Thanks for bringing this up! My understanding was that since my husband was a US citizen, I don't need to file Form 3520 even though the property is in the UK. Is that correct? Are there any other international forms I should be aware of besides FBAR and the Form 8938?

You're correct. Since your husband was a US citizen, you don't need to file Form 3520 for this inheritance, even though the property is located in the UK. The form is specifically for gifts or inheritances from foreign persons (non-US citizens/residents). Beyond FBAR (FinCEN Form 114) and Form 8938, you might want to be aware of Form 8833 if you're claiming benefits under the US-UK tax treaty, but that's typically not needed for straightforward inheritances. Also, if you maintain any financial accounts in the UK after settling the estate, remember you'll need to continue reporting those on FBAR and potentially Form 8938 in future years if they meet the threshold.

Good point! What exchange rate date did you end up using? Date of death, date of distribution, or something else?

This happened to my mom too! She got a text message with a link to "update direct deposit info" and almost fell for it. These scammers know exactly when tax season is and target people waiting for refunds. The IRS will NEVER text or email you asking for bank information.

The Taxpayer Advocate Service is really only for serious hardship cases or if you've tried multiple times to resolve an issue with the IRS without success. For a simple returned direct deposit that's being converted to a check, they probably won't take the case since the IRS has a standard procedure already in place.

Thanks for the clarification. Guess I'll just have to be patient and wait for the paper check to arrive. Seems like there's no way to speed up the process once the direct deposit has been rejected.

Municipal bonds can be a good strategy, but remember they typically have lower returns compared to taxable investments. They make the most sense if you're in a high tax bracket. If you're in the 22% bracket or lower, you might actually come out ahead with taxable investments even after paying the taxes.

Thanks for pointing that out! I was wondering why my paycheck summary shows both OASDI and Medicare as separate items. So even if OASDI stops after hitting the cap, the Medicare part (1.45%) continues indefinitely?

Yes, exactly! While the OASDI portion will stop once you hit the cap ($168,600 for 2025), the Medicare portion never stops. You'll continue paying the 1.45% Medicare tax on all your earned income regardless of how much you make. And if your income exceeds $200,000 for single filers or $250,000 for married filing jointly, you'll also pay that additional 0.9% Medicare surtax on the amount above those thresholds. This is part of the Additional Medicare Tax that was implemented as part of the Affordable Care Act.

This is helpful but what about if your income fluctuates? I get paid base + commission so each paycheck is different.

Thanks for the warning about the standard deduction amounts changing. I totally would have missed that! Do you think it's worth paying for basic tax software rather than literally copying from paper forms? It sounds like there are enough changes that I could mess up.

Honestly, I'd definitely recommend using software even if it's a basic version. The software will have all the updated numbers, forms, and will do the calculations for you which reduces math errors. Plus it will walk you through questions that might trigger you to remember things like "oh yeah, I did start that savings account" or whatever. Basic tax software is usually around $50-70 for federal and state, which is MUCH cheaper than the $800 you were quoted. It's a good middle ground between completely DIY paper forms and paying a professional. I use FreeTaxUSA now and it's been great - only about $30 total.

Did you find it difficult to switch to doing it yourself? I'm scared I'll mess something up and get audited.