This is exactly the kind of situation where keeping detailed records pays off! I've been a professional gambler for 5 years and dealt with similar multi-state issues. One thing I'd add to the excellent advice already given - make sure you're tracking which specific tournaments or sessions generated each W2G. Some states (like Pennsylvania) want to see the actual location and date of the gambling activity, not just the total amount. This becomes crucial if you're audited. Also, regarding your $78,000 total income vs $65,000 in W2Gs - that $13,000 difference needs to be carefully documented. Keep all your session logs organized by state and date. I use a simple spreadsheet that tracks: Date, Location, Buy-in, Cash-out, Net Result, and any expenses for that session. This makes the state allocation much easier. For Illinois specifically, since that's your home state, you'll report ALL your gambling income there (not just Illinois income), then claim credits for taxes paid to other states. The other states only get the income earned within their borders. One last tip: consider consulting with a tax pro who specializes in gambling taxes if your income continues to grow. The multi-state issues get complex quickly, and the penalties for getting it wrong can be substantial.

As someone who's been through the multi-state professional gambling tax maze, I want to emphasize one crucial point that hasn't been mentioned yet: make sure you understand each state's definition of "professional gambler" status. While you claim professional status on your federal Schedule C, not all states automatically recognize this. Some states treat ALL gambling winnings as "other income" regardless of your professional status, which can affect how you deduct expenses and losses. For example, I discovered that one state I filed in didn't allow me to deduct my full business expenses against gambling winnings the way federal law does. They had a cap on gambling loss deductions even for professional gamblers. This completely changed my tax liability calculation for that state. I'd strongly recommend researching each state's specific rules before filing. Some states have published guidance on professional gambling, while others require you to dig through their tax code or call their departments directly. The differences can be significant - I've seen cases where the same income and expenses result in vastly different tax liabilities depending on how the state treats professional gambling status. Also, keep in mind that your professional gambler status might need to be "proven" to each state independently if you're ever audited. Having consistent documentation across all states showing the business nature of your activities is essential.

This is exactly why I always recommend setting up direct deposit for tax refunds! But since that doesn't help your current situation, here's what I'd do: First, definitely check with neighbors like someone suggested - misdelivered mail happens more than you'd think, especially with substitute carriers who aren't familiar with routes. Second, contact your local postmaster (not just the counter staff) and request they check with your regular carrier. Ask them to verify the GPS location where the package was scanned as delivered. Sometimes this reveals it was delivered to the wrong address. If those steps don't turn up your check within 2-3 days, absolutely file Form 3911 with the IRS. Don't wait too long on this - the sooner you start the trace process, the better. The IRS can put a stop payment on the original check to prevent anyone from cashing it fraudulently. One more tip: if you have a Ring doorbell or security camera, check the footage from the delivery date. Sometimes this can provide evidence of what actually happened (or didn't happen) with your mail delivery. Hope you get this sorted out soon! Missing refund checks are incredibly stressful but the IRS replacement process does work, even if it takes longer than you'd like.

I'm a tax preparer and see this issue every tax season unfortunately. One additional step that often gets overlooked - check if your mailbox has been damaged or compromised recently. Thieves sometimes damage mailbox locks or create gaps where they can fish out envelopes, especially during tax season when refund checks are being delivered. If you find any signs your mailbox was tampered with, definitely mention this when you file Form 3911 and consider upgrading to a locking mailbox if you don't already have one. Also, while you're waiting for the replacement check, you might want to contact the companies you need to pay bills to and explain the situation. Many will work with you on payment extensions if you can provide the IRS reference number from your Form 3911 filing as proof that a replacement refund is in process. The whole situation is incredibly frustrating, but the IRS replacement process is pretty reliable once you get it started. Most of my clients who've gone through this get their replacement checks within 4-6 weeks, sometimes faster if there's clear evidence of theft or postal error.

Does anyone know how the IRS treats foreign tax credit carrybacks from passive category income? I have excess credits from foreign dividends and I'm not sure if there are special rules when carrying these back.

I went through this exact same headache last year! After reading through all these responses, I want to add one more tip that really helped me. When you're preparing your Foreign Tax Credit Carryback Statement, make sure to clearly label which tax year each number comes from. The IRS agent I spoke with mentioned they see a lot of confusion where people mix up the years in their calculations. Also, if you have multiple types of foreign income (like both passive dividends and active business income), you'll need separate carryback calculations for each category since they can't be mixed. I learned this the hard way when my first submission got rejected. The template @Natasha Volkov shared is spot on - I used something very similar and it was accepted without any issues. Just remember to keep copies of everything because if the IRS has questions later, you'll want to be able to show your work.

Another thing to consider with the EIC look back provision is that if your filing status changed between 2023 and 2024, this can dramatically affect how the calculation works. I went from filing Single in 2023 to Head of Household in 2024 after getting custody of my nephew. When I used the look back provision, it used my 2023 income but with my new 2024 filing status and dependents, which actually gave me a much higher EIC than either year would have individually. Tax software doesn't explain this well at all - it just asks if you want to use last year's income without showing how the calculation changes.

Don't forget that the look back provision ONLY applies to earned income for calculating the EIC and Additional Child Tax Credit. It doesn't affect other parts of your tax return. I made this mistake by thinking my entire tax situation would be calculated using my 2023 income, but that's not how it works. Only the specific credits get recalculated - everything else (standard deduction, tax brackets, other credits) still uses your actual 2024 income and status.

Has anyone actually calculated whether putting a bonus in a 401k is better than just taking the hit on taxes now? I mean, you'll eventually pay taxes when you withdraw from the 401k anyway, right? Just at your regular income tax rate at retirement?

One thing to consider that wasn't mentioned yet - if you're planning to leave your company in the next year or two, check if your 401k plan allows in-service withdrawals or if you'd have to wait until you separate from service to access the money. Some plans have restrictions on when you can withdraw or roll over funds. Also, make sure you understand the vesting schedule for any employer matching. If your bonus contribution triggers additional employer matching and you're not fully vested, you might lose some of that match if you leave before the vesting period is complete. The tax deferral is definitely beneficial in most cases, but it's worth understanding all the plan-specific rules before committing 100% of your bonus to the 401k.