5 Has anyone here used TurboTax for filing after a spouse died? I'm trying to figure out if it handles this situation well or if I should use a different software.

I'm so sorry for your loss. I went through this same situation when my wife passed away three years ago, and I understand how overwhelming it can feel to handle taxes during such a difficult time. From my experience, filing jointly for the year of death is usually the better choice financially, even when one spouse had lower withholdings. The combined income often falls into more favorable tax brackets, and your higher withholdings will help offset any taxes owed from his income. One thing that really helped me was keeping detailed records of all his final paychecks, any accrued benefits paid out, and making sure I had his W-2 for the partial year. Don't forget to look for any retirement account distributions or other income sources that might not be immediately obvious. The qualifying widow status for the following two years is a real benefit - it essentially lets you keep using the married filing jointly tax brackets and standard deduction amounts. Take advantage of it when those years come around. If you're feeling uncertain about doing this yourself, there's no shame in getting help from a tax professional for this first year. The peace of mind might be worth the cost, especially since surviving spouse situations can have some unique considerations I hadn't thought of on my own.

I'm jumping in as another newcomer who just went through this exact confusion! I installed a heat pump in November and have been pulling my hair out over Form 5695 for the past few days. Reading through all these explanations has been a huge relief - I was convinced I was making some fundamental error because I'm getting both the full $2,700 credit AND a refund. The "two buckets" concept that several people mentioned really helped it click for me. My situation: $3,200 tax liability (line 18), reduced to $500 after the $2,700 heat pump credit, and I had $2,800 withheld during the year. So I'm getting a $2,300 refund ($2,800 - $500). The math works out perfectly, but I kept second-guessing myself because the word "nonrefundable" made me think I shouldn't be getting money back. Now I understand that "nonrefundable" is just IRS-speak for "this credit can't make your tax liability negative" - it has nothing to do with whether you can get refunds from overwithholding. The Form 5695 line 31 instructions are spot on about using the line 18 amount. Thanks to everyone who shared their real numbers and experiences - it's so helpful for newcomers like me to see how this actually works in practice rather than just trying to decode the IRS instructions alone!

As a newcomer to this community, I just want to say how incredibly helpful this entire thread has been! I literally just joined because I was searching for answers about Form 5695 and the heat pump credit confusion that everyone here has described. I installed my heat pump in October and have been staring at the tax forms for days, convinced I was making some kind of error because I'm getting both the full $2,700 credit AND a substantial refund. Reading through everyone's real-world examples and explanations has been such a relief. The "nonrefundable" terminology is genuinely misleading for newcomers like me - I kept thinking it meant I shouldn't get any money back at all. But understanding that it's just IRS technical language meaning "the credit itself can't make your tax liability negative" while having nothing to do with refunds from overwithholding finally made everything click. My situation mirrors so many others here: $4,100 tax liability reduced to $1,400 after the heat pump credit, with $3,500 in withholdings throughout the year, resulting in a $2,100 refund. The math is straightforward once you understand the "two buckets" concept that Sofia mentioned. This community is amazing for breaking down these confusing tax concepts with real examples and patient explanations. As someone brand new to energy credits, having access to all these shared experiences makes filing with confidence possible instead of just guessing and hoping for the best. Thank you all!

You're absolutely right to be concerned, but filling out the W9 is really your best option here. As others mentioned, refusing it just means they'll withhold 24% of your future payments for backup withholding, which hurts you more than helping. The reality is that this income was always supposed to be reported - the 1099 doesn't create the tax obligation, it just makes it visible to the IRS. The good news is that as a contractor, you can deduct legitimate business expenses like tools, materials, vehicle expenses for job sites, and even a portion of your phone if you use it for work coordination. For 2024 going forward, I'd recommend keeping detailed records of all your business expenses. Take photos of receipts, track your mileage to job sites, and document any equipment purchases. These deductions can significantly reduce your taxable income from this work. As for previous years - while you're technically supposed to report all income, the IRS typically focuses on compliance going forward rather than auditing past years unless there are major red flags. Getting compliant now and staying that way is usually the best approach.

Just to add to what others have said - you absolutely should fill out the W9. I went through this exact situation with my freelance electrical work a few years ago. One thing that really helped me was setting up a separate business checking account once I started getting 1099s regularly. It makes tracking income and expenses so much easier come tax time. Even though it's "just" weekend work, treating it like a real business from a record-keeping standpoint will save you major headaches. Also, don't panic about the self-employment tax rate. Yes, it's about 15.3%, but remember you can deduct half of that SE tax on your regular tax return, which reduces the effective rate. Plus, with legitimate business deductions (which are substantial in construction - tools, materials, safety equipment, vehicle expenses), your actual taxable income from this work could be significantly lower than what they pay you. The key is getting organized now and keeping good records going forward. The IRS isn't out to get small contractors who are trying to do the right thing.

Had this exact same thing happen to me two years ago! Definitely start with calling 800-304-3107 (the Treasury Offset Program hotline) - they'll tell you exactly which agency took your money and why. In my case it was an old unemployment overpayment from 2018 that I had completely forgotten about. The automated system will give you the contact info for whatever agency has your debt, then you can call them directly to set up a payment plan or dispute it if needed. Pro tip: call super early in the morning (like 7 AM) when the lines aren't as busy. Also make sure you have your SSN ready and write down everything they tell you. The whole process is frustrating but you'll get answers! Let us know what you find out - rooting for you to get this sorted out quickly!

This happened to me last year too! The 800-304-3107 number everyone mentioned is definitely the way to go. Just a heads up though - if it turns out to be student loans like it was for me, make sure you ask about rehabilitation programs when you call the Department of Education. I was able to get my loans out of default and even got a partial refund of previous offsets once I completed the program. It took about 9 months of on-time payments but was totally worth it. Also, if you're struggling financially, definitely mention that when you call - a lot of agencies have hardship programs that can reduce your monthly payments or even pause collections temporarily. The key is being proactive once you know what the debt is for. Good luck getting it sorted out!

That 39% total deduction rate is definitely normal for your situation in California, especially with bonus/backpay included! I went through the exact same shock when I got promoted last year. Here's what's likely happening: Your payroll system is calculating withholding as if you'll earn $5,200 every month for the whole year (that would put you around $62k annually). But since this included one-time payments like backpay and bonus, your actual annual income will probably be lower, meaning you're being over-withheld. A few things that helped me: - Track your year-to-date withholding vs. what you'll actually owe (use the IRS withholding calculator quarterly) - Consider adjusting your W-4 if you're consistently over-withheld, but be conservative - Remember that 401k contributions and health insurance aren't "lost money" - they're benefits for your future Your next regular paycheck without the extras should look much more reasonable. Congrats on the promotion though - that's awesome after 2 years of working toward it!

Just wanted to add my perspective as someone who's been through multiple promotions in California - that 39% rate you're seeing is absolutely normal, especially with bonus pay included. I remember my first big promotion shock too! One thing I learned is to keep your W-4 conservative if your income is going to vary throughout the year. Since you mentioned this was your first $5k+ month and included backpay/bonus, your regular months will likely result in lower withholding rates. The system will balance out over the year. Also consider this: California's progressive tax system means that extra income (like your bonus) gets taxed at your highest marginal rate, which can make the effective rate on that particular paycheck look scary high. But your overall annual tax rate will be much more reasonable. Congrats on the promotion! Two years of hard work paying off is something to celebrate, even if the tax bite stings a bit. You'll adjust to the new income level and the peace of mind that comes with proper withholding is worth it.