question - if I estimate now using FreeTaxUSA 2023 software and create an account, can I just log back in when I have my actual W-2 and 1099 forms and file from there? or would I need to start over?

Thanks for the heads up about the early release! I've been using FreeTaxUSA for the past few years and really appreciate being able to do tax planning before the rush. One tip I'd add - if you're estimating now, make sure to save different scenarios. I usually create versions with conservative estimates and then more optimistic projections to see the range of what I might owe or get back. Also worth noting that if you have any major life changes planned (marriage, new job, etc.), you can model those too to see how they'd impact your taxes. Really helps with financial planning for the year ahead.

Wait, I thought capital gains tax is like 15%? If u have a $20k gain that would be $3k in tax. R people saying u don't have to pay anything at all???

As someone who just went through this exact process, I can confirm what others have said about the Section 121 exclusion being a lifesaver! Just wanted to add a couple practical tips from my recent experience: 1) Make sure you can prove you actually LIVED in the home as your primary residence for 2 years, not just owned it. The IRS looks at things like voter registration, driver's license address, where you received mail, etc. 2) If you're cutting it close on the 2-year mark, count carefully. The IRS uses the exact date - so if you bought on March 15th, you need to wait until at least March 15th two years later to qualify for the full exclusion. 3) Keep your closing documents from when you purchased! You'll need them to calculate your basis properly when you file taxes next year. With only $20k in gains and being married, you're definitely well under the $500k exclusion limit. Sounds like you should owe zero capital gains tax if everything checks out. Good luck with your move!

Has anyone dealt with getting a severance paid out over multiple payments instead of one lump sum? My company is offering me either option, and I'm wondering if taking it over 3 months would result in less tax withholding upfront compared to a lump sum.

I went through something very similar when I got laid off six months ago. The 58% withholding rate you're seeing is unfortunately pretty normal for severance payments, especially if your company is being conservative with their calculations. Here's what likely happened: Your company treated the $8,500 severance as if you were going to receive that amount every pay period for the entire year. So if you normally get paid bi-weekly, they calculated withholding as if you'd be making $221,000 annually ($8,500 x 26 pay periods). That would put you in a much higher tax bracket, hence the aggressive withholding. The silver lining is that when you file your 2025 tax return, your actual tax will be based on your total income for the year - which will likely be much lower since you're now unemployed. You should get a substantial refund of that overwithholding. I'd recommend requesting a detailed breakdown of all the withholdings from HR so you can see exactly where every dollar went. Sometimes there are errors or unnecessary deductions that you can get corrected. Also consider talking to a tax professional about estimated quarterly payments for the rest of 2025 to avoid more overwithholding when you find your next job.

Just to clarify something important - TurboTax itself isn't usually making calculation errors. What typically happens is either: 1) users enter information incorrectly, 2) users misunderstand eligibility requirements, or 3) the IRS makes adjustments based on information they have that wasn't included in your return. For example, if you have unreported income that shows up on a 1099 the IRS received but you didn't include, they'll adjust your return accordingly.

I appreciate everyone sharing their experiences here. As someone who's been doing taxes for family members for years, I can confirm that most discrepancies aren't actually TurboTax errors but rather eligibility issues or data entry mistakes. That said, I always recommend using the IRS's own Interactive Tax Assistant (ITA) tool on their website to verify credit eligibility before filing. It's free and walks you through the exact same qualification questions the IRS uses. Also, for peace of mind, you can request a tax transcript after filing to see exactly what the IRS processed vs what you submitted. The key is understanding that tax software is only as accurate as the information you provide and your actual eligibility for credits.

I just went through something similar! Got a "tax review" letter in January for my 2023 return - they were questioning my business expense deductions. Turned out to be a CP75 correspondence examination, which is basically their way of saying "prove this one thing and we'll leave you alone." The vague language is definitely frustrating, but here's what worked for me: I called the number on the letter (took 3 attempts over different days to get through), and the agent was actually helpful in explaining exactly what they needed. They were specifically reviewing my office supply and travel expenses because the amounts were higher than typical for my industry. Sent them organized receipts, bank statements, and a simple spreadsheet showing the business purpose for each expense. Got a "no change" letter about 7 weeks later. The whole thing was much less scary than it seemed initially - just their way of spot-checking specific items that their computers flagged. Your straightforward situation will probably resolve even faster than mine did!

I got a similar letter about 3 months ago for my 2023 return - they were questioning my education credits. Like others have mentioned, it's basically a correspondence examination where they're checking one specific thing rather than your entire return. The term "tax review" is just their user-friendly way of saying "we need you to prove this one item." Mine took about 9 weeks total from first letter to final resolution. The most important thing is to respond within their deadline (usually 30 days) with exactly what they're asking for - no more, no less. I made the mistake of sending too much documentation initially, which seemed to confuse things. Pro tip: when you send your response, include a cover letter that lists each document you're providing and explains how it addresses their specific question. Use certified mail with tracking so you have proof they received it. The whole process is mostly just bureaucratic patience-testing rather than anything truly scary!