I'm dealing with a similar W2C situation right now and this thread has been incredibly helpful! Just wanted to add one more tip that might save others some time. If you're still having issues after trying the state tax section approach, check if your W2C has an "Employee's State ID number" in box 15. Sometimes when employers mess up multi-state reporting, they also get the state ID numbers wrong, which can cause additional validation errors in tax software. In my case, the original W2 had my SSN listed for both states, but the W2C corrected it to show my SSN only for my actual state of residence and removed it entirely for the incorrect state. This small detail was causing FreeTaxUSA to throw errors until I noticed it and entered it correctly. Also, for anyone worried about timing - I filed with both my W2 and W2C last month and got my refund processed normally with no delays or additional correspondence from the IRS. The correction was handled seamlessly once everything was entered properly in the software.

Thank you all for this incredibly detailed discussion! As someone who's been putting off dealing with my own W2C situation, this thread has been a lifesaver. I wanted to share that I just successfully filed using the state tax section approach that @Savanna Franklin mentioned. Like many others here, I was getting stuck trying to enter the W2C through the main forms section and hitting that box 1 validation error. What really helped me was understanding that FreeTaxUSA treats state corrections differently from federal corrections. Once I accessed the W2C entry through "State Tax > Correct State Documents" instead of the main W2/1099 forms section, everything fell into place. I only had to enter the corrected state information (changing the incorrect state's income from $847 to $0), and the software automatically removed that state from my filing requirements. For anyone still struggling with this, here's my step-by-step process that worked: 1. Enter your original W2 normally through the main forms section 2. Go to State Tax section in FreeTaxUSA 3. Look for "Correct State Tax Information" or similar option 4. Enter only the boxes that changed on your W2C (ignore the box 1 validation entirely) 5. Verify that the incorrect state disappears from your required filings The whole process took maybe 10 minutes once I found the right entry method. My return is now ready to file and shows I only owe taxes in my actual state of residence. Thanks everyone for sharing your experiences - this community really came through!

Has anyone actually calculated whether it's better to just sell RSUs immediately upon vesting rather than hold them? My financial advisor keeps telling me to diversify away from my company stock because it creates risk concentration.

I actually just went through this exact scenario a few months ago! One thing that wasn't mentioned yet is the timing consideration for year-end tax planning. If you're already facing a big tax bill this year like you mentioned, donating the RSUs before December 31st could help offset some of that income with the charitable deduction. But here's what caught me off guard - make sure your brokerage can actually transfer the shares to your chosen charity efficiently. Some brokerages make it really cumbersome and it can take weeks to process. I almost missed my year-end deadline because of transfer delays. Also, if you're planning to donate regularly, consider opening a donor-advised fund account. You can dump all your RSUs there at once, get the immediate tax deduction, then distribute to charities over time. This gives you more flexibility than direct donations to individual charities.

PSA: If your transcript is blank, make sure you're looking at 2023 and not 2024! I made that mistake lol 😅

I feel your pain! The "RETURN NOT PRESENT" message is terrifying but totally normal this early in tax season. I was in the exact same situation last month - completely blank transcript for almost 3 weeks after filing. The IRS is just super backed up right now. Your return is definitely in their system, it's just sitting in a queue waiting to be processed. I'd check WMR too but don't stress if that's also showing "still processing" - transcripts are usually more reliable once they do update. Hang in there! 💪

Don't some people create LLCs or S-Corps specifically to write off stuff though? I know a guy who has a "consulting business" but seems to write off his car, travel, meals, etc., and I'm pretty sure he only has like 2 clients a year. Is that legal?

The IRS has gotten much more sophisticated with data analytics in recent years. They use algorithms to identify patterns that suggest tax fraud, including businesses that consistently show losses while claiming large deductions against W-2 income. One thing people don't realize is that the IRS cross-references data from multiple sources. If you claim a "travel consulting business" and write off vacations, but they see no business income reported, no business bank account activity, no marketing expenses, no client communications, etc., it paints a clear picture. They also look at lifestyle vs. reported income. If someone making $50K W-2 income is writing off $20K in "business" expenses for luxury items but shows no corresponding business revenue or growth trajectory, that's an obvious audit trigger. The key is that legitimate businesses leave paper trails everywhere - bank statements, client contracts, invoices, marketing materials, business licenses, professional development, etc. Fake businesses created just for tax avoidance lack this ecosystem of supporting documentation. Beyond audits, the IRS can also impose accuracy-related penalties (20% of underpaid tax) or fraud penalties (75% of underpaid tax) plus interest. The risk-reward math just doesn't work out for these schemes.

For the 2025 filing season, if anyone wants to avoid these issues in the future, file as early as possible! I filed the first week returns were accepted and had my refund in 8 days without ever seeing any weird codes. The longer you wait, the more backlogged the IRS gets, and the more likely you are to see delays even without any problems on your return.

I went through this exact same panic last year! Tax Topic 152 is basically the IRS's way of saying "we're working on it" - it's not a red flag at all. Since you filed through TurboTax 3 weeks ago, you're still well within the normal processing window. The IRS has been pretty backed up this season, so even straightforward returns are taking closer to 3-4 weeks instead of the usual 21 days. I'd only start getting concerned if you hit the 6-week mark without any status updates. Keep checking "Where's My Refund" every few days, but try not to obsess over it (easier said than done, I know!). The good news is that Tax Topic 152 almost always means your refund is coming - it's just a matter of when, not if.