Filed 2/22, got state refund in a week, federal still says "processing" on WMR. Just checked transcripts after reading this post and I also have an 846 for 3/29! Never got any updates or notifications, it just appeared. The IRS website is a joke.

Congratulations on finally getting your 846 code! I'm currently on week 7 of waiting myself - filed 2/28 and accepted same day but transcripts still showing N/A. Your post gives me hope that movement can happen suddenly even after weeks of nothing. Quick question - when you say your transcripts were "completely empty" until today, do you mean they showed N/A for return transcript or that there was literally nothing there? I'm trying to figure out if my situation is normal delay or if something's actually wrong. The WMR tool has been useless - just the generic "still processing" message for over a month now. Really hoping I see some movement soon like you did! April 1st deposit date sounds amazing right about now 🤞

I learned this lesson the hard way last year. I hadn't been taking depreciation on my rental because I thought it would "save me" on taxes later when I sold. When I finally sold the property, my accountant informed me the IRS would reduce my basis regardless - so I had essentially given up thousands in tax deductions over the years while still getting hit with the same tax bill at sale. The worst part? You can only go back and amend returns for 3 years. I lost 7 years worth of depreciation deductions I could have taken. Don't make my mistake - ALWAYS take the depreciation you're entitled to.

This thread perfectly illustrates why depreciation is one of the most misunderstood aspects of rental property ownership. I've been managing rental properties for over 15 years and I still see experienced investors making this mistake. The key point everyone's hitting on is absolutely correct - the IRS uses "allowed or allowable" depreciation when calculating your adjusted basis at sale. This means whether you claim it or not, you're going to face the same tax consequences when you sell. The only difference is whether you got the benefit of reduced taxes during the years you owned the property. I always tell new landlords to think of depreciation as a mandatory tax strategy, not an optional one. The IRS has essentially decided you WILL get taxed on depreciation recapture regardless, so you might as well take the annual deductions that come with it. One additional point - if you're planning to hold rental properties long-term, you can also look into 1031 exchanges when you sell. This allows you to defer the depreciation recapture (and capital gains) by rolling the proceeds into another investment property. It's another reason why taking maximum depreciation now makes sense - you can potentially defer those tax consequences indefinitely through strategic property exchanges.

One important consideration that hasn't been fully addressed is the record-keeping burden. Whether you form an LLC or stay as a sole proprietor, the IRS requires meticulous documentation for vehicle expenses, especially when claiming 100% business use. You'll need to maintain a detailed mileage log showing business vs. personal use, keep all receipts for maintenance and repairs, and document that the vehicle is truly used exclusively for rideshare. The IRS is particularly scrutinous of 100% business use claims for vehicles, so you'd need to have another car for personal use to support this position. Also, while everyone's discussing tax implications, don't forget about your state's requirements. Many states have annual LLC fees (California charges $800/year minimum regardless of income), publication requirements, or other ongoing compliance costs that could easily outweigh any tax benefits. Given your income level of $3,800-4,200 monthly, you're likely already eligible for the QBI deduction as a sole proprietor, can deduct vehicle expenses, and avoid the administrative overhead of an LLC. The liability protection aspect is minimal since you'd still need proper rideshare insurance coverage regardless of your business structure.

I've been researching this exact question for months and want to share what I've learned from both my CPA and actual experience. The short answer is that for most rideshare drivers, an LLC doesn't provide meaningful tax advantages over operating as a sole proprietor. Here's the reality: as a sole proprietor, you're already eligible for the same vehicle deductions (standard mileage or actual expenses), the QBI deduction (up to 20% of net business income), and all other legitimate business expense deductions. A single-member LLC is treated as a "disregarded entity" for tax purposes, meaning your income still flows to Schedule C on your personal return. The key factors that actually matter for your tax situation are: 1) Maintaining detailed records of business vs personal vehicle use, 2) Choosing between standard mileage (65.5¢/mile for 2023) vs actual expenses method, 3) Taking advantage of the QBI deduction, and 4) Making quarterly estimated payments to avoid penalties. At your income level ($45k-50k annually), you're likely saving more money through proper tax planning as a sole proprietor than you would by adding the complexity and costs of an LLC. Focus on maximizing your legitimate deductions and consider consulting with a tax professional who understands rideshare taxation rather than forming an entity that won't fundamentally change your tax obligations.

One thing nobody has mentioned yet is that Section 117(d)(5) has been on shaky ground in recent years. During the 2017 tax reform discussions, there was talk of eliminating this exclusion entirely, which would have made all graduate tuition waivers taxable income. While it survived that round, it's always possible future tax legislation could modify or remove this benefit. Make sure whatever documentation you rely on is current. The IRS Publication 970 (Tax Benefits for Education) gets updated annually and contains official guidance on these educational tax benefits. Always worth checking the most recent version!

Just to add another perspective - I work in university payroll and see these situations frequently. The distinction everyone's discussing between 117(d)(5) and Section 127 benefits is crucial, but there's one more wrinkle to consider. If you're classified as more than a half-time employee (typically 20+ hours per week), some universities will automatically categorize ALL your tuition benefits under Section 127 rather than 117(d)(5), even if you're also teaching. This is because they view your primary relationship with the university as "employee" rather than "student." I'd strongly recommend getting written clarification from both your graduate school AND your HR department about how they're classifying your benefits. Don't assume that teaching one class automatically qualifies you for 117(d)(5) treatment if you're primarily employed in administration. The IRS looks at the substance of the relationship, not just the presence of teaching duties. Also, if your university is treating this inconsistently or you're getting conflicting information, document everything. You may need to make your own determination based on the facts and circumstances of your situation.

I opened my Tax Court packet after missing the deadline and it was a "Notice of No Jurisdiction" basically saying they couldn't hear my case. So i ended up calling a tax advocate who told me to just pay what i owed then file an amended return asking for a refund. Took like 9 months but i got about half back cuz they agreed with some of my deductions. Persistence pays off!

I'm really sorry to hear about your situation - missing that Tax Court deadline is incredibly stressful, but you're not completely out of options. First, definitely open that packet from the Tax Court. It's likely a "Notice of No Jurisdiction" as others mentioned, but you need to know for sure what it says. Since you mentioned this involved unreported Robinhood transactions, there's a good chance the IRS made some calculation errors or didn't properly account for your cost basis. Investment income reporting can be really complex, especially with apps like Robinhood where the 1099s don't always tell the full story. Here's what I'd recommend: 1) If you can afford it, pay the assessment and then file for a refund with Form 1040X - this gives you a fresh shot at contesting it, 2) Look into requesting an audit reconsideration if you have documentation the IRS didn't previously consider, 3) Consider the Collection Due Process hearing option which can provide another avenue to dispute the assessment. Also, make sure you have all your Robinhood statements and any documentation showing your actual cost basis for those transactions. The IRS often assumes zero cost basis when they don't have complete information, which can significantly inflate what you actually owe.