Those free services usually have income limits though, right? I tried to use one and they turned me away because I made "too much" even though I definitely don't feel rich.

You're right that many do have income limits - typically the VITA program caps at around $60,000 for households. However, AARP's Tax-Aide program often has higher or no income limits, especially for older taxpayers. Some credit unions offer their members tax preparation regardless of income, though these aren't part of the IRS volunteer programs. It's definitely worth calling around to find out what's available in your area and what their specific requirements are.

You can get the same peace of mind for WAY less with good tax software. CPAs are overcharging because people are afraid of doing taxes themselves.

I hadn't considered visiting in person! Do you know if they handle EFIN issues at the local offices, or would they just tell me to call the e-file department? Has anyone successfully resolved an EFIN issue at a local office?

The local offices don't directly handle EFIN processing, but they can access more detailed information about your application status than phone representatives can. When I went in, the IRS employee was able to see exactly which stage my application was stuck at and who needed to review it next. They also provided me with a specific fax number to resend my supporting documentation and gave me a case reference number to include. This made a huge difference because it went directly to the right department instead of into the general submission pile. My application was approved about 10 days after my in-person visit.

Most professional tax software won't let you use their EFIN - that would be a violation of their terms and potentially illegal. Each preparer needs their own EFIN to e-file returns.

Does the IRS send any notification if there's an SSN mismatch or do they just silently delay your refund? I'm paranoid I made a typo now.

They typically don't notify you immediately about the SSN mismatch. What usually happens is your return gets flagged for manual review, and your refund gets put on hold without any specific explanation. Sometimes you'll eventually get a letter in the mail explaining the issue, but that might come weeks after you file. The Where's My Refund tool will just show "still processing" with no details about why. That's why it's so important to triple-check those numbers before filing.

That's actually not a good strategy. Amended returns take MUCH longer to process - we're talking 16-20 weeks minimum instead of the 3-4 weeks for a delayed CTC refund. Plus, you'd have to pay to file twice. Just wait the extra couple weeks.

Thanks for saving me from a bigger headache! I'll just be patient and file everything correctly the first time. Good to know amendments take that much longer - definitely not worth it just to get part of my refund a little sooner.

How long did it take for the IRS to send that letter? Did they add any interest to the amount owed?

It took about 9 months after she filed for the letter to arrive. This was pre-pandemic though, so IRS processing times were a bit faster then. They did add a tiny bit of interest to the amount owed, but it was literally cents on a small amount like that. The letter clearly explained the adjustment and gave her 30 days to pay or dispute it. She just paid it online and that was the end of it - no further contact from the IRS.

Would this small mistake increase your chances of being audited on other stuff in the future?

For point #1, doesn't the recipient keep your basis though? So they might get hit with bigger capital gains tax when they sell? I thought that was one reason people wait to transfer at death - the step-up in basis.

You're absolutely right about the basis issue. When you gift assets during your lifetime, the recipient keeps your original basis (with some adjustments for gifts that have decreased in value). In contrast, assets transferred at death get a "step-up" in basis to fair market value, which can eliminate capital gains tax on all the appreciation that occurred during your lifetime. This is a critical consideration when deciding between lifetime gifts versus transfers at death. The best strategy often involves a mix - gifting some assets (especially those with minimal appreciation or those expected to grow significantly in the future) while holding other highly-appreciated assets until death to get the basis step-up. This gets pretty complex and is definitely one reason why people use estate planning professionals instead of just making outright gifts.

This is so true. My sister's ex-husband would have gotten half of her inheritance if my parents hadn't used a trust. The trust protected it as separate property that wasn't divided in the divorce.

There's also special needs trusts for disabled family members. Direct gifts could disqualify them from government benefits but a properly structured trust won't.