Does anyone use a specific tax software that's good for handling these RMD issues? I've been using TurboTax but it didn't prompt me about my RMDs at all!

I'm dealing with a similar situation but mine is even more complicated - I missed RMDs for TWO years on my inherited IRA because I didn't even know I was supposed to be taking them! Just found out when I was organizing my finances for tax season. Has anyone successfully gotten penalty waivers for multiple missed years? I'm terrified about the potential penalties stacking up. My financial advisor said I should take all the missed distributions immediately and file Form 5329 for both years, but I'm worried the IRS won't be as forgiving for a two-year oversight. The amounts aren't huge (maybe $800 total across both years) but at 25% penalty that's still $200 I really can't afford right now. Any advice on how to approach this with the IRS?

4 I think an important factor nobody's mentioned is FUTURE plans for the app. If you intend to keep developing it, adding features, or creating more apps, the IRS would likely see this as an ongoing business activity rather than a hobby. One advantage of filing as self-employed now is that it establishes a pattern if your app income increases in the future. It's easier to start as self-employed and stay consistent than to switch from hobby to self-employed when profits increase.

I'm dealing with a similar situation with my freelance graphic design work that I do occasionally on weekends. Based on everything I've read here and my own research, it really seems like the profit motive test is key. The fact that you deliberately switched your app from free to paid shows clear intent to generate profit, even if the amount is small. That's probably the strongest indicator that this should be treated as self-employment rather than a hobby. I'd also consider what you plan to do going forward. Are you going to keep the app paid? Might you develop other apps? Even small actions like adjusting pricing or promoting the app could further demonstrate business intent. The expense deduction issue is huge too. Losing the ability to deduct that $125 developer fee means you're essentially paying taxes on income you didn't actually receive after expenses. That seems fundamentally unfair and not what the tax code is designed to do. I think I'm leaning toward Schedule C for my own situation after reading all these responses. Better to establish the pattern now while everything is well-documented and straightforward.

This is such valuable information! I had no idea about the amended return option for energy credits. For anyone gathering documentation, I'd also recommend checking with your local utility company - they sometimes keep records of energy efficiency rebates or incentives that can help prove your improvements qualify for the tax credits. Also worth noting that if you financed any of these improvements through a specific energy efficiency loan program, those lenders often maintain detailed records of qualifying equipment that could serve as backup documentation if your original receipts are missing. One thing I learned the hard way - make sure to check if your state offers additional energy efficiency tax credits that stack with the federal ones. Some states have their own programs with different qualification requirements, so you might be leaving even more money on the table!

Just to add another perspective on documentation - if you're missing receipts but have bank statements or credit card records showing payments to contractors, that can work as backup documentation. I successfully claimed energy credits on an amended return using bank records plus the manufacturer's certification documents that came with my heat pump. One thing to keep in mind is that the IRS is generally more concerned with proving the equipment actually qualifies for the credit (energy efficiency ratings, proper certification) than having perfect receipts. If you can demonstrate through any combination of documentation that you purchased qualifying equipment and it was installed in your primary residence during the tax year you're claiming, you should be good. Also, don't forget that some improvements like smart thermostats or certain water heaters might qualify that people don't always think of as "energy efficient improvements." It's worth reviewing the full list of qualifying equipment for each tax year you're amending - you might find additional credits you hadn't considered!

I can relate to the anxiety of waiting! I just went through this same process last month. Filed through TaxAct on a Tuesday evening and got accepted Wednesday afternoon - about 18 hours total. One thing that helped manage my expectations was realizing that the IRS systems have scheduled maintenance windows (usually Sunday nights) where processing can be delayed. So if you file on certain days, it might take the full 48 hours just due to timing. For what it's worth, once my return was accepted, the refund came surprisingly fast - 9 days with direct deposit. The Where's My Refund tool updated to "Approved" on day 6, then "Refund Sent" on day 8, and the money hit my account the next morning. My advice: set a phone reminder to check the status once per day at the same time, then forget about it. The constant checking just makes the wait feel longer! Your $2,300 should be in your account within two weeks of acceptance if everything goes smoothly.

I'm experiencing the exact same thing! Filed through TurboTax about 6 hours ago and keep refreshing the IRS2Go app hoping to see it move from "Return Received" status. It's so nerve-wracking when you're expecting a decent refund! From what I've read in the comments here, it sounds like the timing really varies based on when you submit and whether you hit their batch processing windows right. Some people get lucky with the timing and see acceptance within minutes, while others wait the full 48 hours even with identical situations. The batch processing explanation makes so much sense - explains why there's such a wide range in acceptance times. I'm going to try to follow the advice here and limit myself to checking once per day instead of every hour. Easier said than done though when you're planning around that refund money! Hopefully we both see movement soon. Keep us posted on how long yours takes!

I'm dealing with something similar but mine's a bit more complicated - I forgot to include a 1099-R from an old 401k rollover that had taxes withheld. The additional tax owed is only about $45, but I'm worried because it involves retirement account reporting. Based on what everyone's saying here, it sounds like waiting for the original refund to process first is the safer bet for small amounts. My concern is whether retirement account discrepancies get flagged differently than regular dividend income. Does anyone know if 1099-R matching happens on the same timeline as other 1099 forms? Also really appreciate the practical advice from the tax preparer - knowing that the matching typically doesn't happen until late summer gives me some peace of mind about the timing.

I went through this exact scenario two years ago with a missed 1099-DIV that would have added about $32 to my tax liability. I was so anxious about it that I initially planned to file an amendment immediately, but after reading similar discussions and talking to a CPA friend, I decided to wait for my original refund to process first. Here's what happened: I got my refund in about 2.5 weeks as expected. I then waited another month before filing the amended return (Form 1040-X) to pay the additional $32. The amendment was processed smoothly about 12 weeks later with no penalties or issues. The key thing that gave me peace of mind was understanding that for small amounts like yours, the IRS is much more focused on people who are significantly underreporting income or trying to avoid taxes entirely. A $28 difference on a return where you're getting a $6.5k refund clearly shows you're not trying to cheat the system. My recommendation would be to let your original return process, get your refund, and then file the amendment within a few months. The IRS appreciates voluntary compliance, and you'll avoid the potential delays that come with amended returns going through manual review. Just keep good records showing when you discovered the error and when you corrected it.