Just wanted to add that if you're using tax software like TurboTax or H&R Block, they have specific sections for rental properties where you can enter these different scenarios. I had a similar situation (rented out my basement for part of the year, then the whole house), and the software walked me through allocating expenses properly. The key is to create TWO separate rental property entries in the software - one for the partial rental (1 bedroom of 3) and another for the whole house rental. That way you can enter the correct percentage allocation for each period. Just make sure the addresses show it's the same physical property (you might need to add "Room 1" or something to distinguish them).

Don't forget about depreciation! This gets super complicated when you switch from partial to full rental. The way I understand it: 1) For the period when you rented just one bedroom, you start depreciation on just that portion (1/3) of the house 2) When you convert to full rental, you start depreciation on the remaining portion (2/3) using the fair market value at the time of conversion You'll end up with two different depreciation schedules for the same property. Also, don't forget to exclude the value of the land from your depreciation calculations.

Quick question - has anyone here successfully claimed both the Lifetime Learning Credit AND used employer tuition reimbursement in the same year? My situation seems similar to the original poster.

Laura, I went through almost the exact same situation with my MBA program last year! The timing confusion is totally normal - don't worry about the "mess" because this is actually pretty straightforward once you understand the key principles. Here's what I learned: You're absolutely right that you can maximize the $5,250 exclusion across multiple years. Since your reimbursements will span 2025-2026 (and potentially into 2027 if any payments are delayed), you can indeed take advantage of the annual exclusion in each year you receive payments. For your 2024 taxes, you'll report the 1099-T but won't report any reimbursement income since you didn't receive any in 2024. The January 2025 reimbursement will count toward your 2025 tax year, and so on. One thing to watch out for that saved me money: make sure your employer properly codes the reimbursements on your W-2. The first $5,250 each year should be excluded from your taxable wages, not just have taxes calculated differently. If they're including the full amount as taxable income, you'll need to work with HR to get that corrected. Also consider whether you want to claim education credits (like Lifetime Learning Credit) on the expenses that aren't covered by the tax-free reimbursement - just remember you can't use the same expenses for both benefits.

Anyone know if Treasury checks expire if they're not cashed? My buddy had one lost in USPS limbo for months... turned his tax season into a horror movie sequel: "Return of the Missing Refund." 😂

Military member here - dealt with this during my last PCS. Don't rely on USPS forwarding for Treasury checks! Even with mail forwarding set up, government checks often have restrictions. Here's what worked for me: 1) Put an immediate mail hold at your old address, 2) Contact your old post office directly and explain the situation - they can sometimes hold specific pieces like Treasury checks, 3) If possible, have someone you trust at your old location check the mail that day. The IRS can reissue if needed, but it adds weeks to the process. Since you're military, you might also want to update your address on MyPay if you haven't already - helps for future tax documents.

I'm dealing with this exact situation right now and it's so stressful! Filed my missing 2021 return in January and still waiting for my 2023 refund to release. Reading through everyone's experiences here is actually really helpful - at least I know I'm not alone in this waiting game. @Monique Byrd thanks for the specific IRM reference, that's exactly the kind of official guidance I was looking for. @Jackie Martinez I'm going to start watching for that TC290 code you mentioned. Does anyone know if there's a way to tell if your prior year return has actually been processed vs just received? My transcript still shows "no record of return filed" for 2021 but I got a confirmation when I e-filed it 6 weeks ago.

I went through this same situation two years ago and it was absolutely maddening! I had 570/971 codes on my 2021 return because I hadn't filed 2020 (long story involving a move and lost documents). What really helped me was understanding that there are actually TWO separate processing queues - one for the missing return and one for releasing the hold on your current year refund. My timeline was: Filed missing 2020 return on January 15th → saw it post to transcript February 28th → hold released on 2021 return March 14th. So about 8 weeks total, but only 2 weeks after the prior year actually posted to my account. One thing I wish someone had told me earlier: don't panic if you see additional transaction codes appear during the waiting period. I saw a 766 code show up that scared me, but my tax preparer explained it was just part of the normal processing flow. The key milestone to watch for is when your missing year actually appears on your transcript with a 150 code - that's when you know the countdown to hold release has really started!

Has anyone actually been audited for claiming treaty benefits incorrectly? I filled out a W-8BEN last year and just guessed on the treaty part (I'm from India). My employer accepted it and I got the reduced withholding rate. Now I'm worried I did it wrong.

Hey Kiara! I went through this exact same situation when I moved from Toronto to work in Seattle last year. For your situation as a Canadian software developer, you'll definitely want to use Form 8233 (not W-8BEN). For the treaty benefits section, you'll reference Article XV of the US-Canada tax treaty. The key things to fill out are: - Treaty Article: XV (or 15) - Rate of withholding: 0% (if you qualify) - Type of income: Employment/Personal Services Income - Explanation: Something like "Canadian resident temporarily working in US, qualifying under Article XV conditions" The main qualification requirements are: you're present in the US for less than 183 days in any 12-month period, your employer is Canadian or the compensation isn't borne by a US permanent establishment of your Canadian employer, and you maintain Canadian tax residency. Since you're making $85K, getting this right could save you significant money in withholding taxes. I'd recommend double-checking the exact treaty language in IRS Publication 901 or using one of the tools others mentioned to make sure you get all the details correct. Don't just guess - the IRS does verify these claims!