Has anyone successfully amended a return after the 3-year mark specifically for EIC issues? Did you face penalties?

I went through almost the exact same situation last year with my 2017 return. The key thing to understand is that the IRS has sophisticated matching systems that will absolutely catch the conflict when your ex files their return claiming the same child. Here's what I learned: You're correct that the 3-year deadline is mainly for getting refunds back, not for correcting errors. The IRS can assess additional tax on EIC issues for up to 6 years, and in some cases longer. I'd strongly recommend filing that 2018 amendment even though you won't get a refund. When I did mine, I included a detailed explanation letter with my divorce decree attached, clearly stating which credits I was entitled to versus which ones I wasn't. The IRS processed it without issues and actually sent me a letter acknowledging my voluntary compliance. The fact that your ex never filed their 2018 return actually works in your favor - it shows the IRS that you were the one trying to comply with tax obligations while they were ignoring theirs. When they finally do file, your proactive amendment will be on record showing good faith. One tip: keep detailed records of everything related to your child's custody and living arrangements for 2018. If the IRS does audit, they'll want proof of who was actually entitled to what.

I've been following this thread and wanted to share my experience as someone who went through this exact situation last year. The key thing that helped me was getting very specific about documentation from day one. I kept detailed logs of all my activities (cleaning, maintenance, guest communication, marketing) to support my material participation claim. One thing I didn't see mentioned is the importance of tracking your average stay calculation properly - the IRS looks at this on a property-by-property basis, not across your entire portfolio. So if you have multiple properties, each one gets evaluated separately for the 7-day test. Also, regarding the substantial services question - it's not just about what services you provide, but how they're provided. Daily cleaning that's mandatory vs. optional can make a difference in classification. The IRS has been getting more scrutiny on STR classification lately, so having solid documentation is crucial. For anyone still unsure about their situation, I'd recommend Form 8582 (Passive Activity Loss Limitations) as required reading - it walks through the material participation tests and has examples that might clarify your specific situation.

Great thread - I've learned a lot from everyone's experiences! One thing I wanted to add that helped me navigate this complexity is understanding the "facts and circumstances" test that the IRS uses when the rules aren't crystal clear. I run three short-term rentals and initially got conflicting advice from two different CPAs about classification. What finally clarified things for me was creating a comprehensive "Services Analysis" document that detailed every service I provide, how often, and whether guests pay extra for them or they're included. This helped determine which properties crossed the line into "substantial services" territory. For material participation documentation, I use a simple spreadsheet tracking: Date, Property, Activity Type, Hours Spent, and Notes. I log everything - guest communications, cleaning coordination, maintenance calls, marketing updates, even time spent researching local regulations. It takes maybe 5 minutes per day but creates an ironclad record. One surprise discovery: the IRS considers "arranging for services" as material participation time, not just doing the work yourself. So if you spend time coordinating with cleaning services, maintenance contractors, or property managers, that counts toward your participation hours. This was a game-changer for my calculations since I coordinate a lot of vendor services across my properties. The key is treating this like any other business venture - proper documentation from the start makes everything much smoother come tax time.

Think of WMR like tracking a package that's moving through different warehouses - sometimes it updates when it reaches major checkpoints, but sometimes it doesn't scan properly and jumps straight to delivery! My sister and I filed on the same day last year, but her WMR updated three times while mine went from "Return Received" straight to "Refund Approved" with nothing in between. The system isn't perfect, but it generally works in the end.

As a government employee who works adjacent to tax processing (though not directly with IRS), I can confirm that batch processing systems like WMR are designed around operational efficiency rather than user convenience. The overnight updates make sense from a systems perspective - it's when server load is lowest and they can run intensive database operations without affecting daytime performance. That said, @AstroAce, your hourly checking habit is totally understandable! With three kids and summer planning, that financial certainty matters. One tip from the operational side: if you're not seeing movement after 7-10 business days from your filing date, that's when it might be worth checking your transcript or considering a call. Before then, you're mostly just seeing the normal processing queue work its way through. The inconsistencies others mention are real - different processing centers, different workloads, and honestly, different legacy systems that don't always play nicely together. It's frustrating from both sides of the equation!

I'm in a similar situation - filed on Jan 30th and still stuck at "Return Received" with no movement. It's frustrating seeing that same message about "still being processed" every single day when you check. From what I've been reading here and on other forums, it seems like the IRS is just really backed up this year. One thing that's helped me stay sane is setting a specific time to check (like once in the evening) instead of refreshing it multiple times throughout the day. The anxiety of checking constantly was getting to me! Has anyone noticed if certain days of the week tend to show updates more often? I've heard some people say weekends vs weekdays make a difference but not sure if that's actually true or just coincidence.

I've been in your exact situation before and I know how nerve-wracking it can be! The "Return Received" status with no movement is actually super common, especially during peak filing season. I filed around the same time last year and was stuck at that stage for almost 3 weeks before it suddenly jumped to "Refund Approved" and then got my deposit 2 days later. The key thing to remember is that "Return Received" just means your return made it into their system successfully and is waiting in the processing queue. It doesn't mean there are any problems or red flags - it's literally just sitting in line with thousands of other returns. One tip that helped me: try to check only once a day, preferably in the evening since that's when the system typically updates. I used to obsessively refresh it multiple times a day and it was driving me crazy! Also, if you can access your IRS transcript online, that sometimes shows activity before the WMR tool does. Stay patient - your refund is coming! 💪

Has anyone noticed that TurboTax's handling of mortgage interest deductions has gotten way worse in the last couple years? I remember it being much more straightforward before the tax law changes. Now it seems like they've overcomplicated everything with too many questions and confusing language.

I've been dealing with mortgage interest deduction issues in TurboTax for years, and here's what usually fixes the problem when entering multiple properties: Make sure you're being very specific about the property types and dates in each section. TurboTax gets confused when it thinks you might have had two primary residences at the same time. For your situation, when you enter the first mortgage (2017 house), make sure to specify the exact date you sold it. When you enter the second mortgage (June 2021 house), make sure it's clearly marked as your primary residence starting from the purchase date. The key is in those follow-up questions after entering the 1098 data - TurboTax asks things like "Is this your main home?" and "Did you use this property as your primary residence for the entire year?" Since you sold one and bought another mid-year, you need to answer those questions very carefully for each property. If TurboTax thinks there's any overlap or confusion about which was your primary residence when, it can zero out all the deductions as a safety measure. Try going through each property's questions one more time and pay close attention to the residence type and date range questions.