Does anyone know if having unfiled taxes will affect getting approved for an apartment? I'm in the same boat (didn't file 2021) and I'm trying to move next month. Worried this might show up on background checks...

Don't stress too much about this! With an income of $19,500 in 2021, you're likely in a pretty good position. Given that amount, you probably had taxes withheld from your paychecks throughout the year, which means there's a decent chance you're actually owed a refund rather than owing money. Here's what I'd recommend: gather all your W-2s and 1099s from 2021, then use tax software that handles prior year returns or consider working with a tax professional who can walk you through the process. The most important thing is to file as soon as possible - not because you're in terrible trouble, but because if you are owed money, you want to claim it before the April 2025 deadline. If it turns out you do owe a small amount, the IRS offers payment plans and is generally reasonable to work with, especially for first-time late filers. The anxiety you're feeling is totally normal, but the reality is usually much less scary than what we build up in our heads. You've got this!

Literally just went through this exact situation. The EIC rules are SO confusing because they keep changing every year! For 2024 taxes, I thought I wouldn't qualify at age 23, but then realized I met the "specified student" exception. I had to manually override my tax software to claim it because it initially said I didn't qualify. Don't just blindly trust tax software - sometimes you need to dig deeper into specific exceptions that apply to your situation. The temporary expansions from the pandemic have expired, but there are still permanent exceptions worth checking if you're under 25.

This is such a helpful thread! I'm 22 and was in the exact same boat - qualified for EIC last year but my tax software said no this year. After reading through all these comments, I realized I should check if I qualify as a "specified student" since I'm enrolled full-time at my local university. Sure enough, when I went back into my tax software and specifically indicated my full-time student status in the EIC section (not just the education credits section), it recognized the exception and I qualified! Apparently being enrolled full-time for at least 5 months during the tax year creates an exception to the normal age 25 minimum. It's frustrating that the software doesn't always ask the right questions upfront to catch these exceptions. For anyone else under 25 who thinks they don't qualify - definitely double-check if you're a full-time student, former foster youth, or experienced homelessness, as these can all be qualifying exceptions even if you're under the normal age threshold.

Has anyone tried using a tax advocate service? I've heard they can sometimes help navigate these kinds of issues with the IRS.

I went through this exact same process about 6 months ago. Here's what worked for me: call the IRS at 1-800-913-6050 early in the morning (like 7:30 AM when they open) and specifically ask for the "Certificate of Release of Federal Tax Lien" department. They'll need your SSN and case number if you have it. Also, make sure you ask them to email you a confirmation of your request - this way you have a paper trail. The whole process took me about 10 business days from request to receiving the payoff statement in the mail. Don't give up, it's definitely doable once you get through to the right person!

Anyone using a particular tax software that handles rental property improvements well? I've been using TurboTax but it doesn't seem to give much guidance on the "placed in service" questions for multi-unit properties with different renovation timelines.

Just wanted to add one more consideration - if any of your renovation work included accessibility improvements (like widening doorways, installing grab bars, or making units wheelchair accessible), those costs might qualify for immediate deduction under the disabled access credit rather than being capitalized as improvements. Also, since you mentioned electrical work for safety issues, be sure to document which repairs were done to bring the property up to local code requirements versus cosmetic upgrades. Code compliance work done immediately after purchase often has different treatment than general improvements. The documentation is key for all of this - keep photos of before/after conditions along with your receipts, especially for that upstairs unit where work spans tax years. The IRS likes to see clear evidence of when work was completed and when units became available for rent.

Maybe a stupid question, but what about interest from foreign online banks? I've got an account with an online bank based in Europe but they let Americans open accounts. They didn't send me a 1099-INT but I earned about $220 in interest. Do I need to do anything special with Schedule B for this?

As someone who's dealt with this exact situation multiple times, I wanted to add a few practical tips that might help: 1. **Documentation is key** - Keep detailed records of your currency conversion calculations. I use the IRS's yearly average exchange rates from their website, but make sure to note which rate and date you used. 2. **Don't forget about timing** - If your client received the interest throughout the year, you might want to use quarterly averages instead of the annual average for more accuracy (though for $65, the annual rate is fine). 3. **Provincial tax considerations** - Since your client is in Canada, make sure you understand how this US reporting affects their Canadian tax obligations. There might be foreign tax credit opportunities. 4. **Schedule B Part III** - Everyone's mentioned the foreign account questions, but specifically make sure to complete lines 7a and 7b at the bottom of Schedule B. Line 7a asks about foreign accounts, and 7b asks about foreign trusts. The FBAR discussion above is spot on - it's aggregate balances across all foreign accounts. Even if your client only has $65 in interest, if their account balances totaled over $10,000 at any point, they need to file FinCEN Form 114 by April 15th (with automatic extension to October 15th). Hope this helps ease some of the stress! Foreign reporting seems overwhelming at first but becomes routine once you understand the framework.