Hey, are you using TurboTax by any chance? I ran into that EXACT SAME ISSUE last week. The solution was to go to Forms Mode (you can search for it in the search bar at the top), then find Form 2210, and there's a checkbox that says "I didn't file this form last year" - check that and the software will stop asking for the missing info! Also, just a heads up that when you switch from MFJ to MFS, some of your deductions will be different. Make sure both of you don't claim the same credits for the kids. And double check your student loan interest deduction - when filing MFS, you usually can't claim that deduction (though the payment benefits might still make MFS worth it).

I had this exact same issue when I switched from MFJ to MFS three years ago! The tax software kept insisting I needed Form 2210 data from the previous year even though we'd never filed one. Here's what worked for me: First, double-check your 2022 return by searching the PDF for "2210" like others mentioned. If it's not there, you're good. Then in your tax software, look for an "interview mode" or "easy step" option and switch it OFF - go to the more detailed/advanced mode instead. This usually gives you more control over these yes/no questions. In the advanced mode, when it asks about Form 2210, there should be a clear "No, I did not file this form" option rather than just trying to skip past it. If you're still stuck, try starting a completely fresh return in the software and being very deliberate about answering "No" to the Form 2210 question the first time it appears. One more tip - make sure you're entering your 2022 AGI correctly from your actual tax return (not from memory). Sometimes the software gets confused if there's a mismatch and starts asking for forms you didn't file. Good luck finishing up before your extension deadline!

After reading all this, I'm genuinely curious - has anyone successfully used the 65-day rule to reduce trust taxes? My accountant mentioned it but wasn't sure if it was worth the effort for our situation.

This is incredibly helpful information! I'm dealing with a similar trust situation for my nephew and had no idea about the 65-day rule or the DNI calculations. One question - when you pay the taxes from the trust accounts, do you need any special documentation for the investment companies? I'm worried about how to properly record the tax payments as trust expenses versus personal expenses when I'm writing checks from the trust account. Also, has anyone dealt with estimated quarterly payments for trusts? I'm wondering if I should be making those going forward since we'll likely have similar investment income each year.

I went through this exact same situation last year and can confirm what others have said. The IRS publications really are confusing on this point, but the key is understanding that "space within the living area" gets special treatment. Here's what I did based on advice from a tax attorney: 1. **Form 8949**: Reported the entire house sale here, claimed my $250k primary residence exclusion 2. **Schedule 1, Line 8z**: Reported all depreciation I had claimed over the 8 years I rented out two bedrooms The depreciation recapture was about $18,000 in my case, which got taxed as ordinary income at 25%. What surprised me was that I could still claim the full primary residence exclusion on the remaining gain, even though I had been renting out rooms. One thing I wish I had known earlier - if you made any capital improvements specifically to the rented rooms (like adding a bathroom or upgrading flooring just for those rooms), you might be able to add those to your basis calculations. It's worth reviewing your records for any room-specific improvements. Also, double-check that you've been consistently using the same percentage for depreciation each year. The IRS will expect your recapture calculation to match what you actually claimed on your Schedule E forms.

I'm dealing with a very similar situation right now - sold my primary residence last year after renting out a basement apartment for 6 years. The confusion around Publication 523 is real! What helped me understand it was realizing that the IRS is trying to simplify things for homeowners who rent space within their primary residence. You don't have to do the complex allocation between personal and rental use that you'd need for a separate rental property. Here's my understanding based on research and consultation with a CPA: **For your situation (rooms within the house):** - Report entire sale on Form 8949/Schedule D - Claim your $250k primary residence exclusion - Report depreciation recapture on Schedule 1, Line 8z as ordinary income **Key point:** The depreciation recapture can't be excluded under Section 121, so you'll pay ordinary income tax on that portion (maxed at 25%). One thing I learned is to make sure you have good documentation showing exactly how you calculated the rental percentage each year. I used square footage, but some people use room count or other methods. Just be consistent. The good news is that even with the depreciation recapture, you still get to use the primary residence exclusion on the rest of your gain, which can save thousands in taxes compared to treating it as a pure rental property sale.

Think of this like finding out you left the stove on after leaving for vacation. You can hope nothing catches fire, or you can ask a neighbor to go turn it off. I was in your exact shoes in 2022 - got a 1099-K from Etsy after filing. I decided to roll the dice and not amend since it was only about $800. Like clockwork, I got a love letter from the IRS 8 months later with a bill for the tax plus a 20% accuracy penalty and interest. The amendment would have been so much easier than dealing with the notice and having to call them repeatedly to explain my situation.

I'm dealing with something similar right now! Got a 1099-K from Venmo for some tutoring payments that came in late February, well after I'd already filed and received my refund. From what I've researched, the IRS matching system is pretty much automated these days, so they'll eventually catch the discrepancy even if it takes several months. My accountant told me to consider a few things: 1) Was this income you already tracked and reported even without the form? 2) Do you have business expenses that could offset this income? 3) What's your current tax bracket - because that determines how much additional tax you'd actually owe. For me, the 1099-K was about $1,200, but I had legitimate expenses (materials, mileage, etc.) that brought the taxable amount down to around $400. In the 22% bracket, that's less than $100 in additional tax. Still planning to amend though - the peace of mind is worth the paperwork hassle, and from what others are saying here, it's better to be proactive than deal with penalties later. One tip: if you do amend, make sure to include a detailed explanation with your 1040-X about why you're amending and attach a copy of the 1099-K. It can help speed up processing.

Have you taken these steps to verify everything is in order? 1. Check your tax transcript on IRS.gov to confirm the refund amount 2. Verify your bank account details are correct in your tax return 3. Look for code 846 on your transcript which confirms the refund has been scheduled Did you receive any letters from the IRS after you filed? I'm trying to determine if your amendment was processed as part of your original return or as a separate transaction.

Congratulations on getting your DD date! 🎉 Based on what you're describing, it sounds like you made your amendments before final submission rather than filing a separate 1040X form afterward. That's why you're seeing such a quick turnaround - the IRS processed everything together as one complete return. A few things to keep in mind for March 13th: - Your bank might post the deposit anywhere from midnight on the 12th to end of business on the 13th - Some banks even release federal tax refunds a day early - If you don't see it by March 14th, that's when you'd want to contact the IRS The fact that WMR gave you a specific DD date is really encouraging - they typically don't do that unless your return has cleared all the major processing hurdles. Your amendments were likely minor enough that they didn't trigger any additional review processes. You should be all set! 💰