Just an FYI - if your 2023 amended return isn't processed before you file for 2024, you might get a notice from the IRS about the discrepancy. Don't panic if this happens! Just respond with a copy of your 2023 amended return and explain the situation. I had something similar happen with NOL carryovers a few years back. The IRS computer system flagged the discrepancy, but once a human reviewed my explanation, everything was fine. The key is to keep good records and be consistent with how you're handling the error correction.

I went through almost the exact same situation two years ago with my capital loss carryovers getting "lost" in TurboTax. It's incredibly frustrating when you discover these errors right before the filing deadline. One thing I learned is that you should double-check ALL your prior year carryovers - not just capital losses. Look at things like charitable contribution carryovers, business loss carryovers, and any education credits that might carry forward. When tax software has an issue with one type of carryover, it sometimes affects others too. Also, when you're preparing your amendment, take screenshots or print copies of the relevant pages from your software showing the error. This documentation can be helpful if you need to contact the IRS later or if there are any questions about your amendment. The good news is that once you get this sorted out, you'll have a much better understanding of how carryovers work, and you'll probably catch any similar issues much earlier in future tax years. I now manually verify all my carryovers every year before filing, regardless of what the software says.

I've seen this exact scenario with multiple clients. One client worked for a large retail chain that changed ownership mid-year. Both the old and new companies issued W-2s, but they covered overlapping periods. The IRS computer just added them together and sent a notice saying she underreported by $22,000. We had to get statements from both companies showing the actual dates worked and earnings for each. Did your employer undergo any ownership changes or major restructuring last year?

This exact situation happened to my sister two years ago! Her employer went through a payroll system migration and ended up issuing two W-2s - one from the old system and one from the new system with overlapping pay periods. The IRS computer flagged it as unreported income of about $15,000. Here's what worked for her: 1. She immediately called her employer's HR/payroll department and asked for a written explanation of why two W-2s were issued 2. The employer provided a letter stating that only the second (corrected) W-2 should be used for tax purposes 3. She responded to the CP2000 notice with both W-2s, the employer's letter, and her own explanation showing the math 4. She sent everything certified mail to create a paper trail The whole process took about 2 months, but the IRS eventually agreed with her position and dropped the proposed assessment. The key was having that official letter from the employer - don't rely on just a phone conversation. Get everything in writing! Also, make sure to respond within the timeframe given in the notice (usually 30 days) to avoid automatic acceptance of the proposed changes. You've got this! 💪

Has anyone considered that this might actually impact your state taxes too? When I had a similar situation, I had to file amended returns for both federal AND state because the additional income changed my state tax liability as well.

I went through this exact situation two years ago with a forgotten 1099-INT from my I-Bonds. Here's what I learned from experience: First, don't panic - this is incredibly common and the IRS deals with it all the time. Since your federal return is already accepted, you have two main options: 1. File Form 1040-X (amended return) proactively - this shows good faith and you can potentially avoid penalties 2. Wait for the IRS to catch it and send you a CP2000 notice I chose option 1 and filed the amendment about 6 weeks after receiving my original refund. The process was straightforward - just report the additional income on the 1040-X and pay the extra tax owed. Since it was my first time making this mistake and the amount was relatively small, I was able to request first-time penalty abatement and only paid the additional tax plus minimal interest. One thing to definitely check: if your state taxes income, you'll likely need to file a state amendment too once your federal amendment is processed. Don't forget that part! The whole thing ended up being much less stressful than I initially thought. The IRS processed my amendment without any issues and I didn't face any additional scrutiny on future returns.

Has anyone dealt with a situation where they made extra escrow payments? My mortgage company said my escrow was short last year so I had to make additional payments that weren't part of my regular mortgage payment. Are those extra escrow payments deductible anywhere?

Great question! I went through this exact same confusion when I bought my first home two years ago. The key thing to understand is that your escrow balance of $4650 is just money sitting in an account - it's not a deduction until those funds are actually used to pay property taxes to your local government. Since your 1098 shows $0 for real estate taxes paid, it means your mortgage servicer didn't actually pay any property taxes from your escrow account during the 2024 tax year. This could happen if you bought the house late in the year and the tax payments haven't come due yet, or if the previous owner had already paid the annual taxes before closing. However, don't give up! Check these things: 1. Your closing documents - you may have reimbursed the seller for prepaid property taxes 2. Your monthly mortgage statements - sometimes lenders make mistakes on the 1098 3. Contact your mortgage servicer to verify what taxes were actually paid For the first-time homebuyer credit question - unfortunately the federal credit expired years ago, but definitely check if your state offers any programs. Some states still have credits or deductions available for first-time buyers. The most important thing is to only deduct taxes that were actually paid to the taxing authority during 2024, not money just sitting in escrow waiting to be paid out.

I was charged $580 last year for something similar, but my situation included rental property, multiple state filings, and cryptocurrency transactions. For just a Schedule C with a few 1099s, that's much steeper than what I'd expect compared to other tax scenarios I've encountered. My sister-in-law has a nearly identical tax situation to yours and pays around $350 in the Midwest. Even accounting for potential regional differences, $626 seems about $200 too high unless there are complicating factors you haven't mentioned.

I'd definitely get a second opinion on that pricing. I'm an EA and typically charge $385-425 for a 1040 with Schedule C and multiple 1099-NECs, depending on complexity. The $626 quote seems high unless there are additional factors like depreciation calculations, complex inventory accounting, or multi-state issues. A few questions that might affect pricing: Do you have significant business asset purchases requiring depreciation? Any employee-related forms like 941s? Home office deduction calculations? These can add time and complexity. But for straightforward freelance/contractor income with basic business expenses, you should be looking at $350-450 range max. I'd recommend calling 2-3 other preparers for quotes - most will give you a ballpark over the phone once you describe your situation.