I've been in a similar situation and unfortunately learned the hard way that there's really no mechanism to get estimated tax overpayments back mid-year. The IRS system just isn't set up for that - they basically treat all your payments (estimated taxes, withholding, etc.) as one big pot that gets reconciled when you file your return. One thing I wish I had known earlier is that you can actually calculate the "safe harbor" amount to avoid underpayment penalties. If you pay at least 100% of last year's tax liability (or 110% if your AGI was over $150k), you won't get hit with penalties even if you underpay during the year. This might help you feel more comfortable reducing future estimated payments if you find yourself in this situation again. Also, definitely file as early as possible in January to get that refund back quickly. I filed on January 20th last year and had my refund within 2 weeks via direct deposit.

I've been dealing with this exact issue for the past couple of years since I started getting RSUs. What really helped me was setting up a spreadsheet to track my withholding throughout the year - I include regular payroll withholding, supplemental withholding from stock vests, and my estimated payments all in one place. The key insight I learned is that supplemental income (like stock compensation) gets withheld at a flat 22% rate, which might not match your actual marginal tax rate. If you're in a lower bracket, you're probably overwithholding on those vests, and if you're in a higher bracket, you might be underwithholding despite it feeling like they're taking a ton. I now review my withholding situation after each major vesting event and adjust my remaining estimated payments accordingly. It's saved me from both overpaying (like your situation) and underpaying with penalties. The IRS actually has a pretty decent withholding calculator on their website that you can use mid-year to figure out if you need to adjust your W-4 or estimated payments. Unfortunately, you're stuck waiting for your refund, but at least you won't owe any penalties for overpaying!

Has anyone actually reported this type of transaction on their taxes? How did you document it? I've done a similar thing with some BTC and I'm worried the IRS might flag my return because the buy and sell dates are so close together.

Great question about the documentation! I actually started with spreadsheets but quickly realized how messy that gets when you're dealing with multiple exchanges and DeFi protocols. I ended up using Koinly which automatically pulls transactions from most major exchanges via API connections. The key is making sure you have records of: - Exact timestamps for each transaction - Purchase/sale prices in USD at the time of transaction - Which exchange or wallet the transaction occurred on - Transaction fees (these can be deducted) - Clear notes about what type of transaction it was For your specific strategy of selling high and rebuying low, I'd recommend adding a note in your records explaining the reasoning - something like "tax optimization strategy - sold to realize gains, repurchased at lower price." This isn't required but could be helpful if there are ever questions. The IRS really just cares that you're accurately reporting all taxable events. The timing between transactions isn't suspicious - plenty of legitimate trading strategies involve quick buy/sell cycles. Just make sure you're not accidentally treating any wallet-to-wallet transfers as taxable events!

same boat, different day 🚣‍♀️ fingers crossed for all of us

This is definitely a positive sign! When Topic 152 replaces 151, it usually means your return is moving from review status back into normal processing. The question mark appearing by your refund amount is actually a good indicator - it often shows up right before they finalize the release. Since you spoke with an examiner who confirmed they'd release the hold, and this change happened right after, I'd say you're probably looking at getting your refund within the next 1-2 weeks. The timing lines up perfectly. Keep checking your transcript on Fridays (sounds like that's when yours typically updates) and you should see a deposit date appear soon. Hang in there - you're almost at the finish line! 🤞

Quick question - does anyone know if TurboTax handles this community property LLC situation correctly? I tried entering our business info and it keeps pushing me toward filing two separate Schedule Cs, but after reading this thread, I'm not sure that's right for our Nevada LLC.

I've been dealing with this exact same issue for our LLC in California! After reading through all these responses, I think the key takeaway is that the "correct" approach might depend on your specific operating agreement and how you've structured your LLC. What I found helpful was getting clarity on whether both spouses are considered "active participants" in the business. If you're both materially participating, then the self-employment tax treatment becomes more important for Social Security credit purposes. But if one spouse is more of a passive investor, then a single Schedule C under the active spouse's name might make more sense. For your $87,000 income situation, I'd strongly recommend getting a consultation with a tax professional who specializes in small business and community property issues. The cost of professional advice is probably worth it to avoid potential issues down the road, especially since community property state rules can be tricky to navigate correctly. One thing I learned is that the IRS has specific guidance (Rev. Proc. 2002-69) about community property and self-employment tax that might be relevant to your situation. It's worth reviewing if you haven't already!

I'm in the exact same situation! Got my 291 about 10 days ago and it's driving me crazy seeing everyone else's 846 codes rolling in. I keep refreshing my transcript like it's going to magically change 😅 From what I'm reading here, sounds like we just gotta be patient even though it's torture. Really hoping we see some movement soon! The financial stress of waiting is real when you're depending on that refund.

I totally feel your pain! I was stuck on 291 for almost a month and it was driving me absolutely insane watching everyone else get their refunds. The worst part is not knowing WHY you got the adjustment or when it'll finally move. I ended up calling the IRS (took 3 hours on hold 😩) and they told me it was an EIC adjustment that just needed extra review time. Finally got my 846 last week! Don't lose hope - I know it feels like you're forgotten but most people do eventually see movement. The waiting game is brutal but you're definitely not alone in this struggle! 💪