Has anyone had this IND-031-04 code problem with tax software other than TurboTax? I'm using H&R Block online and wondering if switching software might help...

I went through this exact same nightmare last month! After getting rejected 6 times with IND-031-04, I finally discovered the issue was that the IRS had made a small adjustment to my 2023 return that I wasn't aware of. Here's what worked for me: 1. Get your Account Transcript (not Return Transcript) from the IRS website - this shows any changes they made after processing your original return 2. Look for transaction code "290" or "291" which indicates adjustments 3. Calculate your adjusted AGI by adding/subtracting any adjustment amounts from your original AGI In my case, they had corrected a math error that reduced my AGI by $89. Once I used the corrected amount in TurboTax, it went through immediately. The whole process is incredibly frustrating because they don't notify you when they make these adjustments, but you're expected to know about them for e-filing verification. If you can't decipher the transcript codes (they're pretty cryptic), calling the IRS directly to confirm your correct AGI might be worth it, even though their phone system is a nightmare. Good luck!

This is such a common source of confusion! I went through the exact same panic last year when I saw a huge difference between those boxes. What helped me understand it was thinking of it this way: your state has TWO different tax systems that use your wages differently. Box 16 is for the income tax you pay to your state (like your federal income tax), while Box 18 is for unemployment insurance that your employer pays on your behalf. Most states say "we only need to collect unemployment tax on the first $X of wages" - so once you hit that cap, your employer stops paying unemployment tax on any additional wages you earn. That's why Box 18 stops counting at a certain point while Box 16 keeps going. It's actually a good thing - it means you earned more than your state's unemployment wage base! Nothing to worry about at all.

Just wanted to add that you can also check your state's specific unemployment wage base limit by looking it up on your state's Department of Labor website. Each state sets their own cap and it changes yearly. For 2025, some examples: - Alabama: $8,000 - California: $7,000 - New York: $12,300 - Texas: $9,000 If you made more than your state's limit, that explains the difference perfectly. I had the same confusion until I looked up my state's specific number and it matched exactly with what I was seeing on my W2. Really wish they made this clearer on the actual form!

5 I had a similar situation but with a REIT instead of an MLP in my Roth IRA. Can anyone recommend good tax software that handles these special investment situations well? I've been using TurboTax but it seems confused when I try to enter information about retirement account investments.

Great question about MLP trading in retirement accounts! As others have mentioned, you're generally in the clear since you were day trading rather than holding for distributions. However, I'd add one important point that hasn't been fully addressed - make sure to keep good records of your trading activity. Even though you likely won't need to report anything for tax purposes, if the IRS ever questions your retirement account activity, having detailed records of your trades (entry/exit dates, amounts, reasoning) can help demonstrate that this was legitimate investment activity rather than prohibited transactions. Also, while UBTI is unlikely to be an issue with your day trading approach, it's worth noting that some MLPs can generate UBTI even without distributions if they have significant business income allocated to unit holders. Since you were only holding positions briefly, this shouldn't affect you, but it's good to be aware of for future reference. The bottom line is that retirement account trading generally shields you from most of these complications, which is exactly why these accounts are so valuable for active investors!

Great question about Schedule E depreciation! I went through this exact same confusion last year. Here's what I learned that might help: The key thing to remember is that residential rental property depreciation is actually pretty standardized - you'll always use the 27.5-year straight-line method under GDS (General Depreciation System). The tricky part is just getting your basis calculation right for the rental portion. One thing that helped me was creating a simple spreadsheet to track everything. I calculated: 1. Total property value (minus land value - super important!) 2. Percentage used for rental (square footage or room count method) 3. Depreciable basis = (Property value - Land value) × Rental percentage 4. Annual depreciation = Depreciable basis ÷ 27.5 years For the first year, don't forget to use the mid-month convention if you started renting partway through the year. The IRS has tables in Publication 946 that show exactly how much to depreciate based on which month you placed the property in service. And yes, you'll need Form 4562 for the first year, then the depreciation amount flows to Schedule E line 18 in subsequent years. Once you get the hang of it, it's actually one of the more straightforward parts of rental property taxes!

One thing I haven't seen mentioned yet is the importance of keeping detailed records for your partial rental depreciation. The IRS can be pretty picky about this, especially if you get audited. I'd recommend documenting: 1. How you calculated the percentage split (square footage measurements, photos showing which areas are rented vs. personal use) 2. Your land vs. building value allocation method and sources 3. The date you first made the space available for rent (not necessarily when you got your first tenant) 4. Any improvements you made specifically for the rental portion Also, be aware that when you eventually sell the property, you'll need to "recapture" the depreciation you've claimed on the rental portion - it gets taxed at up to 25% rather than capital gains rates. This doesn't mean you shouldn't take the depreciation (you should!), but it's good to plan ahead for the tax implications down the road. The depreciation deduction can really add up over the years and significantly reduce your rental income taxes, so it's worth getting this right from the beginning!

I think a lot of people overlook the fact that Form 5471 has different categories of filers. For a 50% ownership in a foreign corp, you're most likely a Category 5 filer. The important thing is disclosure - the penalties for not filing can be steep ($10k+ per form per year). If the business truly has no operations, minimal expenses and no bank accounts, your Form 5471 would be pretty basic but still required. The cost shouldn't be that high for a simple filing with minimal info - you might find a US expat tax specialist who would do just this form for a reasonable fee rather than a full tax return.

I had a similar situation with a business i registered in australia that never really did anything. one important thing to consider: the statute of limitations doesn't start running on your tax returns until you've filed all required international forms. so if you don't file the 5471, theoretically the irs could audit your returns from that year forever!!!