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Does anyone know if the "no donation necessary" option affects anything? Omaze always has that fine print saying no purchase/donation necessary to enter. I've been using the free entry option for like a year now (haven't won anything lol) but wondering if I did win, would the taxes be different than if I had donated?
If you win using the free entry option, you'd still owe taxes on the prize value just like anyone else. The difference is you wouldn't have any charitable deduction to claim since you didn't donate. So tax-wise for the prize itself, there's no difference between free entry winners and donors who win.
Something that might help clarify the confusion is to check the specific language on each Omaze campaign page. Different campaigns can have different charitable percentages - I've seen some where only 10-15% goes to charity while others might be 50-60%. Also, keep in mind that Omaze should send you an email confirmation after each donation that breaks down the tax-deductible portion. If you're not getting these, definitely reach out to their customer service because you'll need that documentation for your records. One last tip - if you're planning to do regular Omaze donations throughout the year, consider keeping a simple spreadsheet tracking each donation amount and the deductible portion. It'll save you a headache come tax time when you're trying to figure out your total charitable contributions for the year.
This is really helpful advice about tracking everything in a spreadsheet! I wish I had started doing this from the beginning. I've been donating to Omaze campaigns for about 8 months now and I'm realizing I have confirmation emails scattered everywhere in my inbox. Do you happen to know if there's a way to get a consolidated report from Omaze of all your donations for the year? Or am I stuck digging through all my old emails to piece this together?
I don't think Omaze provides an annual summary report, so you're probably going to have to dig through those emails unfortunately. But here's a tip that might help - if you use Gmail, you can search for "from:omaze.com donation confirmation" or similar terms to filter just your donation receipts. Most email providers have decent search functions that can help you find all the confirmations at once. Also, for future donations, you might want to set up a dedicated folder or label for Omaze receipts so they're all in one place. I learned this the hard way after spending hours hunting through my emails last tax season! If you're really stuck, you could try contacting Omaze customer support - they might be able to help you get copies of your donation confirmations, though I'm not sure if they can provide a consolidated report.
Day 23 still nothing... IRS playing hide and seek with these letters fr
I'm on week 3 waiting for mine too! Called the 800-830-5084 number yesterday and they said if it's been more than 4 weeks you can request they send another one. The rep also mentioned checking your online IRS account to see if there's an option to verify through ID.me instead of waiting for the letter. Might be worth looking into if you're getting anxious about the wait like I am!
Has anyone here actually used the Schedule E for rental income before? I'm still confused about where to report the income if we do form an LLC. Is it still Schedule E or do we have to use a different form?
It depends on how your LLC is taxed. If it's a single-member LLC (disregarded entity), you report on Schedule E. If it's a multi-member LLC taxed as a partnership, you'll get a K-1 from the partnership's 1065 return and then report that on your Schedule E. At least that's how we've done it for our beach house rental.
Just wanted to add some clarity on the QJV election since there seems to be some confusion in the thread. The Qualified Joint Venture election under Section 761(f) is actually quite specific - it's available to married couples who jointly own an unincorporated business and choose to be treated as a QJV instead of a partnership. The key point is "unincorporated business" - this means no LLC, no corporation, just direct ownership. If you form any type of entity (single-member LLC, multi-member LLC, etc.), you cannot make the QJV election. For your inherited rental property situation, here's what I'd consider: If liability protection is important (which it usually is with rental properties), the LLC route makes sense. A single-member LLC would be disregarded for tax purposes, so you'd report everything on your Schedule E. Your spouse could be involved in management without being a formal member. If you want both spouses to have formal ownership recognition, then a multi-member LLC taxed as a partnership might be better, though it does require filing Form 1065 and issuing K-1s. The QJV election is really more useful for businesses like consulting or other service businesses where spouses want to split self-employment income for Social Security credits, not typically for rental properties.
These clowns at the IRS need to get it together fr... why we gotta jump thru all these hoops just to get OUR money back ๐คก
Been in a similar situation - got my advocate assigned 3 weeks ago and finally got movement yesterday! They called me back within 48 hours of my initial voicemail which was promising. Make sure you answer when they call because they don't always leave detailed messages. In my case, they needed one additional document but once I faxed it over, they said 2-3 weeks for resolution. The wait is brutal but you're definitely in the home stretch now ๐
Maya Jackson
One other possibility - check if the CP14 amount includes penalties and interest that weren't calculated in your original tax software. If you paid right at the deadline or slightly after, they sometimes add those fees separately. The difference between your $894 and their $1375 seems large, but if you had a significant underpayment during the year, it could include those penalties.
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Tristan Carpenter
โขThat's what happened to me! I thought I'd paid in full but the CP14 included a underpayment penalty because I hadn't paid enough throughout the year in quarterly estimated taxes. Worth checking the detailed breakdown on the notice.
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Diego Mendoza
I'm dealing with something very similar right now! Got a CP14 for $267 even though my IRS account online shows $0 balance. The math on mine doesn't add up either - they're claiming I owed way more than what my tax software calculated. What really helped me was keeping detailed records of everything. I screenshot my online account showing $0 balance every few days now, and I saved all my payment confirmations. If you paid through your bank, you should be able to get a copy of the cancelled check or electronic payment confirmation that shows it was processed. One thing I learned is that the IRS generates these notices weeks in advance, so even if your payment was processed correctly, you might still get the notice if it was already in the mail. The fact that your online account shows $0 is really encouraging - that usually means your payment was received and applied correctly. I'd definitely recommend not ignoring it completely, but you're in a much better position than someone who actually owes money. Document everything and keep trying to reach them, or use one of the services others mentioned if you want to avoid the phone hassle.
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