


Ask the community...
3 I've been betting on sports apps for years and honestly never filed in other states. Just reported everything on my home state return. No issues so far, but sounds like I might be doing it wrong?
8 Technically yes, but realistically the states probably won't come after you unless you had major winnings. The sportsbooks are required to issue W-2Gs for large payouts (usually over $600) though, and those get reported to tax authorities.
This is a really complex area that trips up a lot of people! Based on what I've seen, you're right to be concerned about proper reporting. Generally, you do need to file non-resident returns in states where you were physically present when placing winning bets, regardless of whether it was through an app or at a physical location. The key factor is your physical location when the bet was placed, not where the sportsbook is licensed. However, there are some practical considerations that might help: 1. Many states have minimum filing thresholds for non-residents (often $1,000-$2,500) 2. You'll get credit on your PA return for taxes paid to other states to avoid double taxation 3. Some of your out-of-state winnings might fall below reporting thresholds For your $8,500 in winnings, I'd recommend getting the location data from each sportsbook (most can provide this if requested) and checking each state's non-resident filing requirements. You might find that you only need to file in 1-2 states rather than all of them. The "state sourcing" question in your tax software is asking exactly this - where the income was earned geographically. Don't guess on this one since the penalties for incorrect state filing can add up quickly.
This is really helpful advice! I'm in a similar situation but have been putting off dealing with it. When you mention getting location data from sportsbooks, how exactly do you request that? Do you just call customer service or is there a specific form? Also, do you know if the state tax credits are automatic when filing or do you have to manually calculate and claim them? I'm worried about making errors since this is my first year dealing with multi-state gambling income.
I totally get your anxiety about this message! I've been through this exact scenario twice in the past few years and it's nerve-wracking every time. That "return under review" status is actually more common than you'd think - the IRS processes millions of returns and a significant portion go through some level of review. From my experience, this message usually appears when they're doing routine verification checks - things like cross-referencing your W2s with what employers reported, or making sure your deductions align with their databases. It's not necessarily a red flag that something's wrong. That said, definitely keep an eye on your mail over the next 2-3 weeks. If they do need something from you, the notice will be pretty specific about what documents or clarification they're looking for. In my cases, one time it resolved on its own after about 12 days, and another time I got a simple CP12 notice asking me to verify my identity online (took like 5 minutes). The waiting sucks but try not to stress too much - most of these reviews end up being routine processing delays rather than actual problems with your return. Keep checking periodically but don't drive yourself crazy with daily app refreshes! š
This is really helpful, thanks! @Felix Grigori It s'reassuring to hear from someone who s'actually been through this before. I think I m'definitely guilty of the daily app refreshing thing š The not knowing what they re'specifically reviewing is what gets to me the most. I filed pretty straightforward - just W2s and standard deduction - so hopefully it s'just one of those routine checks you mentioned. Really appreciate you sharing your experience, it helps calm the nerves a bit!
I've been in the exact same situation and completely understand the anxiety! Got that same message word-for-word about 6 months ago and was convinced something was wrong with my filing. Turns out it was just a routine income verification - the IRS was cross-checking my reported income with what my employer submitted. The whole process took about 16 days total before my refund was approved and processed. Never got a notice in the mail, it just updated one day to "refund approved" and I had my money within a week after that. What helped me stay sane during the wait was remembering that the IRS processes over 150 million returns each year, and a huge percentage get this review status. Most of the time it's just their systems doing automated checks to make sure everything matches up in their databases. Try to avoid checking the app more than once every few days if you can - I was refreshing it multiple times daily and it just made the waiting worse! The status will update when there's actual news to report. Hang in there! šŖ
Thanks for sharing your experience @Amara Nwosu! It's so reassuring to hear that it resolved without needing any additional documentation from you. I think I needed to hear that the majority of these reviews are just automated system checks rather than actual red flags. 16 days feels manageable when you put it in perspective of 150+ million returns being processed! I'm definitely guilty of the obsessive app checking too - going to try to limit myself to maybe once every couple days like you suggested. Really appreciate everyone sharing their stories here, makes this whole waiting game feel less isolating! š
On March 15, 2024, I successfully challenged a similar offset by proving an accounting error. Instead of disputing the entire offset, focus on verifying the exact amount. On January 22, I requested a full accounting from my state agency, which revealed they hadn't credited four payments made between October 3 and December 28 last year. If you can't stop the offset entirely, you might qualify for a hardship reduction under the Consumer Credit Protection Act if the offset exceeds 65% of your disposable income. This won't eliminate the offset but could reduce the amount taken.
Based on my experience with Treasury Offset Program disputes, here are the key points to understand: **Yes, you can contest it, but success depends on specific circumstances:** ⢠**Grounds for successful challenges:** Accounting errors, payments not properly credited, identity mix-ups, or incorrect debt amounts ⢠**What typically WON'T work:** Simply being on a payment plan or claiming financial hardship (unlike student loans) ⢠**Time is critical:** Most states have 30-65 day windows from the offset notice date **Your action plan should be:** 1. Request your complete payment history and debt calculation from your state's child support enforcement agency 2. Cross-reference this with your own payment records (bank statements, receipts, money order stubs) 3. If you find discrepancies, file a written administrative review request immediately 4. Document everything with dates, reference numbers, and contact names **Form 8379 note:** This injured spouse relief form won't help with child support offsets - it's specifically for when your spouse's debt causes your refund to be taken. The reality is that child support offsets have fewer escape routes than other types of debt offsets, but if there's a legitimate error in the amount owed or payment crediting, you have a fighting chance. Focus on the numbers and documentation rather than circumstances.
This is really helpful information! As someone new to this community and the US tax system, I appreciate how clearly you've outlined the process. One quick question - when you mention requesting the "complete payment history and debt calculation" from the state agency, is there a specific form or process for this request? I want to make sure I'm asking for the right documentation when I contact them. Also, do you know if states typically charge fees for providing these records?
Don't overlook ATX. It's middle of the road on pricing but has a great interface and decent support. I handle about 75 returns each season with it after leaving my full-time tax job. One thing to consider: if you'll be filing any business returns (1120, 1120S, 1065) in addition to individual returns, some of the cheaper options mentioned here won't cut it. ATX has affordable bundles that include business returns.
I second ATX! Been using it 6+ years for my side hustle (40ish returns). The Max bundle is worth every penny if you do any business returns. And their training webinars are actually helpful unlike some other companies I've tried. Pricing is reasonable and it's way easier to learn than Drake imo. User interface isn't as pretty as the premium options but who cares as long as the math is right lol.
As someone who just started doing side returns this past season (about 12 clients), I can share what worked for me. I ended up going with Drake after researching all these options, and I'm glad I did. The unlimited federal + all states for one price was the deciding factor. Even though I only needed 3 states this year, knowing I won't get hit with surprise per-state fees as I grow was huge. The learning curve from UltraTax wasn't bad - took me a weekend to get comfortable with the interface. One tip: Drake offers a significant discount if you purchase early in the year (like June/July). I got mine for about 40% off the regular price. Their customer service during tax season was also excellent - never waited more than 5 minutes on hold. For anyone just starting out, I'd definitely recommend Drake if you plan to grow beyond 20 returns eventually. The upfront cost pays for itself once you hit that volume.
Thanks for sharing your Drake experience! The early purchase discount is a great tip I hadn't heard before. Quick question - when you say the learning curve wasn't bad coming from UltraTax, were there any specific features or workflows that were confusing at first? I'm worried about slowing down during busy season while I'm still getting used to a new system. Also, did you find their diagnostic tools helpful for catching errors? One thing I rely on heavily in UltraTax is their comprehensive review diagnostics before filing.
Sean Murphy
mine took forever last year but this year was super fast. got it in 16 days
0 coins
Ravi Gupta
I filed mine on February 3rd and just got my refund deposited this morning! So that was about 6 days - way faster than I expected. Ohio seems to be processing returns much quicker this year compared to previous years. Don't stress too much @Javier, you should see yours soon!
0 coins