I'm currently going through this same exact situation! Filed my return 3 weeks ago, tried the online ID verification multiple times but it kept failing, so I called and they told me to wait for the verification letter. It's been 12 days now and still nothing in my mailbox. What's really frustrating is that every time I call, I get a different agent who gives me slightly different information. One said 14-16 days, another said "up to 21 business days," and the last one couldn't even confirm if the letter had been generated yet. The inconsistency is maddening when you're just trying to get your own money back! I'm definitely going to try that in-person appointment suggestion - had no idea that was even an option. Also going to set up that USPS informed delivery thing to at least know what's coming. Thanks everyone for sharing your experiences, it's weirdly comforting to know I'm not alone in this bureaucratic nightmare!

I'm going through the exact same thing right now! Filed early February and have been waiting 15 days for my verification letter. The online ID.me verification failed for me too - kept saying there was an issue with my documents even though everything looked fine to me. What's really annoying is that when I called yesterday, the agent couldn't even tell me if my letter had been mailed yet or was still sitting in some queue waiting to be processed. They just kept saying "wait for the letter" like a broken record. I'm definitely going to try calling that number someone mentioned for an in-person appointment. Had no idea that was even possible! Also going to set up the USPS informed delivery thing - at least then I'll know if something is actually coming instead of just checking my empty mailbox every day like some kind of refund-obsessed maniac 😅 Thanks for posting this - it's oddly reassuring to know other people are stuck in the same frustrating limbo right now!

Pro tip: If you make under $73,000 a year (for 2024 taxes), you can use IRS Free File to access truly free tax filing options, including for claiming the Retirement Savings Contributions Credit for your 401k. Go directly through the IRS website though, not through TurboTax's site.

This is exactly why I switched to FreeTaxUSA three years ago and never looked back! TurboTax's bait-and-switch tactics with retirement credits are infuriating. For anyone considering alternatives, I've found FreeTaxUSA handles the Saver's Credit seamlessly in their free federal filing - no surprise upgrades. They only charge $14.99 for state filing, which is way better than TurboTax's $50+ state fees. The interface isn't as flashy as TurboTax but it gets the job done without the predatory pricing. Also want to echo what others said about the IRS Free File program - if you qualify income-wise, that's your best bet for completely free filing with all the credits you're entitled to. Don't let these big tax companies trick you into paying for basic tax situations!

I went through this exact same situation last year and can confirm what others have said. The IRS publications really are confusing on this point, but the key is understanding that "space within the living area" gets special treatment. Here's what I did based on advice from a tax attorney: 1. **Form 8949**: Reported the entire house sale here, claimed my $250k primary residence exclusion 2. **Schedule 1, Line 8z**: Reported all depreciation I had claimed over the 8 years I rented out two bedrooms The depreciation recapture was about $18,000 in my case, which got taxed as ordinary income at 25%. What surprised me was that I could still claim the full primary residence exclusion on the remaining gain, even though I had been renting out rooms. One thing I wish I had known earlier - if you made any capital improvements specifically to the rented rooms (like adding a bathroom or upgrading flooring just for those rooms), you might be able to add those to your basis calculations. It's worth reviewing your records for any room-specific improvements. Also, double-check that you've been consistently using the same percentage for depreciation each year. The IRS will expect your recapture calculation to match what you actually claimed on your Schedule E forms.

I'm dealing with a very similar situation right now - sold my primary residence last year after renting out a basement apartment for 6 years. The confusion around Publication 523 is real! What helped me understand it was realizing that the IRS is trying to simplify things for homeowners who rent space within their primary residence. You don't have to do the complex allocation between personal and rental use that you'd need for a separate rental property. Here's my understanding based on research and consultation with a CPA: **For your situation (rooms within the house):** - Report entire sale on Form 8949/Schedule D - Claim your $250k primary residence exclusion - Report depreciation recapture on Schedule 1, Line 8z as ordinary income **Key point:** The depreciation recapture can't be excluded under Section 121, so you'll pay ordinary income tax on that portion (maxed at 25%). One thing I learned is to make sure you have good documentation showing exactly how you calculated the rental percentage each year. I used square footage, but some people use room count or other methods. Just be consistent. The good news is that even with the depreciation recapture, you still get to use the primary residence exclusion on the rest of your gain, which can save thousands in taxes compared to treating it as a pure rental property sale.

Make sure you're setting aside money for estimated quarterly tax payments going forward if you're continuing as self-employed. Getting hit with penalties for underpayment really sucks! I learned this the hard way.

I'm so sorry you're dealing with this frustrating situation! Federal agency internships can be really confusing tax-wise. One thing I'd add to the excellent advice already given - make sure you're tracking your mileage for any work-related travel during the internship period. The IRS standard mileage rate for 2023 was 65.5 cents per mile, so even short trips to pick up supplies or attend meetings can add up to meaningful deductions. Also, since you mentioned working unpaid overtime, if you had to purchase any meals during those extended work hours (like grabbing dinner because you were working late), those might qualify as deductible business meals at 50% of the cost. Keep any receipts you still have! For future reference, it's worth documenting everything in real-time when you're in these gray-area employment situations. I learned this lesson the hard way too. Good luck getting through this - the self-employment learning curve is steep but you'll figure it out!

Slightly off topic but since you're in Washington state like me - remember that while we don't have state income tax, so these deductions only matter for federal taxes. But some municipalities have special programs for volunteers that can save you money in other ways. My city gives property tax breaks for residents who volunteer a certain number of hours with approved charities. Might be worth looking into if your city has something similar!

This is a great discussion! I'm also a Washington resident and volunteer regularly. One thing I wanted to add that hasn't been mentioned yet - if you're planning to make direct charitable donations in addition to your volunteer work, consider timing them strategically. Since we can't deduct the corporate match (as others correctly explained), you might want to "bunch" your personal donations every other year to exceed the standard deduction threshold and make itemizing worthwhile. For example, instead of donating $2,000 each year, you could donate $4,000 every other year. In the donation year, you'd itemize and get the full benefit of that deduction plus your volunteer-related expenses. In the off year, you'd take the standard deduction. This strategy can be particularly effective when combined with a Donor Advised Fund as Hannah mentioned. Also, keep detailed records of ALL your volunteer expenses - mileage, supplies, special clothing, even small things like parking fees. They add up quickly and many volunteers miss out on legitimate deductions because they don't track these smaller expenses throughout the year.