Something everyone seems to be missing - make sure you're using the right version of Form 8865! The IRS updates these forms almost every year. Using the 2011 form for your 2023 taxes would be a disaster!

This is such a common source of confusion! I've been dealing with foreign partnerships for about 8 years now and still had to look this up when I first started. One thing that might help is to think of it this way: your personal tax return is like a "snapshot" of your financial situation for that calendar year. So for your 2023 personal taxes, you need to include income/losses from any partnership tax year that "closed the books" during your 2023 calendar year. In your case with the April 1 - March 31 fiscal year, the partnership year that ended March 31, 2023 is what gets reported on your 2023 personal return. Even though most of that partnership year (April-December 2022) happened in 2022, it still gets reported on your 2023 taxes because that's when the partnership "closed the books." Pro tip: I always write down the partnership's fiscal year dates somewhere prominent on my tax prep checklist each year. Saves me from having to re-figure this out every single time! The partnership should send you a K-1 that will also show which tax year it covers.

I'm in a similar situation with my service dog and really appreciate all the detailed advice here! One thing I wanted to add that my CPA mentioned - if you're working with a trainer who specializes in service dogs, make sure they can provide documentation that clearly differentiates between "medical necessity" training and general pet training on their invoices. My trainer was great about breaking down costs into categories like "task-specific training for mobility assistance" vs "basic obedience" which made it much clearer for tax purposes. The task-specific portions were fully deductible as medical expenses, while the basic obedience parts weren't. Also, for anyone considering whether to itemize - don't forget to factor in other potential medical expenses you might have throughout the year (prescriptions, doctor visits, medical equipment, etc.) since it's the total that needs to exceed 7.5% of your AGI. Sometimes the service dog expenses alone aren't enough to make itemizing worthwhile, but combined with other medical costs, they can push you over the threshold where itemizing becomes beneficial. Keep excellent records of everything - receipts, training logs, vet records, and especially that letter from your doctor. The documentation requirements are strict, but if you have everything organized, these can be significant deductions for legitimate service dog expenses.

This thread has been incredibly helpful! I'm also dealing with service dog expenses and had been putting off figuring out the tax implications. Reading through everyone's experiences, it sounds like the key things I need to focus on are: 1. Getting a detailed letter from my doctor explaining the medical necessity 2. Keeping meticulous records of all expenses, separating task-specific training from general care 3. Tracking mileage for all service dog-related trips 4. Calculating whether my total medical expenses (including the service dog costs) would make itemizing worthwhile One question I haven't seen addressed - does anyone know if there are any limits on how much you can deduct for service dog expenses specifically? I know medical expenses in general have the 7.5% AGI threshold, but are there any caps on the service animal portion specifically? Also, for those who have gone through audits or dealt with IRS questions about service dog deductions, what documentation proved most important? I want to make sure I'm keeping the right records from the start rather than scrambling later if questions come up.

Has anyone ever had the IRS challenge their treatment of earnest money in a 1031? I'm in a similar situation but worried about getting flagged for audit if I don't report it as ordinary income.

This is such a complex area and I'm seeing some really helpful insights here! As someone who just went through a similar situation, I wanted to add that documentation is absolutely critical. I kept detailed records of the first buyer's breach of contract, the earnest money forfeiture, and how it related to my overall 1031 exchange timeline. My tax preparer said having clear documentation showing the connection between the earnest money and the eventual successful sale was key to justifying treating it as part of the overall transaction rather than separate ordinary income. One thing I learned is that if there's a significant time gap between losing the first buyer and closing with the second buyer, the IRS might be more likely to view these as separate events. In my case, the gap was only about 6 weeks, which helped support treating it as one continuous transaction process. Also worth noting - if you're doing your own taxes, Form 8824 for the 1031 exchange should include all the transaction details, including any adjustments for earnest money situations like this. Don't forget to adjust your basis calculations accordingly!

Pro tip: dont waste time checking multiple times a day. cycle 5 is strictly a thursday night update schedule

Cycle 5 updates are typically Thursday nights/early Friday mornings around 2-6am EST. Since you're on cycle code 20250505, you should check your transcript Friday mornings for any updates. Your transcript looks pretty straightforward - processed on 2/18 with a decent refund amount. The waiting is definitely the hardest part! Just remember that cycle 5 filers usually see movement on Fridays, so try not to stress about checking throughout the week. Good luck! 🤞

A lower refund usually means you had more money in your paychecks throughout the year. Check your final pay stubs from both years and compare the net pay. Bet you'll find you were bringing home more per check this year! A refund is just you getting your own money back that you overpaid, it's not free money from the government lol

I had almost the exact same thing happen to me! Expected around $2,000 and only got $750. After digging through everything, I found a few key things that changed between last year and this year: 1. My employer switched payroll companies mid-year and the new one used slightly different withholding calculations - even though my W-4 stayed the same, they were withholding about $15 less per paycheck. 2. I had a small amount of freelance income this year ($800) that I reported on a 1099, which pushed me just over a threshold for one of the tax credits I was getting last year. 3. The big one - last year I was still getting some pandemic-related tax benefits that expired. I didn't realize how much those were helping my refund until they were gone. My advice is to pull out last year's tax return and compare it line by line with this year's. Look especially at your credits section and any COVID-related items from last year. Also check if your employer changed anything about payroll - sometimes they don't announce small changes to withholding procedures. It's frustrating but you probably didn't actually pay more in taxes, you just got more money throughout the year in your paychecks instead of at refund time!