Anyone else notice that H&R Block's interview questions about rental properties are super confusing? I've been using them for 3 years and still get tripped up. I switched to TurboTax this year and their rental section is much clearer IMO.

Great discussion everyone! As someone who's been dealing with rental properties for several years, I can confirm what others have said - the mortgage interest and property taxes for your rental go ONLY on Schedule E, not in the itemized deductions section. The key thing to remember is that rental property expenses are considered business expenses that directly offset your rental income, while the mortgage interest deduction section you're seeing is specifically for personal residences (primary home or vacation home you personally use). One tip that might help: when H&R Block asks about "primary or secondary home" in the deductions section, think of it as asking about homes where YOU live, not homes you rent to others. Your rental property doesn't fit either category because it's an investment property, not a personal residence. You're doing it right by putting everything on Schedule E - don't second-guess yourself!

Quick question - if I set up my withholding to cover next year's taxes but already have the penalty this year, can I get the current penalty reduced or is it too late once you file?

I went through almost the exact same situation last year with CDs maturing unexpectedly! Here's what worked for me in TurboTax: 1. Definitely try the annualized income method as others mentioned - search for "Form 2210" in TurboTax and look for the checkbox to "use annualized income installment method." You'll need to break down when you received the CD interest by quarter. 2. Double-check the safe harbor rule. If your total withholding plus estimated payments equal at least 100% of last year's total tax (110% if your prior year AGI was over $150K), you should qualify even if it's less than 90% of this year's tax. 3. One thing I discovered - make sure TurboTax isn't double-counting any estimated payments you might have made. I had made one small estimated payment mid-year that I forgot about, and initially TurboTax missed it. 4. Also check if any of your CDs had tax withheld at the source - sometimes banks withhold federal tax on interest payments, which should count toward your payments for the year. The annualized method ended up reducing my penalty from about $600 to under $100. It's worth the extra effort to fill out those quarterly breakdowns!

My tax advisor gave me a great tip last year - check your state's tax laws too! While you can't deduct rental insurance on federal taxes, some states have renter's credits or deductions. I live in Minnesota and they have a "Renter's Property Tax Refund" where you can get back some of the property tax that's essentially built into your rent. Saved me almost $750 last year!

Just wanted to add my experience as someone who's been renting for over 5 years - the lack of tax benefits for renters can be frustrating, but there are still ways to maximize your tax situation. While rental insurance isn't deductible, I've found that keeping detailed records of ALL your expenses throughout the year helps identify other potential deductions you might miss. For example, if you moved for work, donated items when decluttering your apartment, or had any education expenses, those could be deductible. I also make sure to track any state and local taxes I pay since those can sometimes be deducted (up to the SALT limit). The key is not to focus on what you CAN'T deduct as a renter, but to make sure you're capturing everything you legitimately CAN deduct. Even small deductions add up over time!

Anyone know if the 2025 tax law changes will affect this at all? I heard some suspended deductions are coming back.

I went through something very similar last year and ended up working with a tax attorney who specializes in employment-related legal expenses. One thing that really helped my case was documenting exactly how the harassment was impacting my work performance and income potential. The key distinction the attorney explained is whether the legal fees were incurred to protect your ability to earn income versus just for personal protection. In my case, I had to show that the restraining order was necessary to maintain my employment and earning capacity, not just for general safety. We ended up being able to deduct about 60% of the legal fees on my California return by arguing they were directly related to income production. The documentation was crucial - I had emails showing how the harassment was affecting my work, performance reviews that mentioned the impact, and even some lost client interactions due to the situation. Worth noting that California's rules are more favorable than federal right now, so definitely explore both angles if you're in CA. The investment in getting proper tax advice paid for itself in my case.

If your return was accepted but now says "we may need more information," check if you claimed any of these credits, as they often trigger additional review: - Earned Income Tax Credit - Child Tax Credit - American Opportunity Credit - Premium Tax Credit (for health insurance) My return was held up last year because of EITC verification. Took almost 8 weeks total but eventually processed without me needing to do anything.

I'm going through almost the exact same situation! Filed through FreeTaxUSA about 5 weeks ago, got the initial acceptance, then that dreaded "we may need more information" message appeared. Haven't received any mail yet either. Reading through these comments has been incredibly helpful - I had no idea about the identity verification delays when switching from a professional preparer to self-filing. That's probably exactly what's happening since we used H&R Block last year. The 21-30 day processing time Brandon mentioned gives me some peace of mind that we're still within normal range, even if it feels like forever when you're counting on that refund. Going to check out that Treasury Offset Program number Axel mentioned just to rule out any debt issues, and might try the taxr.ai tool if we don't hear anything in another week or two. Thanks everyone for sharing your experiences - makes me feel a lot less alone in this waiting game!