Code 810 since March is definitely frustrating! The changing "as of" dates are normal system updates but don't indicate actual progress unfortunately. Since you haven't received any letters, I'd suggest calling the taxpayer advocate service at 877-777-4778 - they can sometimes get more specific info than the regular helpline. Also worth checking if you moved recently or if your address is correct with USPS, sometimes verification letters get returned and cause longer delays.

Code 810 since March is definitely a long time! I went through something similar last year and it turned out to be an identity verification issue that I never got a letter for. The changing "as of" dates are just system updates and don't really mean progress unfortunately. Have you tried calling the identity verification line at 800-830-5084? Sometimes they can tell you if that's what's holding things up even if you didn't get the typical CP05A letter. Also might be worth checking if your address is updated with USPS in case any notices got lost in the mail.

Just wanted to add my experience since I went through this exact situation last year. The premium tax credit repayment can be stressful, but the repayment is actually capped based on your income level unless you're above 400% of the Federal Poverty Level. For 2024, if you're single and your MAGI is under around $58,320 (400% FPL for a single person), you won't have to repay the full amount - there are caps based on your income bracket. With just being $450 over your estimate, you're probably looking at a very small repayment or possibly none at all.

I've been helping people with premium tax credit issues for years, and your situation is actually pretty common! Being $450 over your projection is really not bad at all. Here's the key thing everyone's trying to explain about MAGI - think of it this way: Start with your gross income, subtract things like 401k contributions and health insurance premiums (if they come out pre-tax), and that gets you closer to your MAGI. The exact calculation can be tricky, but for most people, MAGI is somewhere between their gross income and their take-home pay. With only a $450 difference, you're likely looking at owing back very little or possibly nothing. The repayment caps are designed to protect people from huge surprise bills. Even if you do owe something back, it would probably be under $100 based on your income increase. Don't stress too much about this - the system is set up to avoid penalizing people for small estimation errors. When you file your taxes, Form 8962 will walk you through the reconciliation process step by step.

Don't panic! This is actually a very common situation and you're likely in good shape. Since you lived in the home as your primary residence for exactly 5 years, you definitely qualify for the Section 121 exclusion. With a $255,000 gain and assuming you're married filing jointly, you're well under the $500,000 exclusion limit, so you shouldn't owe any capital gains tax. The IRS letter is basically their automated system saying "we saw you sold property but didn't report it on your return." They're not accusing you of anything - they just want the paperwork to show why no tax is due on the sale. You can respond to the letter with the completed Schedule D and Form 8949 showing the sale and the exclusion. Make sure to include any improvement costs in your basis calculation (like that $30k in renovations mentioned by another poster) as this reduces your gain even further. The letter should have specific instructions on what forms to include and where to send them. This is much simpler than filing a full amended return, and once they receive your response showing the exclusion applies, they'll typically send a letter closing the matter with no additional tax due. I've seen this exact scenario dozens of times - it's routine correspondence, not a red flag for audits or anything to worry about long-term.

I went through this exact same situation last year! Got the dreaded IRS letter about forgetting to report my home sale and was convinced I was in serious trouble. Turns out it's incredibly common and the IRS just wants the paperwork to match their records. Since you lived there for 5 years as your primary residence, you're golden for the Section 121 exclusion. With your $255k gain, you're well under the limits whether you're single ($250k exclusion) or married filing jointly ($500k exclusion). I responded to the letter with just the Schedule D and Form 8949 showing the sale and exclusion - didn't need to file a full amended return. Make sure to include any home improvements in your cost basis calculation to reduce the gain even more. The whole process took about 6 weeks from when I mailed my response to getting the "case closed" letter from the IRS. The key is responding promptly with the right forms. Don't ignore the letter, but also don't panic - this is totally routine and you'll likely owe nothing once they see the exclusion applies!

Yall are overthinking this. Just keep good records, pay your quarterly estimates based on last year's income (100% of prior year tax is safe harbor to avoid penalties), and let your CPA sort it out at tax time. The 30% rule is fine if you're making decent money, might be overkill if you're just starting out. Use the rest to grow your biz!

As someone who went through this exact same situation when I started my partnership two years ago, I completely understand the stress! The 30% rule felt crushing when we were barely breaking even. Here's what I learned: that percentage includes federal income tax, self-employment tax (15.3%), and potential state taxes. But the actual amount you'll owe depends heavily on your business expenses and personal tax situation. A few things that helped us reduce our tax burden: - Maxing out business expense deductions (software subscriptions, office supplies, professional services) - Setting up a SEP-IRA for retirement contributions (big tax deduction) - Keeping meticulous records for vehicle use, client meals, and home office space - Timing major business purchases strategically Our first year we set aside the full 30% and ended up with a nice refund. Now we're more comfortable with 23-24% because we have a better handle on our deduction patterns. The key is working with your CPA to project your specific situation rather than relying on generic advice. Every partnership is different based on profit splits, other income sources, and expense levels. Good luck with your call tomorrow!

Does anyone know if jury duty pay that you give to your employer counts as an above the line deduction? My company requires us to turn over jury duty pay but still pays our regular salary while serving. I thought I saw somewhere this was deductible above the line.

Great question! Above the line deductions are definitely worth understanding, especially with your side business. The key thing to remember is that these deductions reduce your Adjusted Gross Income (AGI), which is line 11 on Form 1040, and you get them regardless of whether you itemize or take the standard deduction. For your situation specifically: Yes, your self-employed health insurance premiums, IRA contributions, and student loan interest are all above the line deductions. Since you have a side business, you'll also want to look into the qualified business income (QBI) deduction under Section 199A - it can be huge for small business owners. One thing people often miss is that your business expenses from the side gig go on Schedule C and reduce your business income before it even gets to your main tax return. Then any remaining self-employment tax gets a 50% deduction above the line. The "above vs below the line" terminology comes from where these appear on your tax return - above the line means they reduce your AGI, while below the line deductions (like itemized deductions) only reduce your taxable income after AGI is calculated. Lower AGI can help you qualify for more credits and deductions that phase out at higher income levels.