One thing to watch out for - if you don't get a tenant until March, make sure you can prove you were ACTIVELY trying to rent it starting much earlier. The IRS looks for evidence that you were making reasonable efforts to rent it at market rates. My sister got audited because she claimed rental expenses for 6 months before getting a tenant, but couldn't prove she was actually trying to rent it out during that time. Keep screenshots of rental listings, emails with potential tenants, and a rental journal showing all your activities related to renting it out.

Based on your situation, you should be able to deduct the mortgage interest (not principal) as a rental expense since you converted the property to rental use when you moved out in June with intent to rent. The key is documenting that intent, which your renovation activities help establish. However, there are a few important considerations: First, since you're married filing separately, your passive activity loss deduction is capped at $12,500 (versus $25,000 for joint filers) and phases out starting at $50,000 AGI. Second, make sure you're only deducting the interest portion of your mortgage payments - the principal isn't deductible. For the LLC situation, since the townhouse is still in your personal names, you'll report everything on Schedule E of your personal return, not through the LLC. One critical point - start documenting your active efforts to rent NOW. Keep renovation receipts that show rental preparation, research comparable rents in your area, draft rental listings, and consider getting landlord insurance quotes. The IRS will want proof that you were genuinely trying to rent at fair market rates, not just holding vacant property. Hurricane Nicole certainly provides legitimate justification for the delay, but having that documentation trail will protect you if questioned.

Pro tip: keep copies of these letters. Some lenders might ask for them later

This is actually a really common occurrence! The verification of non-filing request basically means someone (likely your mortgage lender based on your other comment) needed official proof from the IRS that you haven't filed your 2024 return yet. Since we're still in early 2025 and tax season just started, it's totally normal that they have no record of your 2024 return - most people haven't filed yet! The IRS issues these letters as standard documentation for third parties who need to verify your tax status for things like loans, financial aid, etc. Nothing to worry about at all 👍

I think you can still deduct if you're self employed and its a business expense? I donated to some local charities last year from my small business and my accountant said it was deductible???

Great thread everyone! Just wanted to add a few more points for anyone else dealing with this: 1. Don't forget to keep ALL your donation receipts even if you're taking the standard deduction. The IRS requires documentation for any charitable deduction over $250, and you never know when your situation might change. 2. If you're married, consider whether filing separately vs. jointly affects your itemization decision. Sometimes one spouse has enough deductions to itemize while the other takes the standard deduction (though this is rare and usually not beneficial overall). 3. State taxes matter too! Some states have different rules for charitable deductions, so even if you can't deduct federally, check your state return. The bunching strategy mentioned earlier is really smart if you're consistently close to the standard deduction threshold. You could also time other deductible expenses (like medical procedures or property tax payments) in the same "bunching" years to maximize the benefit.

Has anyone noticed the IRS seems particularly disorganized this year? I'm seeing WAY more posts about conflicting information and status confusion than in previous years. Wonder if they implemented some new system that's causing issues.

This exact thing happened to me last year! I was absolutely panicking when I got that "no record" letter after my return was already accepted. Turns out it's just the IRS being the IRS - their systems are so outdated that different departments literally can't see what the others are doing in real time. The key thing is you got an acceptance confirmation, which means your return is in the system and being processed. The verification letter was probably generated automatically before your return finished going through all their processing steps. It's like one computer sending you a letter saying "we don't see anything" while another computer three floors up is actively working on your return. I'd give it another week or two before calling. The processing times have been longer this year, and calling too early just clogs up their phone lines. Your return is most likely fine - it's just stuck in their bureaucratic maze. Keep checking your transcript and WMR tool for updates!

Has anyone used TurboTax to fix this kind of issue? Their interface is confusing me on how to mark dependents correctly.

Amy, don't stress too much about this! You're definitely not the first person to run into this situation, and it's totally fixable. The good news is that based on what you've shared - you're 19, live at home, and your mom covers most of your expenses - you almost certainly still qualify as her dependent even though you have a job and filed your own return. The $4,200 you earned is well under the income limits for dependents, and since your mom is providing housing, food, and other support, she's likely covering more than half of your total living costs for the year. The fact that you filed your own return doesn't automatically disqualify you from being claimed as a dependent. Like others mentioned, you'll need to file Form 1040-X to amend your return and check the box indicating someone can claim you as a dependent. Your mom can then file her return claiming you. The amendment process takes a while (usually several months), but it won't cause any problems for either of you with the IRS. This is honestly a super common mistake, especially for young people filing for the first time. Tax software doesn't always make the dependency rules clear. You're being really thoughtful about your mom's situation - she's lucky to have such a caring daughter!