This is exactly the kind of situation where having proper documentation from the start is crucial. I went through something similar when my aunt in British Columbia passed away last year. One thing I'd emphasize is to get copies of ALL Canadian tax documents - not just the final returns, but also any T3 slips for trust distributions, T4RSP slips for RRSP withdrawals, and documentation of any capital gains reported in Canada on the property deemed disposition. The Canadian estate executor should provide these. Also, don't overlook provincial taxes! Each Canadian province has different tax rates, and Ontario (where your parents' rental properties are) has its own additional considerations. The foreign tax credit calculation gets more complex when you're dealing with both federal and provincial Canadian taxes. I found it helpful to create a timeline of when each asset was transferred to me, the fair market values at death, and the Canadian taxes paid on each. This made the US reporting much cleaner and helped my tax preparer calculate the foreign tax credits accurately.

I'm dealing with a very similar situation right now - my mother passed away in Toronto last month and I'm inheriting her RRSP and a condo downtown. Reading through all these responses has been incredibly helpful, especially the points about getting proper appraisals and documentation. One thing I wanted to add that I learned from my cross-border tax advisor: if your parents are still alive, consider having them convert some of their RRSP funds to a TFSA (Tax-Free Savings Account) if they have contribution room available. TFSAs are treated much more favorably for US tax purposes when inherited - the US generally recognizes them as tax-free, whereas RRSPs create that double taxation headache you're worried about. Also, for the rental properties, ask about whether your parents have been claiming capital cost allowance (depreciation) on their Canadian tax returns. If they have, there could be "recapture" of that depreciation that gets added to the capital gains calculation when the properties are deemed disposed of at death. This affects both the Canadian tax liability and your foreign tax credit calculations. The whole process is definitely complex, but getting the right professional help upfront (whether it's the AI tools others mentioned, professional tax advisors, or both) can save you major headaches down the road.

I'm dealing with a similar situation and wanted to share what I learned from my tax preparer. The key thing to remember is that RSUs and SSARs are handled differently for tax purposes, but both should already be included in your Box 1 wages. For your specific situation with the $7,500 SSAR sale, you absolutely need to find the original exercise documentation to determine your cost basis. This is critical because without it, you might end up paying taxes twice - once when the SSARs were exercised (already included in a previous year's W2) and again when you report the sale. A few places to check for this information: 1. Your company's equity portal (Fidelity NetBenefits, E*TRADE, etc.) 2. Email confirmations from when you exercised the SSARs 3. Previous year tax documents if you exercised them recently 4. Contact your HR department - they should have records of all equity transactions Don't guess at the cost basis or leave it blank on Form 8949. The IRS will assume zero basis if you don't provide it, which could result in paying tax on the full $7,500 sale amount even though you already paid income tax when the SSARs were exercised.

I went through this exact same confusion with RSUs and SSARs last year, so I totally understand the frustration! Here's what I learned that might help: The Box 14 amounts on your W2 are indeed already included in your Box 1 income - they're just there for informational purposes to help you understand what types of compensation you received. So you don't need to report the $4,050 RSU or $19,250 SSAR amounts separately as additional income. For the $7,500 SSAR sale, you absolutely need to find your original exercise documentation to determine the cost basis. Without it, you'll likely overpay taxes since the IRS will assume zero basis if you don't provide proper documentation. A few tips from my experience: - Check your company's stock plan website (like Fidelity NetBenefits or E*TRADE) - they usually have a "Tax Documents" or "Cost Basis" section - Search your email for confirmations from when you exercised the SSARs - Contact your company's stock plan administrator directly - they're required to maintain these records The key thing to remember is that you already paid income tax on these SSARs when they were exercised (they would have appeared in a previous year's W2), so you only owe capital gains tax on any appreciation from the exercise date to the sale date. Don't leave the cost basis blank on Form 8949 - it could cost you thousands in unnecessary taxes!

I'm in the exact same boat as so many of you here! Mailed my paper return about 5 weeks ago and have been checking that IRS portal religiously with no luck - just that same "Return Not Processed" message every single time. Reading through everyone's experiences has been both eye-opening and incredibly reassuring. I had no idea paper returns would take 8-12 weeks just to show up in their system! I was starting to panic that my return got lost or I made some major error, but it sounds like we're all just stuck in the same incredibly slow processing queue. I'm definitely going to set up that ID.me account this week based on everyone's recommendations to hopefully get more detailed information than just that vague portal message. The taxr.ai tool that several people mentioned also sounds really helpful for getting realistic timeline predictions instead of being left completely in the dark. It's honestly comforting (in a misery-loves-company way) to know so many of us are dealing with these exact same frustrating delays. At least now I know this is just the reality of paper filing right now and not something wrong with my specific return. Thanks to everyone for sharing their timelines and experiences - this community has made what could be a really stressful situation much more manageable! I've absolutely learned my lesson about e-filing for next year. I chose to mail because I thought it was "safer" but the months of anxiety definitely aren't worth it. Here's hoping we all start seeing some movement in our returns soon!

I'm in almost the exact same situation as everyone here - mailed my paper return about 4 weeks ago and that "Return Not Processed" message has been driving me absolutely crazy! This entire thread has been such a huge relief because I was starting to think the IRS lost my return or I made some catastrophic filing error. The consistent 8-12 week timeline that everyone is sharing is honestly shocking to me. I had no idea paper returns would take this long just to show up in their system - I was naively expecting maybe 3-4 weeks maximum! I definitely should have researched this better before choosing to mail instead of e-file. I'm going to follow all the great advice here and set up that ID.me account this week to hopefully get more detailed information than just that vague "not processed" status. The taxr.ai tool that several people have mentioned also sounds really promising for getting realistic timeline predictions instead of being left completely in the dark about where my return is in the queue. Thanks to everyone for sharing your experiences and timelines - knowing that we're all stuck in this same incredibly frustrating processing situation makes the wait so much more bearable. This community has turned what could have been months of panic into just... well, months of informed waiting! I've absolutely learned my lesson about e-filing for next year. I thought paper filing was "more secure" but the anxiety definitely isn't worth it. Here's hoping we all start seeing some movement in our returns soon. At least we're all in this slow processing nightmare together!

Quick question - has anyone had this issue with TurboTax or other tax software? I'm trying to file both my federal and local returns through TurboTax but it keeps flagging the missing boxes and won't let me proceed.

Don't panic - this is actually more common than you think! The blank boxes 18-20 on your W-2s simply mean your employers didn't withhold local municipality taxes from your paychecks during the year. This doesn't mean you don't owe them - it just means you'll need to pay them now when you file. For your municipality filing, here's what you should do: - Use the wage amount from Box 1 (your federal wages) as your local taxable wages - Enter "0" for local tax withheld since nothing was taken out - For the locality name, use the municipality where you physically worked (or your employer's location) The reason your third W-2 has this information filled in is probably because that employer was located in your municipality and properly withheld local taxes throughout the year. You should also ask your employers (the ones with blank boxes) why they weren't withholding local taxes - they might need to correct this going forward so you don't face a big tax bill again next year. Some employers don't realize they need to withhold for the municipality where their employees live or work.

This discussion has been incredibly enlightening! I'm facing a very similar situation where my employer has been treating backup childcare benefits as taxable imputed income, and I had no idea this could potentially violate Section 129 rules. What really strikes me from reading everyone's experiences is how widespread this issue seems to be across different companies and backup care providers. It appears there's a significant knowledge gap between what the tax code actually allows (the $5,000 exclusion for qualifying dependent care assistance) and how many payroll departments are actually implementing these benefits. I'm planning to follow the proven strategy that multiple people have shared: handle this year's taxes properly by claiming the imputed income amounts on Form 2441 (since I'm effectively "paying" for that care through additional taxes), while simultaneously working with HR to correct this for future years. The advice about approaching HR collaboratively rather than confrontationally seems crucial. I'm going to ask them to walk me through their reasoning for the current classification, then share documentation from our backup care provider showing how their program is structured to meet Section 129 requirements. Several people mentioned that the providers themselves design these programs specifically to qualify for the tax exclusion, which really reinforces that employers should be excluding these benefits up to the annual limit. It's frustrating that working parents have to become tax experts just to ensure we're not overpaying on benefits designed to help us, but this community discussion has made the path forward much clearer. Thanks to everyone who shared their experiences - it's exactly this kind of support that makes these complex tax situations manageable!

I've been following this thread closely as someone dealing with the exact same issue! My employer has been adding about $2,600 in backup childcare benefits as imputed income to my W-2 this year, and reading through everyone's experiences has been incredibly helpful. What really resonates with me is how this seems to be a systemic problem affecting working parents across many different companies. The disconnect between what Section 129 actually allows (up to $5,000 exclusion for qualifying dependent care assistance) and how payroll departments are implementing these benefits is clearly widespread. I'm definitely going to take the dual approach that seems most successful here: claim the imputed income amounts on Form 2441 for this tax year since I'm effectively "paying" for that care through extra taxes, while also working with HR to get this corrected going forward. The strategy about asking HR for their written rationale first, then sharing documentation from the backup care provider about Section 129 compliance, seems like the most diplomatic way to approach this. Making it collaborative rather than confrontational is clearly key to getting positive results. One thing I wanted to add - I noticed several people mentioned getting documentation directly from their backup care providers. This seems like a really smart move since these companies have designed their programs specifically to meet tax code requirements and probably have materials ready to help employers implement the benefits correctly. Thanks to everyone who shared their experiences and solutions. It's made what seemed like an impossible tax situation much more manageable!