Has anyone actually tried exercising and selling in the same tax year to avoid AMT entirely? My financial advisor suggested this approach, but I'm not sure if it works in all situations.

One thing that really helped me understand this was realizing that AMT creates a "parallel tax system" where you essentially maintain two sets of books. When you exercised your ISOs, you paid AMT on the bargain element, but that payment creates an AMT credit that you can use in future years when your regular tax exceeds your AMT. The key insight is that when you sell after holding for over a year, your AMT basis in the stock is higher than your regular tax basis (because it includes that bargain element you already paid AMT on). This means your AMT gain will be smaller than your regular tax gain, creating what's called a "negative AMT adjustment" that helps you recover the AMT credit. So you're not being taxed twice - you're actually on track to recover some of that AMT you paid through the credit system. Just make sure you file Form 8801 to claim your AMT credit when you sell!

One thing nobody's mentioned - even if you're taking the standard deduction now, it might be worth tracking large purchases like cars just in case your situation changes later in the year. For example, if you have unexpected medical expenses or make large charitable donations that push you over the threshold for itemizing, having that car sales tax information ready could be valuable. The tax software asks everyone because it doesn't know your full situation until all information is entered.

I just want to add that H&R Block's software is just gathering ALL possible information that could affect ANY taxpayer. They don't know your specific situation until you finish everything. Most ppl take the standard deduction ($13,850 single, $27,700 married) but some with lots of mortgage interest, medical expenses, or charity might benefit from itemizing. That's why they ask about the car - it's just covering all bases.

Has anyone used TurboTax to amend their return when they had these weird codes? I'm in a similar situation with code 290 and need to submit an amendment but worried it'll mess things up more.

I went through almost the exact same situation last year! The 290 code combined with your audit being reversed is actually really good news. Here's what likely happened: When you filed your amended return right around the time of the audit, it created a processing conflict in the IRS system. The 290 code you're seeing is the IRS making an adjustment to reconcile your original return with the audit findings (which were then reversed) and your amendment. The fact that you now see code 846 (as you mentioned in your follow-up) means your refund has been approved and is being issued. That date is when the Treasury will send the payment - usually takes 1-3 business days to hit your bank account if you have direct deposit set up. For your stimulus payments, definitely claim the Recovery Rebate Credit on your 2022 return. Since your 2021 return was tied up in processing, you likely didn't receive the payments that were based on that return. The IRS will cross-reference what you've already received and give you credit for any missing amounts. One tip: keep checking your transcript weekly because sometimes additional codes appear that give you more details about processing timelines. After dealing with this mess for over a year, seeing that 846 code must feel amazing!

Quick question - I mailed in my 2022 return last month but haven't heard anything back yet. Is there a way to check if the IRS received it? I didn't e-file because I thought you couldn't do that for prior year returns.

Don't beat yourself up about being late - life happens and you're definitely not the first person to miss a filing deadline during a tough time! The good news is you're still well within that 3-year window to claim your refund. One thing I'd add to the great advice already given: make sure you have all your 2022 documents before you start. You'll need your W-2s, any 1099s, receipts for those medical expenses and charitable donations you mentioned, etc. If you're missing any tax documents from employers or financial institutions, you can request copies or sometimes find them in your online accounts from that year. Also, since you mentioned medical expenses - remember that for 2022, you could only deduct medical expenses that exceeded 7.5% of your adjusted gross income. It's worth calculating whether itemizing will actually give you a bigger deduction than the standard deduction was for 2022 ($12,950 for single filers). You've got this! Getting your finances back on track is a great step forward.

Great to hear you figured it out, Paolo! Just to add one more tip for anyone else reading this - when you're filling out applications that ask for gross income, it's always worth double-checking what they specifically mean. Some forms will clarify whether they want "total income before taxes" (which would be Line 9) or "adjusted gross income" (Line 11). If they don't specify and you're unsure, you can always call the organization directly to ask which number they prefer. Better to spend 5 minutes on a phone call than have your application delayed or rejected because of confusion about income reporting!

This thread has been incredibly helpful! As someone who works in tax preparation, I see this confusion all the time. Just wanted to add that if you're ever unsure about which line to use, you can also look at the instructions for the specific form you're filling out - they often provide examples like "use Line 9 from Form 1040" or "enter your AGI from Line 11." Also, for those with more complex tax situations (multiple income sources, business income, rental properties, etc.), it might be worth keeping a simple spreadsheet with your key tax numbers each year. I tell my clients to note down their Line 9 total income, Line 11 AGI, and their effective tax rate - these are the numbers you'll need most often for applications throughout the year. Saves a lot of time digging through paperwork later!