Letter 474C can definitely be confusing! The key sections to look for are usually near the bottom of the letter. Since you mentioned there's a payment voucher showing "Amount you owe: $732.18," that's your answer - you do owe money to the IRS. The difference between your original calculation of around $650 and the $732.18 they're requesting is likely due to interest that has accrued since your original 2021 tax return was due (April 2022), plus possibly some penalties. Even though you voluntarily filed the amended return, interest still applies from the original due date. Make sure to pay by the deadline shown on the letter to avoid additional penalties and interest. You can usually pay online through the IRS website, by phone, or mail in the payment voucher with a check. If you can't pay the full amount by the due date, consider calling the IRS to set up a payment plan - they're generally pretty reasonable about working with taxpayers who proactively reach out.

Just wanted to share my experience since I see you're dealing with the same confusion I had! I received a 474C letter last year after amending my 2020 return to add some 1099 income I missed. The letter layout is really confusing with all those different sections and calculations. What helped me was to ignore most of the middle calculations and focus on the very bottom where it clearly states either "Amount Due" or "Refund Amount." In your case, since you found the payment voucher showing you owe $732.18, that's definitely what you need to pay. The extra $82 beyond your estimated $650 is almost certainly interest that accumulated from April 2022 (when your original return was due) until now. The IRS charges interest on any additional tax owed, even when you voluntarily file an amended return. One thing that surprised me - I was able to pay online immediately through IRS Direct Pay on their website using my bank account info. Saved me from having to mail a check and worry about it getting lost. The payment posted within 2 business days and I got email confirmation. Just make sure you pay by the deadline on your letter to avoid any additional penalties!

I switched from TurboTax to FreeTaxUSA two years ago and it's been great. The interface is definitely more basic but honestly that's kind of refreshing - no constant upselling or confusing premium features being pushed on you. For your situation with W-2s and basic investments, FreeTaxUSA will handle everything you need. I import my 1099-DIV and 1099-INT forms directly and it calculates everything automatically. The state filing fee is usually around $12-15 depending on your state, but federal is completely free regardless of complexity. One thing I really appreciate is their customer support - when I had a question about reporting some stock sales, I got a helpful response within a day via email. No trying to upsell me to a premium tier just to get basic help. The transition was easier than expected too. I just kept my previous year's TurboTax PDF handy for reference when entering carry-over information like estimated tax payments.

I made the switch from TurboTax to FreeTaxUSA last year and couldn't be happier with the decision. Like you, I was fed up with Intuit's corporate practices and the constant upselling throughout the filing process. FreeTaxUSA has been fantastic for my situation (W-2, investment accounts, standard deductions). The interface is clean and straightforward - no flashy graphics or unnecessary features, just gets the job done efficiently. Federal filing is truly free regardless of complexity, and state filing was only $14.99 for me. What really sold me was the transparency. No hidden fees, no bait-and-switch tactics, and no pressure to upgrade to premium tiers. When I imported my 1099-DIV and 1099-INT forms, everything calculated correctly without any issues. The only minor downside is that you'll need to manually enter your previous year's information since you can't directly import from TurboTax, but honestly it only took me about 20 extra minutes and gave me a chance to review everything more carefully. Their customer support has been solid too - I had a question about reporting some dividend reinvestments and got a helpful, detailed response via email within 24 hours during tax season. I'd definitely recommend giving FreeTaxUSA a try for the 2025 tax season!

Has anyone figured out a good system for tracking labor hours anyway, even if they don't count for tax purposes? I'm renovating to flip the house and want to calculate my actual ROI including my time investment.

Great question! I went through this same frustration when I renovated my kitchen last year. You're absolutely right that only actual out-of-pocket expenses count toward your cost basis - no labor value for DIY work, unfortunately. Here's what I learned works well for documentation: 1. Create a dedicated folder (physical or digital) for each renovation project 2. Photograph every receipt immediately and store digitally as backup 3. Keep a simple log with date, vendor, amount, and what the expense was for 4. Don't forget about the smaller stuff - screws, sandpaper, drop cloths, etc. all add up 5. If you rent tools (like a tile saw), those receipts count too 6. Any professional consultations, even if just for advice, can be included The key is being thorough with documentation. I ended up adding about $23,000 to my home's basis from my kitchen reno, which will definitely help with capital gains when I sell. Even though our sweat equity doesn't count dollar-wise, at least we're saving money upfront while still building basis through materials and other legitimate expenses. Keep grinding on that renovation - sounds like you're doing great work!

i swear the irs website is held together with duct tape and prayers lololol

Update: just tried again and it's working now! Seems like the maintenance window is over. For anyone still having issues, try incognito/private browsing mode - sometimes cached login tokens can cause problems even after clearing cookies.

I'm sorry for your loss as well. This is such a generous gesture toward your cousin during a difficult time. One practical consideration that might help with your decision: if you're planning to give her the money anyway, you could potentially have the insurance company issue two separate cashier's checks upfront - one for $39,000 made out to your cousin, and one for $39,000 made out to you. Many insurance companies will accommodate this request from beneficiaries, especially when explained as helping family members. This approach would eliminate the banking complications entirely and create the cleanest paper trail. You'd still need to file Form 709 for the gift tax reporting since you're the beneficiary making the gift, but it removes all the endorsement and deposit concerns. If the insurance company won't split the payment, then definitely go with the deposit-first approach everyone else has recommended. Just be prepared for potential holds on large check deposits - some banks hold cashier's checks for 1-2 business days even though they're supposed to be guaranteed funds. Also, keep copies of everything - the insurance payout documentation, your deposit records, and the check you write to your cousin. This documentation trail will be invaluable for both gift tax filing and any future questions that might arise.

I'm so sorry for your loss. Dealing with financial matters during grief is never easy, and it's wonderful that you want to help your cousin. I'd strongly recommend the deposit-first approach that others have mentioned. Most banks will be very hesitant to accept a third-party endorsement on such a large cashier's check, and some simply won't do it at all as a fraud prevention measure. Here's what I'd suggest as the cleanest process: 1. Deposit the full $78,000 cashier's check into your account 2. Wait for it to fully clear (even cashier's checks can have brief holds for large amounts) 3. Write a personal check to your cousin for $39,000 4. Get a simple written acknowledgment from her that this is a gift, not a loan For tax purposes, you'll need to file Form 709 since you're exceeding the $19,000 annual gift exclusion, but as others noted, you likely won't owe any actual gift tax - it just counts against your lifetime exemption. Your cousin won't owe any taxes on receiving the gift. Keep detailed records of everything: the insurance documentation, your deposit receipt, the check you write to your cousin, and her acknowledgment letter. This paper trail will be invaluable if you ever need to explain the transaction to the IRS or anyone else. Consider consulting with a tax professional if you're uncertain about any aspect of the gift tax filing - the peace of mind is worth the consultation fee for amounts this significant.