Does this apply even if it's just a small amount of interest from the estate checking account? I'm in a similar situation and the estate only earned like $47 in interest.

If the estate earned less than $600 in total income after death, you generally don't need to file a Form 1041. So in your case with only $47 in interest, you wouldn't need to file an estate income tax return. That said, some executors choose to file anyway just to create a clear record, especially if they expect more income to come in later. But technically, the IRS doesn't require filing Form 1041 if the estate's income is below $600 for the tax year.

Good point! What states have these lower thresholds? Now I'm worried I might have missed something with my grandmother's estate.

As of 2025, there are about 12 states plus DC that have estate taxes with lower exemptions than federal. Massachusetts and Oregon have exemptions as low as $1 million, while states like New York and Hawaii have higher thresholds but still lower than federal. Then there are six states with inheritance taxes (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) which work differently - the tax depends on who inherits, not the total estate value. Maryland actually has both types of taxes! I'm not an expert on all state rules, but definitely check your specific state's department of revenue website or ask your tax preparer about local requirements.

I thought 1031 exchanges don't apply to personal residences though? Since OP and his wife have been living there as their home, would it still qualify?

You're right that 1031 exchanges don't apply to personal residences for the people living in them. However, in this case, the trust owns the property, not OP personally. Since the trust members (dad/aunt/uncle) haven't been using it as their primary residence, it might qualify as an investment property from their perspective, especially if OP has been paying rent to the trust. If no rent has been paid and the arrangement was purely for caretaking purposes, the IRS might still consider it a personal residence of the trust beneficiaries by extension. It's definitely a gray area that would require consultation with a tax professional who specializes in real estate and trusts.

That's interesting! How would medical expenses offset capital gains? Are they directly deductible against the gain, or is it more complicated than that?

Do you track miles driving to your first pickup? I heard different things about whether that's deductible or not.

Yes, I do track miles to my first pickup, but there's some nuance here. If you're driving from home directly to your first delivery pickup, the IRS technically considers that a non-deductible commute. However, if you first drive to a "regular place of business" (like a specific area where you regularly start deliveries) and then to your first pickup, those miles can be deductible. The key is consistency and documentation. I have a designated "staging area" where I officially start work, which allows me to deduct more miles. Many tax professionals have different interpretations of this rule for gig workers, so it's something to discuss with a tax pro familiar with independent contractor rules.

I used it last year and it was OK but not great. It asks good questions about deductions but I still felt like I might be missing things. This year I'm trying FreeTaxUSA which is cheaper and handles self-employment pretty well from what I've heard.

4 Do you know if there's an easy way to get copies of old returns if you didn't save them? I can't find my 2022 return anywhere and I'm worried I'll need it.

21 You can request tax transcripts directly from the IRS website through their "Get Transcript" service. They offer several types, but what you'll want is the "Tax Return Transcript" which shows most of the line items from your original tax return, including your AGI. You can get these online immediately if you create an account on the IRS website, or request them by mail which takes about 5-10 business days. The online method requires more verification steps but gives you instant access. It's totally free either way and is the official solution for when you don't have copies of your previous returns.

6 I've used TaxAct for the past 3 years including one late filing. It handles penalties automatically and was way cheaper than TurboTax. The interface isn't as pretty but it gets the job done and has all the same features that matter.

Oh wow I had no idea about this! I definitely had over $10k in my Korean bank accounts... is there a deadline for this form too? Is it the same as the regular tax deadline?

The FBAR deadline is technically April 15th (same as tax day), but there's an automatic extension to October 15th - you don't need to request it. File it as soon as you can though! It's filed electronically through the FinCEN BSA e-filing system, not with your tax return to the IRS. I'd also check if you need to file Form 8938 (Statement of Foreign Financial Assets) with your tax return if your foreign accounts exceeded certain thresholds. The requirements are different than FBAR and it goes with your tax return, not separately.

I think the 2024 FEIE amount is actually $126,500, but your point still stands! Also, make sure you file Form 2555 to claim it.