I'm going through the exact same thing right now! Second year in a row of ID verification and it's been driving me crazy wondering if this is just my life now. Reading through all these responses has been so reassuring though - sounds like most people eventually get out of this cycle. What really stands out to me is how many different factors can trigger this. I've been racking my brain trying to figure out what changed in my situation, but now I'm realizing it could be anything from my zip code to the specific combination of credits I claim. The proactive ID.me verification tip from @Chloe Anderson sounds brilliant - I'm definitely going to set that up before I file next year. And @Omar Zaki's strategy about calling to get a verification history note added is something I never would have thought of but makes total sense. It's frustrating that the IRS is so opaque about their selection process, but at least knowing that other people have made it through gives me hope. Thanks everyone for sharing your experiences - this thread has been more helpful than anything I could find on the official IRS website!

This thread has been incredibly enlightening! I'm currently dealing with my first ID verification requirement and was terrified this would become a permanent thing. Reading everyone's experiences - especially @Omar Zaki's success story and @Chloe Anderson's proactive ID.me strategy - gives me so much hope. What strikes me most is how the IRS system seems to create these feedback loops that trap legitimate taxpayers, but there ARE ways to break out of the cycle. The combination of proactive verification through ID.me, keeping detailed records, and potentially calling to add verification history notes to your account sounds like a solid game plan. I'm definitely going to set up my ID.me account before filing next year and document everything about this current verification process. It's frustrating that we have to become tax strategy experts just to file our returns, but at least now I feel armed with actual actionable steps instead of just hoping for the best. Thanks to everyone who shared their experiences - this community knowledge is worth its weight in gold when dealing with these opaque IRS processes! 🙏

Be careful about the state residency issue. My cousin filed for my aunt using the wrong state and ended up with penalties from both states! State B will probably consider your uncle a resident if that's where he actually lived, especially if he had utility bills, a driver's license, or was registered to vote there. If possible, look for these documents to determine his legal domicile: - Driver's license - Voter registration - Utility bills - Property tax statements - Car registration The state where most of these documents point to is likely his legal residence for tax purposes.

I went through something very similar with my father's estate last year. A few additional points that might help: First, regarding the state residency - if your uncle owned the house in State B, that's usually the strongest indicator of legal domicile regardless of where his mail went. Property ownership typically trumps work location for residency purposes. Second, since you mentioned you're not the official executor, you really need to figure out who has legal authority here before proceeding. Filing tax returns for someone else without proper authorization can create legal issues for you personally. If there's no will or formal probate, someone in the family likely needs to petition the court to become the administrator, even for small estates. Third, don't stress too much about the missing investment documentation if we're talking about small amounts. The IRS computer systems will match any 1099s that were issued against what you file. If there are discrepancies, they'll send a notice, but it's usually just a matter of paying any additional tax owed plus minimal interest - not criminal penalties. One last tip: keep detailed records of all your efforts to locate documents and communicate with financial institutions. If the IRS ever questions anything, showing good faith effort goes a long way.

One thing nobody's mentioned is that being eligible for the American Opportunity Credit doesn't guarantee you'll get the refundable portion. The AOTC has two parts - up to $1,500 is non-refundable (only reduces tax you owe) and up to $1,000 is refundable (you get it even if you owe no tax). To get the refundable part, you need to meet additional requirements like not filing as MFS and having earned income. Make sure you have some income from a job to qualify for the refundable portion. Grants and loans don't count as earned income!

Warning - be careful claiming the refundable portion of the AOTC! It's one of the most audited tax credits. Make sure your 1098-T supports your claim and you have records of ALL your qualified education expenses. I got audited last year over this and had to provide every receipt for books and supplies.

Make sure you look into any potential penalties for failure to file. Even if your in-laws didn't owe taxes due to their income types, there can still be penalties for not filing required returns. However, the IRS can sometimes waive these penalties for reasonable cause. Also, check if your state has separate estate tax requirements - some states have their own processes apart from federal.

I'm dealing with a similar situation right now with my grandmother's estate. One thing that really helped was requesting Form 4506-T from the IRS to get tax transcripts for the years in question. This will show you exactly what (if anything) was filed and what the IRS has on record. Since your in-laws were primarily on Social Security and VA benefits, there's a good chance they weren't required to file in many of those years. For 2020, for example, if their only income was Social Security and VA benefits under certain thresholds, they might not have had any filing requirement at all. The key is to tackle this systematically: 1) Get the tax transcripts to see what's actually missing, 2) Determine if filing was even required for those years, and 3) If it was required, gather whatever documentation you can (banks often keep records for 7+ years even if you don't have them). Don't let this consume you with worry - most of these situations end up being far less scary than they initially appear, especially when the primary income sources weren't taxable.

I'm dealing with almost the exact same situation right now! I forgot to include about 3 months of unemployment compensation when I filed in February. Just got my 1099-G in the mail last week and realized my mistake. I've been putting off handling this because I'm terrified of dealing with the IRS, but reading through all these responses is really helpful. It sounds like filing an amended return is pretty standard and not as scary as I thought it would be. One question - if I already received my federal refund but haven't gotten my state refund yet, should I contact the state to let them know an amendment is coming? Or just file the state amendment and let them figure it out? I'm in California if that makes a difference. Thanks everyone for sharing your experiences - it's really reassuring to know I'm not the only one who made this mistake!

I'm going through this exact same situation right now and this thread has been incredibly helpful! I was unemployed for about 5 months last year and completely spaced on including it when I filed in January. Just like you, I was so focused on getting my refund quickly that I totally forgot about the unemployment income. I've been avoiding dealing with this for weeks because I was terrified of the IRS, but reading everyone's experiences here has really calmed my nerves. It sounds like filing an amended return is pretty straightforward and the fact that we're catching our own mistakes actually works in our favor. I'm planning to use my tax software to handle the amendment since I'm definitely not confident doing the calculations manually. Has anyone had experience with FreeTaxUSA for amendments? That's what I used for my original return and I'm hoping they have a decent amendment feature. Thanks to everyone who shared their stories - it's such a relief to know this is a common mistake and not something that's going to ruin my life! Now I just need to stop procrastinating and actually file the thing.