Has anyone here used TurboTax to report inherited annuity income? I'm trying to figure out if their software handles this correctly or if I need to go to a professional this year.

One thing to keep in mind is that inherited annuities can sometimes trigger the "kiddie tax" rules if you're under 24 and considered a dependent, but that doesn't sound like it applies to your situation given your income level. Since you mentioned you're receiving $87,000 over 10 years, that's roughly $8,700 annually. Depending on your aunt's cost basis in the annuity, you might only be paying taxes on a portion of each payment. For example, if she paid $50,000 for the annuity, roughly 43% of each payment would be tax-free return of premium and 57% would be taxable earnings. Also, don't forget that inherited annuity payments are treated as ordinary income, not capital gains, so they'll be taxed at your regular income tax rates. With your $65k salary plus the annuity income, you'll want to check if this pushes you into a higher tax bracket and consider adjusting your withholding accordingly.

Does anyone know if there's a minimum filing requirement even if you have no income? Like if OP really did just sit on the cash and earned zero interest (bad idea but hypothetically), would they still have to file a return every year showing $0 income?

One important thing to keep in mind is that even though you won't owe taxes on the principal amount sitting in your account, you'll want to keep good records of your lottery winnings and the taxes you already paid. The IRS might ask for documentation years later, so make sure you have copies of your lottery payout statements, tax withholding forms, and the tax return where you reported the winnings. Also, if you're planning to live off this money for years, consider that $3.8 million might not last as long as you think, especially with inflation. Even without earning interest, your purchasing power decreases over time. You might want to at least put some of it in Treasury I-bonds or TIPS (Treasury Inflation-Protected Securities) to maintain your buying power while still keeping things relatively simple from a tax perspective.

19 Has anyone actually been audited specifically about a Section 179 vehicle deduction? I'm worried I'll do all this work and still get flagged.

This is really comprehensive advice everyone! As someone who just went through this process with my Honda Pilot, I wanted to add that the IRS also looks closely at the timing of when you place the vehicle "in service" for business use. Make sure you have documentation showing the exact date you started using it for business - this could be your first business trip, when you installed business equipment, or when you modified the seating configuration. The Section 179 deduction is only available for the tax year when you place it in service, so if you buy in December but don't start business use until January, you might have to wait until the following year's return. Also, keep copies of your financing or lease agreements if applicable - the IRS sometimes wants to verify the actual purchase price and terms to ensure your deduction amount is correct. I learned this the hard way when I had to scramble to find my loan paperwork during a records review.

I went through this exact same situation about 8 months ago! Got my CP23 notice and panicked thinking I'd never filed my 2021 return (turns out I had but it got lost in the mail). Filed electronically immediately and my refund was released exactly 6 weeks later. The electronic filing definitely speeds things up compared to paper. One thing that helped me stay sane during the wait was checking my transcript weekly instead of obsessing over the "Where's My Refund" tool. You'll see way more detail about what's actually happening with your case. The codes can be confusing but once you learn what to look for, it's much more informative than the generic "still processing" message. Since you only owe $375, that shouldn't complicate things - they'll likely just send you a separate bill for that amount. Good luck and try not to stress too much, it sounds like you did everything right!

I had almost the exact same situation happen to me last year! Got my CP23 notice for my 2021 return and immediately filed electronically. The whole process took about 5 weeks from filing to getting my refund deposited. The key thing is that since you filed electronically, the IRS can process it much faster than a paper return. Also, the fact that you only owe $375 actually works in your favor - they'll likely just send you a separate notice for that amount rather than holding up your refund to collect it. My advice is to create an account on irs.gov and check your transcript every Friday. Look for processing codes that show your return was accepted and then eventually the refund release codes. It's way more informative than the "Where's My Refund" tool which basically tells you nothing useful. The waiting is definitely nerve-wracking, but you did everything right by filing electronically right away. Hang in there!

Be careful with your expectations here. I had a similar Refund Freeze Code (570) last filing period, and it took approximately 6 weeks to resolve. The absence of a 971 Notice Issued code initially seemed positive, but in my case, it simply meant the systematic review was in a preliminary stage. The verification process for education credits has intensified significantly since the Treasury Inspector General for Tax Administration report identified substantial improper payments.

I'm going through the exact same thing right now! Filed 2/5 and just got the 570 code yesterday with a 3/15 as-of date. No 971 code either and I'm definitely stressed about it. Reading all these responses is actually really helpful though - seems like this is way more common than I thought, especially for students claiming education credits. I claimed the AOTC for my spring semester expenses, so that's probably what triggered the review. Thanks everyone for sharing your experiences! Going to try to be patient and check my transcript in a few days rather than obsessively refreshing every hour like I have been 😅