I completely understand your panic! I had the exact same experience with TaxAct two years ago and spent hours worrying I had somehow messed up my tax payment. That VPS message is incredibly misleading - it really should be clearer that it's referring to their service fee, not your actual tax obligation. Just to add some reassurance: if the IRS accepted your return (which you mentioned they did), that means everything on the tax payment side is properly handled. The acceptance email confirms that any payment method you selected for taxes owed during the filing process has been processed correctly by the IRS. The TaxAct charge typically shows up on your statement as something like "TaxAct" or "TAI Services" when it finally processes. In my case, it took about 9 business days, so you're still well within the normal timeframe. One thing that helped me sleep better was taking a screenshot of my IRS acceptance email and keeping it in my files - that's your proof that your actual tax filing and payment went through successfully, regardless of what TaxAct does with their service fees.

I went through this exact same stress with TaxAct last month! That "pay the IRS through VPS at a later time" message is absolutely terrible wording - it made me think I had somehow skipped paying my actual taxes to the government. What everyone else said is spot on - VPS is just Value Payment Systems, which is TaxAct's payment processor for their own service fees. It has nothing to do with your tax liability to the IRS. If you got the acceptance email from the IRS, your actual tax payment (if you owed anything) was already processed correctly. The TaxAct preparation fee is completely separate and will show up on your credit card statement in the next few days. Mine took exactly 8 business days to appear, so you're still well within the normal window. I actually called TaxAct customer service about this same message and the rep told me they get dozens of calls every day during tax season from people panicking about this exact wording. You'd think they would fix it by now! Don't worry - you're all set with the IRS. The confusing message is just about TaxAct's own billing process.

Hey Aliyah! Just wanted to add another voice of encouragement here - you're absolutely handling this the right way! Everyone has given you spot-on advice about the carryover worksheet, but I wanted to share something that might help with the overall anxiety of first-time filing. I remember feeling exactly the same way during my first year - like every screen was a potential trap where I might accidentally mess up my entire return! But here's the thing: the IRS actually expects first-time filers to have questions and make minor mistakes. That's why they have amendment processes and why tax software like TurboTax has all those built-in checks Ava mentioned. For the carryover worksheet specifically, think of it this way: you literally cannot make a mistake by leaving it blank because you have nothing to carry over. It's impossible to mess up when there's genuinely no information to enter! You're being incredibly responsible by asking questions and taking your time. That approach will not only get you through this year successfully, but it's building great habits for future tax seasons. Keep up the excellent work - you've got this! 🙌

Hey Aliyah! I just wanted to add one more perspective as someone who's helped a lot of friends and family through their first tax filings. You've gotten incredible advice here, and I love seeing how supportive this community is! Just to put your mind completely at ease about the carryover worksheet - it's literally designed for situations that don't apply to you. Think of it like TurboTax asking "Do you have any leftover pizza from last night?" when you've never ordered pizza before. There's simply nothing there to carry over! Since you mentioned you're determined to figure this out on your own (which is awesome, by the way!), here's one more tip that might help as you continue: when TurboTax asks about things like "business income," "rental properties," or "investment losses," and you only have your W-2 from your job, you can confidently skip those sections too. Your tax situation is actually pretty straightforward - employee income is one of the most common and simplest scenarios to file. You should be really proud of yourself for taking this on independently and asking smart questions when you need help. That's exactly the right approach, and you're going to do great! 😊

Just a heads up on those cutting machines - I made the mistake of putting similar equipment ($250 range) under Section 179 last year, and my tax preparer said it created unnecessary complication. She had to go back and reclassify them as simple expenses under the de minimis rule, which apparently is much cleaner for audit purposes. For the utilities question, I use a Kill-A-Watt meter to track exactly how much electricity my craft equipment uses. I can literally show the difference in usage between when my machines are running vs not. My accountant said this is perfect documentation to justify claiming more than just the square footage percentage for electricity.

Great questions about Schedule C categorization! As someone who's been through this confusion before, here's my take based on experience and professional guidance: Your vinyl sheets are definitely COGS Materials and Supplies since they directly become part of your finished product. This is the clearest categorization you have. For those $230 cutting machines, you're overthinking it! Since they're under the $2,500 de minimis threshold and have short useful lives, just expense them immediately under Operations Expenses - Supplies. No need for Section 179 or depreciation headaches for relatively inexpensive equipment. Packaging materials should go under COGS Materials and Supplies too - they're essential for delivering your finished product to customers, so they're part of your cost of goods sold. For utilities, if you track actual usage (like with a power meter), you can definitely claim more than just the standard home office percentage. Document your machine usage patterns and put the business portion under Operations Expenses - Utilities. Phone/internet business usage goes under Operations Expenses - Utilities at whatever reasonable percentage you can document. Those Costco storage bins are definitely just Operations Expenses - Supplies. At $12, they're way below any capitalization threshold. The key is reasonable documentation and consistency in your categorization approach!

Wow, reading through all these responses has been incredibly educational! As someone who recently went through a similar inheritance situation, I can't stress enough how important it is to act quickly on this. I inherited my grandmother's IRA in 2021 and made the mistake of assuming I had 10 years to figure it out. Turns out she had already started RMDs, which meant I needed to continue taking annual distributions during the 10-year period. I missed two years of required distributions before realizing my error. The penalty relief process that others have mentioned really does work. I filed Form 5329 for the missed years, marked "RC" for reasonable cause, and included a letter explaining how the SECURE Act changes created confusion about the requirements. The IRS accepted my explanation and waived the penalties completely. For your letter, keep it straightforward - explain that the SECURE Act created new rules for inherited IRAs, that professional guidance was inconsistent or unavailable, and that you're now taking corrective action as soon as you understood the requirements. Include dates and reference the specific confusion around inherited IRA RMD rules. Don't let your dad's advisor's reluctance to help discourage you. Many advisors are still learning these rules themselves. The custodian route that others mentioned is definitely worth trying first - they deal with this daily and can give you the exact numbers you need.

Reading through all these responses, I'm struck by how many people are dealing with similar inherited IRA confusion. The SECURE Act really did create a perfect storm of complexity, especially for situations like yours with double-inherited accounts. One thing I haven't seen mentioned yet is that you should also check if your dad's IRA accounts had any beneficiary designations that might affect your situation. Sometimes when people inherit IRAs, there can be contingent beneficiaries listed that could complicate things further. Also, while everyone's focusing on the penalty relief (which is definitely important), don't forget about the tax planning aspect. Since you have until 2032 to empty both accounts, you might want to spread the distributions across multiple tax years to avoid pushing yourself into higher tax brackets. This is where a good tax professional becomes really valuable - not just for handling the penalties, but for creating a withdrawal strategy that minimizes your overall tax burden. The fact that your dad's advisor is being evasive is unfortunately common. Many advisors are overwhelmed by the SECURE Act changes and would rather punt to someone else than risk giving incorrect advice. Don't take it personally - just keep looking for someone who specializes in this area. You've got options here, and with the penalty relief available for SECURE Act confusion, this situation is definitely fixable. The key is acting soon rather than continuing to wait.

This thread has been absolutely fascinating to follow as someone who's been in a very similar situation! I had tax debt from freelance web development work from 2015-2017 that I completely mishandled in my late twenties - no quarterly payments, terrible record keeping, the whole disaster. What really stands out to me from reading everyone's experiences is how much the specific type of CNC status matters. I was initially placed in hardship-based CNC where they kept reviewing my finances every 12-18 months, which was stressful because I always felt like I was under scrutiny. When my status changed to "currently not collectible not due to hardship" about 18 months ago, I didn't understand why at first. Now after reading through all these insights, especially @Eve Freeman's real experience of watching a tax year actually expire, I realize this status change was actually much more favorable. The IRS essentially stepped back from active collection without me having to continuously prove financial hardship. @Ethan Davis, your timing situation sounds potentially incredible. If those 2014/2015 assessments really are from 2015, you could be looking at collection statute expiration dates very soon. The combination of CNC protection while approaching those 10-year marks could be perfect timing if you avoid doing anything that extends the statute. The "strategic patience" approach that @QuantumQuest and others have described has completely changed how I think about this situation. Sometimes the best action really is careful inaction when time is working in your favor. I'm definitely going to verify my own assessment dates more carefully based on all the advice shared here!

This has been such an incredibly informative discussion! As someone who's been dealing with similar tax debt issues from freelance work I completely mismanaged in my early career, I can't thank everyone enough for sharing their real-world experiences here. What really strikes me about this entire thread is how much the timing and specific type of collection status can matter in these situations. @Ethan Davis, your potential scenario is fascinating - if those 2014/2015 tax years were indeed assessed in 2015, you could literally be just months away from the 10-year collection statute expiration dates while already being protected by that favorable "not due to hardship" CNC status. @Eve Freeman's firsthand account of actually watching a tax year expire was incredibly reassuring. Knowing that it just quietly disappears from your transcript without any formal notification makes the whole 10-year rule feel much more tangible and achievable for those of us navigating similar situations. The concept of "strategic patience" that @QuantumQuest and others have described has been such a revelation. As someone who typically wants to jump in and actively solve problems, learning that sometimes the best approach is careful inaction when timing is working in your favor has completely shifted my perspective on debt management strategy. I'm definitely going to get my own transcripts professionally analyzed based on all the advice shared here. Understanding those exact assessment dates and collection statute timelines seems absolutely crucial for making informed decisions about whether to take action or maintain current status. This community has provided more valuable insights than months of trying to research this on my own - thank you all for being so generous with sharing your knowledge and experiences!