This is such a thoughtful question and you're wise to plan ahead! One additional consideration I haven't seen mentioned is the impact of future tax law changes over the 10-year period. Tax rates and brackets could shift significantly, especially with the current tax cuts set to expire in 2025. Given your children's ages (6 and 8), you have a unique opportunity to potentially take advantage of multiple years of their standard deductions while they have minimal other income. I'd suggest running projections for different withdrawal scenarios - perhaps taking smaller amounts in years 1-3 to utilize their standard deductions, then reassessing based on any tax law changes and their changing circumstances as they get older. Also worth noting: if you're planning for their college years, be aware that IRA distributions count as income on the FAFSA, which could impact financial aid eligibility. You might want to time larger distributions for years when they won't be applying for financial aid. Have you considered whether it makes sense to convert any portion to a Roth IRA during low-income years? The tax hit would be minimal for them, and it could provide more flexibility later on.

This is such a comprehensive discussion - thank you all for sharing your experiences and insights! As someone who works in tax preparation, I wanted to add a few practical considerations that might help with your planning. First, make sure you're working with a custodian who has experience with inherited IRAs for minors. Some financial institutions are better equipped to handle the unique titling and documentation requirements than others. You'll want to ensure they can provide proper tax reporting (1099-R forms) that clearly indicate the distributions are from an inherited IRA. Second, consider keeping detailed records of your withdrawal strategy decisions and the rationale behind them. If the IRS ever questions your approach, having documentation that shows you were acting in the children's best interests as custodian can be valuable. One timing consideration that hasn't been mentioned: if you're planning strategic distributions, be mindful of year-end timing. You have until December 31st each year to take distributions, but processing times at financial institutions can be slow in December. Plan any required distributions well in advance to avoid missing deadlines. Finally, don't forget about state tax implications if you live in a state with income tax. Some states have different rules for inherited retirement accounts, and a few states don't tax retirement distributions at all. This could influence your overall strategy, especially if you're considering a move in the coming years. Best of luck navigating this - your children are fortunate to have someone thinking so carefully about their financial future!

I'm going through this EXACT same nightmare right now! Filed my return electronically about 4 weeks ago and that "Your 2024 Tax Return Is Not Processed" message has been haunting me every single day. Like you, when I finally got through to an agent after waiting on hold forever, they told me it was "in processing" - but the website still shows the same frustrating status. Reading through all these comments has been such an eye-opener! I had no idea that the website only updates when your return is 100% complete, not during the actual processing steps. So even though they're actively working on our returns behind the scenes, that stupid website just shows "not processed" until everything is totally finished. Talk about misleading! I just checked my transcript for the first time after seeing everyone mention the 570 code, and yep - there it is! I also have Child Tax Credit on my return, so now I understand why we're all stuck in this verification process. It's honestly such a relief to know this is completely normal and not some catastrophic error with our returns. The IRS really needs to get their act together with communication. Having different systems show completely different information just creates unnecessary panic for taxpayers who are already stressed about their refunds. They should at least have an "under review" status instead of that useless "not processed" message that makes us think nothing is happening. Thanks for posting this - it's been incredibly helpful to read everyone's experiences and finally understand what's really going on! Now I'll stop obsessing over that main account page and just check my transcript weekly for the 570 to disappear or that magical 846 code to appear. Hopefully we'll all see our refunds soon! 🤞

This is so frustrating but you're definitely not alone! I went through the exact same thing last month - "not processed" on the website while agents kept saying it was "in processing." It drove me absolutely crazy until I figured out what was actually happening. The key is understanding that these are two completely different systems. The website status literally only changes from "not processed" to "processed" when your refund is 100% approved and issued. It doesn't show any of the intermediate steps, so even when they're actively working on your return (which is what "in processing" means), the website will stubbornly show "not processed" until the very end. Since you mentioned finding a 570 code on your transcript, that explains everything! That's a temporary hold code that's super common with Child Tax Credit returns. The IRS does additional verification on these, which is why you're seeing the delay. The 570 hold is exactly why your website status can't update - it's stuck there until the verification is complete. Based on your 4-week timeline with CTC, you should see movement very soon. These holds typically resolve within 4-6 weeks total. Stop torturing yourself with the main account page (I know, easier said than done!) and just check your transcript weekly. Look for either the 570 to disappear or an 846 code to appear - that 846 means your refund has been issued. Your $4,700 is completely safe, just temporarily stuck in their verification queue. Hang in there - you're right on track for this to resolve!

The IRS has definitely made progress, but you're right that it still feels clunky compared to modern websites. One thing that helped me navigate their site better was using the search function instead of trying to follow their menu structure - it actually works pretty well now. For what it's worth, the IRS did invest heavily in modernizing their systems over the past few years, but they're dealing with decades of legacy infrastructure. The Direct File program Sofia mentioned is actually a sign they're moving in the right direction - it has a much more intuitive interface than the main IRS site. If you do end up needing to use their tools, I'd recommend bookmarking the specific pages you need (like Where's My Refund) rather than trying to navigate there from the homepage each time. It's not perfect, but it's definitely better than the old site that looked like it was built with HTML tables!

I completely understand your frustration! I was in the exact same boat until this year. The good news is that 2025 has actually brought some major improvements to electronic filing options that weren't available before. First, definitely check out the IRS Direct File program that others mentioned - it's genuinely free and covers way more situations than the old Free File options. I was skeptical at first, but it handled my return (including some investment income) without any issues or hidden fees. For the signature issue specifically - most e-filed returns now use electronic PINs instead of physical signatures. You create a secure PIN during the filing process that serves as your legal signature. The only time you really need a wet signature anymore is for certain amended returns or very specific forms. If you do have forms that absolutely must be mailed, here's a pro tip: send them certified mail with return receipt requested. It costs a few extra dollars but you'll have proof they received it and won't be left wondering if your return got lost in the mail. The IRS processes certified mail faster too since it goes to a different queue. The whole system is definitely still more complicated than it should be, but we're finally moving away from the paper-heavy process. Don't give up on electronic options - they really have improved dramatically in just the past year!

I went through this exact situation last year! Just to add to what others have said - the IRS has a specific threshold for household employees. If you pay your babysitter $2,600 or more in 2025 (it increases slightly each year), then you definitely need to treat them as an employee and handle payroll taxes. At $150 every two weeks, you'd hit about $3,900 for the year, so you'd be over that threshold. The good news is that even with proper employee classification, you can still claim the Child and Dependent Care Credit - you just need their SSN and address on Form 2441. One tip that saved me a headache: start keeping detailed records NOW of when she works and how much you pay. The IRS wants to see that you're treating this seriously from the beginning, not scrambling to create documentation later. A simple spreadsheet with dates, hours, and payments works fine.

One thing I haven't seen mentioned yet is that you should also consider state requirements! While everyone's focusing on federal tax rules, many states have their own household employment laws and unemployment insurance requirements. For example, some states require you to register for state unemployment insurance even if you're only paying a babysitter a few hundred dollars a year. Others have different thresholds than the federal $2,600 limit. I learned this the hard way when my state sent me a notice about missing unemployment insurance filings for my part-time nanny. I'd recommend checking your state's department of labor website or calling them directly. The rules vary quite a bit state by state, and it's better to know upfront than get surprised later. Some states also have their own versions of the Child and Dependent Care Credit with different requirements than the federal one. Also, don't forget to discuss with your babysitter whether she wants any taxes withheld from her pay or if she prefers to handle it all when she files her own return. Some prefer the withholding so they don't owe a big chunk at tax time!

This thread has been incredibly helpful! I'm a general contractor and I've been making some mistakes with meal deductions that I need to fix before tax season. One question I haven't seen addressed: what about meals during company meetings or training sessions? For example, if I bring lunch for a safety meeting with my crew, or if we grab dinner while attending a trade conference together - are those treated differently than the regular worksite meals? Also, for anyone keeping detailed records, I've found it helpful to take a quick photo of the receipt with my crew in the background when we're eating at a job site. It's visual proof of who was there and the work context. Just make sure everyone's okay with being in the photo first! The consistency point that @Chloe mentioned really resonates with me. I'm going to establish a clear written policy for when I provide meals so there's no question about the business purpose. Something like: "Company provides meals when crews are working at job sites located more than 20 minutes from restaurants, during all-day projects where leaving would disrupt workflow, or during mandatory training/safety meetings." Thanks to everyone for sharing their knowledge - this is exactly why I love this community!

This is such a comprehensive discussion! As a tax professional, I want to emphasize one crucial point that could save everyone headaches during an audit: the "business discussion" requirement for 50% deductible meals. For your solo lunches between client consultations (@Caleb Bell), those generally aren't deductible even if you're conducting business activities like driving between appointments. However, if you can schedule actual business discussions during meals - like meeting a potential client at a restaurant to discuss their landscaping needs, or having lunch with a supplier to negotiate pricing - then those meals become 50% deductible. The IRS is very specific about this: there must be a substantial business discussion before, during, or immediately after the meal, and you must be eating with someone other than yourself (client, vendor, business associate, etc.). For documentation, I always tell my clients to write on the receipt: WHO (names of people present), WHAT (business discussed), WHERE (location), WHEN (date/time), and WHY (business purpose). This "5 W's" method has helped my clients survive several audits. One last tip: if you're using any of those AI tax tools mentioned earlier, they're helpful for organization but always verify their advice against current IRS publications or with your CPA. Tax law changes frequently, and nothing beats professional review of your specific situation! Keep those records detailed and consistent - it really makes tax time so much smoother.