I work in payroll - completely normal for this time of year. The SSA has to process millions of W2s before sending to IRS

Just wanted to add some context as someone who's been through this process multiple times - the timing can vary significantly depending on your employer's payroll provider. Large companies using systems like ADP or Paychex typically get their W-2s submitted faster, while smaller employers might take until closer to the January 31st deadline. Even after submission, the IRS wage transcript system updates in batches, not continuously. One thing that helped me last year was setting up IRS account alerts, but honestly checking every few days just made me more anxious. The transcript will populate when it's ready, and you'll have plenty of time to file accurately. If you're really pressed for time, you can always file using the W-2 your employer provides directly and the IRS will match it up later during processing.

I just went through almost the exact same scenario. One other thing to consider - if your grandfather is elderly or in poor health, it might actually be more advantageous from a tax perspective to inherit the property rather than receiving it as a gift. With an inheritance, you get a "stepped-up basis" to the fair market value at the time of death, which eliminates all the capital gains that accrued during his lifetime. Not a pleasant thing to think about, but it can make a massive difference tax-wise.

One thing that hasn't been mentioned yet is the potential impact of depreciation recapture if your grandfather has been claiming depreciation on the property (if it was used as a rental or business property at any point). Even with the primary residence exclusion, any depreciation taken would need to be "recaptured" and taxed at 25% when you sell. Also, make sure to get a professional appraisal when the gift transfer happens to establish the fair market value for gift tax purposes. The IRS can challenge valuations that seem too low, especially on high-value properties like this. Given the complexity and the dollar amounts involved, I'd strongly recommend consulting with both a tax professional and an estate planning attorney before making any decisions. The potential tax savings from getting this right could easily pay for the professional advice many times over.

Has anyone used the IRS's Tax Withholding Estimator for this purpose? I'm doing solar next year too and tried using it, but got confused because it doesn't seem to have a specific input for planned tax credits like the Residential Energy Credit.

One thing I haven't seen mentioned yet is the timing of when you actually place your solar system in service. The credit is claimed in the tax year when the system is placed in service (when it's installed and operational), not when you make the purchase or sign the contract. So if you're planning installation for 2025, make sure to coordinate with your installer about the timing. If installation spans across December 2025 and January 2026, you'll want to clarify which year the system is considered "placed in service" for tax purposes. Also, keep all your documentation! You'll need receipts showing the total cost of the system, and if you're including battery storage, make sure those receipts clearly show the battery capacity meets the 3 kWh minimum requirement to qualify for the credit. The IRS has been pretty clear that they're scrutinizing these large credits more closely, so having organized documentation will save you headaches if you get selected for review.

I think most people here are missing an important point - have you checked if there's a tax treaty between the US and Canada that might apply to your situation? The US-Canada tax treaty has specific provisions about different types of income to prevent double taxation.

Just wanted to add another perspective here - you should also consider consulting with a tax professional who specializes in international tax matters, especially given the complexity of your situation with the Canadian settlement. While the general advice about reporting the settlement as taxable income is correct, there are some nuances that might apply to your specific case. For example, the timing of when you received the settlement versus when the legal case was resolved could affect which tax year you need to report it in. Also, if any portion of the settlement was specifically allocated to reimburse you for medical expenses you previously deducted, that portion might be taxable under the "tax benefit rule." Given the $43,000 amount involved, the cost of a consultation with a qualified tax professional would likely be worth it to ensure you're handling everything correctly and not missing any potential benefits or requirements. They can also help you understand the FBAR filing requirements that others have mentioned and make sure you're compliant with all the international reporting obligations.

Does anyone know if you can deduct expenses against T4A income? I drive Uber on weekends and got a T4A this year, but I paid for gas, car maintenance, etc.

I went through this exact same situation last year with a T4A from some freelance work. Yes, you absolutely must report it - the CRA already has a copy and their systems will automatically flag any discrepancies between what you file and what they received. The good news is that TurboTax makes it pretty straightforward. When you get to the income section, there's a specific area for T4A slips. Just enter the information exactly as it appears on your slip. Since you mentioned it's from a side gig, it's likely in box 048 (self-employment income), which means you might also be able to claim some business expenses against it if you have any. Don't stress too much about owing extra tax - $2,800 isn't a huge amount, and depending on your tax bracket, the additional tax might be less than you think. Plus, if you have any expenses related to that side gig (equipment, supplies, portion of home office, etc.), those can help reduce what you owe. The key thing is just to report it honestly. The CRA is pretty reasonable when people are upfront about their income - it's when they try to hide things that you run into real problems.