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As a newcomer to this community, I've been following this discussion with great interest because I recently had a similar scare with what I thought was an IRS letter. The collective wisdom here is really valuable! What strikes me most about your situation, Paolo, is how the community has identified the key inconsistency - the mixing of "investigation assistance" language with an LT11 notice number. This is exactly the kind of sophisticated scam tactic that can fool people because it uses real IRS terminology and notice numbers. I want to emphasize what others have said about documentation. When you call the official IRS number tomorrow, definitely take detailed notes including the representative's name, badge number if they provide it, and any reference numbers for your call. If this turns out to be legitimate, you'll want that paper trail. If it's a scam, those details will be helpful when you report it to TIGTA. Also, don't feel embarrassed about being cautious or asking "dumb" questions when you call. The IRS representatives are used to people being confused by notices, and they'd rather you verify a suspicious letter than ignore a legitimate one. Your instinct to question this letter was exactly right - trust that gut feeling! Keep us updated on what you find out. This kind of information helps everyone in the community recognize similar scams in the future.
Welcome to the community, Ella! I'm also relatively new here but have been really impressed by how helpful everyone has been with Paolo's situation. The way this community broke down the red flags in that letter - especially the LT11/investigation inconsistency - shows the value of having experienced people share their knowledge. I think your point about documentation is crucial. Even if this turns out to be a scam, having detailed records of the verification process could be helpful if Paolo encounters similar issues in the future. Plus, the IRS actually encourages people to report suspicious letters with as much detail as possible. @Paolo Moretti - one thing I d'add to Ella s'advice is to ask the IRS representative if they can email or mail you written confirmation of whatever they tell you about your account status. Sometimes having official documentation that there are no issues can give you peace of mind and proof if you get similar suspicious letters later. This whole thread has been a great education for those of us who haven t'dealt with IRS communications before. Thanks to everyone for sharing their experiences!
As a newcomer who's been following this discussion closely, I want to add something that hasn't been mentioned yet - the importance of checking if anyone else in your household might have received similar letters. Scammers often target multiple people in the same area or use purchased mailing lists. The red flags everyone has identified here are spot-on, especially the LT11/investigation language mismatch. But I'd also suggest when you call the IRS tomorrow, ask them specifically about their current fraud alerts. They often know about active scam campaigns and can tell you immediately if your letter matches a known fake template. One more verification tip: legitimate IRS letters typically include a "Your Rights as a Taxpayer" section or reference to Publication 1, which explains your rights during IRS processes. Scammers often leave out these procedural details because they don't understand the legitimate IRS process. Paolo, your instinct to verify before acting was absolutely correct. Even experienced taxpayers can be fooled by sophisticated scams that mix real notice numbers with fake content. The community's collective analysis here shows how valuable it is to get multiple perspectives before responding to any suspicious IRS communication. Hope you get quick resolution when you call tomorrow - and please update us on what you discover!
I'm a payroll administrator and deal with this all the time. One thing to watch for - sometimes the check they send you has already had taxes withheld, and sometimes it hasn't. Check the paperwork carefully! If taxes weren't withheld, you might want to set aside some money for when you file next year.
This happened to me and I was so confused when the check amount was less than what I was expecting. Turns out they withheld 20% for federal taxes!
Yes, that's standard practice for many plan administrators. They're required to withhold 20% for federal taxes on certain distributions. Some will also withhold state taxes depending on your state's requirements. The withholding actually helps because it means you're less likely to face a surprise tax bill when you file. Just remember that the withholding might not cover all the taxes you'll owe, especially if you're in a higher tax bracket or have state taxes to consider.
I went through this exact situation two years ago and it was definitely stressful at first! One thing that helped me was understanding that this isn't actually a penalty or punishment - it's just the plan following IRS rules to maintain its tax-qualified status. A few practical tips: Make sure to keep all the documentation they send you (the check stub, any letters explaining the distribution, etc.) because you'll need it for your 2025 tax return. Also, if you haven't already, consider opening a traditional or Roth IRA for 2024 contributions since you still have until April 15th to contribute for last year. For next year, you might want to ask HR if they can provide guidance on what contribution level would be "safe" to avoid this happening again. Some companies will actually communicate this to HCEs early in the year or provide periodic updates on testing projections. It's frustrating because you're essentially being penalized for other employees not contributing enough, but understanding the process makes it less overwhelming.
This is really helpful advice! I'm curious about the IRA contribution option you mentioned - if I already maxed out my 401k contribution for 2024 (before getting this refund), would I still be eligible to contribute to a traditional IRA? I thought there were income limits that might disqualify me, especially since I'm apparently in the HCE category now.
Just went through this same situation! Had my examiner call about 3 weeks ago and TC290 posted the next day. Got my refund deposited exactly 18 days after the code appeared - so right in that 2-3 week sweet spot everyone's mentioning. The wait felt eternal but once TC290 shows up, you're definitely in the final phase. Keep checking your transcript every few days and try not to stress too much (easier said than done, I know!). The IRS may be slow but they do follow through eventually. Hang in there! šŖ
18 days is pretty solid! Thanks for sharing your timeline - it's really helpful to see actual data points from people who've been through this exact situation. I'm on day 5 after my TC290 posted so still got some waiting ahead of me, but stories like yours keep me optimistic that it'll actually happen soon. The stress is real when you're depending on that refund! š Did you see any other activity on your transcript between TC290 and the actual deposit, or was it quiet until the money hit?
I'm going through this exact same situation right now! Just had my examiner call yesterday and TC290 posted this morning. Reading through everyone's experiences here is giving me so much hope - sounds like most people are getting their refunds within 2-4 weeks after that code shows up. I've been waiting since October so I'm really praying mine comes through on the faster side of that timeline. The stress of not knowing has been killing me but seeing all these success stories makes me feel like there's actually light at the end of the tunnel. Will definitely be checking my transcript obsessively for the next few weeks lol. Thanks everyone for sharing your timelines - this thread is exactly what I needed to see right now! š
Based on your situation, yes you can definitely deduct the router! Since you have a dedicated home office and use it exclusively for business, you have solid ground for this deduction. For a router, you'll likely want to use Section 179 to deduct the full cost this year rather than depreciating it over 5 years - it's simpler and makes more sense for smaller purchases like this. The mixed personal/business use is totally normal and expected. Just estimate what percentage is business use (sounds like it could be substantial given your work requirements) and deduct that portion. Keep your receipt and document your reasoning for the percentage - maybe track your usage for a week or consider business hours vs. total internet usage time. One tip: don't forget you can also deduct the business portion of your monthly internet bill ongoing, not just the router itself. Many self-employed folks miss that recurring deduction. Since you mentioned being careful about not crossing lines, you're taking exactly the right approach. The key is having reasonable estimates you can justify if asked, which it sounds like you definitely can given your dedicated office space and work requirements.
This is really helpful advice, thank you! I hadn't even thought about deducting the monthly internet bill portion - that could add up to significant savings over the year. Quick question though: when you mention "track your usage for a week," are you talking about actual data usage or just time spent? I'm wondering if there's a way to see how much bandwidth my work activities use versus streaming Netflix in the evenings.
Good question! I was referring more to time-based tracking rather than data usage, since the IRS generally looks at reasonable business use rather than technical bandwidth metrics. For example, you could track something like: "Monday-Friday 9am-5pm dedicated work time, plus Tuesday/Thursday evenings 7-9pm for client calls = 42 hours business use out of maybe 70 total hours online per week = 60% business use." That said, if you want to get more technical, many routers have built-in usage monitoring where you can see which devices (work laptop vs personal phone/TV) use the most data. But honestly, a time-based estimate is usually sufficient and easier to document. The IRS wants to see you made a reasonable effort to separate business from personal use - they're not expecting you to become a network engineer! Keep it simple and defensible. Your method of calculation matters less than being able to explain your reasoning if asked.
Great question! As a fellow self-employed person, I can confirm that router purchases are definitely deductible business expenses when you work from home. Since you have a dedicated home office and rely on internet for client work, you're in a strong position to claim this. A few things to keep in mind: - For most home routers (under $2,500), you can deduct the full cost this year using Section 179 expensing - Since you use it for both business and personal, calculate a reasonable business percentage - maybe based on work hours vs. total daily internet usage - Document your reasoning and keep that receipt! Don't forget about your monthly internet bill too - you can deduct the business portion of that every month going forward. That often adds up to more savings than the one-time router purchase. The fact that you're being thoughtful about staying within the rules shows you're on the right track. With your dedicated office space and legitimate business need for reliable internet, this is exactly the type of expense the deduction is meant for.
This is really solid advice, especially about the monthly internet bill deduction - I hadn't considered that ongoing expense! I'm new to being self-employed and still learning about all the deductions I might be missing. Quick question: when you calculate the business percentage for monthly internet, do you use the same percentage every month or should I be tracking it monthly? My work schedule can vary quite a bit depending on client projects.
Zadie Patel
If you're really stuck, you can also log back into your H&R Block account and look at the actual depreciation schedule they created last year. Sometimes it's easier to see it there than on the actual tax forms. Go to your account, look at last year's return, and there should be a section for "Depreciation Worksheets" or something similar that shows a breakdown year by year. Just FYI - I found FreeTaxUSA's rental property section to be pretty good once you get past this initial hurdle of entering the prior year stuff. Much more straightforward than H&R Block in many ways!
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Maya Lewis
I switched from TurboTax to FreeTaxUSA last year and ran into the exact same issue with my rental property! One thing that helped me was to look at the actual depreciation worksheet that H&R Block generated, not just the forms. When you log into your H&R Block account, there should be a detailed depreciation schedule that shows the breakdown year by year - this made it crystal clear what the cumulative amount was. Also, double-check that you're looking at the right property if you have multiple rentals. I almost entered the wrong depreciation amount because I was looking at the wrong property's line on my Schedule E. The Form 4562 Box 22 that others mentioned is definitely the right place to look for the cumulative prior-year depreciation amount. FreeTaxUSA's interface for rental properties is actually pretty intuitive once you get past this initial setup. Good luck with the switch - you'll definitely save money compared to H&R Block's fees!
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Sophia Rodriguez
ā¢This is really helpful advice! I'm actually planning to make the same switch from H&R Block to FreeTaxUSA next year for my rental property taxes. The tip about checking the detailed depreciation worksheet in the H&R Block account instead of just the forms is brilliant - I never would have thought to look there. Quick question - when you switched, did you notice any other carryover numbers that were tricky to find besides the depreciation? I want to make sure I'm prepared for all the potential gotchas when I make the transition.
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