Been waiting since April 2024 here and this is super helpful info! Had no idea they'd include the interest in the same check. At 7% that's actually not terrible considering how long we've all been waiting. Thanks for the heads up about the 1099-INT too - would've definitely forgotten to report that interest as income next year.

Just wanted to chime in as someone who finally got their refund check last month after waiting since February! Can confirm everything comes in one check - the original refund amount plus all the accumulated interest. The breakdown was actually printed right on the stub that came with the check, so you can see exactly how much was interest vs the original refund. Really helpful for record keeping before that 1099-INT shows up next January. Hang in there everyone, the wait sucks but at least we're earning something on it!

This is a really solid tax strategy that I've seen work well for many families. One additional consideration I'd suggest is timing the stock transfer and sale carefully. If your mom has other income sources (like Social Security or pension), you'll want to calculate her total projected income for the year to make sure the capital gain doesn't push her above the 0% bracket threshold. Also, consider whether she needs all $100k at once or if the renovations could be spread over multiple years. If you could gift and have her sell portions of the stock across 2-3 years, it might help keep her in that 0% bracket each year while also allowing you to use more of your annual gift exclusion ($18,000 per year) rather than dipping into your lifetime exclusion. Don't forget that she'll also need to meet the long-term capital gains holding period requirement (over 1 year), but since she inherits your holding period with the gifted stock, this shouldn't be an issue if you've held it long-term.

This is exactly the kind of thoughtful tax planning that can really benefit families in your situation. One thing I'd add to the excellent advice already given - make sure to keep detailed records of the original purchase dates and costs for all the stock you're gifting. The IRS can be particular about cost basis documentation, especially for older holdings. Also, since you mentioned your mom has mobility issues, you might want to consider setting up the brokerage account transfer and sale process to be as simple as possible for her. Many brokerages offer phone-based trading services for older clients, or you could potentially set up a limited power of attorney to help her execute the sales when she's ready. One last thought - if any of the renovation work qualifies for accessibility improvements, there might be additional tax credits available at the federal or state level that could further reduce her overall tax burden. Worth checking into!

Has anyone used TurboTax Self-Employed for this situation? We're trying to figure out if we need to upgrade from the regular version we've used in past years. My husband just started doing photography on the side.

Great question! Your wife can definitely start a sole proprietorship while you continue your full-time job. Since you file jointly, you'll include her business income and expenses on Schedule C of your joint return - no need for separate filings. A few key things to keep in mind: 1. **Self-employment tax**: Your wife will need to pay self-employment tax (15.3%) on any profit from the business, which covers Social Security and Medicare taxes. 2. **Quarterly estimated taxes**: If she expects to owe $1,000 or more in taxes from the business, she should make quarterly payments to avoid penalties. You can use Form 1040-ES to calculate these. 3. **Business losses**: Yes, any business losses can offset your joint income, potentially lowering your overall tax bill. Just make sure to keep detailed records to show it's a legitimate business and not a hobby. 4. **Record keeping**: Get a separate business bank account and credit card, save all receipts, and track mileage for business use. Good documentation is crucial, especially for deductions like home office expenses. Since your combined income will likely be higher with the business, consider setting aside 25-30% of her business income for taxes to be safe. You might also want to adjust your W-4 withholding to cover the additional tax liability instead of making quarterly payments.

Unrelated to the original question but im curious - has anyone who itemized federally but took standard deduction at state level ever been audited? I've been doing this for three years and always worry it might trigger something

This is a great question and you're absolutely right to consider this approach! I went through the exact same analysis last year and ended up doing exactly what you're considering - itemizing federally while taking the standard deduction on my state return. Your math looks solid. With $19,500 in federal itemized deductions versus the standard deduction, itemizing federally makes clear sense. And you're correct that at the state level, you can't deduct state income taxes from state taxes, which often makes the remaining itemized deductions insufficient to beat the state standard deduction. One thing I'd suggest is double-checking your state's specific rules about which itemized deductions they allow, as some states have different thresholds or exclude certain federal deductions entirely. But in general, this mixed approach is not only legitimate but often optimal for taxpayers in situations like yours. You're definitely not missing anything obvious - you've identified a smart tax strategy!

I'm currently dealing with this exact same situation and this thread has been a lifesaver! Filed our joint return in February, received a partial refund in March due to my spouse's expired ITIN, and submitted the renewal paperwork at our local IRS office about 3 weeks ago. One thing I want to add that might help others - when we went to submit the ITIN renewal, the IRS agent told us to make sure we have a copy of the original letter they sent explaining the partial refund. She said if there are any issues linking the renewed ITIN back to our original return, having that letter helps them locate our file more quickly. Also, I've been tracking everything in a spreadsheet with dates because this process involves so many moving parts. It's helped me stay organized and will be useful if I need to call them later. The uncertainty is definitely stressful, but reading everyone's experiences here gives me confidence that the remaining refund will eventually be processed automatically once the ITIN renewal goes through. Thanks to everyone who shared their timelines and tips - especially the ITIN hotline number! I'll be calling that next week to check on our status.

I'm dealing with this exact situation right now and this thread has been incredibly helpful! My husband's ITIN expired and we got the partial refund in March after filing in February. We submitted the renewal paperwork about 5 weeks ago. One thing I wanted to mention that I learned from calling the IRS - they told me that the delayed portion of your refund is actually still earning interest from the original filing date. So even though it's frustrating to wait, at least you're not losing money on the time value. The interest rate isn't huge, but it's something. Also, I found out that if you filed electronically originally, the remaining refund will also be direct deposited once processed. You don't need to worry about them switching to a paper check or anything like that. They'll use the same banking information from your original return. The waiting is definitely nerve-wracking, especially when you're counting on that money for other expenses. But reading everyone's experiences here gives me hope that it really will get processed automatically once the ITIN renewal comes through. Fingers crossed we all get our remaining refunds soon!