Just wanted to chime in as someone who went through this exact confusion last year! The W-2 wages on Statement A really threw me for a loop too. What helped me finally understand it was realizing that the partnership has to report ALL the information that ANY partner might need, regardless of whether it applies to your specific situation. So even though you might not need those W-2 wages for your calculation (if you're under the income thresholds), the partnership still has to include them because some of their other partners might be high earners who DO need that information for the wage limitation. It's kind of like how they report depreciation information even if you don't have any depreciation to deal with - they're covering all the bases for all partners. Once I understood that the partnership can't customize the reporting for each individual partner's tax situation, it made much more sense why there was all this "extra" information I didn't seem to need.

This is exactly the kind of partnership tax issue that trips up so many people! The W-2 wages on Statement A are there for the QBI deduction limitation calculation, but only if your taxable income exceeds certain thresholds. Here's the simple breakdown: If your 2024 taxable income is under $191,050 (single) or $382,900 (married filing jointly), you can completely ignore those W-2 wages. They won't affect your QBI deduction at all. You'll just take 20% of your qualified business income as your deduction, subject to your overall taxable income limitation. The W-2 wages only come into play as a potential limitation on your QBI deduction if you're above those income thresholds. Since most taxpayers fall below these levels, the partnership is essentially required to report information that the majority of partners won't even use. It sounds like you're probably in the clear to ignore the W-2 wage information entirely and just focus on calculating your 20% QBI deduction. The partnership has to include this data "just in case" any partner needs it, but it doesn't mean every partner has to use it in their calculations.

As someone who's been through this exact situation multiple times over the years, I can definitely relate to that anxiety! Three weeks feels like forever when you're waiting to hear back from the IRS, but you're actually still in the very early stages of their typical processing timeline. From my experience, the IRS operates on what feels like geological time compared to the rest of the world. I've had cases where simple documentation requests took 2-3 months to fully resolve, and that was considered normal processing time. The key thing to remember is that no news at this point really is just no news - not bad news. A few practical suggestions that have helped me cope with the waiting: First, make sure you have copies of everything you sent and note the exact date you mailed it. Second, if you haven't already, definitely set up an online account at irs.gov - even though updates might not show up there for weeks, it's better to have it ready. Third, try to resist the urge to call until you hit at least the 6-8 week mark, since they'll likely just tell you to keep waiting anyway. The waiting is absolutely the worst part of dealing with the IRS, but based on your timeline, everything sounds completely normal so far. Hang in there!

I'm going through something very similar right now - sent in documentation for a questioned deduction about 4 weeks ago and the silence has been absolutely nerve-wracking! Reading through everyone's experiences here has been incredibly reassuring though. What I've learned from this thread is that 3 weeks is actually still very early in the IRS timeline, even though it feels like an eternity when you're the one waiting. I love Andre's "geological time" description - that's exactly what this feels like compared to how every other organization operates! I took everyone's advice and set up an IRS online account last week, which at least gives me something productive to check instead of just obsessively watching my mailbox. Nothing new has shown up there yet, but it's good to have it ready for when updates do appear. The hardest part for me has been the complete lack of communication - not even an acknowledgment that they received my documents. But based on all the timelines people have shared here, it sounds like that radio silence is completely normal and doesn't mean anything went wrong. Thanks for asking this question, Molly! It's so helpful to know that other people are going through the exact same anxiety-inducing waiting period. We're all in this together!

Is there a cutoff on how much profit is tax free? Im in a similar situation but made about $175k on my house that I lived in for 3 years. Will all of that be exempt?

Great question about the primary residence exemption! You're absolutely right that there's a 2-out-of-5-years rule, and you definitely qualify. Since you lived in the house as your primary residence for nearly 5 years (2019-2023), you've more than met the residency requirement. The fact that you're renting instead of buying another home immediately doesn't matter at all for the exemption - there's no requirement to reinvest the proceeds. However, since you made $320k in profit, you'll want to consider the exemption limits: $250k if you're single, or $500k if you're married filing jointly. If you're single, you'd owe capital gains tax on $70k of your profit ($320k - $250k exemption). Don't forget to add any qualifying home improvements you made during ownership to your cost basis, as this could reduce your taxable gain. Things like major renovations, new HVAC systems, or structural improvements can be added to what you originally paid for the house. Also remember that since you owned the home for more than a year, any taxable portion will be subject to long-term capital gains rates (typically 0%, 15%, or 20% depending on your income level), which are generally more favorable than ordinary income tax rates.

Community wisdom on avoiding SBTPG: • Most tax prep companies use either SBTPG or Republic • H&R Block uses Axos Bank (mixed reviews) • TurboTax uses SBTPG exclusively • Jackson Hewitt uses both SBTPG and Republic • Direct deposit to your own account is always fastest • Paying prep fees upfront avoids these banks entirely I've been filing for 15+ years and learned this the hard way. These refund transfer services only exist to take fees from people who can't pay upfront.

Just went through this nightmare with SBTPG myself this year! My refund was delayed 18 days and their customer service was absolutely terrible. Here's what I'm doing differently next year: I'm switching to FreeTaxUSA and paying the small fee upfront ($14.99 for state filing) to get direct deposit straight to my bank account. No third-party banks, no transfer fees, no delays. Another option if you want to stick with Jackson Hewitt - ask them specifically about their "no bank product" option where you pay fees upfront. Some locations don't advertise this but they all offer it. You just have to be very clear that you want direct deposit to YOUR account, not through any refund transfer service. The key is being prepared to pay those prep fees out of pocket instead of having them deducted from your refund. It's worth it to avoid the SBTPG headache!

I'm surprised nobody has mentioned depreciation yet. As a first-time landlord, you absolutely need to understand how depreciation works for rental properties. You'll need to depreciate the value of the building (not the land) over 27.5 years, which creates a significant tax deduction. This gets reported on Form 4562 and flows to your Schedule E.

As someone who's been through this exact situation, I can confirm that Diego's advice is spot-on. You'll definitely need Form 1040 with Schedule E for your rental income - not 1099-MISC. The 1099 forms are what OTHER people send to YOU and the IRS to report payments they made to you, but as a landlord collecting rent, you're not typically going to receive a 1099 from your tenant. A few additional tips from my experience as an expat landlord: 1. **Keep meticulous records** - Track every expense related to the property (repairs, maintenance, insurance, property management if you ever use one, etc.). These are all deductible on Schedule E. 2. **Consider setting up a separate US bank account** for rental income/expenses if you haven't already. It makes record-keeping much cleaner and helps with FBAR reporting if applicable. 3. **Don't forget about depreciation** - As Ethan mentioned, this is a significant deduction you shouldn't miss. Your $22,500 in rental income could be offset substantially by depreciation and other expenses. 4. **File early** - Being overseas can complicate things if you need to request documents or clarify anything with the IRS, so give yourself extra time. The fact that you're managing it yourself actually simplifies things tax-wise since you won't have to deal with 1099s from a property management company. Good luck!