I'm going through the exact same thing right now! Got my 5071C letter in early October, completed ID verification through ID.me about 2.5 weeks ago, and I'm also stuck on that dreaded "processing" status. It's honestly driving me insane not knowing when to expect my refund. Reading through everyone's experiences here has been both helpful and anxiety-inducing - the timeline seems to vary so wildly from 4 weeks to 4+ months! I'm definitely going to check my transcript once I can access it and look for those status codes everyone keeps mentioning (570, 571, 846). The waiting is absolutely brutal, especially when you're counting on that money. But it's somewhat comforting to know so many others are in the same boat. At least we got through the ID verification part which seems to be the biggest hurdle. Fingers crossed we're all on the shorter end of that timeline! Has anyone found that calling actually helps speed things up, or is it just a waste of time trying to get through to them?

I'm dealing with this exact situation right now too! Got my 5071C letter in mid-September and completed ID verification through ID.me about 3 weeks ago. Still stuck on the "processing" status and it's so frustrating not having a clear timeline. From reading everyone's experiences here, it sounds like 6-9 weeks after verification is pretty standard, though some people have waited much longer. The transcript checking seems to be key - I'm counting down the days until I can access mine and look for those status codes (570, 571, 846) that everyone mentioned. One thing that's been helpful from this thread is learning that the WMR tool is basically useless during this phase. At least knowing that saves me from obsessively checking it every day! I'm also considering trying that taxr.ai service once I can access my transcript, since it sounds like it explains everything in plain English rather than cryptic IRS codes. The waiting is absolutely brutal when you're counting on that money, but it's reassuring to see so many others going through the same thing. We'll get through this eventually!

I made the switch from Desktop to QBO about 8 months ago for my landscaping business and wanted to share my experience since I was in a similar situation as you, Sean. The good: Being able to invoice clients immediately after completing a job has been huge for my cash flow. I can create estimates on my tablet while walking properties with customers, and the expense tracking through the mobile app (just snap photos of receipts) has simplified my bookkeeping tremendously. The challenges: QBO's job costing features are more limited than Desktop - I miss some of the detailed project profitability reports I used to run. The inventory tracking for my nursery stock is also more basic, though it handles my needs adequately. And yes, it is noticeably slower, especially when running year-over-year comparisons. Cost-wise, the subscription does add up over time, but I've probably saved 2-3 hours per week on administrative tasks, which more than justifies the expense for me. The automatic bank feeds and simplified reconciliation process alone have been worth it. My advice: If you're heavily reliant on advanced inventory features or complex reporting, stick with Desktop. But if mobility and streamlined workflow are priorities, QBO might be worth the trade-offs. Maybe run them parallel for a month before fully committing?

I've been through this exact transition with several clients, and the key is really understanding your specific business needs before making the jump. One thing I don't see mentioned much is the difference in user permissions and access controls. QBO's user management is actually more granular than Desktop in some ways - you can give your bookkeeper access to enter bills but not see profit margins, or let field staff create estimates without accessing financial reports. This has been really valuable for businesses with multiple employees handling different aspects of the books. However, if you're doing any kind of advanced manufacturing or complex inventory valuation (LIFO, specific identification, etc.), Desktop is still superior. QBO uses average cost only, which can be limiting. For your physical products concern - QBO handles basic inventory tracking fine, but lacks some of the assembly/manufacturing features of Desktop. If you just need to track quantities and basic cost of goods sold, you'll be okay. If you need lot tracking, complex BOMs, or detailed inventory reports, you might want to stick with Desktop or look into a dedicated inventory management add-on. The subscription cost does add up, but factor in the time savings from automated bank feeds, mobile access, and easier collaboration with your accountant. Most of my small business clients find the efficiency gains offset the higher long-term costs.

FYI - don't forget that margin interest on money borrowed to buy tax-exempt investments (like municipal bonds) isn't deductible at all. That tripped me up last year and I had to amend my return.

I went through this exact same situation last year with about $15K in margin interest. One thing that really helped me was keeping detailed records of exactly what I used the margin for - the IRS can ask for documentation showing the borrowed funds were actually used for investment purposes. Also, make sure you're capturing ALL your investment income on line 4a of Form 4952, not just the gains from the specific stocks you bought on margin. This includes interest, dividends, and short-term gains from ALL your investments, even those not purchased with borrowed money. This can significantly increase the amount of margin interest you can deduct. The form is designed to limit your deduction to your total investment income, so maximizing that line 4a figure is important. Many people miss rental income, taxable bond interest, or other investment income that should be included.

Just a quick tip - if all else fails, you can always print and mail your return. I know it's old school, but sometimes it's the easiest solution when dealing with electronic filing issues.

I went through this exact same nightmare last year! The confusion between IP PINs and self-selected PINs is so frustrating because the IRS and tax software companies don't explain the difference clearly. Here's what I learned: Your 6-digit IP PIN is correct and you DO need to use it when filing. But that 5-digit PIN your software is asking for is probably the self-selected PIN you created when you first set up your account with that tax software (sometimes called an e-file PIN). Check your email from when you first registered - you might have created a 5-digit PIN back then. For the AGI issue, definitely use the transcript amount ($58,750). The IRS makes adjustments during processing that create differences between your filed return and their records. When they ask for "prior year AGI" for verification, they want what's in their system, not what's on your paper copy. One more tip - if your software keeps rejecting the IP PIN, make sure you're entering it in the right field. Some software has separate fields for "Identity Protection PIN" and "Electronic Filing PIN" and people mix them up all the time.

Just to clear up a common misunderstanding I had myself - the tax-free threshold for self-employment (the £1,000 trading allowance) is separate from your personal allowance. You can choose to use this £1,000 allowance instead of deducting your actual business expenses if it's more beneficial. For example, if your self-employed income is £5,000 but you only have £600 in expenses, you'd be better off claiming the £1,000 trading allowance instead. This means you'd only pay tax on £4,000 of your self-employed income. This might be useful for the original poster if their self-employment income is relatively low with few expenses.

This is such a helpful thread! I'm in a very similar position - just started a PAYE job after being solely self-employed for a few years. One thing I'd add is to make sure you keep track of when your employment started during the tax year, as this affects how your personal allowance gets allocated. If you start employment partway through the tax year, your employer will only use a portion of your personal allowance, which means you might still have some left to offset against your self-employed income. Also, don't forget that if your total income pushes you into higher rate tax territory (over £50,270), you'll pay 40% tax on the portion above that threshold from both income sources. This can be a nasty surprise if you're not prepared for it! I'd definitely recommend using one of the tax calculation tools mentioned here or speaking to an accountant if your situation gets complex. The interaction between PAYE and self-employment can create some unexpected tax bills if you're not careful with planning.