My brother tried something similar with "business suits" and got audited. The IRS agent literally asked him if he wears the suits outside of work, and when he said yes sometimes, they disallowed ALL the deductions and hit him with penalties. The gift card thing would just make it worse cuz it looks like you're trying to hide something.

Your uncle's advice is unfortunately terrible and could get you in serious legal trouble. What he's describing is essentially structuring transactions to hide their true nature, which the IRS considers fraudulent behavior regardless of the payment method used. The reality is that business clothing deductions are extremely limited. Even if you're meeting clients, regular business attire (suits, dresses, etc.) doesn't qualify because it can be worn outside of work. The IRS has a three-part test that's nearly impossible for normal clothes to pass. Instead of risking fraud charges, focus on legitimate business deductions you might be missing - home office expenses, professional development, networking events, business meals, etc. These have clear guidelines and won't put you at risk of criminal charges. Trust me, no designer handbag is worth potential jail time or massive penalties. Stick to legitimate deductions and sleep peacefully at night.

The 846 code is absolutely great news! You're basically at the finish line now. That code means the IRS has completed all processing and reviews on your return and has officially approved your refund for payment. Since you mentioned you've been waiting since early February, your return likely went through some additional verification (which has been really common this tax season). But now that you see the 846 code, you can stop worrying - your $3,700 is definitely coming. The date next to the 846 code is when the IRS will send the payment to your bank. Most people with direct deposit see the money in their account within 1-3 business days of that date, though it can vary by bank. Some people even get it the same day if their bank processes deposits quickly. You can stop checking the Where's My Refund tool now - it's notoriously slow to update and often doesn't change until after you've already received your money. Just keep an eye on your bank account around the date shown on your transcript. Congrats on finally getting through the waiting period!

That's fantastic news! Code 846 is exactly what you want to see - it means your refund has been fully approved and is scheduled for payment. You're basically done with the waiting game at this point. Since you filed in early February and are just now seeing the 846 code, your return probably went through additional review or verification (which has been super common this tax season due to fraud prevention measures). But now that you have that 846 code, your $3,700 is guaranteed. The date next to the 846 code is when the IRS will release the payment. For direct deposit, most people see their money within 1-2 business days of that date, though it can vary by bank. Some banks post it the same day, others take up to 3 business days. Pro tip: You can stop checking Where's My Refund now - that tool is notorious for not updating until after people have already received their money. Just watch your bank account around the scheduled date. Hope you get that refund soon to tackle those credit cards!

Thanks everyone for the detailed explanations! This really clears up my confusion. I was overthinking it because the form looked so complicated, but it sounds like for my simple situation with just one personal account, I can skip that consolidated section entirely and just focus on accurately reporting my account details and maximum balance. Really appreciate all the specific examples too - helps to see how the consolidated section actually works for corporate situations versus individual filers like me. Time to finish this FBAR without stressing about sections that don't apply to my situation!

Just wanted to add my experience as someone who's been filing FBARs for several years now. The consolidated reporting section confusion is super common - I remember staring at that section for like an hour my first time filing, convinced I was missing something important! For individual filers, you really can ignore that entire section. I've had anywhere from 1-4 foreign accounts over the years (personal savings, checking, and investment accounts in different countries due to work relocations), and I've never once needed to touch the consolidated section. The key thing to remember is that as an individual, you're just reporting YOUR accounts - even if you have multiple accounts, you're still just one person filing one FBAR. The consolidated section is really designed for complex business structures where one company is reporting on behalf of multiple subsidiaries or related entities. Focus on getting your account details right (especially those account numbers - foreign banks format them weirdly sometimes) and calculating your maximum balances correctly throughout the year. That's where the real work is for individual filers like us!

I'm glad you got this resolved! As someone who's dealt with similar situations, I wanted to add that if this ever comes up again with future employers, you have the right to ask for a clear explanation of why they need specific tax information and what they'll use it for. Legitimate reasons might include: - Work Opportunity Tax Credit eligibility (as others mentioned) - Grant compliance requirements for hiring from certain demographics - Background check requirements for positions handling finances But even in these cases, they should be transparent about the purpose and often there are alternative ways to verify the information they actually need without sharing your complete tax return. For example, an IRS wage transcript or a simple income verification letter might serve the same purpose while protecting more of your privacy. The fact that they accepted your explanation and moved forward suggests this wasn't a hard requirement, which is reassuring. Always trust your instincts when something feels off about a job application process!

I'm glad this worked out for you! As a tax professional, I can confirm that employers should NEVER need your complete tax return. The most they should ask for is a W-4 for withholding and maybe an I-9 for employment verification. What likely happened here is they have some grant funding or tax credit program (like the Work Opportunity Tax Credit) that gives them financial incentives for hiring people from certain income brackets. These programs do require income verification, but there are proper forms for that - they shouldn't be asking for your entire 1040. For anyone else in this situation: you can request an IRS tax transcript instead of providing your full return. This shows basic income information without revealing all your personal financial details. You can get transcripts free directly from the IRS website or by calling them. The fact that they accepted your explanation and moved forward confirms this wasn't actually required - probably just someone in HR following outdated or incorrect procedures. Good for you for questioning it!

If you have multiple types of adjustments to make on Form 8949, do you need to create separate line entries for each type of adjustment, even if they're for the same property?

Great thread! I've been dealing with similar Form 8949 issues and this has been really helpful. One thing I'd add is that if you're unsure whether something qualifies as a repair vs. improvement, the IRS uses what they call the "betterment, adaptation, or restoration" test. If your work makes the property substantially better than it was before, adapts it to a new use, or restores it to a serviceable condition after it had deteriorated, it's likely a capital improvement that can be added to basis using Code L. For example, replacing old single-pane windows with energy-efficient double-pane windows would be betterment. Converting a basement into a rental unit would be adaptation. Replacing a roof that was leaking badly would be restoration. All of these would qualify for Code L adjustments. Simple maintenance like fixing a leaky faucet or touching up paint wouldn't meet this test and can't be added to basis - those are just regular repair expenses.