As a fellow nanny who went through this exact confusion, I want to emphasize something really important that got buried in all the discussion about tools and classification: **start keeping detailed records NOW** regardless of how your taxes end up being filed. Track your mileage when driving kids to activities, save receipts for any supplies you buy, and document your CPR certification costs. Even if you can't deduct these as a W-2 employee, having this documentation serves multiple purposes: 1. You can present organized expense reports to your family and ask for reimbursements (which aren't taxable income to you) 2. If there's ever a question about your work classification, detailed records help prove the business nature of your expenses 3. Some states do still allow certain deductions that federal doesn't The key conversation to have with your family is setting up a proper reimbursement system. Most families are happy to reimburse legitimate work expenses - they just need you to present it professionally with receipts and clear explanations of how each expense relates to your job duties. Don't let the tax classification confusion prevent you from getting fairly compensated for legitimate work expenses!

As a tax professional who works with many household employees, I want to add some clarity to this discussion. The original poster's situation is very common, and there are some key points that will help: First, determine your correct classification. Most nannies working regularly for one family should be W-2 employees, not 1099 contractors. The IRS looks at factors like who controls your work schedule, provides equipment, and directs how you perform your duties. If you're correctly classified as a W-2 employee, you cannot deduct business expenses on your federal return since 2018. However, you absolutely should discuss expense reimbursements with your family. Items like: - Mileage when driving kids (current rate is 67¢/mile for 2024) - Craft supplies and materials for activities - Required certifications like CPR - Any special equipment or clothing needed for the job These reimbursements aren't taxable income to you when properly documented. Create a simple reimbursement request system - track expenses with receipts and submit monthly. If your family isn't providing proper tax documents (W-2) and paying employment taxes, this creates problems for both parties. They're legally required to do this if they pay you over $2,400 per year. You miss out on Social Security credits and proper employment history. Keep detailed records regardless of classification - it protects you and shows professionalism to your employer family.

Have you checked both Account Transcript and Return Transcript? Sometimes one appears before the other. What about checking transcript for prior years - are those available? Could be an account access issue rather than processing delay. Did you receive an acceptance confirmation from your software after filing? What's your current WMR status?

I'm currently on day 12 since filing electronically and still seeing "N/A" on my transcript portal. Reading through everyone's experiences here is really helpful - it sounds like the 7-21 day range is pretty normal. I filed a relatively simple return (W-2 income only, standard deduction) on February 28th, so I'm hoping it shows up soon. The waiting is definitely stressful, especially when you're checking multiple times per day! Has anyone noticed if checking the portal too frequently affects anything, or is that just my anxiety talking?

The terminology confusion is totally understandable! I had the same reaction when I first encountered this. Think of it this way: the "unrecaptured" part refers to depreciation that didn't get fully recaptured at ordinary income rates under the original section 1250 rules. For residential rental property, section 1250 was supposed to recapture excess depreciation (the amount over straight-line) as ordinary income, but since residential rentals use straight-line depreciation anyway, there was no "excess" to recapture. So all that depreciation remained "unrecaptured" under section 1250. Then in 1997, Congress decided this unrecaptured depreciation shouldn't get the sweet long-term capital gains treatment - it should be taxed at 25% instead. So you're paying 25% on depreciation that was never recaptured under the original section 1250 rules, hence "unrecaptured section 1250 gain." It's definitely confusing naming, but it makes more sense when you understand it's referencing what didn't happen under the old rules, not what's happening now!

This is such a great thread - I've been wrestling with the same terminology confusion! I'm a real estate agent and my clients always ask me about this when they're selling rental properties. What really helped me understand it was thinking about the timeline: back when section 1250 was written, it was designed to recapture "excess" depreciation (accelerated vs straight-line) as ordinary income. But since residential rentals already use straight-line depreciation, there was no "excess" to recapture - so all that depreciation remained "unrecaptured" under those original rules. Fast forward to 1997 when Congress said "wait, we don't want all this depreciation getting capital gains treatment" - so they created this middle-ground 25% rate specifically for depreciation that was "unrecaptured" under the old section 1250 framework. So yes, it IS being recaptured now through taxation, but it's called "unrecaptured" because it references what didn't happen under the original section 1250 provision. The name stuck even though the treatment evolved. It's like calling something by its historical context rather than its current function - definitely confusing but makes sense once you know the backstory!

This whole section 751 thing is why I've avoided partnerships like the plague. The tax complexity is just insane. My brother had a similar situation last year and ended up getting an IRS notice because his accountant misclassified some gains that should have been ordinary income as capital gains. Anyone know if LLCs taxed as partnerships have the same issue? I'm considering investing in a friend's business but worried about the tax headaches down the road.

This is exactly the kind of situation where having a knowledgeable tax professional is crucial. From my experience working with partnership distributions and sales, the K-1 reporting varies significantly between partnerships - some are very thorough with section 751 information while others provide bare minimum details. One thing to keep in mind is that the partnership's final K-1 for you should include your ending capital account balance and basis information, which your accountant will need for the overall gain calculation. But as others mentioned, the specific section 751 ordinary income calculation typically falls on you and your tax preparer. I'd recommend gathering all your partnership agreements, any amendments, and previous K-1s showing your basis adjustments over the years. Your accountant will need this historical information to properly calculate both the section 751 ordinary income portion and the capital gain/loss on the remaining interest. The more documentation you can provide upfront, the smoother (and less expensive) the process will be.

All of this back filing info is helpful but just be aware there are time limits on claiming refunds! If you're owed money from the IRS, you typically have only 3 years from the original due date to file and claim a refund. So for example, for tax year 2020 (which was due April 2021), you have until April 2024 to file and still get your refund. For 2017, the deadline to claim a refund was April 2021 - if you're filing 2017 now, you can still file the return but you wouldn't get any refund you were owed. Just wanted to mention this since it seems like some people are discussing filing returns from several years back!

Just wanted to chime in as someone who went through this exact situation last year. I was trying to back file for 2018 and got so much conflicting information from different sources that I almost gave up. The bottom line is: NO tax software can e-file returns for prior years beyond what the IRS accepts (current year + maybe previous year early in filing season). This is an IRS system limitation, not a software limitation. Both TaxACT and TurboTax will let you prepare old returns online, but you'll have to print and mail them. I ended up using TaxACT because it was cheaper for prior years ($25 vs TurboTax's $60), but the end result was identical - had to mail everything in. One tip: make sure you use certified mail when sending old returns. The IRS processing times for mailed returns can be really long (took 4 months for mine), and you want proof they received it. Also double-check you're mailing to the correct address for your state - it's different than where you'd mail current year returns. Good luck with your 2017 filing!