Has anyone used TurboTax or similar software to handle gambling income/losses with a CP2000 notice? My situation is almost identical to the original poster but I'm trying to avoid paying for professional help if possible.

I went through almost the exact same situation last year - online gambling losses, PayPal transactions, and a CP2000 notice that had me panicking. Here's what I learned after working with a CPA who specializes in gambling taxes: The IRS often gets confused by PayPal transactions because they can look like business income when they're really just gambling deposits/withdrawals. In my case, PayPal had issued 1099-K forms that made my gambling activity appear to be business transactions, which triggered the CP2000. My CPA helped me respond with a detailed letter explaining that: 1. All transactions were recreational gambling, not business activity 2. I had no profit motive beyond hoping to win (like any recreational gambler) 3. I didn't maintain the kind of detailed business records a professional would 4. I had significant net losses over the period in question We included all my win/loss statements, PayPal transaction history, and a spreadsheet clearly showing total deposits, withdrawals, and net losses. The key was demonstrating that this was clearly recreational activity despite the high dollar volume. The IRS accepted our response and dropped the Schedule C requirement entirely. I ended up owing much less than originally proposed because we could properly claim my gambling losses as itemized deductions on Schedule A. Don't let them push you into professional gambler status if you're not one - it could end up costing you more in self-employment taxes than you'd save.

Def a good sign! That status change from "still processing" to "being processed" is huge tbh. After ID verify, the system usually takes 7-14 days to fully update. The as-of date jump means your return is actively being worked. Most ppl see their refund within 2 wks of that change. Just keep an eye on your transcript for the 846 code - that's your DDD (direct deposit date). You're in the home stretch now!

That's definitely encouraging progress! I went through something similar about 6 weeks ago. My as-of date jumped forward by about 2 months, and the status change happened within 24 hours. What really helped me track things was checking my account transcript daily around 6 AM - that's when the IRS typically updates their system overnight. The jump from February to April might seem dramatic, but it's actually pretty normal when they're catching up after identity verification. In my case, I saw the 846 refund code appear exactly 8 days after the status changed to "being processed." The waiting is definitely the worst part, but you're clearly moving through their system now rather than being stuck in limbo!

You mentioned buying your first home - don't forget there are first-time homebuyer benefits that might help with your overall financial situation even if they don't directly relate to the car sale. Depending on your state, there might be assistance programs. Also, make sure you're tracking all your closing costs - some of them might be tax deductible next year!

Great question! As others have mentioned, you're likely in the clear tax-wise since personal vehicles almost always depreciate. Just to be thorough though, make sure you keep documentation of what you originally paid for the Camry (purchase receipt, financing documents, etc.) and what you sell it for. One thing I'd add - if you've made any significant improvements to the car over the years (major repairs, new engine, etc.), keep those receipts too as they can be added to your "cost basis" if needed. But honestly, with a 6-year-old Camry selling for $11,500, you're almost certainly selling at a loss from what you paid originally. Good luck with the home purchase! Using your car sale proceeds for a down payment is a smart move - just make sure your lender knows where that money is coming from so there are no surprises during underwriting.

Thanks everyone for sharing your experiences! This is really helpful. I completed my phone verification yesterday, so I'm crossing my fingers it falls into that 2-4 week range most of you experienced rather than the full 9 weeks. @Diego Ramirez - I'll definitely keep an eye on my transcript for those codes you mentioned. I haven't seen any updates yet since verification was just completed, but I'll watch for the 571 code as a good sign things are moving. @Ethan Davis - You make a good point about planning for the worst-case scenario. I think I'll budget as if it won't come for 9 weeks, but keep checking my transcript weekly to see if there's movement. Better to be prepared than disappointed if it takes longer than expected. Does anyone know if there's a typical day of the week when refunds usually get deposited after verification? I've heard some people say Wednesdays or Fridays are common, but not sure if that's just coincidence.

I'm going through this exact situation right now too! Filed January 22nd, completed phone verification two days ago after getting the dreaded "still processing" message. The 9-week timeline they gave me had me panicking since I was counting on that refund for some upcoming expenses. Reading everyone's experiences here is so reassuring - it sounds like most people are getting their refunds in the 3-4 week range after verification, not the full 9 weeks. I'm definitely going to start checking my transcript on Fridays like several people suggested, and I'll watch for those specific codes @Diego Ramirez mentioned. Has anyone noticed if the time of year affects processing speed? I'm wondering if doing verification in March (like now) is faster or slower than earlier in the filing season when they're probably swamped with returns.

Has anyone used the "mark-to-market" election as a trader? I heard its better for taxes but I dont really understand it.

As someone who's been through this exact situation, I'd recommend a hybrid approach. I set aside money monthly based on my running P/L rather than after each individual trade - this smooths out the ups and downs and is much more manageable with 270+ trades. Here's what I do: At the end of each month, I calculate my net trading profit for that month and set aside 30-35% (accounting for both federal and state taxes plus the additional Medicare tax on high earners). I keep this in a separate high-yield savings account so it's earning something while waiting for tax time. The key thing with day trading is that virtually all your gains will be short-term capital gains taxed as ordinary income. Since you have W-2 income too, your trading profits stack on top, so you definitely want to be conservative with your set-aside percentage. Also, start making quarterly estimated payments once your trading profits hit around $1,000 for the quarter. The IRS gets cranky if you don't pay as you go, and the underpayment penalties aren't worth it. I learned that the hard way my first profitable year!