mind. Hang in there!

I've been through this exact scenario twice - once in 2022 and again last year. The 60-day notice is essentially the IRS saying "we acknowledge your paperwork exists" but doesn't reflect the actual timeline. My 2022 amendment took 23 weeks total, and my 2023 one took 19 weeks. Here's what I learned that might help: First, set up IRS online account access if you haven't already - the transcript updates are more reliable than the "Where's My Amended Return" tool. Look for your Account Transcript, not the Return Transcript. You'll want to watch for transaction code 971 (notice issued) followed eventually by code 846 (refund issued). Second, document everything with dates - when you filed, when you got the 60-day letter, etc. This becomes crucial if you need to escalate later. Third, as a fellow independent contractor, I totally get the cash flow stress. Consider reaching out to SCORE or your local Small Business Development Center - they sometimes have resources for short-term business financing while waiting on legitimate refunds. The waiting sucks, but hang in there. The money will come, just probably not within 60 days despite what the letter implies.

If you do any work from home for this 1099 income, dont forget to track utility bills, internet, part of your rent or mortgage that can be deducted as home office. And keep all reciepts for anything you buy for the work! I deducted a new laptop and even office furniture last year. The IRS let's you write off a lot more than most people realize.

Another strategy to consider is bunching deductions if you're close to itemizing. Since you have this unexpected 1099-MISC income, you might want to accelerate some deductible expenses into this tax year - things like charitable donations, state tax payments, or medical expenses if you're close to the threshold. Also, don't overlook the self-employment tax aspect. You'll owe SE tax on that $8,500 (about 15.3%), but you can deduct half of it as an above-the-line deduction. And if you set up a business entity like an LLC, you might have additional planning opportunities for future years. One last thing - if this consulting work might continue, consider setting up a separate business checking account and getting a business credit card. Makes tracking expenses so much easier and looks more professional if you ever get audited.

When you submit the late return, make sure to check if you qualify for any pandemic relief that was specific to 2020 - like the Recovery Rebate Credit if you didn't get the full stimulus payment. A lot of people forget about that when filing late 2020 returns. Also, if you're using tax software, be careful about which version you buy. Some companies charge extra for previous year returns or don't include all the forms needed. FreeTaxUSA still has their 2020 version available for a reasonable price if you're looking for options.

Don't panic - you still have time! The May 17, 2025 deadline for 2020 refunds is still a few weeks away. I went through something very similar when a small business I worked for closed during COVID. Here's what worked for me: Start by requesting your wage and income transcript online at irs.gov immediately. Even though the company is defunct, the IRS should have all the W-2 information since employers are required to submit these before they shut down. The transcript will show exactly what was reported under your husband's SSN for 2020. If you can't access the transcript online, you can also call the IRS (though expect long hold times) or mail Form 4506-T, but that takes longer to process. Once you have the wage information, you can prepare the return using any tax software - just print and mail it since e-filing isn't available for 2020 anymore. Make sure to write "2020" clearly at the top of Form 1040. One important tip: Double-check that you're claiming the Recovery Rebate Credit if your husband didn't receive his full stimulus payments in 2020. That could add $1,200-$1,800 to your refund on top of the $750 you're expecting. You've got this! Just start with getting that transcript and you'll be on your way.