Can someone clarify the consequences if you're past the statute of limitations but you OWED money to the IRS? I'm in a similar situation where I made mistakes on older returns, but in my case I underreported some income. Getting nervous about what happens now.

I've been following this thread closely since I'm dealing with a similar situation with my 2019 and 2020 returns. One thing I want to add that hasn't been mentioned yet is the importance of checking if you qualify for any penalty relief programs. Even if you're within the statute of limitations and need to pay additional tax, the IRS has first-time penalty abatement and reasonable cause relief options that can waive penalties for honest mistakes. I discovered this when I had to amend my 2020 return - while I did owe additional tax, they waived all the penalties because I had a clean compliance history and could demonstrate reasonable cause for the error. Also, if anyone is still unsure about their specific situation, I'd recommend getting your tax transcripts from the IRS website first. They show exactly when your returns were filed and processed, which helps you calculate the exact statute of limitations dates for your amendments. It's free and gives you all the key dates you need to know.

This thread has been incredibly helpful! I'm also dealing with service dog expenses and had been putting off figuring out the tax implications. Reading through everyone's experiences, it sounds like the key things I need to focus on are: 1. Getting a detailed letter from my doctor explaining the medical necessity 2. Keeping meticulous records of all expenses, separating task-specific training from general care 3. Tracking mileage for all service dog-related trips 4. Calculating whether my total medical expenses (including the service dog costs) would make itemizing worthwhile One question I haven't seen addressed - does anyone know if there are any limits on how much you can deduct for service dog expenses specifically? I know medical expenses in general have the 7.5% AGI threshold, but are there any caps on the service animal portion specifically? Also, for those who have gone through audits or dealt with IRS questions about service dog deductions, what documentation proved most important? I want to make sure I'm keeping the right records from the start rather than scrambling later if questions come up.

Thank you all for this incredibly detailed discussion! As someone new to navigating service dog expenses, this has been a goldmine of information. I wanted to add one thing that my tax preparer emphasized - if you're claiming service dog expenses, make sure your dog is actually classified as a "service animal" under the ADA definition (trained to perform specific tasks for a disability) rather than an emotional support animal or therapy dog. The IRS follows the ADA definition pretty strictly for these deductions. Also, I learned that if you receive any reimbursements from insurance, disability benefits, or other sources for your service dog expenses, you need to subtract those amounts from what you can deduct. So if your health insurance covered part of the initial cost or training, that portion isn't deductible. One last tip - if you're unsure about the 7.5% AGI threshold calculation or whether itemizing makes sense, many tax software programs will automatically calculate both scenarios and tell you which saves more money. Sometimes it's worth doing a quick run-through even if you think the standard deduction will be better, just to be sure you're not missing out on savings. The documentation requirements seem strict but totally manageable if you stay organized from the start. Thanks again everyone for sharing your experiences!

Maxwell, you definitely need to report this $20K sale on your tax return. Since it's a collectible (baseball cards), any gain will be taxed as a collectible capital gain, which has a maximum rate of 28% - higher than regular capital gains. The tricky part is determining your "basis" in the cards since you don't have receipts. If you inherited them from your grandfather after he passed away, your basis would be their fair market value on the date of his death (called "stepped-up basis"). If he gave them to you while alive, your basis would be what he originally paid for them. Since you don't have documentation, you'll need to research what similar cards were selling for during the relevant time period. Look at price guides, auction records, or consult with a sports memorabilia appraiser. The IRS expects a "good faith" estimate when original records aren't available. Report the sale on Schedule D of your tax return. Even without a 1099 from the auction house, you're still required to report it - the IRS can potentially discover large bank deposits through other means. Better to be proactive and report it correctly than risk issues later.

Just want to add one important detail that hasn't been mentioned yet - the timing of when you sell matters for tax purposes. Since you've held these cards for years, any gain would qualify as long-term capital gains, which is good news even though collectibles have that higher 28% maximum rate. Also, keep detailed records of the auction house's commission and any other selling expenses (insurance, shipping, etc.) because these costs can be deducted from your sale proceeds when calculating your actual gain. So if you received $20K but paid $2K in fees, your actual proceeds for tax purposes would be $18K. One more thing - if this puts you in a higher tax bracket for the year, you might want to consider timing any other asset sales or tax strategies accordingly. The 28% collectibles rate only kicks in if you're already in higher tax brackets, so depending on your other income, you might pay less than that maximum rate.

Great question and totally understandable concern! I went through the same anxiety when my spouse and I started using Zelle for our household expenses. The bottom line is that these transfers between you and your husband for shared bills are NOT taxable income. You're simply splitting expenses using money that's already been taxed - the IRS doesn't tax the same money twice just because it moved from one account to another. The $2700 monthly transfers you're receiving are expense reimbursements, not income. Think of it like your husband writing you a check for his half of the bills - the payment method doesn't change the tax treatment. Regarding Zelle reporting, the new requirements specifically target business transactions over $5000 annually. Personal transfers between spouses for household expenses don't fall into this category at all. Even if there were some reporting mix-up, you wouldn't owe taxes on money that isn't actually income. You're handling your finances in a completely normal and legitimate way. Keep doing what you're doing and don't stress about it!

I completely understand your concern - this is such a common worry for new homeowners! The good news is you have absolutely nothing to stress about. These monthly transfers from your husband are just expense sharing between spouses, not taxable income. The IRS doesn't consider money moving between spouses for legitimate household expenses to be taxable. You're both contributing to shared bills using money that's already been taxed from your respective incomes. The payment method (Zelle, check, cash, etc.) doesn't change this fundamental principle. Regarding the reporting requirements everyone's talking about - those specifically apply to business transactions over $5,000 annually. Your situation is clearly personal expense sharing, not business income, so those rules don't apply to you at all. I've been doing something very similar with my spouse for years (we split our mortgage and utilities through various payment apps) and have never had any tax issues. The IRS has much bigger priorities than married couples efficiently managing their household finances! Keep good records showing these are expense splits if it makes you feel better, but honestly, you're handling your finances in a completely normal and legitimate way. Enjoy your new home without the tax worries!

I completely understand your frustration! As someone who works in tax preparation, I see this situation way too often. While there's technically no hard deadline for corrected W-2s, "early March" turning into "end of March" is definitely unreasonable. Here's my practical advice: First, call your HR/payroll department TODAY and ask for two specific things: 1) What exactly is being corrected on the W-2, and 2) A firm date when you'll receive it. Don't accept vague answers like "soon." If the correction is minor (like a coding issue that doesn't affect your actual wages or withholdings), you can likely file with your original W-2 and ignore the corrected one. However, if it involves actual dollar amounts for wages, taxes withheld, or retirement contributions, you'll want to wait or file an amended return later. If they can't give you a firm timeline, I'd seriously consider filing with your original W-2 and amending later. You're losing potential refund money sitting in limbo, and if you end up owing taxes, you could face penalties for late filing. Your employer's inefficiency shouldn't cost you money or peace of mind.

I'm going through almost the exact same situation! My employer promised corrected W-2s in "early February" and here we are in April with nothing. What's really frustrating is that they keep sending these generic company-wide emails saying "we're working on it" without any actual timeline. Reading through these comments has been super helpful though. I think I'm going to follow the advice about calling HR directly to ask what specifically is being corrected. If it's something that doesn't actually impact my tax liability, I might just file with my original W-2 rather than continue waiting indefinitely. Has anyone here had success getting their employer to prioritize this by mentioning potential IRS contact? I'm wondering if that might light a fire under our payroll department since the generic follow-up emails clearly aren't working.