Don't overthink this. Here's the simple way to look at it: 1) The TCJA limits PERSONAL mortgage interest deduction to interest on the first $750k of loan 2) For Schedule C business expenses, you're deducting BUSINESS expenses not personal 3) So you take your FULL mortgage interest ($75k), multiply by your business use % (30%) 4) That gives you $22,500 as a legitimate business expense I've been doing this for years and have never had an issue. The $750k limit is for Schedule A itemized deductions, not Schedule C business expenses.

This is a common area of confusion. I think some of the answers here are mixing up different concepts. For clarity: The $750k mortgage loan limit DOES apply even for the business portion of mortgage interest. The IRS position is that any interest on debt exceeding $750k is personal consumption, not an ordinary and necessary business expense. You need to: 1. Calculate what portion of your total interest applies to the first $750k 2. Apply your business use percentage (30%) to THAT amount 3. Report that on Schedule C

Be very cautious about making financial plans based on an expected refund date when your return is under review. I had a similar situation last year with a TC 420 that initially seemed routine, but it escalated to a more comprehensive review when they couldn't verify certain business expenses. What started as a projected 3-week delay turned into 4 months. If your Q2 estimated payment is due soon, you might want to arrange alternative financing just in case. The penalties for late estimated payments can be significant, especially for self-employed individuals.

I went through this exact situation last month! Had TC 420 appear on March 8th and was panicking about my Q2 estimates too. Here's what I learned: the 21-28 day timeframe mentioned earlier is pretty accurate for most verification cases. Mine resolved in 26 days with an 846 code on April 3rd. The key insight from my experience - don't wait until the last minute for your estimated payment. I ended up making a conservative partial payment on 4/15 and then adjusted when my refund hit. The IRS allows you to apply overpayments to the next quarter, so it's better to be safe than face underpayment penalties. Also, if you call and can get through to an agent, they can sometimes give you a better sense of whether it's routine verification vs. something more complex. Good luck!

Jackson Hewitt is having delays this year. I work at a bank and we're seeing a pattern with tax prep services. Most DIY filers (TurboTax, FreeTaxUSA) are getting processed in 2-3 weeks. Professional preparation services like JH and H&R Block are taking 3-5 weeks right now. IRS is prioritizing simple returns first. If you're newly married with any credits or deductions, that puts you in a more complex category.

I filed through Jackson Hewitt on February 20th and I'm in the exact same situation! Also newly married and filing jointly for the first time. My WMR has been stuck on "processing" for weeks now. After reading through all these responses, it sounds like JH has definitely had some system issues this year, especially with more complex returns like ours. I'm going to check my transcript like Connor suggested - didn't even know that was a thing! It's somewhat reassuring to know we're not alone in this delay, though I wish JH had been more upfront about the processing issues they were having.

Don't forget that QBI gets reported on Form 8995 (simplified) or 8995-A (full) depending on your income level. I messed this up my first year and just put the deduction on Schedule C which was totally wrong!

Just wanted to add another important point about QBI that I learned the hard way - the deduction is subject to an overall limitation of 20% of your taxable income MINUS net capital gains. This usually isn't an issue for most people, but it can come into play if you have significant capital losses or other deductions that bring your taxable income way down. Also, make sure you're tracking all your business expenses carefully throughout the year. Since QBI is calculated on your net business income (after expenses), every legitimate business deduction you can take will increase your QBI deduction. Things like home office expenses, business meals (50% deductible), professional development, software subscriptions, etc. can all add up to meaningful tax savings. One more tip - if you're planning to scale up your side business, consider whether forming an S-Corp might make sense once your income gets higher. The tax implications change significantly, but it can sometimes result in overall tax savings when you factor in both QBI and self-employment tax considerations.

I'm an expat married to a non-US citizen without an SSN, and I've been through this exact process. One thing nobody mentioned is that you can actually go to an IRS Taxpayer Assistance Center in person and they can verify your spouse's documents on the spot! This saved us from having to mail in original documents or find a Certifying Acceptance Agent. You need to call to make an appointment first (this is where Claimyr could help), but it's free and much faster than mailing everything in. Just bring your spouse, their passport, your marriage certificate, and the completed W-7 form.

I'm going through something similar right now! One additional option that might help is to check if your spouse qualifies for an exemption from getting an ITIN. If your spouse is a nonresident alien who doesn't have U.S. source income and won't be claimed as a dependent, you might be able to file as "Married Filing Separately" and treat your spouse as a nonresident alien. This could actually be beneficial tax-wise in some cases, especially if your spouse has no U.S. income. You'd file Form 1040 or 1040-SR and just put "NRA" (Nonresident Alien) in the spouse information section instead of an SSN or ITIN. However, you'll want to double-check this with a tax professional since the rules around resident vs. nonresident status can be pretty complex, especially if your spouse spent any time in the U.S. during the tax year. The substantial presence test and other factors come into play.