Has anyone tried amending previous returns to optimize how capital losses were applied? I'm in a similar situation but wondering if I should have used my losses differently in past years.

This is exactly the kind of situation where having a clear understanding of joint filing benefits really pays off! Your $50,000 capital loss carryover will definitely offset your wife's $5,000 capital gains completely when you file jointly - that's one of the major advantages of joint filing. What's great about your situation is that after using $5,000 of your carryover to offset her gains, you'll still be able to deduct the standard $3,000 against your ordinary income, leaving you with $42,000 to carry forward to next year. So essentially, you're getting the maximum benefit from your losses this year. One thing to keep in mind for future planning - if your wife continues to have capital gains in upcoming years, your remaining carryover will continue to offset those gains first before you can take the $3,000 ordinary income deduction. This could actually work out well for you both since capital gains are typically taxed at lower rates than ordinary income anyway. Make sure to keep good records of your carryover amounts each year so you can track how much you have remaining. Most tax software handles this automatically if you stick with the same program year after year.

Did you have any credits like EIC or CTC? Those usually take longer to process and get more scrutiny.

EIC claims definitely get extra scrutiny and can add weeks to processing time. The good news is once you see those 571/290/971 codes, it usually means they've finished their review and you're in the final stages. Based on your transcript showing movement on 12-10-2024 with the 570 code still there, I'd expect to see an 846 code (refund issued) within the next 1-2 weeks. The -$42 balance is actually your refund amount after interest calculations. Keep checking your transcript updates on Thursdays/Fridays - that's when they typically post new cycles.

This thread has been incredibly helpful! I'm in a similar boat at $148k salary and have been stressing about whether I can contribute to a Roth IRA this year. One thing I haven't seen mentioned yet is the timing aspect - if you realize late in the year that you need to increase your 401k contributions to get under the MAGI limit, there might not be enough paychecks left to make the full adjustment through payroll deductions. In that case, you might need to look into whether your employer allows "true-up" contributions or if you can make a lump sum contribution before year-end. Some employers are flexible about this, others aren't. It's worth checking with HR early in the year about their policies. Also, don't forget that if you do end up slightly over the Roth IRA income limits, you can still do a backdoor Roth conversion (contribute to non-deductible traditional IRA, then convert to Roth). It's a bit more paperwork but achieves the same goal of getting money into a Roth account. The key takeaway from all these great responses seems to be: plan early, track throughout the year, and don't be afraid to be conservative with your estimates!

This has been such an educational thread! I'm a tax preparer and see this exact scenario with clients all the time. One additional consideration I'd like to add: make sure you're factoring in state tax implications too when deciding how much to contribute to your traditional 401k. While reducing your MAGI for Roth IRA qualification is great, in some high-tax states, the immediate tax savings from 401k contributions can be substantial. In other states with no income tax, you might want to be more strategic about not over-contributing to traditional accounts if you expect to be in a higher tax bracket in retirement. Also, for those mentioning the backdoor Roth strategy as a backup - just remember that if you have ANY traditional IRA balances (even old rollover IRAs from previous jobs), the pro-rata rule applies to the entire conversion, not just the new non-deductible contribution. I've seen people accidentally create bigger tax bills thinking they could just convert the non-deductible portion. The bottom line advice from this thread is solid though: start planning early in the year, track your income monthly, and don't be afraid to adjust your contribution percentages as needed. Having multiple strategies (401k contributions, HSA if eligible, spousal IRA if applicable) gives you flexibility to optimize throughout the year.

Great advice from everyone here! I went through a similar situation last year (Nevada resident with internship in Oregon), and I wanted to add a few practical tips that helped me: 1. Keep detailed records of your work dates and location - I created a simple spreadsheet tracking which days I worked in California vs any remote work days from Arizona. This was super helpful when filling out the forms. 2. Don't panic about the "double taxation" - it sounds scary but the credit system really does work. I actually got a small refund from Oregon even though I was worried about owing money. 3. File early if possible! Multi-state returns can take longer to process, and if there are any issues, you'll want time to resolve them before the deadline. 4. Consider the standard deduction differences between states - California's standard deduction might be different from Arizona's, which could affect your overall tax situation. One last thing - if you had any moving expenses related to your internship (even temporary housing), keep those receipts. While the federal moving expense deduction was eliminated for most people, some states still allow it for temporary work assignments. Good luck with your returns!

Just wanted to share my experience since I went through almost the exact same situation last year - Arizona resident with a summer internship in California earning about $13,500. The advice here is spot-on, but I'll add a few things that caught me off guard: First, California's nonresident return (540NR) was actually pretty straightforward once I got started. The tricky part was making sure I only reported the income I earned while physically present in California. Since you mentioned earning $12,800 over three months, that should all be California-sourced income. Second, Arizona's credit for taxes paid to other states worked exactly as described - I used Form 301 (Credit for Tax Paid to Another State) along with my Form 140. Just make sure you have your completed California return handy because you'll need those exact numbers. One thing nobody mentioned - if you're still claimed as a dependent by your parents, make sure they don't accidentally claim your internship income on their return. I had to file an amended return because my parents' tax preparer included my W-2 with theirs by mistake. Also, start gathering your documents now if you haven't already. You'll need your W-2 showing California wages and withholding, and if you moved to California temporarily, keep any lease agreements or receipts that show your temporary residency status. The whole process took me about 2 hours using TurboTax, and I actually got refunds from both states because they had over-withheld. Don't stress too much - the system really does work to prevent double taxation!

Just wondering what software your preparer used? I'm asking because some tax software won't even let you e-file as a paid preparer without entering a valid PTIN. So either they're paper filing (which is unusual these days), using consumer software and pretending they're not a paid preparer, or somehow bypassing verification systems.

This is actually a really important question that @Freya Andersen raised. When I had my returns done, they were definitely e-filed - I got the electronic confirmation and everything. But now that you mention it, I never really paid attention to what software they were using or how the process worked on their end. If the software requires a valid PTIN to e-file as a paid preparer, then either they somehow got around that requirement or they're filing under someone else's PTIN. Both scenarios are pretty concerning and suggest this might be more serious than just forgetting to renew their registration. I'm definitely going to ask them directly about this when I confront them about the PTIN issue. The fact that they've been able to e-file for years without a valid PTIN suggests there might be some deliberate deception going on rather than just an oversight.