Has anyone used TurboTax for handling RSUs? It's giving me fits and I've spent like 3 hours trying to figure out how to enter this correctly.

This is exactly the situation I'm dealing with right now! My company's HR department told me that the RSU income would be "handled automatically" but they didn't explain that the 1099-B would show zero cost basis. I was panicking thinking I owed taxes on the full sale amount. Just to clarify for anyone else reading - the key thing to remember is that when RSUs vest, you already pay ordinary income tax on their fair market value at that time (shown on your W-2). That fair market value becomes your cost basis for the shares. So when you sell, you only owe capital gains tax on any appreciation above that vesting-day value. The zero cost basis on the 1099-B is just because many brokers don't track the correct basis for employee stock compensation. Always keep those supplemental statements they send you - you'll need them every year you have stock sales!

Has anyone had the IRS apply their overpayment to a state tax debt? I heard they can do that but not sure if its automatic or if you have to request it?

I went through something very similar last year with back taxes from 2021. The IRS will definitely refund any overpayment automatically - no special forms needed. What helped me was creating an online account at irs.gov so I could track the status of my payment and see exactly how they calculated the penalties and interest. One thing to keep in mind: if you made the payment recently, it can take up to 6-8 weeks for them to fully process everything and issue the refund. They have to apply your payment, calculate the exact amount owed as of the payment date, and then process the overpayment. You should receive a notice explaining their calculations before the refund arrives. Also, double-check that you don't have any other outstanding federal debts (like student loans) because they might offset your refund against those before sending you the money. Good luck!

Hey Ryder! I totally get the panic - I was in a similar situation a few years ago and it felt overwhelming. But honestly, you're taking the right step by addressing this now rather than continuing to put it off. A few things that might help ease your mind: First, if you've been working regular jobs, your employers were likely withholding taxes from your paychecks, which means you probably won't owe as much as you think (and might even be due refunds for some years). Second, the IRS has programs specifically for people in your situation - the First Time Penalty Abatement can waive many late fees if you qualify. For your immediate apartment application problem, you might be able to get wage transcripts from the IRS that show your income history even without filed returns. This could at least help with the rental application while you work on getting caught up. I'd recommend starting by gathering whatever documents you can find (W-2s, 1099s, bank statements) and then deciding whether to tackle this yourself or get help. The peace of mind of having it resolved is honestly worth whatever effort or cost it takes. You've got this!

Hey Ryder, I completely understand the anxiety you're feeling right now - this situation is way more common than you might think! The fact that you're addressing it proactively at 25 shows maturity, and you're definitely not "too late" to fix this. Here's some immediate reassurance: if you've been working regular jobs since 19, your employers were almost certainly withholding federal taxes from your paychecks. This means there's a good chance you won't owe massive amounts, and you might even be due refunds for some years, especially if you were single with standard deductions. For your apartment situation, you can request "wage and income transcripts" directly from the IRS that show your earnings history even without filed returns. Many landlords will accept these as proof of income while you're getting caught up on filing. My recommendation would be to start by gathering any tax documents you can find (W-2s, 1099s, bank statements), then consider a consultation with a tax professional who specializes in unfiled returns. They can help you prioritize which years to tackle first and potentially qualify you for First Time Penalty Abatement, which can waive many late fees. The relief you'll feel once this is resolved will be enormous. You're taking the right steps by addressing it now rather than continuing to avoid it!

I'm waiting on my Indiana refund too! Filed last week and still showing "processing" - hopefully it switches to approved soon. The waiting game is always nerve-wracking, especially when you need that money 😅

Just got my Indiana refund deposited this morning - exactly 2 business days after approval! Filed with direct deposit and it showed up around 6 AM. For anyone still waiting, the Indiana Department of Revenue seems pretty consistent with their timeline. Good luck everyone! 🙌

I'm new to this situation but wanted to share what I learned after doing some research on this exact issue. The consensus seems clear that you need to report the rental income, but I found a few additional points that might help: One thing I discovered is that you can also deduct a portion of your homeowner's insurance, any HOA fees if you have them, and even home security system costs if your roommates benefit from them. These smaller deductions can add up. Also, since you mentioned you claimed 0 allowances all year, you might actually get a decent refund even after reporting the rental income, especially once you factor in all the deductions. The extra withholding from your W-4 could work in your favor here. I'd definitely recommend keeping detailed records of any improvements you make to the rental areas going forward - things like new locks, paint, flooring, etc. can often be deducted in the year you make them if they're for maintenance/repair rather than major improvements. The peace of mind of being compliant is worth way more than the tax savings from hiding income. Plus, having legitimate rental income documented can actually help you if you ever want to refinance or get other loans since it shows additional income stream.

I want to add one more important consideration that I haven't seen mentioned yet - make sure you understand the tax implications if you ever decide to stop renting out rooms or sell your house. If you've been claiming depreciation on the rental portion of your home and then convert it back to 100% personal use, you'll still owe depreciation recapture taxes on the amount you've claimed over the years. This applies even if you never sell the house - just converting back to personal use triggers the recapture. Also, keep in mind that you'll need to be consistent with your rental reporting. If you start claiming rental income and deductions this year, the IRS will expect to see similar activity in future years unless you can document why the rental arrangement ended. On a practical note, I'd suggest opening a separate savings account specifically for setting aside money for the taxes on your rental income. Even with all the deductions, you'll probably still owe some tax on the net rental income, so it's good to be prepared rather than scrambling to find the money at tax time. The bottom line remains the same though - report the income, take the legitimate deductions, and sleep well knowing you're doing things properly. The tax hit really isn't as bad as you think once you account for all the offset expenses!