Does anyone know which form you use to report this? Is it just on Schedule D or is there another form for claiming the partial exclusion specifically?

Great question! Based on your timeline, you should definitely qualify for the partial exclusion. The key factors working in your favor: 1. **Work-related move qualifies**: Your job relocation is one of the IRS-recognized "unforeseen circumstances" that allows for partial exclusion even when you haven't met the full 2-year requirement. 2. **9 months of use counts**: You lived in the home as your primary residence from April-December 2021, which gives you 9/24 of the maximum exclusion (37.5% of $500k = $187,500 for married filing jointly). 3. **Rental period doesn't disqualify you**: The fact that you rented it out after moving doesn't affect your eligibility for the partial exclusion on the period when it was your primary residence. However, a few important points to remember: - You'll still owe depreciation recapture taxes on any depreciation claimed during the rental period (taxed at up to 25%) - Make sure you have good documentation of the job change, move dates, and occupancy periods - Consider having a tax professional prepare this return given the complexity of mixed-use property sales Your tax professional's assessment sounds correct. With a $180k gain ($675k - $495k), the partial exclusion should cover most or all of your capital gains tax liability, though you'll still have the depreciation recapture to deal with.

Just to clarify some confusion I'm seeing in other comments: Cycle code 0505 means your account is on a weekly processing cycle (05) that updates on Thursdays, and the 05 at the end indicates the year (2025 for 2024 tax returns). In my experience working with tax clients, PATH Act returns (with EITC/ACTC) filed in January typically complete processing by mid-March, but this year we're seeing longer delays across the board. The lack of an 846 code simply means your refund hasn't been scheduled yet - it doesn't necessarily indicate a problem.

I'm in a very similar situation! Filed on January 23rd with the same 0505 cycle code and PATH message. What I've learned from researching this is that the IRS is required by law to hold refunds with EITC or ACTC until at least February 15th, but this year they seem to be taking much longer than usual. I've been checking my transcript every Thursday night (that's when 0505 cycles typically update) and finally saw some movement last week - got a 766 credit code but still no 846. From what I understand, once you see the 846 code with a date, your refund should be deposited within 1-5 business days. The waiting is definitely frustrating, especially when you're counting on that money, but it sounds like we're both still within the realm of "normal" processing times for this year, unfortunately.

As a radiologist who's been doing contract work for several years, I can confirm you should definitely be eligible for the QBI deduction! The key thing to understand is that while radiology is considered a "specified service trade or business," you're not automatically disqualified - it just means there are income thresholds that apply. With your total income around $230,000, you'll likely qualify for at least a partial deduction depending on your filing status and final taxable income after all deductions. The phase-out for single filers starts at $182,100 and completely phases out at $232,100 for 2024 tax year. A few practical tips: Make sure you're tracking all your business expenses related to the contractor work (professional licenses, malpractice insurance, continuing education, etc.) as these reduce your taxable income. Also consider the home office deduction if you're doing reads from home - it's separate from QBI but helps reduce your overall tax burden. Don't let TurboTax's confusing interface discourage you from claiming what you're entitled to. The software sometimes makes it seem more complicated than it actually is for healthcare professionals.

One thing I haven't seen mentioned yet is that you should also consider making estimated quarterly payments for next year if you plan to continue the contractor work. Since you made $42,000 in 1099 income, you'll likely owe both income tax and self-employment tax on that amount. The IRS generally wants you to pay as you go, so if you're planning to do similar contract work in 2025, calculate roughly 25-30% of your expected contractor income and make quarterly payments. This will help you avoid underpayment penalties and make tax time much less stressful. Also, keep detailed records of when you started and stopped work sessions for your home office deduction - the IRS likes to see that you're using the space regularly and exclusively for business purposes. A simple log showing dates and hours worked from home can be valuable documentation.

Has anyone considered pet insurance instead of trying to find tax deductions? I pay about $45/month for my lab mix, and when she needed knee surgery last year, they covered 90% after my $250 deductible. Saved me thousands! Not tax advice but might help with the financial burden next year.

I totally feel your pain with those unexpected vet bills! Unfortunately, as others have mentioned, regular veterinary expenses for pets aren't deductible as medical expenses on your tax return. The IRS is pretty clear that these deductions only apply to humans, not our furry family members. However, I noticed you mentioned Lucy appears in photos for your handmade dog accessories business - that could actually open up some possibilities! If you're legitimately using her as part of your business operations (product modeling, social media marketing, etc.), you might be able to deduct a portion of her expenses as business costs rather than trying to claim them as medical expenses. You'd need to keep detailed records of her business use versus personal time, document how her images generate business income, and track all expenses separately. It's definitely more complex than a standard medical deduction, but it could be a legitimate way to recover some of those costs. I'd suggest consulting with a tax professional who has experience with small business deductions to make sure you handle it properly. Also, definitely consider pet insurance going forward - it won't help with this year's taxes, but it could save you thousands on future vet bills!

I just want to echo what everyone else is saying - definitely file the amendment sooner rather than later! I had a similar situation with a 403b rollover that I forgot to report, and I made the mistake of waiting to see if the IRS would notice. They did notice (about 4 months later), and while there wasn't a penalty since it was non-taxable, I had to spend time responding to their notice and providing all the documentation I could have just included with an amendment from the start. The IRS notice made it sound much more serious than it actually was, which caused unnecessary stress. One tip that helped me - when I finally responded to the IRS notice, I included a cover letter that clearly stated "NON-TAXABLE DIRECT ROLLOVER" at the top in bold letters, followed by a brief explanation. This seemed to help the IRS processor understand the situation quickly. You could do something similar with your amendment to make it crystal clear what happened. Since you already know about the issue and have time to handle it properly, filing the amendment now will save you from that whole back-and-forth process with IRS correspondence later.

I'm dealing with almost the exact same situation right now! I also forgot to include a 1099-R for a rollover from my old company's 401k to my Fidelity IRA. Reading through all these responses has been incredibly helpful - especially knowing that even though the taxable amount is $0, I still need to file an amended return to avoid potential IRS notices later. I was initially panicking thinking I might owe a huge penalty, but it's reassuring to hear from so many people who went through this and that it's really just a documentation issue rather than a tax liability problem. The advice about getting written confirmation from both the old plan administrator and the receiving institution is something I definitely need to do. One question I have - for those who filed amendments for similar situations, how long did it typically take for the IRS to process the amended return? I'm just curious about timing since I want to make sure this gets resolved before any automated systems flag the discrepancy. Thanks to everyone who shared their experiences - this thread has been a lifesaver for understanding what I need to do!