Oh wow, I didn't even think about the self-employment tax! This is super helpful - I definitely would have made the same mistake. Do you know if FreeTaxUSA automatically calculates that when you enter 1099 income, or is it something I need to specifically look for?

Yes, FreeTaxUSA should automatically calculate and add the self-employment tax when you enter 1099-NEC or 1099-MISC income that's subject to SE tax. But it's always good to double-check that Schedule SE is included in your forms list before finalizing. The software should walk you through questions about your business expenses too, which can help reduce both your income tax and self-employment tax. Don't forget things like mileage, home office (if applicable), supplies, software subscriptions, etc. Even small deductions add up and can offset some of that SE tax hit.

Good point! FreeTaxUSA's free tier does include Schedule C for business income but might charge for state amendments. Their premium services are still wayyyyy cheaper than H&R Block though.

Thank you for mentioning this! There are actually some outstanding invoices from his business that I'm still trying to collect. How exactly does the "income in respect of a decedent" work? Does it go on my return or do I need to file something separate?

The income in respect of a decedent will still go on your joint 2021 return if you're filing jointly as surviving spouse. For any payments received in 2022, that income would go on your 2022 return (which you'd file as single or qualifying widow(er) depending on your situation). You don't need to file anything separate, but it's good to keep detailed records of when these payments were received. If any large amounts come in after his date of death, you might benefit from consulting with a tax professional as there can be deductions available for any estate taxes paid on that income. This gets a bit complex, but the basic rule is that the income is taxable in the year received, regardless of when it was earned.

This is excellent advice. Also, for the SNAP question - in my experience helping clients, you should definitely file jointly for 2021 since it'll likely save you on taxes. For SNAP, bring your full tax return but also prepare a simple spreadsheet showing just your income sources separate from his. Most caseworkers will appreciate the clarity.

Thanks for this advice! Do you have a specific mileage app you'd recommend? And should I also be keeping receipts for charging costs since it's an EV?

I use MileIQ and it's been great - it runs in the background and automatically detects when you're driving. You just swipe right for business trips and left for personal. The reports it generates are perfect for tax time. For charging costs, absolutely keep those receipts! You can deduct the business portion of your charging costs as a separate expense on your Schedule C. If you install a home charger, that might also qualify for a separate tax credit, so keep all documentation for that as well.

What about financing? Does it matter if the vehicle is financed vs paid in full for claiming the Section 179 deduction?

Actually that's interesting because my partner did have some credit card fraud last year. They had to deal with a bunch of identity theft issues. Do you think that could be causing my tax return to ask for an IP PIN even though we file separately? We've never filed jointly.

Even if you file separately, sometimes these systems can create connections between household members, especially if you've ever shared an address on tax returns. The IRS fraud detection systems are pretty sophisticated and look for patterns across related taxpayers. In your case, it's definitely possible that your partner's identity theft situation triggered additional security for anyone connected to them, including people at the same address. I'd recommend asking your partner if they received an IP PIN and checking with them about any communications they've had with the IRS about identity protection.

This is great advice but setting up an IRS account online is its own circle of hell. They've made the verification process so strict that many legitimate people can't get through it. They asked me for info from a mortgage I had 8 years ago!

This is really interesting! I've never heard of a Qualified Disclaimer before. Is this something that can be done even years after being added to a deed? My husband has been on his father's deed since 2002, so about 20 years now. Would it still be possible to do this so close to the sale?

Unfortunately, a Qualified Disclaimer typically needs to be executed within 9 months of when the interest was created or when you turned 21 (whichever is later). Since your husband has been on the deed for around 20 years, this option probably won't work in your situation. There are still other approaches though. One possibility is having your father-in-law give your husband's share back to him as a gift before the sale (though this has gift tax implications). Another is to ensure proper documentation that your husband is acting as a "nominee" owner only. This would require specific language in the closing documents and proper reporting on tax returns.

I used TurboTax Premier last year for a capital gains situation with multiple owners (sold my parents' house where I was on the deed). It handled the basic reporting fine, but I found it didn't ask enough detailed questions about ownership intent or primary residence status for each owner. I ended up having to manually override some entries and add explanatory statements. Unless your situation is very straightforward, I'd recommend at least consulting with a tax professional who specializes in real estate transactions before trying to DIY it.

Thanks for the feedback. That's pretty much what I was worried about. I think I'll use a tax pro this year since the stakes are high, then maybe try software again next year when I don't have such complicated issues.