Just wondering... did you ever ask the partnership itself for an explanation? When I was in a similar situation, I emailed our partnership's accountant directly and they sent me a detailed breakdown of how my K-1 was calculated and why the distributions were different from my share of income. Sometimes going directly to the source is the fastest way to understand what's happening.

Your CPA is correct - you need to report the $24,863 from Line 1 on your Schedule E. This is a classic partnership taxation issue where your share of profits (11.53%) differs from your distribution percentage (3.06%). The key thing to understand is that partnerships are "pass-through" entities, meaning you're taxed on your allocated share of the partnership's income whether you receive it in cash or not. The partnership agreement clearly established different percentages for profit allocation versus distributions (likely due to that IRA loan conversion you mentioned). Think of it this way: the partnership earned income, and 11.53% of that income is legally "yours" for tax purposes even though the distribution formula gives you a smaller cash payout. The $17,012 difference between your taxable income and distribution is essentially being retained by the partnership, increasing your basis in the partnership. This might feel unfair since you're paying tax on money you didn't receive, but it's completely legal and common in partnership structures with special allocations. Your business partner may not fully understand the tax implications of the partnership agreement that was set up. I'd stick with your CPA's advice on this one - reporting only the distribution amount would likely trigger IRS issues down the road.

Don't worry at all about this! As someone who works in tax preparation, I can tell you that signature date errors with the wrong year are incredibly common, especially in the first quarter of the year. The IRS has seen this mistake countless times and it absolutely will not delay or reject your return. The signature requirement is really about confirming that you personally signed the return and that it was signed after the tax year ended. Writing "2024" instead of "2025" in January doesn't violate either of those requirements - they know you didn't actually sign it in 2024! Since you caught it before mailing, you have a few options: you could make the simple correction (cross out, write correct year, initial), or you could just mail it as-is. Both will result in normal processing. Given that you're already dealing with the complexity of a dual status return, I'd honestly just mail it as-is and focus your energy on making sure all the dual status forms and calculations are correct - those are the parts that actually matter for processing. Your first tax filing sounds like it's going great despite this minor hiccup. The fact that you're being so careful and thorough shows you're taking it seriously, which is exactly the right approach!

Hey Shelby! I totally get the anxiety about making mistakes on your first tax return - I was the same way when I started filing. But everyone here is spot on about the signature date not being a big deal at all. I actually made a similar mistake a couple years ago where I dated my signature with the wrong month (wrote March instead of February). I was so worried about it that I called the IRS, and the agent told me they see date errors constantly and it's never grounds for rejecting a return. She said as long as the signature is there, they process it normally. Since you're already dealing with dual status filing (which is genuinely complex), don't let this minor date issue add to your stress. The IRS knows that in January and February, people are still getting used to writing the new year. It's probably one of the most common clerical errors they see. You've successfully navigated the much harder part of filing a dual status return for the first time. That wrong year on your signature date is honestly the least of their concerns when processing your return. You're going to be just fine!

Everyone keeps talking about FreeTaxUSA and TurboTax, but I've been using Credit Karma Tax (now Cash App Taxes) for the past 3 years and it's completely free for federal AND state filing. It handles child tax credits, mortgage interest, and even small business income. I have 2 kids and it was super easy to enter their information and get the child tax credits. Might be worth looking into since you mentioned wanting to save money. The interface is pretty straightforward too.

Just wanted to add one more option to consider - I've been using FreeTaxUSA for 3 years after switching from TurboTax, and it's saved me hundreds. But this year I also discovered Tax Hawk, which is actually made by the same company as FreeTaxUSA but has a slightly different interface and sometimes different promos. For what it's worth, I have a pretty similar situation (married, 3 kids) and FreeTaxUSA worked great for claiming all the child tax credits correctly. The step-by-step guidance is really clear, and I never felt like I was missing anything important.

This is really helpful to see everyone's experiences! I'm in the same boat - my status changed to "STILL being processed" after exactly 21 days too. Based on what I'm reading here, it sounds like this is definitely a meaningful status change that indicates additional review rather than just different wording. I'm curious though - for those who got through to actual IRS agents, did they give you any sense of what triggers these reviews? Is it truly random or are there patterns? I have a pretty straightforward return with just W-2s and standard deduction, so I'm surprised mine got flagged. Thanks for all the insights everyone!

Great question! I've been through this exact same situation twice now. The "STILL being processed" status is definitely a meaningful change - it indicates your return has moved beyond the standard processing queue and into what the IRS calls "extended processing." This typically happens when your return is selected for additional verification, whether that's identity verification, income matching, or review of specific credits/deductions. In my experience, the timeline extends to 6-10 weeks from the original filing date. The key is checking your tax transcript for specific transaction codes that can give you more insight into what's causing the delay. Don't panic though - most of these extended reviews resolve without any issues or additional action needed from you!

Have you considered TurboTax Self-Employed instead of H&R Block? I've used both for my photography business, and I found TurboTax more intuitive for small business stuff. It imports from Quickbooks really smoothly too. The biggest difference I noticed was that TurboTax asked more detailed questions about my specific industry that led to deductions H&R Block didn't catch. Though both are WAY cheaper than paying $450+ per form!

Don't sleep on finding a good local CPA. I was in your exact situation 2 years ago - small business with my husband, fed up with huge fees. Found a local CPA who specializes in small businesses and she only charges $275 for everything, including unlimited questions throughout the year. H&R Block employees usually aren't CPAs and may miss small business deductions. And I personally had a TERRIBLE experience with them losing some of my documents and filing late without telling me. Not saying all locations are bad, but definitely check reviews for the specific office!