Make sure you're aware of the wash sale rule too! If you sell stocks at a loss and buy the same or "substantially identical" securities within 30 days before or after the sale, you can't claim the loss immediately. This tripped me up big time last year when I thought I was being clever by tax-loss harvesting but kept jumping back into the same stocks when they dipped further.

One thing nobody's mentioning is that your capital losses can only offset $3,000 of ordinary income per year after offsetting capital gains. So if you had $550k in gains in year 1, then $550k in losses in year 2, you'd still owe taxes on the full $550k gain in year 1. Then in year 2, you could only use $3,000 of that loss against your regular income, and would have to carry forward the remaining $547,000 in losses for future years. At $3,000 per year against your ordinary income, that would take you 182 years to fully utilize those losses! This is why tax planning and realizing gains/losses in the same tax year is super important.

The answers here are mostly right but missing one detail - if you earn ANY interest on your security deposit, technically you're supposed to report it as income even if you don't get a 1099-INT. The $10 threshold is just for when the financial institution is required to send the form, not when you're required to report the income.

Great question! I went through something similar recently. The W9 is just for the landlord's records - you don't file it with your taxes. Think of it like giving your employer your SSN for payroll; they need it to potentially report income to the IRS, but you don't submit the W9 itself. Since you moved in last month, you'll likely earn less than $1 in interest for 2024 (assuming a typical savings account rate), so you probably won't get a 1099-INT this year. Even if you do earn interest, you'd only report it when you actually receive documentation showing the amount earned. For future years, just keep an eye out for any 1099-INT forms from your property management company in January. If you get one, report that interest amount on your tax return. If not, you're all set!

To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c

Hey Montana! I totally get your confusion - transcript codes can be really overwhelming. The multiple 290 codes you're seeing are actually pretty normal and usually just indicate routine adjustments the IRS makes while processing your return. Since WMR switched from PATH to regular processing, that's actually a good sign that things are moving forward. The lack of a tax code right now just means they're still working through verification. I wouldn't stress too much about the audit rumors - if there were serious issues, you'd typically get official correspondence from the IRS directly. Keep checking WMR every few days, and if you don't see movement in another week or two, then maybe consider calling the IRS for clarification.

The separate bank accounts approach that Mary mentioned is absolutely crucial! I learned this the hard way when I had both my freelance web design income (EIN) and my part-time delivery driving (SSN) all going into the same account. Come tax time, I spent weeks trying to untangle which expenses belonged to which income stream. Now I have a dedicated business checking account for my web design LLC and keep my delivery income in my personal account. It makes filling out the separate Schedule Cs so much cleaner. Plus, if you ever get audited, having that clear separation between your different income sources looks much more professional to the IRS. One tip: even if you don't get an EIN right away, you can still open a separate checking account using your SSN and a "doing business as" (DBA) name for your craft business. That way you can start building good financial habits before you decide whether to form an LLC.

This is such a helpful thread! I'm in a similar boat with multiple income streams and was totally confused about the EIN vs SSN filing process. One thing I wanted to add - when I called my bank to set up a separate business account for my side business, they explained that even with an EIN, I could still choose to use my SSN for tax reporting if I wanted to keep things simple. The EIN is really just for business identification purposes and separating your finances, but doesn't force you into a more complex tax situation. That said, after reading everyone's experiences here, I think I'm going to go the route of getting an EIN for my online jewelry business and keeping my freelance writing income under my SSN. The separate Schedule Cs approach makes a lot of sense for keeping everything organized. Plus, it sounds like it will make tracking business expenses much cleaner, which could save me money come tax time. Thanks to everyone who shared their real experiences - way more helpful than the generic advice I found elsewhere!

This is a standard verification review that the IRS does to confirm the accuracy of your return. It's frustrating but very common, especially if you claimed credits like the Earned Income Tax Credit or Child Tax Credit. The key things to know: 1) You don't need to do anything right now unless they contact you directly, 2) The 60-day timeframe is pretty firm - calling before then usually won't speed things up, 3) Make sure you have copies of all your supporting documents just in case they request them later. I went through this last year and it was nerve-wracking, but my refund eventually came through without any issues. Hang in there!

I went through this exact same thing last year and it's definitely nerve-wracking! The IRS has been doing a lot more verification reviews lately, especially on returns with certain tax credits. From my experience, the 60-day timeline they give you is pretty accurate - mine took about 55 days total. The hardest part is just waiting it out since calling them before the 60 days usually doesn't give you any new information. Make sure you keep all your tax documents handy (W-2s, 1099s, receipts for credits you claimed) just in case they do reach out for additional documentation. In most cases though, if everything on your return is accurate, you'll just get your refund after the review period without them needing anything else from you. Stay patient - I know it's easier said than done when you're waiting for your money!