I had some confusion with Form 4952 last year. Anyone know if tax software like TurboTax or H&R Block can handle this form correctly, especially the carryover calculations across multiple years?

This is a complex situation that many investors face when they discover investment interest deductions later. Let me add a few practical points that might help: First, before spending time and money on amendments, calculate whether the deductions would actually benefit you in those prior years. If you took the standard deduction and your total itemized deductions (including the investment interest) wouldn't exceed the standard deduction for those years, amendments won't help. Second, keep in mind that investment interest expense is subject to the 2% AGI threshold if you're dealing with years before 2018, which adds another layer of complexity to whether amendments are worthwhile. For your current year planning, since you're expecting substantial capital gains, consider the timing of your stock sales. You might benefit from spreading sales across tax years to optimize your investment income and better utilize any carried-forward deductions you can establish. Also, don't forget that investment interest expense includes more than just margin interest - it can include interest on loans used to purchase investment property, points paid on investment property loans, and other investment-related borrowing costs. Make sure you're capturing all eligible expenses in your calculations. The key takeaway is to start filing Form 4952 this year regardless of your prior year situation, so you don't face this documentation gap again in the future.

Just went through this exact situation! The IRS will send it to whatever address they have on file, which should be from your most recent return. But here's what really helped me - I called my local IRS Taxpayer Assistance Center and explained the address change situation. They were actually able to update my address over the phone and confirm where the letter would be sent. Way faster than waiting for Form 8822 to process. You can find your local office on IRS.gov under "Contact Your Local Office." Worth a shot if you're worried about timing!

Had a similar situation last year when I moved mid-tax season! One thing that really helped was also updating my address with ID.me directly through their website, not just with the IRS. Sometimes there's a disconnect between what the IRS has on file and what ID.me is using for verification purposes. Log into your ID.me account and make sure your current address is listed there too. Also, if you're really worried about timing, you might want to reach out to whoever currently lives at your old address (if possible) to give them a heads up that you might get some IRS mail there - most people are understanding about forwarding important tax documents. The verification process is stressful enough without worrying about mail delivery!

Whatever you do, DON'T file without the IP PIN if you've been issued one in previous years. My cousin did that and it created a HUGE mess. His return was rejected, then flagged for potential identity theft (ironically), and it took him almost 8 months to get his refund. If you absolutely cannot get your IP PIN before the deadline, file an additional extension request (Form 4868) with a paper explanation of your situation attached. That at least documents that you tried to comply with the deadline.

I went through this exact same nightmare last year! Here's what worked for me: First, try calling the IRS Identity Protection Specialized Unit at 800-908-4490 early in the morning (7 AM Eastern sharp). If that doesn't work, you can also try the IP PIN retrieval tool on IRS.gov, but make sure you have your prior year AGI and other verification info ready. One thing that helped me was keeping detailed records of every attempt to contact them - dates, times, reference numbers, etc. This became crucial later when I had to request penalty relief. Also, definitely check that your address is current with the IRS by filing Form 8822 if you've moved recently. The IP PIN gets mailed to whatever address they have on file, which might not be updated even if you filed your return with a new address. Whatever you do, don't file without the PIN - it will just get rejected and create more delays. If you're really running out of time before your extension deadline, document everything you've tried and consider writing a letter to the IRS explaining the situation when you do finally file.

Based on what you've described, it sounds like you should be able to claim your daughter as a qualifying child dependent! Since she's 20 and a full-time college student, she meets the extended age requirement (under 24 for students). Her dorm living counts as temporary absence for education - she's still considered to live with you. And if you're covering 75% of her expenses while she only earned $8,200, you're definitely providing more than half her support. Just make sure when you calculate total support, you include everything - tuition, room & board, books, food, medical expenses, transportation, etc. Her $8,200 job income needs to be less than half of that total amount. From what you've shared, it sounds like her total expenses are way more than $16,400, so you should be good! Don't forget to also look into the American Opportunity Tax Credit when you file - you can get up to $2,500 in education credits for her college expenses since you'll be claiming her as a dependent.

Yes, you should definitely be able to claim your daughter as a qualifying child dependent! At 20 years old and enrolled full-time, she meets the extended age test for students (under 24). The dorm living actually works in your favor - temporary absences for education are considered as still living with you for tax purposes. The key thing to focus on is the support test. Since you're covering about 75% of her expenses and she only earned $8,200, you're clearly providing more than half her support. Just make sure when you're calculating this, you include ALL expenses: tuition, room & board, books, food, medical, transportation, personal expenses, etc. Her income needs to be less than half of that total amount. One important tip: make sure your daughter knows to check the box "Someone can claim you as a dependent" if she files her own return for that $8,200 income. She can still file to get back any taxes withheld, but she can't claim her own exemption if you're claiming her. Also don't miss out on the American Opportunity Tax Credit - you could get up to $2,500 in education credits since you'll be claiming her as a dependent and paying her college expenses. That's a significant tax benefit on top of the dependent exemption!

Just wanted to throw this out there - if you're getting a refund of around $1k on $35k income, that's pretty average. But if you really want to change it, the easiest thing is to use the IRS Tax Withholding Estimator on their website. It's free and will tell you exactly what to put on your W-4. https://www.irs.gov/individuals/tax-withholding-estimator It's designed specifically for this situation and walks you through everything step by step. I use it every January to make sure I'm on track.

Keep in mind that if you adjust your W-4 to get close to zero refund, you're walking a fine line. If you miscalculate or your income changes, you might end up owing money at tax time. Some people prefer getting a refund as a forced savings mechanism. That said, $1000 on $35,000 income isn't crazy high for a refund. If you really want to reduce it, try changing your W-4 to claim an additional $4000 in deductions (not the full $5-6k recommended above) and see how that affects your paychecks. You can always adjust again mid-year if needed.