Just went through this same process last month! After faxing my 8962 and 1095-A, it took about 7 weeks for the IRS to update my account transcript. You'll see a "971 Notice Issued" code first, then hopefully a "846 Refund Issued" code once they finish processing. The key is checking your transcript weekly on the IRS website - that's where you'll see movement before any letters arrive. Hang in there, the wait is frustrating but they will eventually get to it!

I went through this exact same situation last year! The IRS processing time for Form 8962 and 1095-A verification can vary quite a bit, but from my experience and what I've seen others report, you're looking at anywhere from 6-12 weeks typically. A few things that might help while you wait: - Check your IRS account transcript online weekly for updates (look for codes 971 or 846 like Brandon mentioned) - Make sure you have that fax confirmation saved - the IRS sometimes claims they didn't receive documents - If you haven't already, create an account on IRS.gov to monitor your case status The marketplace reconciliation is super important since without it, you'll lose eligibility for future premium tax credits. The good news is that once they process your forms, they usually release any held refund pretty quickly. I know the wait is stressful, but hang in there - they will get to it eventually!

Don't overthink the building management fees! I spent hours researching this same question last year. The admin fee and move-in fee are definitely deductible in year 1 as rental expenses. The working capital contribution is trickier - technically it's a deposit into the building's reserve, so it's not immediately deductible. Also, make sure TurboTax is prorating your expenses correctly for the partial year. For things like property taxes and insurance, you can only deduct the portion that applies to when the property was actually a rental (Oct-Dec in your case). So that would be 3/12 of your annual amounts. This might be why some of your numbers look off.

I had a very similar situation with my first rental property! Your cost basis calculation is definitely off - with a $520k purchase price, that $134,628 figure suggests there's an input error somewhere in TurboTax. A few things to double-check: 1. Make sure you entered the correct land/building allocation. Based on your tax assessment ($215k land, $100k improvements), you should allocate roughly 68% to land and 32% to building from your purchase price. 2. Verify you didn't accidentally enter a partial ownership percentage or put in the wrong purchase price. 3. The bathroom renovation ($15k) should be added to your depreciable basis since it was done before placing in service. Your depreciable basis should be approximately: ($520k - $353k land value) + $15k renovation = ~$182k for the building portion. For the closing costs, most of what you listed (recording fees, title insurance, legal fees) get capitalized into your basis rather than expensed immediately. The admin fee and move-in fee to building management can typically be expensed in year 1, but the working capital contribution is usually treated as a capital asset. Also make sure TurboTax is correctly prorating your expenses for the 3-month rental period (Oct-Dec). Your actual deductible expenses should be much higher than $257 for three months of operation.

Don't forget withholding! Even though others are right about marginal tax rates, your employer might withhold taxes on the lump sum at a higher rate. The IRS has special withholding rules for large one-time payments. When I got my severance, they withheld like 30% even though my actual tax rate was lower. I got the extra back when I filed my return, but was strapped for cash for months waiting for that refund.

Just wanted to add another perspective here - I went through this exact situation about 6 months ago. Like you, I was terrified about the tax implications of a lump sum severance. After doing a ton of research (and using some of the tools others mentioned), I realized the tax bracket fear was mostly unfounded due to how marginal rates work. But what really helped me decide was thinking about the time value of money and my personal financial situation. I ended up taking the lump sum because: 1) I could immediately max out my 401k and IRA contributions to reduce the taxable amount, 2) I had high-interest debt I could pay off right away, and 3) I wanted the certainty of having the money rather than risking the company having financial problems later. The peace of mind was worth more to me than the small tax difference. Plus, having that cash cushion made my job search way less stressful - I could be pickier about opportunities instead of taking the first thing that came along. Everyone's situation is different, but don't let tax bracket misconceptions drive your decision. Focus on what makes sense for your overall financial picture and job search timeline.

Does anyone know if tax software like TurboTax automatically calculates the Social Security tax overpayment refund? Or do I need to manually enter something specific?

This is such a relief to read! I'm in almost the exact same boat - left my job in July after hitting the SS tax cap, then started a new position where they've been withholding SS tax for the rest of the year. I've been losing sleep over whether I'd have to deal with separate payments and refunds. Based on what everyone's saying here, it sounds like the IRS will just net everything out on my 1040, which makes way more sense than having to juggle multiple transactions. The safe harbor rule explanation was especially helpful - I definitely paid over 110% of last year's tax through withholding, so that should protect me from penalties. Thanks to everyone who shared their experiences and tools. It's nice to know this is a common situation and there are resources to help navigate it!

Don't overlook the importance of state tax knowledge! I used an out-of-state preparer once to save money and ended up missing out on several state-specific deductions. Cost me way more than I saved. At minimum, make sure whoever you use has experience with your specific state's LLC tax requirements, even if they're not physically located there.

I completely understand your stress about this situation - I was in a similar boat with my consulting LLC a couple years ago. Here's what I learned from my experience: You absolutely don't need a CPA for LLC tax preparation, especially if budget is a concern. An Enrolled Agent (EA) can handle everything you need and typically charges 20-40% less than CPAs. EAs are federally licensed and can represent you before the IRS, which is crucial when dealing with multiple years of unfiled returns and potential penalties. For the location question - physical proximity doesn't matter, but state tax expertise absolutely does. I made the mistake of using someone from out-of-state who didn't understand my state's specific LLC requirements and it ended up costing me more in the long run. Look for someone who specifically mentions experience with your state's tax laws, even if they're not physically located there. Given your multi-year backlog, focus on finding someone with experience in penalty abatement and catch-up filings. They can often get penalties reduced or waived entirely by properly explaining your circumstances to the IRS. Don't let the stress paralyze you - the longer you wait, the worse it gets. Getting accurate returns filed ASAP is what matters most, regardless of whether it's done by a CPA or EA. The IRS cares about accuracy and compliance, not the credentials of who prepares your returns. Good luck!