Quick q - did you attach any supporting docs with your 8379? IME the IRS sometimes needs proof of income allocation between spouses, esp if you're in a community property state. Also, did you file electronically or paper? E-file is def faster but some tax software doesn't handle injured spouse correctly tbh.

I'm going through this exact same process right now and it's been such a stressful waiting game! Filed my injured spouse form (8379) electronically with my joint return back in early February, and I'm now at the 10-week mark with no updates on the federal side. My state refund (Texas) came through in about 4 weeks, which was a relief, but the federal portion is still showing "processing" on Where's My Refund. What's really frustrating is that every time I call the IRS, I get a different timeline estimate - some agents say 11-14 weeks, others say up to 16 weeks during busy season. Has anyone had luck getting more specific information by requesting their account transcript? I'm wondering if those processing codes people mentioned might give me a better sense of where things actually stand rather than just the generic "still processing" message. The financial stress is real when you're counting on that refund for essential expenses, especially knowing the money is technically yours but tied up in bureaucratic review. Hoping we all see movement soon!

Just to add another perspective - I've done S-corp returns for 5 years now and have always included Schedules L and M-1 regardless of size. Why? Because they tell the story of your business financially. Even though not required, they show what assets/debts the business holds and reconcile book/tax differences. This has been super helpful documentation when getting business loans later. Plus, if you ever have an audit, having these already completed saves headaches. If you're using decent tax software, it really isn't much extra work to complete them. Better to have too much documentation than too little in my experience.

Super practical advice for a one-person S-corp like yours: if you're using tax software like TaxAct Business or H&R Block Business, they'll walk you through these schedules pretty easily. The balance sheet info for Schedule L is basically just what you own and what you owe at beginning/end of year. M-1 reconciles book income vs tax income differences. Takes maybe 15 extra minutes but gives you better documentation. I keep a simple spreadsheet tracking my assets, liabilities and equity throughout the year which makes filling these out a breeze. Might be worth starting that practice even if you don't file the forms this year!

Quick question - I did something similar with my rental bathroom last year. Does anyone know if I can split the renovation into separate categories? Like the toilet and vanity as 5-year property but the tile work and shower as 27.5 years? Or does the whole bathroom have to be treated the same way?

This is such a timely question! I just went through this exact scenario with my rental property last year. One thing I'd add to the great advice already given is to consider the "unit of property" rules when determining what constitutes a single improvement versus separate components. The IRS looks at whether you're improving a single unit of property (the entire kitchen) or separate units (individual appliances, flooring, etc.). Since you did a complete gut renovation, the structural elements (cabinets, countertops, flooring) would likely be treated as one unit of property and depreciated together over 27.5 years. However, don't forget about the de minimis safe harbor election! If you have receipts showing individual items under $2,500 (or $5,000 if you have applicable financial statements), those can potentially be expensed immediately rather than depreciated. This might apply to smaller items like faucets, light fixtures, or cabinet hardware that were part of your renovation. Also, since your rent increased by $300/month after the renovation, make sure you're properly documenting this as evidence that the improvements added value to the property. This helps support your position if the IRS ever questions the capital improvement classification.

Double check that this is a legitimate letter from the IRS. There are a lot of scams going around. A real IRS letter will have a notice number (like CP2000) and will give you specific information about what tax year they're referring to and what documentation they need.

I went through something very similar a few months ago. The key thing is to act quickly since you usually only have 30 days to respond. First, gather all your documentation - bank statements showing deposits from clients, any contracts or invoices you sent, and receipts for business expenses you claimed. The IRS is basically saying "we have no record of you earning this money" which usually means your clients either didn't file 1099s or filed them incorrectly (wrong SSN, wrong amounts, etc.). This is super common with small business clients who aren't used to the 1099 requirements. When you call the IRS, ask them specifically what information they have on file for you. They should be able to tell you if they received any 1099s in your name and what amounts were reported. That will help you figure out if the problem is missing forms or incorrectly filed ones. Don't panic - this is fixable, but you need to respond with solid documentation proving your income was legitimate. Keep copies of everything you send them and use certified mail.

I'm doing my taxes with H&R Block free right now too. Where exactly did you see that Saver's Credit? I went through all the deductions and credits screens but don't see it mentioned anywhere. Did you have to do something special to trigger it?

Just wanted to add another perspective on this since I went through the same confusion last year. The key thing to understand is that tax credits work differently than deductions - they directly reduce the amount of tax you owe dollar-for-dollar. When you see that $651 refund with the $406 Saver's Credit included, think of it this way: without that credit, your refund would have been $245 less. So the credit IS helping you, it's just already calculated into your final refund amount. Don't pay the $39 upgrade fee to H&R Block. As others mentioned, FreeTaxUSA includes the Saver's Credit in their free version, and so do several of the IRS Free File options if your income qualifies. You can literally save that $39 and get the exact same result. One more tip: if you contributed to a 401(k) or IRA this year, make sure you entered those amounts correctly in whatever software you use. The Saver's Credit is calculated based on those contributions, so getting those numbers right is crucial for maximizing your credit.