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yall ever wonder if our tax returns just end up in some giant pile and they pick them out randomly to process? 😂 feels that way sometimes
Two weeks is still pretty normal for mail processing! I know the waiting is stressful, but here's what helped me last year: if you're really worried, you can call the IRS at 1-800-829-1040 and ask if they've received your return (though expect to wait on hold). Also, keep copies of everything you mailed - if it somehow gets lost, you'll need those to refile. The good news is that most mailed returns do make it through the system, it just takes longer than e-filing. Hang in there! 📬
Anyone tried Xoom? It's owned by PayPal but supposedly has better rates for international stuff. Just wondering if it's better than Transferwise or Remitly for Italy specifically.
I've used Xoom to send money to family in Mexico, but found their exchange rates for Euro transfers weren't great. They hide their markup in the exchange rate rather than showing transparent fees. When I compared the same transfer amount to Italy, Wise was giving about €27 more on a €1000 transfer.
I actually just went through this exact same situation last month - needed to send $3,000 to my brother in Rome for an emergency medical bill. After comparing both services side by side, I ended up going with Wise and was really happy with the choice. The total cost breakdown for my transfer was: $2,982.15 received by my brother after a $17.85 fee from Wise. The exchange rate was essentially the real mid-market rate with no hidden markup. The money arrived in his Italian bank account in about 18 hours. I also tested what the same transfer would cost through Remitly, and while their upfront fee was slightly lower, their exchange rate had a markup that would have resulted in about €20 less for my brother to receive. One tip: Both services let you lock in the exchange rate for a short period (I think it's 24-48 hours), so you can set up the transfer and wait for a good rate if you have some flexibility on timing. Since you mentioned this is urgent though, I'd just go with whatever rate is available now. Hope this helps with your decision!
This is really helpful, thank you! The breakdown of actual costs is exactly what I was looking for. Can I ask - when you say you could "lock in" the exchange rate, does that mean you can set up the transfer but not actually send the money until you're ready? I'm wondering if I should wait to see if the EUR/USD rate improves over the next day or two, but I also don't want to risk missing the deadline for my cousin's deposit.
Has anyone successfully e-filed with this situation? Last year my tax software kept rejecting my return when I tried to claim mortgage interest without a 1098 from a bank. I ended up having to paper file which was a huge pain.
I actually went through this exact same situation with a family loan from my relatives in Ireland. The key things that made it work for me: 1. Got the loan properly recorded as a lien against my property with the county recorder - this was absolutely critical and something I initially missed 2. Made sure we had a written loan agreement with clear terms, payment schedule, and reasonable interest rate 3. Set up automatic monthly payments so I had a clear paper trail 4. My relatives properly report the interest income on their Irish tax returns For the ITIN issue someone mentioned - my relatives didn't need to get an ITIN since I'm not issuing them a 1098. I just report the interest I paid on my Schedule A as mortgage interest without a 1098 form. The e-filing worked fine once I figured out the right way to enter it in TurboTax. Look for "mortgage interest statement" and then select "I don't have a Form 1098" - it'll let you enter the amount directly. One thing to watch out for - make sure your loan terms don't change dramatically from year to year or the IRS might view it as a gift rather than a legitimate loan. Keep everything consistent and well-documented.
Don't forget about QBI (Qualified Business Income) deduction! Both LLCs and S Corps qualify, but the calculation can be different. With real estate business income around $105k plus your W-2 job, you might be in phase-out territory for this deduction depending on your filing status. In 2025, the QBI phase-out starts at $183,100 for single filers and $366,200 for married filing jointly. Your total income is near these thresholds, so that's another consideration.
This is a really important point. The 20% QBI deduction can be substantial. Also, doesn't the IRS scrutinize S Corps more closely to ensure reasonable compensation is being paid? That's another administrative headache to consider.
Based on your situation in Texas with inconsistent real estate income, I'd lean toward switching to an LLC. Here's why: With your fluctuating income ($7k some months, $40k others), maintaining reasonable S Corp salary requirements is a nightmare. You either overpay yourself in slow months (hurting cash flow) or underpay (risking IRS scrutiny). The math: If you're taking a $50k salary now, switching to LLC means paying self-employment tax on the full $105k. That's about $8,085 in additional SE tax. But factor in: - Payroll service fees (~$1,200/year) - Additional tax prep complexity (~$500-1,000) - Franchise tax filing - Time/stress of payroll management You're probably looking at $2,000-3,000 in administrative costs, making the real tax difference closer to $5,000-6,000 annually. Given your income volatility and the administrative headaches you mentioned, that premium might be worth paying for the simplicity. Plus, with an LLC you can always elect S Corp taxation later if your income stabilizes and grows significantly. I'd run the exact numbers with your CPA, but for many people in similar situations, the peace of mind is worth the modest tax increase.
Dylan Cooper
Military tax specialist here. For ID.me verification with address mismatch issues: • Military members can use their military ID + PCS orders as primary verification • You can request a "military exception" in the ID.me system by clicking "verify by video call" • The video agent can accept your military ID even with old address • If using the phone verification, mention Code 2501-M (military verification protocol) • Average processing time after military verification: 14-21 days Don't stress too much - this happens to about 30% of military filers after a PCS!
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Tyrone Johnson
Thank you so much Dylan for the Code 2501-M tip! I had no idea that existed. I'm definitely going to try the video call option with ID.me first since that sounds like the most straightforward approach. It's reassuring to know this is such a common issue for military families - I was starting to worry I'd done something wrong with my filing. Quick follow-up question: when you mention the 14-21 day processing time after verification, is that from when ID.me completes the verification, or from when the IRS receives it? Just trying to set realistic expectations for my family since we're really counting on this refund right now. Thanks again for the detailed breakdown!
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Zara Rashid
•Hey Tyrone! Just wanted to chime in as someone who went through this process recently. The 14-21 day timeline Dylan mentioned is usually from when ID.me sends the verification confirmation to the IRS, not from when you complete the video call. So there can be a 1-3 day delay between your successful ID.me verification and when the IRS actually receives and processes it. I'd recommend checking your WMR status about 3-4 days after your ID.me verification is complete to see if the hold has been lifted. If you don't see movement after a week, that's when I'd call the IRS directly. Hope this helps ease some of the uncertainty while you're waiting! @f4ad134a031c thanks for sharing that military code - that's incredibly useful information that more service members need to know about.
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