Wondering if either of you have student loans? This literally changed everything for my wife and me when we got married. If either of you are on income-based repayment, filing separately could save thousands in student loan payments even if you pay slightly more in taxes.

Great question! Since you're getting married in October, you'll be considered married for the entire 2024 tax year regardless of living separately. Here are the key things to consider: **Filing Status**: You'll have two options - Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Head of Household won't be available once you're married. **W-4 Updates**: Yes, update your W-4s soon! With your combined income of ~$295k, you'll likely be in a higher tax bracket and may need to adjust withholdings to avoid underpayment penalties. **Children**: If filing jointly, you can claim both kids on one return. If filing separately, each claims their own child. **Property Considerations**: Since you both own homes, pay attention to the SALT deduction cap ($10k jointly vs $10k each if filing separately). With two properties, you might exceed this limit. **Run Both Scenarios**: Given your income levels and dual home ownership, definitely calculate both MFJ and MFS. Sometimes MFS works better despite losing some tax benefits, especially if you have high property taxes or state income taxes. The living situation doesn't matter for tax purposes - only your legal marital status on December 31st counts. I'd recommend using tax software to model both scenarios before deciding!

I went through something very similar last year! The timing of these notices can be really confusing because they're often generated automatically by the IRS computer system without considering recent payments. Here's what I'd recommend: First, check your bank account to confirm your payment cleared. Then, set up an online account at IRS.gov if you haven't already - this will show your most current balance and payment history. The online account updates faster than their notice system. Based on the amounts you mentioned ($1,492 vs $1,495.58), it does look like the CP22A is showing the original amount plus a small amount of interest that accrued before your payment was processed. This is completely normal. If your online account shows a zero balance or only a small remaining balance after your payment posts, then you know you're in good shape. If it still shows the full amount after 2-3 weeks, then you'll want to contact them with proof of your payment. Don't stress too much - this timing issue happens to a lot of people, especially during busy tax seasons. The IRS notices often cross in the mail with payments, creating this exact confusion you're experiencing.

I've been through this exact situation! The CP22A is almost certainly related to your CP2000 payment, and the small difference ($3.58) is likely interest that accumulated between when the original notice was generated and when your payment was processed. Here's what I'd do in your shoes: 1. **Check your bank** - Make sure your $1,492 payment has cleared 2. **Set up IRS online account** - Go to IRS.gov and create an account to see your current balance in real-time. This updates much faster than their notice system 3. **Wait 2-3 weeks** - Give the IRS time to process and apply your payment to your account 4. **Only pay the difference** - If your online account shows you only owe the small interest amount after your payment posts, just pay that The IRS computer system generates these notices automatically, often before recent payments are fully processed in their system. It's super common for the CP22A to cross in the mail with your payment, creating exactly this kind of confusion. Don't panic - you're handling this correctly by paying promptly. Just give their system time to catch up, and use the online account to see your true current status rather than relying on potentially outdated paper notices.

I'm dealing with a CP05 notice right now too, and the anxiety is real! Filed in early March and got the notice last week. What's been driving me crazy is not knowing WHY they're reviewing it - like you, everything seemed straightforward on my return. I've been reading that these reviews have become much more common lately, especially for returns with education credits (which I also claimed). The waiting game is brutal when you're counting on that money for expenses. One small tip that's helped my peace of mind: I screenshot my "Where's My Refund" status every few days so I can actually see if anything changes, rather than just relying on memory. The status hasn't updated yet, but at least I feel like I'm doing something! Keep us posted on how it goes - hoping we both get good news before the full 60 days are up! 🤞

I'm going through the exact same thing right now! Filed my return in early March and just got my CP05 notice yesterday. Like you, I was really counting on that refund for some upcoming bills and the 60-day wait is stressing me out. What's been helpful for me is remembering that this is actually pretty routine - my accountant told me these reviews have become way more common since the IRS is trying to prevent fraud. She said most of her clients who get CP05 notices end up getting their full refund, just with the delay. I've been checking the "Where's My Refund" tool obsessively (probably not healthy lol) but at least it gives me something to do while I wait. The hardest part is just not knowing exactly what triggered the review. Hang in there - from everything I've read here and elsewhere, the odds are really good that you'll get your refund once they finish their verification. The waiting just sucks when you need the money! 🤞

Has anyone had success getting the failure-to-pay penalties abated when filing an amended return for a capital loss carryback? We're in a similar situation but our CFO is saying it's not worth pursuing because the penalties will still apply even if the tax is reduced.

I went through almost the exact same situation with our C corp last year. A few key points from my experience: 1. The 3-year deadline Noah mentioned is correct, but don't wait until the last minute. The IRS processing time for corporate amendments can be 6+ months. 2. Regarding penalties and interest - they will be recalculated from the original due date based on your reduced liability after the carryback. However, you'll still owe some penalties for the period you didn't pay, just on a smaller base amount. 3. One thing that helped us significantly was filing Form 1139 (Application for Tentative Refund) along with the 1120X. This can speed up getting at least a partial refund while they process the full amendment. 4. Document everything about your cash flow issues and the market conditions that caused both the original payment problem and the subsequent losses. This can help with penalty abatement requests. The whole process took about 8 months for us, but we recovered about 65% of our tax liability plus got partial penalty relief. Definitely worth pursuing given your timeline - you still have nearly a year before the deadline.

Great question! I've been dealing with this exact issue for the past few years with my rental properties. You can definitely deduct your umbrella insurance as a rental expense, but there are a few important things to keep in mind. First, if your umbrella policy covers both personal assets and rental properties (which is common), you'll need to allocate the premium. I typically use the property value method - if my rental properties represent 60% of the total insured value, then I deduct 60% of the premium on Schedule E. Second, make sure you keep good documentation of your allocation method. I create a simple spreadsheet each year showing the property values and calculation, just in case the IRS asks questions later. One tip from my experience: if you're managing multiple rental properties, consider having your insurance agent break down exactly what portion of the umbrella coverage applies to each property. This makes the allocation much cleaner and gives you better documentation for tax purposes. The $325 annual premium you mentioned is pretty reasonable for umbrella coverage, and even if you can only deduct a portion of it, every legitimate business expense helps reduce your taxable rental income!

This is such a timely question! I just went through this exact situation with my CPA last month. The good news is that umbrella insurance premiums are absolutely deductible for rental properties - it's considered a legitimate business expense under IRS guidelines. What I learned from my CPA is that the key documentation piece is showing the "business purpose" of the insurance. Since umbrella policies provide additional liability protection beyond your standard landlord insurance, they directly relate to protecting your rental business assets and income stream. For allocation, I use a method based on liability exposure rather than just property values. My insurance agent helped me understand that umbrella policies are really about protecting against lawsuits and claims, so I consider factors like rental income generated, number of tenants, and property types when determining the business vs. personal split. One thing to watch out for - make sure your umbrella policy actually covers rental activities. Some standard personal umbrella policies specifically exclude business activities, including rental properties. If yours has that exclusion, you might need a separate commercial umbrella policy to get the coverage AND the tax deduction. Keep copies of your policy declarations page and any correspondence with your agent about the business coverage. The IRS likes to see clear documentation that the insurance is genuinely for business protection, not just personal asset protection that happens to include some rental properties.