One more thing - did your 1099-INT from Robinhood have any entries in Box 2 (Early withdrawal penalty)? I'm also an NRA and noticed that even though the interest itself is exempt, if there are any early withdrawal penalties, those are handled differently.

I want to add something important that hasn't been mentioned yet - make sure you have the proper documentation to support the NRA exemption. Even though the interest is generally exempt, you should keep records showing your non-resident status. If Robinhood didn't have your proper tax status on file (Form W-8BEN), they might have withheld taxes at 30%. In that case, you'd actually need to file Form 1040NR to get a refund of the overwithholding, even though the underlying interest income isn't taxable. Also, double-check that your 1099-INT specifically shows interest from bank deposits versus money market funds. While both are typically exempt for NRAs, the specific exemption sections are different and it's good to understand exactly which applies to your situation.

One thing nobody mentioned - if you received any life insurance proceeds, those are generally NOT taxable income (though they may affect your estate taxes if the policy was owned by the deceased). Also, if your spouse had a traditional IRA or 401k, you have special options as a surviving spouse that other beneficiaries don't have. You can roll those retirement accounts into your own IRA rather than taking required distributions immediately.

I'm so sorry for your loss, Samantha. This is such a difficult time and dealing with tax questions on top of everything else must feel overwhelming. The advice about filing statuses here is spot-on - you can still file married filing jointly for 2024 (the year your husband passed), then use qualifying widow status for the next two tax years which will give you better rates than filing single. One thing I'd add is don't feel pressured to rush into major financial decisions right now. The IRS gives surviving spouses some flexibility, and you have time to figure things out properly. Also consider reaching out to a local tax professional or even contacting VITA (Volunteer Income Tax Assistance) programs in your area - many have experience with widow/widower situations and can walk through your specific circumstances for free. Take care of yourself during this process.

I just went through a similar transfer with my wife's E*TRADE account last month. One thing I'd add is to make sure you understand how the cost basis will be reported going forward. Even though the transfer itself isn't taxable, the way gains and losses are calculated can get tricky if you have stocks with multiple purchase dates at different prices. What helped us was creating a spreadsheet before the transfer documenting all our positions, their original purchase dates, and cost basis. This became invaluable when we later needed to understand which lots to sell for tax optimization. E*TRADE's default cost basis method might not be the most tax-efficient for your situation, so you may want to specify FIFO, LIFO, or specific identification depending on your goals. Also, if you have any mutual funds in the account, double-check if there are any restrictions on transfers. Some funds have holding periods or transfer fees that could complicate things. We discovered one of our funds had a 90-day restriction that we weren't aware of initially.

One important aspect that hasn't been fully covered is the timing of when to notify the IRS about this change, if at all. While the transfer itself between spouses isn't a taxable event, you'll want to make sure your tax records are consistent. When you file your next joint return, any capital gains or losses from the account will be reported under your husband's SSN since he'll be the sole owner. This is perfectly fine and normal - the IRS expects this kind of documentation shift between spouses. Just make sure that if you have any carryover losses from previous years that haven't been used yet, you maintain good records showing they can still be applied against future gains from this account. Also, if you have any pending dividend payments or capital gain distributions scheduled from mutual funds in the account, those will be reported under your husband's SSN going forward. This shouldn't cause any issues, but it's good to be aware of it when preparing your taxes. The key is consistency in your record-keeping and making sure both of you understand what documentation you'll need come tax time.

Wait, I'm confused. If you were working as a consultant, wouldn't you get a 1099-NEC from your old employer? Then I think that would go on Schedule C. Did you receive any tax forms from them or were you just paid directly?

This definitely sounds like a processing error on the IRS's part. Schedule C income should never be reclassified to "Other Income" on Line 8 - that's completely incorrect. Schedule C is specifically designed for business income from sole proprietorships, and the net profit flows to Schedule 1 and then to your main 1040. I'd recommend taking a multi-pronged approach here: 1. **Immediate response**: Call the IRS business tax line (not the general number) and explain that this appears to be a processing error where they didn't properly recognize your filed Schedule C. 2. **Documentation**: Gather copies of your original return showing the Schedule C was properly filed, along with any 1099-NEC forms you received from your former employer. 3. **Written response**: Send a formal written response before their deadline explaining that the income was correctly reported as business income on Schedule C, not as "other income." The fact that they're trying to move the entire revenue amount (not just disallowing expenses) strongly suggests this is a data processing mistake rather than a hobby vs. business classification issue. If they were challenging it as a hobby, they'd typically allow the income on Schedule C but disallow the business deductions. Don't panic - this is fixable, but definitely respond promptly to avoid additional penalties and interest while they sort out their error.

Has anyone used QuickBooks for their property management accounting? I'm trying to decide if it's worth the monthly cost or if I should just stick with Excel spreadsheets.

Great question! I've been managing properties for about 3 years now and can confirm what others have said - you only report your management fees ($750/month) as business income, not the full rent amounts that pass through to owners. One thing I'd add is to make sure you're consistent about when you recognize income. Since you mentioned cash basis, you'll report the management fees when you actually receive them, not when they're earned. Also, don't forget you can deduct business expenses related to your management activities - things like mileage for property visits, supplies for maintenance coordination, phone/internet costs for the business portion, etc. I'd highly recommend opening a separate business bank account for your LLC right away, even before you officially start managing properties. It makes everything so much cleaner when tax time comes around. Good luck with your new venture!