I'm going through the exact same thing right now! Got my 520 code on 02/28/2025 and 971 code on 03/05/2025. Like you, I'm stressed about the timing because I have some major expenses coming up. What's really frustrating is that I've filed basically the same return for the past 4 years - same job, same deductions, just minor changes in income. The only difference this year is I claimed the Child Tax Credit for my 2-year-old for the first time. Reading through everyone's experiences here is actually making me feel a bit better though. It sounds like most people are getting their refunds in the 3-4 week range rather than the full 45 days. I'm going to try calling this week to see if they can give me any specifics about what they're reviewing. Fingers crossed we both get good news soon!

I went through this exact situation two years ago and want to share what I learned. The 520/971 combo usually means they're doing income verification or checking credits - in your case, probably the new Child Tax Credit eligibility since that's the main change. Here's what helped me: 1) Don't panic about the 45 days - most people get resolved in 25-35 days, 2) Keep checking your transcript weekly (not daily, it rarely updates that fast), 3) Make sure your bank account info is still correct in case they need to issue the refund. The good news is that if they were going to deny or reduce your refund, you'd typically see different codes. The 520/971 pattern usually just means "we're double-checking everything looks right" rather than "we found a problem." Hang in there - daycare expenses are stressful enough without tax delays!

Thanks everyone for the detailed responses! This is incredibly helpful. I've been stressing about this since the sale went through in January. Based on what you've all shared, it sounds like I have two main options: 1. Split the payments equally across four quarters (~$65k each for federal, plus the Washington state portion) 2. Use the annualized income installment method since all my gains happened in Q1 I'm leaning toward the annualized method since it seems more accurate for my situation, but I'm definitely going to keep detailed documentation as @StarGazer101 mentioned. One follow-up question - for the Washington state capital gains tax that @Yara mentioned ($73,500 on the amount over $250k), do they follow the same quarterly schedule as federal? And can I use the annualized method for state taxes too? Also going to check out both taxr.ai and potentially use Claimyr to get official IRS confirmation. With amounts this large, I'd rather be 100% certain I'm doing everything correctly. Better safe than sorry!

Welcome to the community! Just wanted to add another perspective as someone who went through a similar large capital gains situation. One thing that really helped me was setting up a separate savings account specifically for the tax payments and transferring the estimated amounts immediately after the sale. With $1.3M in gains, you're looking at roughly $260k federal + $73.5k Washington state = ~$333k total. Having that money physically separated from my regular accounts prevented any temptation to spend it and gave me peace of mind. Also, since you mentioned this is your only income for 2025 during your sabbatical, make sure you're not missing any deductions you might be eligible for. Things like investment advisory fees, safe deposit box fees, or other investment-related expenses might help reduce your taxable gains slightly. The annualized method definitely sounds right for your Q1 sale situation. Just remember that even though it's more complex, it can save you from having large amounts tied up in overpayments to the government throughout the year. Good luck with everything!

I'm dealing with this exact situation too! Filed on 2/18, accepted immediately, and Tax Topic 152 vanished about a week ago. Now it's just the dreaded "still processing" message with no transcript available. What's been really helpful for managing the anxiety is checking the IRS Processing Statistics page - they're currently running about 2-3 weeks behind their normal timelines due to staffing issues and increased verification procedures this year. Seeing the actual data helped me realize this isn't personal to my return. For your medical procedure payment, definitely reach out to the provider's billing department. Most have hardship or payment plan options, and many are familiar with tax refund delays. I had to do something similar last year and they were surprisingly accommodating. One tip that's saved my sanity: I switched to checking WMR only on Fridays. The daily checking was driving me crazy with no changes. Most updates seem to happen over weekends anyway based on what I've read in various forums. Hang in there - from everything I'm seeing, mid-February filers are all hitting the same processing bottleneck right now. It's frustrating but appears to be completely normal for this tax season! 💪

I'm in the exact same situation and it's incredibly frustrating! Filed on 2/16, accepted immediately, Tax Topic 152 disappeared last week, and now just "still processing" with no transcript available. I was also counting on this refund for an upcoming medical expense (surgery scheduled for early April). What's helped me cope with the anxiety: • I called my surgeon's billing office and explained the situation - they were totally understanding and let me set up a payment plan where I pay 50% upfront and the remainder when my refund comes in • Stopped checking WMR daily (was driving me insane) and now only check on Mondays • Started following some tax professional accounts on social media who post updates about IRS processing delays - helps me feel less alone in this From everything I'm reading here and elsewhere, it seems like there's a massive bottleneck affecting mid-February filers specifically. The lack of communication from the IRS is maddening, but at least we're all in this together! One question for everyone - has anyone who filed around the same timeframe (mid-February) actually gotten their refund yet? I'm trying to get a sense of whether people are starting to see movement or if we're all still stuck in the same processing queue. Hang in there! 🙏

I think most people misunderstand REPS. The key issue is "material participation" in rental activities. Being a realtor counts for the 750 hours but NOT for material participation in your rentals. The exception is if you make a grouping election as others mentioned. Your CPA should know this but many don't understand real estate tax rules well. Just FYI - I got audited on this exact issue in 2023. The IRS was looking specifically at REPS claims. Make sure you have a detailed time log showing hours for EACH activity. After-the-fact estimates won't cut it in an audit.

Based on my experience dealing with REPS qualifications, your tax preparer may be being overly conservative. As a full-time realtor, you likely already meet the first two REPS requirements (750+ hours and 50%+ of working time in real estate). The critical piece is making the grouping election to treat all your rental activities as one activity. This election is made by attaching a statement to your tax return - there's no specific IRS form for it. The statement should clearly indicate you're electing to group all rental real estate activities under IRC Section 469(c)(7)(A). With this election, you can combine your time spent on the 3 self-managed properties with time spent overseeing the other 15 properties (reviewing reports, making decisions, communicating with property managers, etc.) to meet the material participation test. I'd recommend getting a second opinion from a CPA who specializes in real estate taxation. Many general tax preparers aren't familiar with the nuances of REPS, especially the grouping election strategy. The potential tax savings make it worth exploring further. Also, start keeping detailed time logs NOW for 2025 - document every hour spent on rental activities, no matter how small. This contemporaneous documentation is crucial if you're ever audited.

Just to add to all this great advice - I made the mistake of assuming Cash App would handle everything my first year too. Got a nasty letter from the IRS about missing 1099s! One thing that really helped me was setting up a separate business account on Cash App just for contractor payments. This makes it SO much easier to track business vs personal transactions when tax time comes around. You can still use your personal account for regular stuff, but having that separation saved me hours of sorting through transactions. Also, pro tip: start a simple spreadsheet right now with columns for date, contractor name, amount, and description of work. Update it every time you make a payment. Takes 30 seconds but will make preparing those 1099s in January a breeze instead of trying to reconstruct everything from your transaction history. Trust me on this one!

Great question! I went through this exact same confusion last year. The bottom line is YES, you absolutely need to issue a 1099-NEC to your subcontractor regardless of using Cash App. The payment method doesn't change your obligation as the business owner. Here's what I learned: Cash App may or may not issue a 1099-K to your contractor depending on whether they meet the threshold requirements, but that's completely separate from your responsibility. The 1099-K reports payment transactions, while your 1099-NEC reports the business relationship and compensation for services. At $27k, you're way over the $600 threshold that requires a 1099-NEC, so there's no question you need to file one. Don't worry about "double taxation" - your contractor will only report the income once on their tax return, they'll just have multiple forms documenting the same payments. My advice: get that W-9 from your contractor ASAP if you don't have it already, and start organizing your payment records now. January will be here before you know it and you'll need all the documentation ready to file by January 31st. Better to be prepared now than scrambling later!