Don't forget to consider state taxes too! The federal exclusion is great, but some states have different rules for capital gains on home sales. Where are you located? Some states follow the federal guidelines, but others have their own quirky rules.

I'm so sorry for your loss, Justin. Dealing with tax implications while grieving is incredibly difficult. One additional thing to keep in mind as you navigate this process - make sure you have all the necessary documentation organized before you sell. Beyond what others have mentioned about cost basis and improvements, you'll want to have your wife's death certificate readily available, proof that the home was your primary residence for at least 2 of the last 5 years, and documentation of any major improvements you've made. Since you're in Colorado and within the 2-year window, it sounds like you're in a good position to take advantage of the full $500K exclusion. Given the complexity of your situation and the significant amount of money involved, I'd strongly recommend consulting with a tax professional who has experience with widower exclusions before you finalize the sale. They can help ensure you're maximizing all available benefits and properly documenting everything for when you file. Take care of yourself during this difficult time.

One thing to be careful about - there's a lot of confusion between Economic Impact Payments (the actual stimulus payments) and the Recovery Rebate Credit (how you claim a missing payment on your tax return). Make sure you're using the correct terminology when filing your amended return. If you enter information in the wrong section, it can cause major delays. I learned this the hard way when my first amended return got rejected because I put the information in the wrong place.

Thanks for sharing your experience with FreeTaxUSA - that's really frustrating that they removed your EIP when you amended your return! I went through something similar last year. Just to clarify the process: you're absolutely right that you can still claim missing Economic Impact Payments, but you'll need to file Form 1040-X to amend the appropriate tax year. Since the third EIP was issued in 2021, you'd need to amend your 2021 return to claim it via the Recovery Rebate Credit. Before you start the amendment process, I'd strongly recommend getting your IRS account transcript (you can access this free on irs.gov) to confirm exactly which payments you received and when. This will give you the precise amounts to claim and prevent any errors on your amended return. You can definitely do this yourself without paying H&R Block's fees! The IRS has free fillable forms, or you could use tax software that supports amended returns. Just make sure you're entering the Recovery Rebate Credit information on the correct line (line 30 for both 2020 and 2021 returns) to avoid processing delays.

Has your friend checked his transcript from the IRS? That would show if he actually has any outstanding tax debt from 2013. He can get it online at irs.gov/transcripts if he can verify his identity, or request it by mail. That would be my first step before doing anything else.

This is definitely a red flag situation that needs immediate attention. A few key points that stand out: 1. The timeline is extremely suspicious - a 2019-dated notice for 2013 taxes arriving in 2025 is not normal IRS procedure. 2. Most importantly, if the notice is addressed to a business your friend never worked for or had any connection to, he should NOT be receiving it at all. This could indicate mail fraud, identity theft, or a serious administrative error. 3. Since Performant Recovery no longer has an IRS contract (which you verified), any attempt to collect based on this notice would be fraudulent. Your friend needs to act quickly but carefully: - Do NOT pay anything or provide any personal information to anyone calling about this notice - Contact the IRS directly using the official number from their website (not the number on the notice) - Request his tax transcripts to verify if he actually owes anything from 2013 - File a report with TIGTA (Treasury Inspector General for Tax Administration) about the suspicious notice - Consider contacting a taxpayer advocate as you suggested The fact that he's being reluctant to address this is concerning. Sometimes people avoid tax issues due to anxiety, but ignoring this could make things much worse if there's any legitimacy to it or if someone is using his information fraudulently.

Has anyone tried the IRS practice lab? It's completely free and available to accounting students through the VITA program. We used it in my tax class and while it's not the fanciest interface, it covers all the common scenarios you'd need for classwork.

Adding to the great suggestions here - if you're looking for something with a modern interface that's also educational, check out FreeTaxUSA's student program. They offer free access to their professional version for accounting students, and it has a really clean, intuitive workflow that's much more user-friendly than ProConnect. What I love about it is that it walks you through each section logically and has built-in error checking that catches mistakes before you complete the return. Super helpful for learning since it explains why certain entries might be incorrect. The reporting features are also great for presenting your work to professors. You can usually get approved for student access within 24 hours by submitting proof of enrollment. Might be worth trying while you're waiting for some of the other options mentioned here!

Don't panic - these IRS crypto letters are becoming more common, but they're often wrong about the amounts owed. The key thing to understand is that the IRS typically assumes $0 cost basis for any crypto transactions they can't fully trace, which massively inflates what they think you owe. Since you got a 6173 letter, you absolutely must respond within 30 days. Here's what I'd recommend: 1. Gather ALL your transaction records from every exchange/wallet you used 2. Calculate your actual cost basis for each transaction (what you originally paid for the crypto) 3. Document any crypto-to-crypto trades with proper fair market values at the time of each trade The $6,800 they're claiming is likely based on incomplete information. If you bought $15,000 worth of crypto and it appreciated before you traded it, your actual taxable gain would be much less than what they're assuming. You have three options: pay the assessment, file an amended return with correct calculations, or dispute it entirely with documentation. Given the amount involved, it's probably worth consulting with a tax professional who specializes in crypto taxation - they can often get these assessments reduced significantly or eliminated entirely. Don't just pay it without fighting back. The IRS crypto enforcement is aggressive but often inaccurate.

I went through something very similar last year and want to share what worked for me. The IRS sent me a letter claiming I owed $4,200 for crypto transactions, but after properly documenting everything, I ended up owing only $380. The biggest mistake people make is not keeping detailed records of their cost basis. Every time you buy crypto, that purchase price becomes your cost basis. When you trade or sell, you calculate gains/losses based on the difference between your cost basis and the fair market value at the time of the transaction. Here's what saved me: I went back through all my exchange accounts (Coinbase, Kraken, Binance) and downloaded every single transaction CSV file. Then I traced each coin from purchase to sale/trade. The IRS was assuming I got my crypto for free (zero cost basis) for transactions they couldn't fully trace. Since you have a 6173 letter, you MUST respond within 30 days. Don't ignore it. I'd recommend either using one of the crypto tax software tools mentioned here or hiring a CPA who specializes in crypto. The upfront cost is way less than paying an inflated IRS assessment. Also keep in mind that crypto-to-crypto trades are taxable events, but you can often have losses that offset gains. The IRS letter probably doesn't account for any losses you might have had.