I'm dealing with this exact same nightmare! Filed my Michigan return in early April and I'm currently at 8 weeks stuck in review with zero communication from them. Like everyone else here, my federal came through fine weeks ago, but Michigan just keeps showing that generic "under review" message. What's really frustrating is reading through all these experiences and seeing how completely random their process seems to be - some people wait 2 weeks, others wait 3+ months for seemingly identical situations. The lack of any communication or timeline is just cruel. Based on everyone's suggestions here, I'm going to try the secure messaging through Michigan Treasury Online this week since calling seems to be a complete waste of time. It's insane that we have to crowdsource solutions just to get our own money back from the state! Thanks for posting this Emma - it's both comforting and infuriating to see how many of us are stuck in the same broken system. Hopefully we all get our refunds soon because this waiting game is exhausting! 🤞

I'm in the exact same situation! Filed my Michigan state return in mid-April and I'm now at 7 weeks stuck in review with absolutely no explanation. Like so many others here, my federal refund came through perfectly fine in under 2 weeks, but Michigan just keeps showing that same generic "still under review" message every time I check. What's really driving me crazy is the complete radio silence - no letter, no timeline estimate, nothing. I've been checking my mail religiously thinking I might have missed some kind of notice, but there's been zero communication from Michigan Treasury about what's causing the delay or when it might be resolved. After reading through everyone's experiences here, it's both reassuring and terrifying to see that 8-12+ weeks has unfortunately become the "new normal" this year. That's completely unacceptable - we shouldn't have to wait months for our own money while they provide zero transparency or accountability! I'm definitely going to try the secure messaging through Michigan Treasury Online since so many people have had better luck with that approach compared to the phone system. It's crazy that we have to become detective-researchers just to figure out how to get our own refunds from the state. Thanks for starting this thread Emma - it really helps to know we're not alone in dealing with Michigan's completely broken system, even though none of us should have to endure this nightmare! Hopefully we all get our money soon. 🤞

This thread has been incredibly helpful - I'm in almost the exact same situation with my sister and had no idea about the depreciation recapture complications. I've been treating her below-market payments as rental income on Schedule E for two years, which I now realize was wrong. The approach @TillyCombatwarrior mentioned about charging market rate and then gifting the difference back sounds like the cleanest solution. It avoids the personal use classification issues and the potential recapture taxes while still helping family. One question I have - if I make this switch mid-year (say starting in July), how does that affect my tax reporting? Would I need to report the first half of the year as personal use property income on Schedule 1, then the second half as regular rental income on Schedule E? Or does the IRS allow you to treat the whole year consistently if you make the change part way through? I'm also wondering about the timing of implementing this change. Should I wait until the start of 2025 to make the switch to keep things cleaner for tax reporting, or is it better to fix this sooner rather than later?

This has been such an enlightening discussion! I'm facing a similar situation with my adult daughter who's been paying me $800/month for a property I could rent for $1,400. Reading through all these responses, I now understand why I've been feeling confused about how to report this. The distinction between Schedule 1 (personal use) vs Schedule E (rental property) makes perfect sense now, and I appreciate everyone sharing their experiences with the depreciation recapture issue - that's definitely something I need to factor in since I've been claiming this as a rental for the past 18 months. The strategy of charging market rate and then gifting back the difference seems like the most tax-advantaged approach, but I'm wondering about one practical aspect: how do you handle the conversation with your family member about this change? Going from "pay me $800" to "pay me $1,400 but here's a $600 gift each month" might feel awkward or confusing to explain, even though the net effect is the same. Has anyone found a good way to explain this arrangement to family without making it sound overly complicated or like you're trying to game the tax system? I want to make sure my daughter understands this is about proper tax compliance, not about changing our actual financial arrangement.

Has anyone successfully appealed a Section 179 recapture with the IRS? I accidentally dropped to 47% business use on my work truck last year (got a company car mid-year but kept the truck), and now facing a big tax hit. My accountant says I should just pay it, but wondering if anyone's had luck with appealing these situations?

Great question about Section 179 and vehicle usage! I went through something similar with my construction business vehicles last year. Just to add to what others have mentioned - one strategy that worked for me was being very strategic about which vehicle I used for different types of trips. When I got my second work truck, I made sure to use my original truck for all client visits, job site inspections, and supply runs to keep the business percentage high, while using the new truck for the heavier hauling work. I also found it helpful to set up a simple system where I logged the odometer reading and purpose every time I got in either vehicle. It only takes a few seconds but gives you bulletproof documentation if the IRS ever questions your business use percentages. One thing to watch out for - the recapture calculation can be pretty harsh if you fall below 50%. In my case, dropping from 70% to 45% business use would have meant recapturing about 60% of my original Section 179 deduction as ordinary income. Definitely worth the effort to stay above that threshold!

I'm going through this exact situation right now with my father's estate. He passed in 2020 and I just received four 1099-C forms totaling about $6,200, all in his name with his SSN. After reading through all these responses, I feel so much better about handling this correctly. The consensus seems clear - debt cancelled after death isn't taxable income to either the deceased or the estate, especially when the estate is insolvent like in your case. What I'm planning to do is follow the documentation approach several people mentioned: keep copies of all the 1099-C forms, create a simple memo explaining why they're not being reported (referencing IRS Publication 4681), and include a timeline showing dad's death date versus when the debts were actually cancelled. One thing that really helped me understand this was realizing that creditors are required to issue 1099-C forms regardless of the tax implications - they're just following their own reporting requirements. But that doesn't automatically create a tax obligation for us as executors. The advice about not panicking if you get automated IRS notices is also really valuable. Their computer systems might flag the "mismatch" between issued 1099-Cs and no corresponding income reported, but everyone who's dealt with this says it's easily resolved with a simple explanation. Being an executor is overwhelming enough without tax stress. It sounds like you're handling this exactly right by being cautious and seeking advice!

I'm a tax professional who has helped many families navigate this exact situation. You're absolutely correct that you don't need to report these 1099-C forms on the estate tax return. When debt is cancelled after death, it's not considered taxable income to either the deceased person or their estate. The key factors in your case are: 1) Your mother passed away in 2019, 2) The 1099-Cs are issued in her name/SSN (not the estate's EIN), and 3) The debt cancellation occurred after her death. This clearly falls under the IRS guidance that post-death debt cancellation is not taxable. Since the estate is insolvent, you're in an even stronger position - there's no scenario where these would create any tax liability. I'd recommend keeping the 1099-C forms with your estate records along with a brief note explaining why they weren't reported, referencing IRS Publication 4681. This creates a clear paper trail if there are ever any questions. The IRS computer systems might generate an automated notice about "unreported income," but these are easily resolved with a simple explanation that the debt was cancelled after the taxpayer's death. Don't let that possibility stress you - it's a common occurrence that's quickly cleared up. You're handling this correctly by being thorough and seeking guidance. Keep good documentation, but rest assured these forms don't create any additional filing requirements or tax obligations for you as executor.

I'm actually going through this exact same situation right now! I'm on F1 OPT and just discovered my employer has been withholding FICA taxes for the past 8 months. I had no idea I was supposed to be exempt until I started preparing my tax return. Reading through all these responses has been incredibly helpful. It sounds like there are multiple approaches - filing Form 843 myself, using specialized tax services, or working directly with ADP if that's what my employer uses. I'm leaning toward trying to contact my employer's payroll first to stop future withholdings, then filing Form 843 for what's already been taken. Has anyone had success getting their employer to actually reimburse the wrongfully withheld FICA taxes directly instead of going through the IRS? I'm wondering if that might be faster than waiting for the IRS to process a refund claim.

I went through this exact situation two years ago on my F1 STEM OPT! My employer had been incorrectly withholding FICA taxes for over a year before I caught it. Here's what I learned from the process: First, definitely contact your employer's HR/payroll department immediately with documentation showing your F1 status and the IRS regulations about FICA exemptions for non-resident aliens. Provide them with IRS Publication 519 and highlight the relevant sections. This stops future incorrect withholding. For getting your money back, I filed Form 843 myself and received my refund in about 10 weeks. The key is having complete documentation: your W-2 showing FICA withholding, copies of your visa documents, I-94 records, and a clear explanation of why you're exempt. I also included a timeline showing my entry date and length of stay to prove my non-resident alien status. Pro tip: When calculating how much you're owed, don't forget that FICA includes both Social Security (6.2%) and Medicare (1.45%) taxes - so you should be getting back 7.65% of your gross wages that had FICA withheld. In my case, it was about $2,400 for 14 months of incorrect withholding. The IRS was actually quite responsive once I had all the proper documentation together. Don't let your employer's confusion delay you from filing - you can handle this independently!