I'm really sorry to hear about your cousin's mom passing away. This is definitely a stressful situation, but from what I understand, he should be okay as long as he keeps making payments. The key thing is that most mortgage contracts don't have automatic acceleration clauses triggered by a co-signer's death - they're more concerned with getting paid than who's making the payments. Since your cousin has been the one actually making payments all along and has never missed one, that works strongly in his favor. My suggestion would be for him to call the mortgage servicer directly and ask to speak with their estate or borrower services department. He should be prepared with his mom's death certificate and ask specifically what their process is for removing a deceased co-signer. Most servicers have a standard procedure for this and will just need some paperwork filed. It might also help to get any confirmation in writing that the loan terms won't change and that regular payments can continue as normal. This would give him peace of mind and documentation if any issues come up later. The fact that he's been responsible for payments from day one should really work in his favor here. Banks generally don't want to foreclose on performing loans - it's expensive and risky for them too.

I'm sorry for your cousin's loss. This is such a common worry, but the good news is that most lenders won't call the loan just because a co-signer passes away, especially when the primary borrower has a solid payment history like your cousin does. The most important thing is for him to be proactive about notifying the lender. I know it seems scary, but hiding it could actually cause more problems down the road. When he calls, he should ask specifically about their "survivorship" policies and request written confirmation that the loan will remain in good standing as long as payments continue. One thing that might help ease his mind - if this is an FHA loan, there are federal protections specifically preventing lenders from accelerating the loan due to a co-borrower's death. Even with conventional loans, most major lenders have policies in place for exactly this situation since it's so common. The key is that he's been the one making payments all along and has never missed one. That payment history is his strongest asset here. Banks make money from borrowers who pay on time, not from foreclosures or forced refinancing. I'd also suggest he gather any estate documents he might need (like letters testamentary if he's handling his mom's estate) in case the lender requests them, but most of the time they just need the death certificate and a simple form to update their records.

I went through almost the exact same situation two years ago when I became a 6% owner in my consulting firm. Like you, I was worried about losing our dependent care FSA benefits, but my concerns were unfounded. The key distinction is that ownership restrictions for FSAs apply to the company where you have ownership, not to benefits obtained through a spouse's separate employer. Since your husband's FSA is through his company (where you have zero ownership), your new LLC ownership status is completely irrelevant to that benefit. One practical tip: when you transition to receiving distributions instead of W-2 wages, your household's tax situation will change significantly. You'll likely owe more in taxes due to self-employment taxes on your share of LLC profits. Consider increasing your dependent care FSA contribution to the maximum if you're not already doing so - it's one of the few tax advantages that actually becomes more valuable when you're paying higher effective tax rates as a business owner. Also, make sure your operating agreement clearly spells out how distributions will be handled and when. You'll want predictable cash flow for those quarterly estimated tax payments!

As someone who works in tax compliance, I can confirm what others have said - your LLC ownership won't affect your husband's dependent care FSA eligibility at all. The 2% owner restriction is specific to S-corporations and only applies when the owner is participating in their OWN company's cafeteria plan. However, I want to emphasize something that hasn't been mentioned enough: make sure you fully understand the tax implications of switching from W-2 to LLC distributions. Beyond the self-employment tax issue others discussed, you'll also lose certain employee benefits like unemployment insurance coverage. Also, depending on how your LLC is structured, you might have "guaranteed payments" instead of distributions if you're still working there regularly. Guaranteed payments are treated differently for tax purposes - they're subject to self-employment tax but they're also deductible to the LLC. Make sure your accountant explains the difference and how your specific arrangement will be classified. The FSA question is straightforward, but the overall tax transition deserves careful planning. Consider doing a tax projection for the full year to avoid any surprises at filing time.

This has been such an eye-opening thread! I've always just focused on my federal tax refund each year without really thinking about the bigger picture. Reading through everyone's experiences and calculations, I'm realizing I probably have no idea what I'm actually paying in total taxes. I'm particularly struck by the points about hidden taxes in utility bills, service fees, and even things like gas purchases. I never thought about how my cell phone bill has government fees, or that renters are indirectly paying property taxes through rent. The "tax on tax" concept someone mentioned is mind-blowing too - the idea that you're paying sales tax with money you've already paid income tax on. The regional variation discussed here is staggering. A 15-point difference between states means someone in Texas versus New York could be paying thousands more per year in taxes on the same income. That's definitely something I'll consider if I ever relocate for work. I think I'm going to start tracking my total burden next year using some of the methods suggested here - the "tax diary" idea and maybe trying that 5-year average approach to smooth out any major life event impacts. Based on what I'm seeing here, I'm probably somewhere in that 30-35% range, but I honestly have no clue until I actually calculate it properly. Thanks to everyone who shared their real numbers and experiences - this is exactly the kind of comprehensive data I was hoping to find when I started researching this topic!

This discussion has been incredibly comprehensive and eye-opening! As someone who works in government finance, I wanted to add a perspective on why these calculations are so challenging and why there's such variation in what people actually pay. One factor that hasn't been fully explored is the impact of tax avoidance (legal) versus tax evasion (illegal). The "average" American's tax burden is significantly affected by how effectively people utilize available deductions, credits, and legal tax planning strategies. Someone who maximizes their 401k, uses HSAs, takes advantage of all available deductions, and plans their major purchases strategically might have an effective rate 5-8 percentage points lower than someone with identical income who doesn't engage in tax planning. This creates a weird situation where your actual tax burden depends not just on your income and location, but on your financial sophistication and access to good tax advice. Two people making $80k in the same city could have total effective rates of 28% versus 36% purely based on their tax planning approach. I've also noticed that many people forget about the "tax benefits" side of the equation. If you're getting significant value from public schools, infrastructure, emergency services, etc., your net burden is lower than the gross percentage suggests. This is particularly relevant when comparing tax burdens internationally - Americans might pay less in taxes but significantly more for healthcare, education, and other services that are tax-funded elsewhere. The 30-35% range that's emerged from this discussion seems accurate for middle-class households who aren't doing extensive tax optimization, but it could easily be 25-30% with good planning or 40%+ in high-tax states without planning.

Did you claim any recovery rebate credit, earned income credit, or child tax credit on your return? Those trigger automatic reviews this year and are causing major delays. Also check if there were any math errors on your return. The IRS has been overwhelmed with corrections for simple math mistakes that slow everything down.

I'm dealing with a similar situation - my refund has been delayed for 6 months now. After reading through all these responses, I'm realizing there might be more options than I thought. For what it's worth, I did finally get through to the IRS using the early morning calling strategy someone mentioned. Called at exactly 7:00 AM on a Wednesday and got connected after about 2 hours on hold (which felt like a miracle compared to my previous attempts). The agent was actually very helpful and could see exactly what was holding up my return. In my case, it turned out to be an issue with my employer's reporting that didn't match my W-2. The agent explained that these discrepancies often aren't caught until months later in the process, which explains the long delay with no communication. One thing I'd add is to make sure you have all your documentation ready when you do get through to someone - your AGI from last year's return, exact refund amount, and any relevant tax documents. The agents can often resolve things on the spot if you have everything they need. Victoria, given that you're at 8 months now, you definitely qualify for Taxpayer Advocate Service assistance. That might be your best bet at this point, especially with the financial hardship from needing those home repairs.

Has anyone actually used the FreeTaxUSA mobile app to enter quarterly payments? Desktop version works fine for me but the app seems to be missing some features.

I went through this exact same situation two years ago and totally understand the panic! The great news is that FreeTaxUSA handles this automatically - no special forms needed at all. When you enter your quarterly estimated tax payments in the software (make sure you get all four quarters if you made them), FreeTaxUSA calculates your total tax liability for the year and then subtracts what you've already paid. If you overpaid, that excess automatically becomes part of your refund. Just double-check that you've entered the correct amounts and dates for each quarterly payment. You can verify these by logging into your IRS online account or checking your bank statements. Once you file your return, the IRS will process your refund including that overpayment - usually within 21 days if you file electronically and choose direct deposit. The key thing is making sure all your quarterly payments are properly recorded in the software. Don't stress - this is a very common situation and the system is designed to handle it seamlessly!