Has anyone had experience with how long it takes the IRS to process Form 8379 if you're in Minnesota specifically? The IRS website says 8-14 weeks generally, but I've heard processing times can vary by region.

I went through this exact situation last year in Minnesota! You'll want to mail your Form 8379 to the Kansas City service center as mentioned earlier. One thing I wish I had known - make sure to write "INJURED SPOUSE" clearly at the top of the form in red or bold letters. Also, since you mentioned calculating about $1,650 as your portion, double-check your allocation on Part III of the form. The IRS is pretty strict about how you split income, withholdings, and credits between spouses. Any mistakes there can delay processing significantly. I'd recommend keeping detailed records of exactly how you calculated your portion (like which paystubs, W-2s, etc. you used) in case they have questions later. My processing took about 11 weeks from Minnesota, which seems pretty typical based on what others have shared here. Good luck!

I had this exact situation last month - WMR showed offset but transcript didn't have 898 code. Could it be a glitch in the system? Why would they show different information? I was worried sick about it, but guess what? I ended up getting my full refund on February 8th, exactly as my transcript showed. The WMR tool never updated correctly even after I got my money. Isn't that ridiculous? My advice is to trust your transcript and not WMR - the transcript is what the IRS actually uses to process your refund.

This is reassuring to read everyone's experiences! I'm dealing with something very similar right now - my WMR updated yesterday showing an offset, but my transcript shows code 846 for the full amount with no 898 code anywhere. The debt in question was from unemployment overpayment that I paid back in full last November, so this shouldn't even be happening. Reading through all these responses, it sounds like the transcript is definitely more reliable than WMR. I'm going to follow the advice here and call the Treasury Offset Program number tomorrow to confirm the debt status, and also get written documentation from the unemployment office showing it was satisfied. Has anyone noticed if there's a pattern with certain cycle codes being more prone to these system sync issues? I'm also -05 cycle like the original poster, so I'm wondering if that's coincidental or if Thursday processors see this more often. Thanks everyone for sharing your experiences - it's really helping calm my nerves about this!

I might be the minority here but I actually prefer doing my backdoor Roth in December and January of the same tax year to avoid this exact reporting confusion. Contribute to Traditional in early December, then convert to Roth before December 31st. That way everything happens in the same tax year and you get the 1099-R in time for filing season.

Just want to add one more thing that might help others in this situation - when you do file your 2024 taxes with Form 8606 to report the non-deductible contribution, make sure to keep a copy of that return AND the 8606 form in your tax records. You'll need to reference it next year when filing your 2025 taxes to show the IRS your basis calculation for the conversion. I learned this the hard way when I couldn't find my old 8606 and had to reconstruct the numbers. The IRS can get confused about basis if you don't have clean documentation showing the progression from contribution to conversion across tax years.

3 Don't forget the state-specific costs! Here in California, we pay $800 minimum franchise tax regardless of whether we're profitable or not. Made my S Corp totally NOT worth it until I was clearing six figures consistently. Check your state's fees first!

I've been researching S Corp conversion for my consulting business and want to add a few hidden costs that haven't been mentioned yet: - Registered agent fees ($100-300/year in most states) if you don't want to use your home address - Business insurance premiums often increase for corporations vs sole props - Credit card processing fees sometimes have higher rates for corporate accounts - If you travel for business, corporate expense documentation requirements are much stricter One thing that really helped me was creating a spreadsheet comparing my current sole prop costs vs projected S Corp costs over 3 years. At $87K revenue like the OP, you're right at the borderline where it might not make sense initially, but could pay off as you grow. The key is being realistic about ALL the ongoing compliance costs, not just the obvious ones. Also worth noting - if you mess up the corporate formalities or payroll requirements, you can lose the tax benefits retroactively, which would be costly.

Has anyone used their betting app's year-end summary as documentation for losses? My FanDuel account has a tax document that shows my total deposit, withdrawals, winnings and losses. Wondering if that's enough for the IRS?

I went through this exact same situation last year with my Venmo 1099-K from sports betting. The stress was real! Here's what I learned after consulting with a tax professional: 1. Yes, you do have to report the full $7300 as gambling income on your tax return, even though it includes your original deposits. 2. You can deduct your gambling losses (the $4700 you put in) but ONLY if you itemize deductions on Schedule A. This means you can't take the standard deduction. 3. The key decision is whether itemizing saves you more money overall than taking the standard deduction. For 2024, the standard deduction is $14,600 for single filers. If your gambling losses plus other itemizable deductions (mortgage interest, state taxes, charitable donations, etc.) exceed that amount, then itemizing makes sense. 4. Keep ALL your records - bank statements showing transfers, screenshots of betting account activity, and any year-end statements from your betting apps. The unfortunate reality is that if itemizing doesn't benefit you, you could end up paying taxes on the full $7300 rather than just your $2600 profit. This is a common frustration for casual gamblers. Consider talking to a tax pro if the numbers are significant - sometimes the consultation fee is worth it for peace of mind and making sure you're handling everything correctly.