One thing nobody has mentioned yet - you should check if the trust document specifies whether the trustee has discretion over distributions. Some trusts are set up as "simple trusts" that MUST distribute all income, while others are "complex trusts" where the trustee can retain income. If the trust document requires all income to be distributed, then there might be a problem with how the trustee is handling things. If it's discretionary, then unfortunately what you're experiencing is normal, albeit frustrating.

Has anyone dealt with the situation where the trust income varies WILDLY from year to year? Our family farm trust had a terrible year in 2023 (drought) and then an amazing year in 2024 with crop prices soaring. The K1 income is 5x higher this year than last! Makes tax planning impossible!!

Has anyone used FreeTaxUSA for filing with a single-member LLC and W2 income? I'm trying to avoid the higher fees from TurboTax but not sure if the cheaper options handle Schedule C well.

As someone who went through this exact transition two years ago, I'd say start with good tax software first before jumping to a CPA. With $18K in LLC income, you're definitely in manageable territory for self-filing. The key things that made my first year smooth: 1) Keep meticulous records of ALL business expenses (even small ones add up), 2) Set aside about 25-30% of your LLC profits for taxes (you'll owe self-employment tax on top of income tax), and 3) Don't forget about potential quarterly payments for next year. I used TaxAct Business which handled my Schedule C perfectly and cost way less than TurboTax. The software walked me through everything step-by-step, including home office deductions and business use of vehicle if applicable. One thing I wish someone had told me - even though you're a single-member LLC, make sure you're treating it like a real business from a record-keeping standpoint. Separate bank accounts, proper receipts, detailed mileage logs if you drive for business. The IRS scrutinizes Schedule C filers more than W2-only folks, so having everything documented properly is crucial.

As a newcomer to this community, I found this thread incredibly helpful! I'm 68 and just started receiving Social Security benefits this year, so I'll likely be in a similar situation when I file my taxes. It's reassuring to know that the 1040SR form is designed specifically for seniors and that these CP12 notices are relatively common. The explanations here about how the IRS basically "called it even" by offsetting the refund against the tax adjustment makes perfect sense. I'm definitely bookmarking some of the resources mentioned here - especially the advice about keeping the SSA-1099 form handy for reference. Better to be prepared than surprised by one of these letters next year!

As someone who's also new to this community and dealing with IRS correspondence for the first time, I really appreciate how thoroughly everyone explained this situation! I'm 66 and will be filing my first tax return that includes Social Security benefits next year, so this whole thread has been like a masterclass in what to expect. The fact that TurboTax automatically switches to the 1040SR form for seniors is something I had no idea about. And knowing that CP12 notices are common for first-time Social Security filers actually makes me feel less anxious about potentially receiving one myself. One question for those with experience - is there a way to double-check the Social Security benefits calculation before filing to avoid these adjustments? Or is it just one of those things where you have to be extra careful with data entry and hope for the best?

I'm in the same boat! I started selling my vintage toy collection on eBay and am confused about whether I need to track my original purchase price from years ago? Most of these toys I bought in the 90s and have no receipts for. How do I figure out cost of goods sold in this case?

Just went through this exact same situation last year! The confusion is totally normal for first-time Schedule C filers. Here's what I learned after consulting with a tax professional: Your $4,800 total sales (including shipping charged to buyers) is correct for Line 1 gross receipts. Then you'll deduct your business expenses - the $650 eBay fees, $900 actual shipping costs, and don't forget about other deductibles like packaging materials, printer ink for labels, gas/mileage for post office trips, and even a portion of your home if you use it for storage/photography. One thing that tripped me up initially: if you're selling personal collectibles you owned for years (not bought specifically to resell), some of those might actually be capital gains/losses rather than business income. But if you're actively sourcing and reselling as a regular activity, then Schedule C is the right form. Pro tip: Start keeping detailed records NOW for this year - every receipt, every mile driven, every supply purchased. It makes next year's filing so much easier! Also consider opening a separate business bank account to keep everything clean and organized. You've got this! The first year is always the hardest but it gets much simpler once you understand the process.

I totally feel your pain! 😅 I'm going through the exact same thing right now - my 'as of date' has been bouncing around like a ping pong ball since I filed. First it was 2/10, then 2/24, now it's sitting at 3/18 and I have no idea what any of it means! After reading through everyone's explanations here, it sounds like we've all been driving ourselves crazy over what's essentially just internal IRS bookkeeping dates. I wish they'd put a big disclaimer on the transcript page that says "THIS DATE DOES NOT PREDICT YOUR REFUND" or something! The identity verification process definitely seems to trigger these date changes - mine jumped forward by two weeks right after I completed mine too. But based on what everyone's sharing, it doesn't sound like it actually delays anything, it's just their system updating cycles. Thanks everyone for sharing your experiences! Makes me feel way less alone in this transcript-obsessing madness. Now I just need to resist the urge to check it every 6 hours... 🤦‍♀️

This whole thread has been incredibly helpful! I'm dealing with the same exact situation - filed early, went through identity verification, and now my 'as of date' has changed twice. I was definitely treating it like some kind of refund countdown timer, but after reading everyone's explanations about it being an internal processing marker for interest calculations, it makes so much more sense. What really gets me is how the IRS doesn't explain any of this clearly on their website. You'd think after decades of confused taxpayers they'd add a simple note explaining what these dates actually mean! Instead we're all here playing amateur codebreakers trying to figure out their system. I'm curious though - for those who've been through this before, do you find that checking the transcript obsessively actually helps with anything, or does it just add to the stress? I'm torn between wanting to stay informed and wanting to just forget about it until my refund shows up. Thanks to everyone who shared their experiences - this community is way more helpful than the actual IRS help pages! 😅