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Had the exact same issue with Error 6000 last month! What finally worked for me was calling the Taxpayer Advocate Service at 1-877-777-4778. They're separate from regular IRS customer service and can actually escalate account restrictions. Takes about 2-3 weeks but they resolved mine without needing an office visit. Definitely worth trying before making that 2 hour drive!
Has anyone used TaxAct or FreeTaxUSA for reporting sublease income? TurboTax seems to be giving conflicting advice but I'm wondering if other tax software handles this situation better? I only sublet my place for about 2 months while I was away for work.
I used FreeTaxUSA last year for a similar situation. It worked well because it let me file Schedule C easily. You just need to categorize your activity as "rental services" or something similar, not as rental property. I found their interview process more flexible than TurboTax for situations that don't fit the standard boxes.
I went through this exact same situation last year with Airbnb hosting in my rented apartment. The confusion between Schedule E vs Schedule C is really common because most tax software assumes you own property when you're earning rental income. What helped me was understanding that Schedule E is specifically for "passive" rental income from property you own, while Schedule C is for "active" business income - which is what subleasing really is since you're actively providing housing services. One tip that saved me money: keep detailed records of everything during your sublease period. Beyond just rent and utilities, you can deduct things like extra cleaning supplies, any furnishings you bought specifically for the sublet, advertising costs if you used Airbnb/Craigslist, and even a portion of your internet bill if your subletter used WiFi. Also, that $150 fee you paid to your landlord for permission? That's definitely a deductible business expense since it was necessary to conduct your subletting activity. Make sure to include that on your Schedule C.
This is really helpful! I'm new to this whole situation and didn't realize there were so many deductible expenses beyond just rent. Quick question - when you say "advertising costs" for Airbnb, do you mean the service fees that Airbnb charges hosts? Or are you talking about something else like promoting your listing? Also, how do you calculate the internet portion? Is it just based on the same percentage you use for rent (like the room size calculation) or is there a different way to figure that out?
Has anyone actually gotten their refund after going through all this identity theft mess? I filed my 14039 almost 7 months ago and still nothing. The identity theft PIN came after 4 months but no movement on my refund.
I got mine after 9 months last year. It was a nightmare but the money did eventually come through with interest. The key for me was getting someone on the phone around the 6-month mark who could verify it was still in process and hadn't been lost or forgotten.
That's somewhat reassuring, thanks. 9 months is ridiculous but at least you got interest on it. Did you have to do anything special to keep the case moving, or did it just resolve on its own after you confirmed it was still in process?
I'm going through this exact same situation right now - filed my 14039 about 8 weeks ago after getting the duplicate e-file rejection. The waiting and uncertainty is absolutely maddening! One thing that's helped me manage the stress is setting up alerts on my IRS account online (if you can access it) and checking the "Where's My Refund" tool weekly, even though it probably won't show updates for identity theft cases. I also started keeping a detailed log of every call attempt, reference numbers, and any correspondence - it makes me feel like I'm doing something productive while waiting. @Isabella Silva - have you tried reaching out to your local Taxpayer Advocate Service office? They can sometimes help expedite cases that have been stuck in the system for an unreasonable amount of time. The 10-week mark might be worth giving them a call, especially since you're experiencing financial hardship waiting for your refund. Hang in there - from everything I've read here, it sounds like persistence pays off eventually, even though the timeline is frustratingly long.
22 Has anyone used TurboTax to report their portion of losses from a JTWROS account? Is there a specific section for this? I'm in a similar situation with a joint account with my sister, and we had about $5,800 in losses last year.
2 I used TurboTax last year for this. When you get to the investment income section, you'll need to manually enter your portion of the capital losses rather than importing the 1099-B directly (since it's not in your name). There's an option for "I'll enter my investment income manually" or something similar. Then you check the box that says the transaction wasn't reported to you on a 1099. It'll walk you through entering the details.
I went through this exact situation two years ago with my business partners. We had a JTWROS account that generated about $4,500 in capital losses, and I was completely confused about how to handle it on our tax returns. What I learned is that you absolutely can split the losses proportionally among the actual owners, but documentation is key. Since Jake's SSN is on the 1099-B, he'll need to report the full $7,000 initially on his Schedule D. However, each of you should also report your $2,333 portion on your individual returns. The critical part is including a statement with each return explaining the joint ownership arrangement. I used language like: "This capital loss represents my 1/3 ownership share of losses from jointly-owned brokerage account [account number], with total losses of $7,000 reported under SSN [Jake's SSN]." Make sure you all keep records of your equal contributions to the account - bank statements, transfer records, etc. The IRS wants to see that your claimed ownership percentages match reality. Also, consider drafting a simple written agreement between the three of you documenting the equal ownership split, even if it's after the fact. One tip: file your returns around the same time so if the IRS has questions, they can easily see all three related returns and how the total adds up correctly.
This is really helpful advice! I'm dealing with a similar situation but with four people instead of three. One question - when you say "file your returns around the same time," do you mean literally on the same day? Or just within the same week or two? I'm worried about timing issues if one person files significantly later than the others. Also, did you ever get any follow-up questions from the IRS about your joint ownership arrangement, or did they accept the documentation without any issues?
Taylor Chen
Don't forget about the annual gift tax exclusion too! It's currently $17,000 per recipient per donor (2023 amount, will be adjusted for inflation). So you and your spouse could each give $17k to each of your kids/grandkids each year without touching your lifetime exemption at all. For a family with several children and grandchildren, this can add up to substantial wealth transfer over time.
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Keith Davidson
β’Is the annual exclusion in addition to the lifetime amount? And does it make sense to use the annual exclusion first before dipping into the lifetime amount for larger gifts?
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Taylor Chen
β’Yes, the annual exclusion is completely separate from your lifetime exemption. You can give up to the annual limit ($17,000 per recipient in 2023) each year without filing a gift tax return or using any of your lifetime exemption. It absolutely makes sense to use the annual exclusion every year before making larger gifts that would use your lifetime exemption. Think of the annual exclusion as "use it or lose it" - if you don't use it in a given year, that opportunity is gone. Many wealthy families make a practice of giving the maximum annual amount to each family member every year as part of their estate planning strategy.
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Ezra Bates
Make sure you're also considering state-level estate taxes! Not all states follow federal exemption amounts. I live in a state with a much lower estate tax threshold, and didn't realize I needed separate planning for state vs federal.
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Ana ErdoΔan
β’Which states have their own estate or gift taxes? I thought most followed the federal rules.
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Serene Snow
β’Currently 12 states plus DC have their own estate taxes with lower exemption thresholds than federal: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. The exemptions range from $1 million (Oregon) to $12.9 million (Connecticut). Some states like New York have a "cliff" effect where if you exceed the threshold by even a small amount, you lose the entire exemption. Additionally, only Connecticut and Minnesota have state-level gift taxes that mirror their estate tax exemptions. It's definitely worth checking your state's specific rules!
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