Having been through a similar transition from academia back to practice, I'd recommend starting with a comprehensive assessment of what services you'll actually be providing. The $225/hour from 2015 is definitely outdated - that would be closer to $275-300 today just from inflation alone. For the Midwest market you're describing, I'd suggest positioning yourself around $350/hour for tax planning and advisory work, with potentially lower rates for routine bookkeeping tasks. Your academic background actually gives you an advantage - you've stayed current with tax law changes that many practitioners struggle to keep up with. One approach that worked well for me was offering an initial consultation at a reduced rate ($200-250) to demonstrate your value and knowledge, then transitioning to full rates once they see what you bring to the table. High-net-worth clients often care more about competence and responsiveness than saving $50/hour, especially if their previous CPA was reliable. Also consider that teaching experience translates well to client education and communication - something wealthy clients particularly value when dealing with complex tax situations.

Based on my experience serving high-net-worth clients in the Midwest, I'd strongly recommend considering the $350-375/hour range that others have mentioned. However, don't overlook the importance of having the right tools and resources to justify those premium rates. One challenge I faced when transitioning to serve wealthy clients was the complexity of their tax situations often requiring immediate clarification from the IRS. Traditional methods of contacting the IRS were eating into my billable hours and frustrating clients who expected quick resolutions. I've found that having reliable ways to quickly access IRS guidance has become essential for maintaining the level of service these clients expect. When you're charging premium rates, clients want answers within days, not weeks. The ability to efficiently handle complex inquiries and provide definitive guidance rather than "I'll get back to you after I spend hours trying to reach someone at the IRS" is what separates premium-tier service from standard practice. Your academic background actually positions you well here - you understand the technical aspects, and now it's about having the operational efficiency to deliver that expertise promptly. The combination of deep knowledge and responsive service is what allows you to command those higher Midwest rates for high-net-worth clients.

I'm dealing with the same thing right now - got code 971 about 2 weeks ago and it's driving me crazy not knowing what's happening! Reading through everyone's experiences here is actually really helpful though. Sounds like it could be anything from income verification to dependent issues. I filed pretty straightforward this year so hoping it's just routine like some of you mentioned. Going to start checking my transcript every Friday and maybe try calling the tax advocate line early morning like Seraphina suggested. Thanks for all the info everyone - this community is way more helpful than the IRS website! 🙏

Code 971 definitely stresses everyone out but you're not alone in this! I went through the exact same thing last tax season - had code 971 for about 10 weeks and was convinced something was seriously wrong. Turned out they were just verifying some 1099 income that got reported slightly differently by one of my clients. The IRS eventually sorted it out without me having to do anything, and I got my full refund plus that 7% interest Danielle mentioned (which was actually a nice bonus!). The hardest part is definitely the waiting and not knowing, but most of these reviews really are routine. Keep checking your transcript on Fridays and try not to stress too much - I know easier said than done! 🤞

Does anyone know if Robinhood's tax documents show wash sales clearly? I sold some Tesla at a loss in November and then bought back in December (price was too good to pass up) but I don't know if that affects my taxes.

Hey Abby! I totally understand the confusion - I went through the same thing my first year with investment taxes. Here's a quick breakdown to help you navigate your Robinhood 1099: The 1099-DIV section shows dividends you received from stocks you owned. Even if it's a small amount, you'll need to report this as income on your tax return. For your actual stock trading, look for the 1099-B section - this shows all your buy/sell transactions and calculates your capital gains or losses. The good news is you don't need to enter every single transaction manually if you use tax software that can import directly from Robinhood. Since you mentioned crypto, keep an eye out for a separate 1099-MISC form for those transactions, as crypto is reported differently than stocks. With only $2,500 invested, your tax situation shouldn't be too complex. If you had any losses, those can offset your gains, which might actually reduce your tax burden. Just make sure to report everything - the IRS gets copies of all these forms too, so they'll know if something's missing. Most tax software will walk you through each section step by step, which makes it much less overwhelming than trying to figure out the forms manually.

I feel your pain on watching those tech stocks tank - been there myself with some "can't miss" investments that definitely missed! As everyone has explained, Roth IRA losses unfortunately can't be deducted, but don't let that discourage you from the bigger picture. Here's what I'd suggest: instead of selling everything and closing the account, use this as an opportunity to reassess your investment strategy within the Roth. Sell those underperforming tech stocks and diversify into something more stable like broad market index funds. You'll still keep all the tax advantages of the Roth while potentially setting yourself up for better long-term growth. The silver lining is that any future recovery will be completely tax-free when you withdraw it in retirement. That's still an incredibly valuable benefit that's worth preserving, even after taking some hits on individual stock picks.

I totally get the frustration - watching investments tank in your Roth feels even worse because you know you can't write off those losses anywhere. But here's something to consider: those tech stocks that seemed like "sure things" taught you a valuable lesson about concentration risk that will serve you well for decades to come. Instead of closing everything out, this might actually be the perfect time to restructure your Roth portfolio. Sell those underperforming individual stocks and move into diversified index funds or ETFs. You'll still preserve all the tax-free growth potential of the Roth, but with much less volatility going forward. Remember, you likely have 20-30+ years until retirement. Even after a 40% loss, the power of tax-free compounding over that timeframe is enormous. A $10,000 investment that grows at 7% annually becomes $76,000 tax-free in 30 years. That tax advantage is worth preserving, even after taking some lumps on individual stock picks. The losses sting now, but don't let short-term pain cost you long-term tax-free wealth building.

I went through this exact same situation back in January! Verified my ID in person on January 15th, got hopeful when the notifications cleared after a week, then saw the dreaded 570 code appear with no 971. I was absolutely convinced something had gone wrong with my verification. Here's my timeline for reference: • ID verified in person: January 15th • Notifications disappeared: January 22nd • 570 code appeared: January 29th • 570 code released with 846: February 12th • Refund deposited: February 16th Total time from 570 to refund was exactly 14 days. The key thing I learned is that the 570 without a 971 is actually the GOOD scenario - it means you're in the automated review queue, not sitting in manual review limbo. My advice: stick to checking Thursday mornings only. I was checking multiple times daily and it was driving me crazy. The weekly processing cycle is real, and you'll just stress yourself out checking every day when nothing will change until Thursday overnight processing runs. The automated system is just cross-referencing your verified identity with your return data. It takes time, but it works! Hang in there - based on your timeline, I'd expect to see movement in the next 1-2 weeks.

I'm going through this exact situation right now and finding this thread incredibly helpful! I verified my ID in person on February 25th, saw the notifications disappear about a week later, and now have the 570 code showing up on my transcript with no 971. Reading everyone's experiences here has been such a relief - I had no idea this was a normal part of the post-verification process! The explanation about automated vs manual review makes perfect sense, and it's reassuring to know that having a 570 WITHOUT a 971 actually means I'm in the faster processing queue. Based on all the timelines shared here (14-21 days from 570 to release seems to be the pattern), I'm cautiously optimistic I'll see movement in the next week or two. I'm definitely going to follow the advice about only checking Thursday mornings instead of obsessively refreshing my transcript multiple times daily. Thanks to everyone for sharing their data points and experiences - this community knowledge is so much more helpful than just staring at cryptic codes and wondering what's happening behind the scenes!