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Make sure you're filing as "deceased" correctly. The tax return should have "DECEASED" written across the top with the date of death. The signature line should be signed by the executor as "Personal Representative for [brother's name]." Also, you might need to file Form 56 to notify the IRS of fiduciary relationship. And don't forget that your brother's standard deduction amount doesn't change just because he didn't live the full year - he's entitled to the full amount.
Speaking from experience - also make sure you're filing state taxes correctly too! Each state has slightly different rules for deceased taxpayers. Some require additional forms beyond what the federal return needs.
I'm so sorry for your loss, Sarah. Dealing with uncooperative employers during an already difficult time is incredibly frustrating. Here's something that might help - you can also try contacting your state's Department of Labor or Wage and Hour Division. They often have authority over employers who fail to provide required tax documents and can sometimes get faster results than going through the IRS alone. Additionally, if your brother had direct deposit, his bank statements showing the exact deposit amounts and dates can be very helpful for the IRS. They can often match this up with what the employer actually reported (or should have reported) to verify the accuracy of your estimates. One more thing - make sure you're keeping detailed records of every attempt you've made to get the W-2. Document dates, who you spoke with, what they said, etc. This documentation will be valuable if the IRS has any questions later and shows you made good-faith efforts to get the correct information. You're doing a great job helping your family through this difficult process. Don't let this employer's lack of cooperation add unnecessary stress - you have options and the IRS understands these situations happen.
Just went through this exact situation a few months ago! Your instinct is right - since the W-2C only changes state allocation without affecting your total income, you don't need to amend your federal return. The IRS doesn't care which state the income came from as long as the federal total is correct. For California, you'll likely need to file an amended state return (540X) to report the additional income that's now properly allocated there. The good news is California's amendment process is pretty straightforward online. Just make sure to include both your original W-2 and the W-2C when you file. Since you're still waiting on your California refund, I'd suggest calling the California Franchise Tax Board (FTB) first. They might be able to adjust your pending return directly rather than having you file a separate amendment, which could save you weeks of processing time. Their phone number is on the California tax website. One heads up - you'll probably owe additional California tax since more of your income is now allocated there, so be prepared for that when you make the correction!
This is really helpful advice! I'm definitely going to try calling the California FTB first to see if they can adjust my pending return directly. That would be so much easier than filing a whole amendment. Do you happen to know if there's a specific department or number I should ask for when I call? I want to make sure I get to someone who can actually help with W-2C corrections rather than getting bounced around between different departments. Also, when you say I'll probably owe additional California tax - should I expect to pay penalties or interest since this correction is coming after I already filed? Or do they typically waive those when it's due to employer error with a W-2C?
Hey Oliver! I actually dealt with something very similar last year when my employer issued a W-2C that moved income between states. A few quick points that might help: First, definitely try calling California FTB before filing an amendment - they were surprisingly helpful when I called. Ask for the "Individual Income Tax" department and specifically mention you have a W-2C correction affecting state income allocation. They have a dedicated process for handling these situations. Regarding penalties - California typically won't charge penalties or interest when the error was due to employer mistake, especially if you're correcting it promptly after receiving the W-2C. Just make sure to keep documentation showing when you received the corrected form. One thing that caught me off guard - the additional California tax you'll owe might affect your estimated tax payments for this year if the amount is significant. California sometimes requires you to adjust your withholding or make quarterly payments going forward to avoid underpayment penalties next year. Also, since you already got your federal refund, you're in good shape there. The fact that your federal numbers didn't change at all makes this much simpler than it could have been. Just focus on getting the California situation sorted out and you should be all set!
One more thing to consider - the timing of when you discovered the damage vs when it actually occurred can matter for which tax year you claim it in. If you discovered all this damage in early 2023 even though it happened in late 2022, you might have the option of which year to claim it in.
This is incorrect advice. Casualty losses must be claimed in the year they occurred, not when they were discovered. The only exception is for federally declared disaster areas, which this isn't. Please be careful about spreading misinformation.
I went through a very similar situation with tenant vandalism in 2021, and I can share some specific insights about the Form 4684 process that might help you. First, your approach is mostly correct - you'll need to file an amended return for 2022 since that's when the damage occurred. The key is properly documenting the "before and after" fair market value, which you can do even with partial repairs completed. For the fair market value calculation, the IRS accepts what's called the "cost to repair" method when you can't get a formal appraisal. Since you have $16k in documented materials costs, multiply this by 2.5-3 to estimate total repair costs (including labor). This gives you a reasonable estimate of value reduction that the IRS will accept if properly documented. Make sure you're also accounting for lost rental income during the repair period - this can be claimed as additional casualty loss if you can show the property was uninhabitable and you lost actual rental income. One critical point: save all your "before" photos and get a written statement from that appraiser you mentioned, even if it's just a brief email confirming the damage would have made the property unmarketable. The IRS loves contemporaneous documentation. Also, since you mentioned the tenant was arrested, try to get a copy of any police reports or court documents that reference the property damage - this strengthens your case that it was vandalism rather than normal wear and tear. Your estimated 25% value reduction seems reasonable given the scope of damage you described. With proper documentation, this should be a solid casualty loss claim.
This is really comprehensive advice, thank you! I hadn't considered the lost rental income aspect - the property was definitely uninhabitable for about 4 months while I did repairs. I was getting $1,800/month rent, so that's another $7,200 in losses I could potentially claim. One question about the "cost to repair" method - when you multiply materials by 2.5-3x, is that something the IRS specifically recognizes, or just an industry standard? I want to make sure I can defend that calculation if questioned. Also, regarding the police reports - they documented the condition when confirming the tenant had vacated, but didn't specifically investigate it as vandalism since the tenant was gone. Would that still be useful documentation, or should I try to get something more specific about the criminal nature of the damage?
I went through this exact same situation about 6 months ago! Had a TC 570 for almost 3 weeks with zero notices. What finally worked for me was calling right at 7 AM when they open - I got through in about 35 minutes instead of the usual 2+ hour wait. The agent explained that my 570 was triggered because the IRS computer system flagged a discrepancy between my reported income and what my employer filed, even though everything was actually correct on my end. She was able to clear the hold immediately once she reviewed my account. My advice: don't wait too much longer since you're already at 2 weeks. The earlier you call in the morning, the better your chances of getting through quickly. Have your Social Security card, driver's license, and a copy of your return ready when you call. Good luck!
This is really helpful advice! I'm curious though - when you say the IRS computer system flagged a discrepancy between your reported income and what your employer filed, did you ever find out what specifically was different? I'm wondering if this is something I could check on my end before calling to save time during the conversation with the agent. Also, did your refund get processed immediately after the hold was cleared, or was there still additional processing time after that?
I'm currently in week 3 of a TC 570 hold myself, and after reading through everyone's experiences here, I decided to try the early morning calling strategy that several people mentioned. Called at 7:02 AM yesterday and got through in exactly 42 minutes - way better than my previous attempts in the afternoon that never connected. The agent told me my 570 was due to the IRS needing to verify some education credits I claimed, which makes sense since I just graduated. She said these verification holds are incredibly common right now and that most resolve within 4-6 weeks, but calling can sometimes speed things up if the agent can manually review your case. In my situation, she couldn't clear it immediately but did escalate it for priority review, so I should hear something within 7-10 business days. For what it's worth, she mentioned that returns with education credits, child tax credits, or earned income credits are getting flagged for verification at much higher rates this year compared to previous years. Might be worth calling sooner rather than later if you have any of those credits on your return.
Thanks for sharing your experience! I'm also dealing with education credits on my return (just finished my master's degree), so this gives me hope that my 570 might be similar. Quick question - when the agent said she escalated it for priority review, did she give you any kind of reference number or way to track that escalation? I'm planning to call tomorrow morning using the early strategy, and I want to make sure I ask for the right things if I can't get immediate resolution. Also, did your transcript show any changes after she escalated it, or does that usually not update until the hold is actually resolved?
Keisha Johnson
FYI the "Where's My Refund" tool on the IRS website is basically useless. It has the same generic status messages for weeks. I called them after waiting 35 days this year and found out there was a simple issue they needed to verify. I wish they'd just tell us what's happening instead of those vague messages.
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Paolo Longo
ā¢Try using the IRS2Go app instead. Sometimes it updates faster than the website and gives slightly more information.
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Isabella Brown
Dylan, I totally understand your anxiety! I went through something similar last year. The 21 days is calendar days, and you're only at day 16, so you're still well within the normal timeframe. That status message change is actually super common - it doesn't mean there's a problem, just that your return needs a bit more review time. Could be something as simple as verifying information with your employer or bank. Since you have bills due, you might want to have a backup plan just in case, but honestly most people with that message still get their refunds within the 21-day window. Try not to stress too much - easier said than done, I know! If you hit day 21 without an update, that's when I'd start making calls to get more info.
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