Fun fact: the IRS actually has a policy about rounding on tax returns! All amounts are rounded to the nearest dollar - 50 cents or more gets rounded up, under 50 cents gets rounded down. So your 38 cents would indeed round to $0 on the official forms. That said, I always report everything just to be safe. My parents got audited once over something super minor and it was a nightmare for them. Not worth the risk over reporting a few extra cents!

As someone who's dealt with this exact situation, I'd say report it to be completely above board. Even though 38 cents rounds to zero, the IRS technically expects all interest income to be reported regardless of amount. The key thing to remember is that this isn't really about the tax liability (since it rounds to $0 anyway) but about being compliant with reporting requirements. Most tax software will let you enter the actual cents amount, and it'll handle the rounding properly on the forms. I know it feels silly to report such a tiny amount, but it's better to be thorough than to worry about it later. Plus, if you ever get audited for other reasons, having complete records shows you're being honest about everything, even the small stuff.

This is exactly why I stopped trusting third-party tax software status updates! The IRS Where's My Refund tool is the only reliable source. "Accepted" in TurboTax basically just means they got confirmation that your return was successfully e-filed and received by the IRS - it's not the same as "approved" at all. The IRS still needs to actually process and review your return before approval. I'd expect it to take anywhere from 1-3 weeks to move from "Return Received" to "Approved" on the IRS site, depending on how busy they are. The transcript checker that others mentioned is also helpful since it sometimes shows processing codes before the Where's My Refund tool updates. Just be patient and ignore TurboTax's status - they have no special insight into IRS processing times despite what their marketing claims!

I work for a tax prep company and see this confusion all the time! What's happening is that TurboTax is showing you their internal tracking system - "Accepted" just means the IRS received your electronic filing successfully. It's basically like getting a receipt that says "we got your package" but doesn't mean they've opened it yet. The IRS Where's My Refund tool shows the actual processing status. Right now you're at step 1 of 3: Return Received. You'll need to wait for it to move to "Return Approved" (step 2) and then "Refund Sent" (step 3). Those TurboTax fees for "5 days early" and such are just their way of advancing you money against your expected refund - they can't actually speed up IRS processing. The IRS doesn't care what software you used or what promises they made. Typical timeline is 21 days from e-file date for straightforward returns, but it can be longer during busy season. Since you filed on 1/22, I'd expect movement by mid-February if everything goes smoothly. Stick with the IRS site for accurate updates!

This is a really complex situation that requires careful documentation. Since you're splitting time between states, I'd strongly recommend keeping detailed records of where you spend each night throughout the year - many states use the 183-day rule to determine residency. One thing to consider is that since your wife lives full-time in the house she bought, you might have a stronger case for claiming that state as your domicile if you can establish other ties there (voter registration, driver's license, etc.). However, don't overlook the potential audit risk - states are increasingly aggressive about pursuing residents who they think are trying to avoid higher taxes. Given the capital gains exclusion opportunity on your sold house that Andre mentioned, plus the complexity of multi-state residency rules, this might be worth consulting with a tax professional who specializes in multi-state issues. The cost of professional advice could save you thousands in taxes and help you avoid potential audit problems down the road.

For documenting your days in each state, I'd recommend keeping a simple calendar or spreadsheet with dates, locations, and brief notes about why you were there (work, personal, etc.). Some people even take photos with location data as backup evidence. Tax authorities generally accept any reasonable documentation that shows where you were physically present. As for audit red flags, states typically look for: claiming residency in a no-tax or low-tax state while spending most time in a high-tax state; having a mailing address in one state but conducting most business in another; voting in one state but claiming residency in another; or patterns that suggest you're "gaming" the system for tax benefits. The key is consistency - make sure your driver's license, voter registration, bank accounts, and tax filings all align with where you claim to be domiciled. Mixed signals across these areas are what usually trigger closer scrutiny. In your situation with the capital gains exclusion potential, getting this right could save you significant money, so professional guidance is definitely worth considering.

Don't forget that even though you filed an extension, you still need to submit your return by October 15th to avoid late filing penalties! Extension season always goes by faster than people expect.

Just wanted to chime in with my experience - I switched from TurboTax to FreeTaxUSA after filing an extension and it worked perfectly! The key thing to remember is that your extension (Form 4868) is completely separate from your actual tax return filing method. I was in a similar boat with TurboTax trying to charge me $89 for federal plus state fees. FreeTaxUSA ended up costing me only $15 for state filing (federal was completely free) and walked me through everything step by step. The interface isn't as fancy as TurboTax but it gets the job done and their support was actually more helpful when I had questions. One tip: make sure you have all your documents organized before you start with any new service since you'll be entering everything fresh. Also double-check that any estimated tax payments you made with your extension are properly reflected in the payments section of your return. Good luck!

Has anyone noticed that TurboTax sometimes calculates the underpayment penalty incorrectly? Last year I had a similar situation and when I checked the actual Form 2210 calculations, TurboTax had made an error in how it was applying my estimated payments. It wasn't considering my January 15th payment properly because of how I had entered the date. When I fixed that, the penalty disappeared. Might be worth double-checking the actual calculations for your specific situation.

There's one more thing to check that might help explain your situation - make sure TurboTax is correctly applying your November 2023 estimated payment to the right tax year. Since you made that payment in November 2023, it should be applied to your 2023 tax return, not 2024. Sometimes people get confused about this timing - estimated payments made in January through December of a given year apply to that year's tax return, even if you're filing the return the following year. So your November 2023 payment should help with your 2023 taxes (the return you're filing now). If TurboTax is somehow applying that payment to 2024 instead, that could explain why you're still seeing an underpayment penalty for 2023. Double-check which tax year that payment is associated with in the software. Also, just to confirm - when you received the inheritance in February 2023, was any of it taxable income? Inheritances themselves are generally not taxable income to the recipient, though any income generated by inherited assets (like interest or dividends) would be taxable.