I went through this exact situation with my twin nieces after their father (my brother) passed away and they inherited his IRA that originally came from their grandmother. The key thing I learned is that you need to be very specific with Vanguard about the "stepping into shoes" concept - the children inherit as if they were their deceased mother, which preserves their eligibility for the life expectancy method. What really helped me was preparing a one-page summary document before calling Vanguard that included: 1) Original account holder (your father), 2) Primary beneficiary (your sister - deceased), 3) Current beneficiaries (the children as successors), and 4) Your role as guardian with court documentation. Having this ready made the conversation much smoother and ensured they set up the accounts correctly from the start. Also, I'd recommend asking Vanguard to send you their "Inherited IRA Distribution Guide for Minors" - it's a specific document they have that walks through the annual RMD calculation process and required forms. This saved me from having to figure out the calculations myself each year. The peace of mind of knowing you're handling their financial future correctly is priceless, especially during such a difficult time.

I'm so sorry for your family's losses, Javier. This thread has been incredibly informative - I'm actually a tax preparer who specializes in estate and inheritance issues, and I wanted to add a few practical points that might help you navigate this process. First, regarding the timing: since your father passed in 2024, you have until December 31, 2025 to take the first RMDs for the children. However, I'd strongly recommend starting the account setup process with Vanguard soon, as it can take several weeks to get everything properly established, especially with the complexity of your situation. One thing I haven't seen mentioned is that you'll want to consider opening separate checking accounts for each child to receive their annual RMD distributions. Many guardians make the mistake of commingling the funds, which can create complications later. Having dedicated accounts makes the tax reporting cleaner and helps you track each child's inheritance separately. Also, since the IRA amount is relatively modest at $42K total, you might want to run projections on both the life expectancy method versus accelerated distributions while the kids are young and in low tax brackets. Sometimes with smaller inherited IRAs, taking larger distributions early can result in better long-term outcomes than stretching tiny RMDs over decades. The children are lucky to have someone so thoughtful looking out for their financial future during such a difficult time.

Random but semi-related question - has anyone used any particular tax software that handles QBI calculations well? I tried three different ones last year and they all seemed to handle it differently which freaked me out.

Just wanted to chime in as someone who went through this exact confusion last year. The "consulting" vs "product" distinction really comes down to deliverables in my experience. I run a data analytics firm and was initially worried we'd be classified as consulting, but after working with a tax attorney, we determined that our custom dashboards and automated reporting systems constitute tangible products rather than just advice. The key was documenting that clients receive specific, measurable deliverables that have ongoing value beyond our initial consultation. For the "principal asset" test, what helped clarify things for me was thinking about it this way: if I got hit by a bus tomorrow, could my business continue operating and delivering the same quality of work? We've invested heavily in proprietary software, standardized processes, and training multiple team members on each client account. That systemic approach helped us qualify for the QBI deduction. One practical tip - start documenting your business processes and systems now, even if you're unsure about qualification. Having clear documentation of your methodologies, intellectual property, and operational procedures will be crucial if you're ever questioned about whether your business depends primarily on individual skill versus systematic capabilities.

Has anyone found a way to get the Excel formulas for Box 12 to properly link to the right forms? My template has fields for the codes but doesnt seem to do anything with them lol.

I've been using Excel templates for my taxes for about 3 years now and have learned a few things about handling Box 12 codes the hard way! The key is understanding that Box 12 codes fall into different categories: some reduce your current taxable income (like Code D for 401k), some require additional forms (Code W needs Form 8889 for HSA), and some are just informational (like Code AA for Roth contributions). For your specific situation with codes D, W, and AA - Code D doesn't need any action since it's already excluded from your Box 1 wages. Code W will need Form 8889 if you want to deduct HSA contributions. Code AA is just tracking info for your Roth contributions. Most basic Excel templates don't handle the complexity of linking these codes to the right forms automatically. You might want to create a simple reference sheet in your workbook that lists each code, its purpose, and which form it affects. This has saved me from making costly mistakes in previous years. If your template doesn't have built-in logic for these codes, you're essentially doing manual tax prep with Excel as a calculator - which can work but requires you to really understand the tax rules.

As someone who's been working in tax preparation for about 8 years now, I'd strongly echo everyone's advice to take the H&R Block class regardless of your accounting background. Your degree definitely gives you a solid foundation, but the practical day-to-day work is quite different from academic tax knowledge. What I've seen over the years is that new preparers who skipped the class often struggle with H&R Block's specific client interview protocols and quality control standards. The class teaches you their systematic approach to gathering information, handling incomplete documentation, and managing client expectations - skills that aren't typically covered in accounting programs but are absolutely crucial during busy season. The software training aspect can't be overstated either. Their professional system is designed for high-volume, complex returns with workflows that are completely different from consumer products. Learning to navigate it efficiently while maintaining good client service takes dedicated practice. But what really makes the difference is the support network you build. The instructors often become invaluable mentors who you can call when you encounter unusual scenarios. During my first season, I probably called my instructor a dozen times with questions about complex situations, and that guidance was worth its weight in gold. Your accounting background will definitely help with understanding the concepts, but the class will teach you how to apply that knowledge professionally within H&R Block's framework. The confidence boost alone makes it worth the time investment!

As a former H&R Block employee who went through this exact decision a few years ago, I can add my voice to the overwhelming consensus here - definitely take the class! I had a business degree with some accounting coursework and thought I could skip straight to the test, but I'm so glad I didn't. What really surprised me was how much the class focused on H&R Block's specific quality assurance protocols. They have very detailed checklists and review procedures that ensure consistency across all their locations. Learning these standards upfront meant I rarely had returns kicked back during review, while colleagues who skipped the class often had to redo work because they missed documentation requirements or didn't follow proper procedures. The class also taught me their escalation procedures for complex situations - knowing exactly when and how to involve senior preparers or managers when you encounter something beyond your experience level. This knowledge was crucial during my first season when I had clients with situations I'd never seen before. One thing I haven't seen mentioned much is that taking the class also demonstrates commitment to your manager. They invest time in training you, and in return, they tend to give you better client assignments and more opportunities for advancement. Several people who skipped the class ended up with mostly simple returns, while those of us who went through the full training got to work on more interesting and complex cases. Bottom line - the class isn't just about passing a test, it's about setting yourself up for success in the actual job. Your accounting background will definitely help, but the H&R Block-specific training is what will make you effective from day one.

I experienced this last year. It took 2 weeks to get a letter asking me to verify my identity, then another 3 weeks for them to process it after I verified. The whole thing took about 5-6 weeks total from when I first saw that message until I got my refund. Super annoying but pretty routine these days.

I went through this exact same situation last month! The "Action Required" message is basically the IRS's way of saying they need to take a closer look at your return before releasing your refund. Since you filed Head of Household, they're probably going to verify that you actually qualify for that filing status - it's one of the most commonly reviewed areas. Here's what I learned from my experience: Don't just wait around doing nothing. Get your account transcript from irs.gov right now so you can see what specific codes they've put on your account. The transcript will show you exactly what type of review they're doing (identity verification, dependent verification, income matching, etc.). The letter will eventually come (took about 2.5 weeks for me), but knowing what's happening ahead of time will save you stress and help you prepare the right documents. When I got my letter, they wanted proof that my kids lived with me - school enrollment records, medical records showing my address, etc. My refund was released about 10 days after I sent in the requested documentation. The key is responding quickly and completely once you get their letter. Good luck!