Has anyone actually had their Schedule E audited for trying to claim unreimbursed partnership expenses despite the TCJA suspension? I've been claiming my home office on Schedule E anyway because my tax software lets me and I haven't had an issue for 2 years...

I went through this exact situation last year and ended up working with a tax professional to sort it out. Here's what I learned: The key issue is that under TCJA, unreimbursed partnership expenses are essentially not deductible on your personal return through 2025. However, there are several legitimate workarounds: 1. **Partnership Reimbursement Plan**: Have your partnership adopt an accountable plan to reimburse you for the home office expenses. The partnership deducts it, and you don't report the reimbursement as income. 2. **Guaranteed Payments**: As mentioned above, the partnership can make guaranteed payments to you for office space usage, which creates self-employment income that you can then deduct against on Schedule C. 3. **Partnership-Level Allocation**: Some partnerships can allocate these expenses at the entity level rather than having partners claim them individually. The guaranteed payment route worked best for me since it was straightforward to document and my partnership was small enough to easily amend our agreement. Yes, you pay SE tax on the guaranteed payments, but the home office deduction (using the simplified method) often more than offsets this. Whatever you do, don't just claim it on Schedule E without proper structure - the IRS computers will eventually catch up with returns claiming suspended deductions. Better to do it right from the start!

Ugh, I feel your pain! Just went through this exact same thing last month. Got my adjustment letter and was told 180 days too, but it actually only took about 7 weeks from when I got the letter. The 180 days seems to be their worst-case scenario they give everyone. Have you been able to check your transcripts online? That usually gives you a better idea of what's actually happening with your return. The waiting is definitely the most stressful part though - hang in there! 🤞

Ugh, I totally get your frustration! I'm dealing with the exact same thing right now - got my adjustment letter about 2 weeks ago and have been spiraling about the 180 day wait time. Reading through all these comments is actually making me feel so much better though! Sounds like most people are getting their refunds way sooner than 6 months. Definitely going to check out taxr.ai tonight after seeing all these success stories - seems like it could save me a lot of stress and sleepless nights wondering what's going on with my return. The IRS really needs to get better at communicating realistic timelines instead of just throwing out the maximum wait time and scaring everyone 😅

One thing I'm not seeing mentioned here is the risk of continuing as a misclassified worker. My cousin was in this exact situation and didn't address it because she was afraid of losing her job. When she eventually left and filed for unemployment, she was denied because she had no employment history - just 1099 income. Also had zero credit toward Social Security and no worker's comp when she got injured on the job.

This is such an important issue that more people need to understand. I've seen this happen so many times in the beauty industry specifically - salon owners often misclassify assistants and junior stylists to avoid payroll costs, but it really hurts the workers in the long run. Your partner should definitely document everything right now - work schedules, payment records, any written instructions about dress code or procedures, texts about when to come in or take breaks. The more evidence she has showing that her boss controls how, when, and where she works, the stronger her case will be. One thing to consider is that many states have their own independent contractor tests that are even stricter than the federal IRS test. Some states use an "ABC test" where all three criteria must be met for someone to be considered an independent contractor. Given that your partner works set hours following someone else's rules, she'd likely fail most state tests too. The salon owner may genuinely not understand the law, but ignorance isn't a defense. Employee misclassification costs the government billions in lost tax revenue and denies workers basic protections. Your partner deserves to have proper employment status, access to unemployment benefits, and not have to pay double FICA taxes on income that should be treated as wages.

Has anyone checked if this varies by state? I'm in Tennessee and had a similar issue with a furniture purchase that never arrived. In my case, the retailer insisted they couldn't refund the sales tax because they'd already sent it to the state, but when I called the Tennessee Department of Revenue directly, they told me the retailer was responsible for refunding the full amount including tax since the sale wasn't completed.

This is actually a pretty common issue that more people should be aware of. The key principle here is that sales tax is only owed when a taxable transaction is completed. If you never received the merchandise, then legally speaking, no sale occurred. Your retailer is either misinformed or being deliberately misleading when they say they "can't" refund the sales tax. While it's true they may have already remitted it to the state, that doesn't absolve them of their responsibility to make you whole. They need to either refund your sales tax directly or help you process a claim with the state tax authority. I'd recommend taking a multi-pronged approach: 1) Document everything as others have suggested, 2) File a complaint with your state's consumer protection agency, 3) Consider disputing the sales tax portion with your credit card company, and 4) if needed, contact your state tax department directly. Most states have provisions for situations exactly like this. Don't let them brush you off - you have legitimate consumer rights here, and $45 is worth fighting for!

Late to the party but another option: calculate your taxes ALL THREE WAYS! Run the numbers as: 1. Married filing jointly 2. Married filing separately 3. As if you were both still single (for comparison) This will show you the exact marriage penalty/bonus in your situation. My wife and I have similar incomes to you guys ($170k and $135k) and we found filing jointly saved us about $3,800 compared to separate even though we have the "penalty" compared to when we were single. Tax software makes this pretty easy to model different scenarios.

Great advice from everyone here! As someone who went through this exact situation two years ago (similar incomes, newly married), I can confirm that running the calculations both ways is absolutely worth it. One thing I'd add that hasn't been mentioned much - don't forget about retirement account contribution limits if you're both maxing out 401(k)s. The income limits for IRA deductibility change when you're married filing jointly, and with your combined income around $320k, you might lose the ability to deduct traditional IRA contributions that you could make when single. Also, if either of you contributes to an HSA, those limits and eligibility rules can change too. We ended up saving about $4,200 by filing jointly despite losing some deductions we had when single. The higher standard deduction and avoiding the loss of various credits made joint filing the clear winner for us. Definitely echo the suggestion to use tax software to model both scenarios - seeing the actual dollar difference makes the decision much easier than trying to figure it out theoretically!