Just fyi, I made this exact mistake last year. I thought SALT would give me a huge refund, but it only saved me about $2,400 on my taxes because of my tax bracket. Make sure your itemized deductions exceed your standard deduction or else you won't benefit at all!!!

Great question! I see a lot of people have already covered the basics, but I wanted to add one more perspective since I went through something similar last year. The key thing to remember is that the SALT deduction is just one piece of the itemizing puzzle. Since you mentioned you and your girlfriend just bought the house, don't forget about mortgage interest deduction too! That combined with your SALT deduction might actually push you over the standard deduction threshold and make itemizing worthwhile. Also, keep track of any PMI (private mortgage insurance) payments if you have them - those can be deductible too depending on your income level. And if you made any charitable donations throughout the year, those can be itemized as well. I'd recommend using a tax software that can calculate both scenarios (standard vs itemized) to see which gives you the bigger benefit. Sometimes the difference isn't huge, but every bit helps when you're a new homeowner dealing with all those unexpected expenses! Good luck with your first year of homeownership - it's definitely a learning curve but the tax benefits can be pretty nice once you figure it all out.

I've been through a similar situation with my father's estate. One thing that might help is to request a complete transcript of your uncle's tax account from the IRS by filing Form 4506-T. This will show you the exact timeline of what happened - when the original taxes were assessed, what penalties and interest have been added, and most importantly, when any collection actions were taken. Also, since you mentioned getting letters from different IRS offices, this could indicate that the case has been bouncing around their system. Sometimes when there's confusion about collectibility (like in cases with no assets), different departments will review the case multiple times. The sudden influx of relief company letters strongly suggests a lien was recently filed publicly. One more tip - if your uncle truly had no assets and this is just an uncollectible debt, you might want to look into requesting "Currently Not Collectible" status for the estate. This essentially puts the collection on hold indefinitely when there are no assets to pursue. It doesn't eliminate the debt, but it stops active collection efforts and can sometimes lead to lien withdrawal.

I went through almost the exact same situation with my grandmother's estate last year. The key thing that helped me was getting organized with all the documentation first. Here's what I'd recommend: 1. Get Form 4506-T filed immediately to get the complete account transcript - this will show you exactly what's owed and when everything was assessed. 2. Call the county recorder's office where your uncle lived and ask them to search for any federal tax liens under his name. They can give you the exact filing date and amount on record. 3. Since your uncle had no estate assets, you'll want to focus on Form 12277 (Application for Withdrawal of Filed Form 668(Y)) rather than just a discharge. A withdrawal completely removes the public record of the lien. 4. Don't waste money on those relief companies - they're just going to do what you can do yourself for free. They're all quoting different amounts because they're guessing based on limited public information. The life insurance policy that went to your aunt is likely what triggered the recent lien filing. Even though it passed outside probate, the IRS sometimes files liens hoping to collect against those proceeds. Your aunt isn't personally liable for the debt, but you'll want to address this properly to protect her. Document everything and be persistent with the IRS. It took me about 4 months to get everything resolved, but the lien was completely withdrawn once I had all the right paperwork in order.

Has anyone had experience with the IRS questioning research expense deductions? I'm in a similar situation but I'm worried about getting audited if I deduct all my research costs.

This is such a common issue for PhD students! I went through something very similar last year with a $3,200 research grant. One thing that really helped me was creating a detailed spreadsheet that matched each expense directly to the grant requirements I had submitted in my original proposal. Since you mentioned you had to submit a budget proposal before receiving the grant, that's actually your strongest piece of documentation. The IRS likes to see that clear connection between the grant purpose and how you actually spent the money. I'd recommend creating a simple two-column document: one column showing your original budget proposal line items, and another showing your actual expenses with receipt dates. Also, don't forget that if you do end up itemizing to claim these research expenses, you might be able to include other legitimate deductions like state/local taxes, charitable donations, or student loan interest to help push your itemized total above the standard deduction threshold. Sometimes PhD students overlook these other deductions that could make itemizing worthwhile even if the research expenses alone wouldn't justify it.

I work in retirement planning and see NUA situations regularly. Your father's advisor is correct about the tax advantage, but there are a few critical details to verify before proceeding: 1. **Timing matters**: The NUA distribution must happen in the same calendar year as his retirement. If he retires in May but waits until next year to distribute, he loses the opportunity. 2. **All-or-nothing rule**: As others mentioned, he must distribute his ENTIRE 401k balance. The good news is he can split the distribution - take the BOA stock in-kind to a brokerage account (for NUA treatment) and roll the rest to an IRA if there are other investments. 3. **Cost basis verification**: Make sure BOA's 401k administrator provides accurate cost basis information. I've seen cases where the reported basis was wrong, which can dramatically impact the tax calculation. 4. **Consider the concentration risk**: Having 100% in BOA stock is extremely risky for retirement. Even with the tax advantage, he should have a plan for gradual diversification after the distribution. The NUA strategy can save thousands in taxes, but it requires precise execution. I'd recommend getting a second opinion from a fee-only financial planner who specializes in retirement distributions to make sure all the details are handled correctly.

This is excellent advice from everyone here. I wanted to add one more consideration that's often overlooked with NUA strategies - state taxes. While the federal tax benefits are clear (ordinary income tax on cost basis, capital gains on appreciation), don't forget that your dad's state of residence will also tax the distribution. Some states have no capital gains tax or lower rates than ordinary income, which could add to the NUA benefit. Other states tax capital gains as ordinary income, which might reduce the overall advantage. Also, if your dad is considering relocating in retirement, the timing of the NUA distribution versus a potential move to a more tax-friendly state could be significant. For example, if he's planning to move from a high-tax state like California to a no-tax state like Florida, it might be worth coordinating the distribution timing with the move. I'd definitely echo the recommendation to work with a retirement planning specialist who can model out the complete tax picture - federal, state, and the long-term implications of the concentration risk in BOA stock. The NUA strategy is powerful when executed correctly, but the details really matter.

Word of warning from someone who's been there: Netspend held my tax refund for "verification" last year for 3 DAYS after my DDD! 😤 Called customer service daily and got different answers each time. Meanwhile I had bills due and was sweating bullets! They don't tell you about these potential holds when you sign up for the card. Might want to switch to a different prepaid card next year... unless you enjoy playing the "where's my money" game! 🙃

I'm actually going through the exact same situation right now! My WMR also shows "Refund Approved" with a DDD of 3/22, but my Netspend account is still showing zero. This is my second year using Netspend for my refund - last year it came exactly on the DDD around 10 AM, but I've heard from others that the timing can be inconsistent. I'm trying not to stress about it since we're still technically within the expected timeframe, but it's hard when you're counting on that money! Have you tried calling Netspend customer service? I'm debating whether it's worth the hold time or if I should just wait until after the weekend to see if it posts.