Has anyone actually gone through an IRS audit with an S Corp home office deduction including depreciation? Curious what documentation they asked for and how detailed the review was?

This is such a comprehensive discussion! As someone who went through a similar S Corp home office depreciation headache last year, I wanted to add one more consideration that nearly tripped me up. Make sure you're properly coordinating the depreciation method between your personal and S Corp books. I was using MACRS 39-year straight line for the business portion on my personal return, but my S Corp was trying to reimburse me based on a different calculation my bookkeeper had set up. The IRS expects consistency - the depreciation your S Corp reimburses you for should match exactly what you're claiming as a deduction on Schedule E. Also, don't forget about the Section 280A limitations! Even with an accountable plan, you can't deduct home office expenses (including depreciation) that exceed the gross income from the business use of your home. This rarely comes up, but if your S Corp is having a tough year, it could potentially limit your depreciation deduction even if the reimbursement goes through properly. One last tip: consider setting up your accountable plan to reimburse monthly rather than annually. It makes the cash flow smoother and creates a better paper trail for documentation purposes. My CPA said it also makes audits less likely to raise red flags since the transactions look more like regular business operations rather than year-end tax planning moves.

Make sure you explore all benefits you might be eligible for as a widower with children. If your children are eligible for Social Security survivor benefits, those are generally tax-free to the children. You might also be entitled to a $255 lump-sum death benefit from Social Security.

I'm so sorry for your loss, Sunny. Dealing with taxes while grieving is incredibly difficult, and you're asking exactly the right questions. Yes, you can file as Head of Household for the year your wife passed away since she died before July 1st. The IRS considers you unmarried for the entire tax year in this situation, and since you're supporting your children who live with you, you meet the HOH requirements. A few additional things to keep in mind: - When filing your wife's final return, write "DECEASED" and the date of death across the top - You'll sign her return as "Filing as surviving spouse" - Make sure to claim any income she earned up to her date of death on her final return - Consider whether any of her medical expenses paid after death might be deductible on either return The separate filing approach you're considering is completely valid - her final return as married filing separately, and yours as HOH. This gives you flexibility with deduction choices too. Don't hesitate to consult a tax professional who has experience with widower situations if you need additional guidance. There are often overlooked deductions and credits that can help during this transition. Take care of yourself during this difficult time.

The TurboTax e-file queue system operates on a batch processing schedule. Your return is likely in the transmission batch that will execute tonight. According to their internal processing documentation, weekend submissions typically enter the IRS submission protocol on the next business day's evening batch. The pending status indicates proper submission to their internal verification system rather than a rejection or error condition.

I'm going through the exact same thing right now! Filed my return through TurboTax on Sunday and it's been stuck on "pending" ever since. Based on what everyone's saying here, it sounds like this is totally normal - especially for weekend filings. The 48-72 hour timeframe that @Liam Sullivan mentioned makes sense, and knowing that TurboTax does their own internal review before sending to the IRS is actually reassuring. I was starting to worry something went wrong with my return, but it seems like we just need to be patient. Thanks everyone for the detailed explanations - this community is so helpful during tax season!

One thing nobody mentioned yet is state taxes! The federal stuff is complicated enough, but depending on which state you're leaving, you might still have state tax obligations too. California and Virginia are notorious for trying to claim you're still a resident even after you move abroad. Make sure you take clear steps to establish non-residency in your state before leaving - close bank accounts, change driver's license, register to vote abroad, etc. I moved from New York to Singapore in 2022 and still had to fight with NY state tax authorities who tried to claim I was still a resident because I kept a small storage unit there with some furniture. Document EVERYTHING about your move!

Don't forget about reporting foreign financial accounts! If the total of all your foreign accounts exceeds $10,000 at any point during the year, you need to file an FBAR (FinCEN Form 114). The penalties for not filing this are INSANE - up to $12,921 per violation for non-willful violations and even higher for willful ones. Also, if you have foreign financial assets exceeding certain thresholds, you might need to file Form 8938 with your tax return. Different from the FBAR and easy to miss if you're doing taxes yourself.

One thing nobody's mentioned yet - make sure you keep DETAILED records of when you earned the Robux vs when you cash out. My brother got audited because there was a huge discrepancy between what Roblox reported on his 1099 and what he thought he earned that year. The issue was he'd been accumulating Robux for 3 years but reported it as income spread across those years rather than in the year he actually converted to USD. The IRS only cares about when you got the actual money!

Quick tip: keep track of time spent developing too! Hours worked can help justify your business status to the IRS if they ever question whether your game dev is a hobby or a business. Hobbies have way fewer tax advantages than businesses.