I tried claiming real estate professional status a couple years ago and got audited. The IRS was primarily focused on my time logs. They wanted DETAILED records - not just "4 hours on Property A" but exactly what I did during those 4 hours. Just a warning to document everything meticulously!

Based on your description, you have a strong case for qualifying as an active real estate investor! Managing 2 properties full-time with a third on the way, handling all tenant interactions, maintenance, and repairs yourself definitely sounds like material participation. However, I'd strongly recommend getting professional guidance before claiming real estate professional status on your taxes. The IRS scrutinizes these claims heavily, especially when there are significant losses being deducted against high W2 income like your spouse's $145k. A few key things to focus on: 1. **Start tracking your hours NOW** - Use a detailed daily log with specific activities, not just "worked on rental property." The IRS wants contemporaneous records. 2. **Document everything** - Save all receipts, emails with tenants, repair invoices, travel logs to properties, even time spent researching markets or looking for new properties. 3. **Understand the income limitations** - At $145k household income, you're in the phaseout range for the $25k passive loss allowance, but qualifying as a real estate professional removes these limitations entirely. 4. **Consider the grouping election** - As mentioned by others, this can be crucial for meeting material participation requirements across multiple properties. Given the potential tax savings and audit risk, consulting with a CPA who specializes in real estate taxation would be a wise investment. They can help you structure your activities and documentation to maximize your chances of qualifying while minimizing audit risk.

I see a lot of advice here but I'm confused about one thing... if I have $5000 in winnings (including a $3000 jackpot) but $7000 in losses for the year, do I still have to report the $5000 as income and then separately deduct $5000 in losses? Or can I just report the net loss of $2000? Does turbo tax handle this correctly?

Something to keep in mind - even if you get your withholding back, you'll need to be prepared for potential scrutiny from the IRS if your gambling losses are substantial compared to your income. They sometimes flag returns where gambling losses seem unusually high relative to someone's financial situation. The key is having rock-solid documentation. Beyond what others have mentioned, I'd also recommend keeping photos of your losing tickets if possible, and if you play table games, try to get pit boss signatures on your session records when you have big losses. Some casinos will do this if you ask. One more tip: if you're planning to claim gambling losses this year, consider opening a separate bank account just for gambling funds next year. It makes tracking much cleaner and provides a clear paper trail of your gambling activity that's separate from your regular expenses.

Try checking your transcript if you can access it. It might show if there's an issue with your refund that's not showing up on the IL website. I was in a similar situation and taxr.ai helped me decode what was actually happening with my refund when the state website was useless. Turns out there was a review flag on my account that was causing the delay. https://taxr.ai

I'm dealing with the exact same issue! Filed my Illinois taxes in early March using Cash App direct deposit and it's been showing "refund issued" for weeks now with nothing in my account. Reading through all these responses, it sounds like Illinois has major issues with payment apps this year. I'm definitely going to call the IL Department of Revenue tomorrow to see if my deposit failed. Thanks everyone for sharing your experiences - at least now I know I'm not alone in this! Next year I'm definitely going back to my regular bank account. These payment apps just aren't worth the hassle for tax refunds.

Don't forget that your company might offer an ESPP (Employee Stock Purchase Plan) in addition to RSUs, which has completely different tax treatment. A lot of my coworkers confuse the two. Also check if your company offers any special withholding options for RSU sales. Mine lets me specify an additional withholding percentage specifically for stock sales through our internal portal, which saved me from having to make separate estimated tax payments.

Great question about RSU tax planning! I've been through this exact situation multiple times. One thing I'd add to the excellent advice already given is to be very careful about the timing of your sales, especially near year-end. Since you're at a $335K income level, you're likely subject to the Net Investment Income Tax (NIIT) of 3.8% on your capital gains. This kicks in when your modified adjusted gross income exceeds $200K (single) or $250K (married filing jointly). A strategy I've used is to spread RSU sales across tax years if possible, rather than selling everything at once. This can help manage your overall tax bracket and potentially reduce the impact of NIIT. Also, make sure you're tracking the exact vesting dates carefully. I use a simple spreadsheet with columns for grant date, vest date, vest price, sale date, and sale price. This makes it much easier to determine short vs. long-term treatment and calculate the actual gains subject to tax. One last tip - if you have any 401k contribution room left this year, maxing that out can help reduce your taxable income and potentially lower the tax rate on your RSU gains.

I'm dealing with a very similar situation right now! Got my W-2 last week with the same FF code showing $1,800, and like you, I have zero health benefits through my employer. I'm also primarily reimbursed for mileage when I travel to client sites. What's really frustrating is that my employer's HR department seems just as confused as I am. They keep saying "the payroll company handles all that stuff" but won't give me direct contact information to follow up myself. One thing I noticed when I calculated my mileage reimbursements for the year - it comes out to almost exactly $1,800, so I'm pretty convinced this is a coding error where they used FF instead of whatever code should be used for business mileage reimbursement. Have you had any luck getting through to the payroll company directly? I'm wondering if I should just contact them myself since my employer doesn't seem motivated to resolve this quickly. The tax deadline is approaching and I really don't want to file with incorrect information.

I work as a tax consultant and see this exact scenario probably 5-6 times every tax season. The FF code is supposed to indicate a QSEHRA benefit, but what's happening here is almost certainly a payroll system miscoding of your mileage reimbursements. Here's what likely happened: When your employer set up their payroll system or switched providers, someone incorrectly mapped your mileage reimbursement category to the FF code instead of leaving it unreported (since proper business mileage reimbursements at the standard IRS rate shouldn't appear on your W-2 at all). The dead giveaway is that your $2400 amount is right in line with typical annual mileage reimbursements for someone who drives regularly for work. A legitimate QSEHRA would usually be communicated clearly to employees since there are specific rules about how you can use those funds. My advice: Don't wait around for your employer to figure this out. Contact the payroll company directly if possible, or give your employer a firm deadline (like "I need this resolved by [specific date] or I'm filing for a tax extension"). Document everything in writing. If it's confirmed as an error, insist on a W-2c before filing your return. The good news is this type of error is very common and easily correctable - just don't file your taxes with the wrong information if you can avoid it.