Kevin, this is a really common mix-up that trips up a lot of people! Think of it this way - the Wage and Income Transcript is like getting a summary of all the income documents (W-2s, 1099s, etc.) that were sent to the IRS about you, but it doesn't tell you anything about whether you actually filed a return or not. It's kind of like checking your military pay stub versus checking if your leave request was approved - totally different systems tracking different things. Since you filed through MilTax 3 weeks ago, you'll want to pull either your Account Transcript (shows everything happening with your account) or use the "Where's My Refund" tool for the quickest update. The 21-day processing window means you should see something soon. Your wife might have been onto something about looking in the wrong place, but now you know exactly where to look!

Kevin, you're definitely not alone in this confusion! As a newcomer to this community, I can see this is a really common issue that trips people up. The IRS transcript system can be pretty confusing with all the different types available. What you selected - the Wage and Income Transcript - only shows the income documents (like W-2s and 1099s) that employers and other entities reported to the IRS about you. It's basically just a summary of your income sources, not anything about your actual tax return filing status. Since you filed through MilTax 3 weeks ago and are within that 21-day processing window, I'd recommend checking the "Where's My Refund" tool first for the quickest status update, or requesting an Account Transcript if you want to see all the activity on your tax account. Don't worry - this mix-up happens to tons of people, and your return is likely processing just fine!

21 One thing nobody's mentioned - don't forget about the stepped-up basis for capital gains purposes when you inherited the house. If you do end up selling for more than the loan amount (even if it's less than what your parent paid), you likely won't owe capital gains tax because your basis is the fair market value at the time of death, not what your parent paid for it.

I'm dealing with a very similar situation right now - inherited my grandmother's house with a reverse mortgage through a beneficiary deed in Ohio. The accumulated interest is around $73,000 and we're looking at a potential short sale too. From what I've learned through my research and conversations with professionals, the previous comments are spot-on about not being able to deduct the interest that accrued during your mom's lifetime. That was really disappointing to hear since my realtor had suggested the same thing yours did. One thing I wanted to add that might be helpful - make sure you understand the timeline requirements with reverse mortgages after inheriting. Most lenders give you about 6 months to either pay off the loan or list the property for sale, but you can usually get extensions if you're actively working on a short sale. Document everything with the lender because some are more flexible than others. Also, if you haven't already, request a current payoff statement from the reverse mortgage company. The balance can change daily with interest and fees, so you'll want the most current numbers when negotiating the short sale with potential buyers and the lender. Good luck with your CPA meeting next week - definitely bring all your documentation including the beneficiary deed, recent mortgage statements, and any correspondence with the lender about the short sale process.

Great discussion everyone! One additional strategy worth considering is the "material participation" angle if you have any flexibility in your work situation. While you mentioned not qualifying as a real estate professional now, the rules can change based on your circumstances. If you ever transition to part-time work, consulting, or have a gap year, you might be able to meet the 750+ hour requirement and have real estate activities be more than half your working time. This would allow you to treat your rental activities as non-passive and use all those accumulated losses immediately against your regular income. Also, don't forget about the potential for "grouping elections" under IRC Section 469 if you have multiple rental properties. Depending on your situation, you might be able to group activities together for passive loss purposes, which can provide more flexibility in how and when you utilize your suspended losses. Definitely something to discuss with your CPA as it requires proper documentation and elections.

This is such a comprehensive discussion on passive loss carryovers! I wanted to add one more consideration that hasn't been mentioned yet - the impact of the Net Investment Income Tax (NIIT) when you eventually dispose of rental properties. When you sell a rental property and release those accumulated passive losses, remember that the NIIT (3.8% tax on investment income) applies to individuals with modified AGI over $200,000 (or $250,000 for married filing jointly). The good news is that your released passive losses can help reduce the net investment income subject to NIIT, potentially saving you an additional 3.8% on those amounts. Also, for anyone considering the material participation strategy mentioned earlier, keep detailed records of your hours and activities. The IRS scrutinizes real estate professional claims heavily, so documentation like time logs, emails, property management activities, and tenant interactions are crucial if you ever need to substantiate your material participation. Even if you don't qualify now, having good records makes it easier to claim the status if your circumstances change in the future.

Lots of great advice here but I wanted to add that you should also check if your state has income tax too! I messed up my first year in college by only worrying about federal taxes and completely forgot about state taxes. Ended up owing a few hundred dollars to my state that I hadn't budgeted for.

As someone who's been through this exact situation, I'd recommend keeping detailed records of your income from each job throughout the year. Since your hours are so inconsistent, it'll help you track whether you're on pace to earn more or less than you initially estimated when you set up your W-4s. I use a simple spreadsheet to track my weekly earnings from each job, and I review it monthly to see if I need to adjust my withholding. If you find you're earning significantly more than expected from one job, you might want to increase your additional withholding on that W-4 to avoid a surprise tax bill. Also, don't forget to save all your pay stubs and any receipts for work-related expenses (like uniforms, transportation between jobs, etc.) - some of these might be deductible depending on your situation. The key is staying organized throughout the year rather than scrambling to figure everything out at tax time.

I went through something very similar last year - Code 420 with a February notice date that didn't arrive until early March. What helped me was understanding that the IRS often batches their mailings, so delays of 2-3 weeks aren't uncommon, especially during peak filing season. Since you mentioned being concerned about handling this properly as a non-US citizen by birth, I'd suggest starting to organize any documentation related to foreign income, FBAR filings, or tax treaty benefits you may have claimed, as these are frequent audit focus areas. Also, keep checking your mailbox daily - sometimes the envelope is thinner than expected and can get mixed in with regular mail. The good news is that once you do receive the notice, you'll know exactly what they're looking for and can respond appropriately within the timeframe.

I understand your anxiety about this situation - waiting for an audit notice can be incredibly stressful, especially when you're unsure of the timeline. Based on what others have shared, it sounds like you're still within the normal delivery window since it's only been about 9 days since the February 17th notice date. Given your status as a non-US citizen by birth, I'd recommend being proactive and starting to gather documentation now rather than waiting for the letter. Common areas the IRS examines for non-citizens include foreign bank accounts (FBAR compliance), foreign income reporting, tax treaty benefits claimed, and credits like EITC or Child Tax Credit. Having these documents organized will help you respond more efficiently once you know the specific focus of the audit. Also, consider calling the IRS at (800) 829-1040 to verify they have your current address on file - sometimes notices get delayed due to address discrepancies in their system. While you wait, keep checking your mailbox carefully as some members mentioned IRS letters can sometimes look like junk mail. Remember, you'll have 30 days from the notice date (not when you receive it) to respond, so time management will be important once it arrives.