Did u check if ur a contractor not employee? If ur 1099 not w2 then they dont take out taxes. Happened to my friend.

This is definitely a payroll error that needs to be corrected ASAP. Since you have your December paystub showing the year-to-date withholding amounts, you have solid proof of what was actually withheld. Here's what I'd recommend doing immediately: 1. Contact your payroll department directly (bypass HR if they're not responding) and explain the situation. Show them your December paystub with the YTD amounts. 2. Request a corrected W-2 form - they're legally required to issue one when there are errors like this. 3. Don't file your taxes until you get the corrected W-2. Filing with incorrect withholding information will just create more problems later. 4. If your employer is slow to respond, you can contact the IRS at 800-829-1040 and they can intervene on your behalf. The key thing to remember is that you won't have to pay those taxes again - the money was already withheld from your paychecks throughout the year. This is just a paperwork error that needs to be fixed so your tax return reflects the correct withholding amounts. Stay persistent with your employer until they issue the correction!

Check your AGI too! I had this exact problem and discovered TurboTax was incorrectly applying a phase-out to my mortgage interest deduction because my income was over a certain threshold. The software was calculating it wrong though. If your Adjusted Gross Income is over $250,000 (married) or $125,000 (single), TurboTax sometimes incorrectly applies limitations. That might explain why it's disappearing when you add the second mortgage - the combined amount might be triggering some faulty logic in their calculations.

I'm a tax professional and I see this TurboTax issue frequently with clients who own multiple properties in the same year. The software often has trouble handling the transition from one primary residence to another, especially when there's overlap with mortgage interest reporting. Here's what I recommend: Go to the "Forms" view in TurboTax and look at your Schedule A directly. Check if both mortgage interest amounts are showing up there. If they are, but your total deduction is wrong, there might be an issue with how TurboTax is calculating the limitation based on your loan amounts or dates. Also, make sure you're not accidentally double-entering information. Sometimes people enter mortgage interest in both the "Home Mortgage Interest" section AND the "Investment Interest" section, which can cause the software to remove deductions to avoid double-counting. If all else fails, you can manually override the mortgage interest deduction on Schedule A. Just make sure you have proper documentation (your 1098 forms) to support the amounts you're claiming.

The real issue here that nobody has mentioned is properly documenting your time! If you get audited and claim REPS, the IRS will want to see detailed logs of how you spent those 750+ hours. I learned this the hard way. Keep a detailed diary or use a time-tracking app specifically for your real estate activities. Document date, time spent, and exactly what you did. This includes time spent as a realtor if you're claiming those hours toward your REPS qualification.

Based on what you've described, you likely DO qualify for REPS, but your accountant is right that it's more complicated than it initially appears. Your realtor hours absolutely count toward the 750+ hour requirement - that's established case law. The IRS considers all real estate activities together for this test. So between your full-time realtor work and managing those 2 local properties, you should easily meet the hour threshold. However, the material participation requirement is evaluated separately for each property or group of properties. This is where the grouping election mentioned by others becomes crucial. You can elect to treat all your rental properties as a single activity on Form 8582. Once grouped, you only need to materially participate in the group as a whole, not each individual property. Even with property managers, you likely spend time on oversight activities - reviewing financial reports, approving major repairs, making strategic decisions about rent increases or tenant screening, etc. All of this counts toward material participation hours if properly documented. I'd suggest getting a second opinion from a CPA who specializes in real estate taxation. Many general accountants aren't familiar with the nuances of REPS and grouping elections. The tax savings potential here is significant enough to warrant consulting with a specialist.

Has anyone used both a real W2 and a Form 4852 substitute W2 on the same tax return before? My tax software (TurboTax) is getting confused when I try to enter both. It keeps saying I have duplicate income sources.

Another thing to consider - if your employer is being completely unresponsive, you might want to file a complaint with your state's Department of Labor as well. Many states have their own requirements for timely W-2 delivery and can impose penalties on employers who don't comply. I had a similar situation with a small business that just ignored my requests. After I filed complaints with both the IRS and my state labor department, suddenly they found time to mail my W-2. Sometimes a little official pressure is exactly what these employers need to get their act together. In the meantime, definitely use Form 4852 with your final pay stub like others have suggested. Your final stub should have all the year-to-date totals you need - just double-check that it includes federal income tax withheld, Social Security tax, Medicare tax, and any state withholdings. Keep copies of everything in case there are questions later when your employer finally submits their records to the IRS.

This is such a frustrating situation, but you're definitely not alone! I had a similar issue where my return kept getting rejected for a missing 1095-A even though I never enrolled in Marketplace coverage. One thing that helped me was using the IRS Interactive Tax Assistant tool on their website (irs.gov/help/ita). There's a specific section about health coverage reporting that walks you through exactly what to enter based on your situation. It helped me identify that I was incorrectly answering a question about "minimum essential coverage." Also, if you're still stuck after checking all the healthcare sections in your tax software, you might want to try switching to a different tax preparation program temporarily. Sometimes the way questions are worded varies between software, and what's confusing in one program might be clearer in another. The good news is that since the individual mandate penalty is $0 at the federal level, there's no financial penalty for having no coverage - you just need to make sure your return accurately reflects your actual situation.

I've been helping people with similar IRS rejection issues, and this is actually more common than you'd think. The rejection is almost certainly happening because there's a disconnect between what your tax return is claiming about your healthcare coverage and what the IRS system expects to see. Since the Marketplace has confirmed you never had coverage and there's no 1095-A form for you, the issue is definitely in your tax return preparation. Here's what I'd recommend checking: 1. Look for any question that asks about "advance premium tax credits" - this is often where people accidentally indicate they received credits when they didn't 2. Check sections about "reconciling premium tax credits" or Form 8962 - if anything is filled out here and you never had Marketplace coverage, that's your problem 3. Make sure you're not accidentally claiming any Marketplace-related tax credits The quickest fix is usually to go through your tax software's healthcare section screen by screen and make sure every answer accurately reflects that you never had Marketplace coverage. Look specifically for questions that might be worded confusingly - sometimes "Did you have qualifying coverage?" can be interpreted different ways. If you can't find the error after reviewing everything, consider starting fresh with just the healthcare portion of your return, or try a different tax software to see if the questions are clearer.