I might be able to offer some potentially helpful information. After waiting approximately 9 weeks for my California refund (filed February 1st), I received it somewhat unexpectedly last Thursday. What seemed to possibly make a difference was checking my FTB account online rather than just using the refund status tool. In my account, I could see that they had actually adjusted my refund amount slightly (reduced by about $42, presumably due to a calculation error on my part), which may have been part of what was causing the delay. It might be worth checking your FTB online account if you haven't already, as it sometimes contains more detailed information than the basic refund status checker.

I'm experiencing the exact same thing! Filed my CA return on February 3rd and still waiting as of today. Like you, my federal refund came through in under 3 weeks, but CA is just stuck on "being processed." I've called twice and gotten the same generic responses about high volume and to just keep waiting. What's really frustrating is that I double-checked everything - my withholdings match my W-2s exactly, direct deposit info is correct, and I didn't claim any unusual credits. It seems like there's no rhyme or reason to their processing order. Some people who filed after me have already received their refunds while those of us from early February are still in limbo. At this point I'm just hoping it shows up before I have to file 2024 taxes!

I had a similar situation and my accountant told me to keep track of "startup" activities vs ongoing business expenses. Apparently pre-opening costs have different rules than regular business expenses. You might want to check out IRS Publication 535 (Business Expenses) which talks about the difference. I think you can elect to amortize startup costs over 15 years or something like that.

The key distinction you need to understand is between startup costs and regular business expenses. Since you already have rental properties, this new property expansion might not qualify for the same startup cost treatment as someone just entering the rental business. For your $14,000 in repairs, you'll need to categorize each expense: 1. **Repairs that restore the property to working condition** (fixing plumbing, painting) - these can typically be deducted immediately once the property is placed in service 2. **Improvements that add value or extend useful life** (upgraded flooring, better water heater) - these must be depreciated over 27.5 years 3. **Costs incurred before the property was available for rent** - these might need special treatment The critical date is when you made the property "available for rent" - not when you found a tenant. If you completed repairs in November 2022 but didn't list it until January 2023, then January 2023 is likely your "placed in service" date. This means you'd claim the deductible expenses on your 2023 return, not 2022. However, if you can demonstrate the property was ready and you were actively seeking tenants in 2022 (even informally), you might be able to claim 2022 as the placed-in-service year. I'd recommend getting professional guidance since the timing affects not just which year you claim expenses, but also how they're treated under passive activity loss rules.

I've been filing for free with H&R Block Free Online for the past 3 years. But be careful - you need to go directly through the IRS Free File portal (not their main website) to get the actually free version that includes state filing. If you google H&R Block and go to their site directly, you'll end up with their "free" version that charges for state.

For South Dakota specifically, since you mentioned DirectFile isn't available there, I'd recommend checking out the VITA (Volunteer Income Tax Assistance) program if your income is under $64,000. They offer completely free tax preparation by IRS-certified volunteers, including both federal and state returns. You can find locations on the IRS website. Also, just a heads up about waiting for your Wage & Income transcript - while it's smart to double-check, most employers are required to send you corrected forms if there are discrepancies. The March 15th transcript might not show everything if you have late-filing employers or financial institutions. One more truly free option: if you're comfortable doing it yourself, you can always file directly with the IRS using their fillable forms (Free File Fillable Forms) and then file your South Dakota return directly with the state. SD actually has a pretty simple state return since they don't tax wages - just need to report federal AGI in most cases.

Has anyone considered that maybe the father didn't do this maliciously? Maybe he thought he was helping his kid establish credit or a business history? I'm not saying what he did was right - it definitely wasn't - but before going straight to identity theft claims and potentially sending your dad to jail, maybe have an honest conversation with him first?

I understand this is an incredibly difficult situation, and I want to echo what others have said about getting professional help immediately. One thing I haven't seen mentioned yet is that you should document EVERYTHING right now while the trail is still relatively fresh. Start gathering any documents you can find - business registration papers, any correspondence about the business, bank statements if you have access, etc. Even if your father cooperates later, having this documentation will be crucial whether you go the identity theft route or try to work out some other arrangement with the IRS. Also, consider that there might be a middle ground here. Some tax attorneys specialize in "innocent spouse" relief and similar situations where one person gets stuck with tax liability they shouldn't be responsible for. This might be a way to resolve the debt without necessarily triggering criminal charges against your father, but you'd need to speak with a qualified tax attorney to understand if this applies to your situation. The most important thing is to stop letting your tax refunds get seized while you figure this out. Every year this continues, you're essentially paying someone else's debt. Time is not on your side here.

This thread has been incredibly helpful! I'm dealing with a very similar situation where my property management company discovered they'd been incorrectly applying a "technology fee" that wasn't actually authorized in our leases. They're issuing refunds going back about 18 months. Reading through all these responses, I feel much more confident that I don't need to worry about tax implications on my end. The explanations about this being a correction of an overpayment rather than new income make perfect sense, especially the analogy about getting refunded for paying twice for something. I'm definitely going to follow the advice about taking a check for documentation purposes and keeping detailed records. The tip about writing an explanation directly on the deposit slip is brilliant - I never would have thought of that but it creates a perfect paper trail. It's also reassuring to hear from the property management professional that these kinds of corrections are actually pretty common and that legitimate companies handle them properly. I was starting to wonder if this was some kind of red flag, but it sounds like responsible property managers actually need to make these corrections when they discover billing errors. Thanks everyone for sharing your expertise and experiences - this community is amazing for getting real-world guidance on tricky tax situations!

Great discussion everyone! As someone who's been through tax audits before, I wanted to emphasize one more documentation point that might help. When you deposit that refund check, consider also scanning or photographing the check itself before depositing it, along with any accompanying letter from the management company. I learned this the hard way during an audit a few years back - the IRS wanted to see the actual check for an unusual deposit, but of course the bank had already processed it and their image quality wasn't great. Having my own high-quality scan saved me a lot of headaches and follow-up requests. For a $2,750 refund, it's definitely worth the extra 30 seconds to create that backup documentation. Store it in the same place as your other tax records for that year. Even though this isn't taxable income as everyone has correctly explained, unusual deposits sometimes catch the attention of IRS systems, and having crystal-clear documentation makes any potential questions much easier to resolve quickly. Your management company sounds like they're handling this professionally, which is always a good sign. The transparency and proper documentation they're providing suggests they know exactly what they're doing from a tax compliance standpoint.