Did they tell you anything specific about why it takes SO long for amended returns compared to regular returns? My regular return came in like 3 weeks but this amended one is taking forever.

From what the agent told me, amended returns require manual review by an actual person - they can't be fully automated like regular returns. Each one has to be compared with the original return and checked line by line, which takes a lot more time. What's worse is that they're still understaffed from all the pandemic-related issues and working through a huge backlog. The agent mentioned that they prioritize regular returns during tax season, so amended returns get pushed to the back of the line. That's why we're seeing such crazy wait times compared to normal returns.

Congrats on finally getting yours! Did you get the full amount you were expecting? I've heard some people are getting partial amounts with no explanation.

That's such a good point I hadn't considered. My neighbor already feels so much shame about this situation that having someone make them feel worse would be terrible. Do you have any specific questions you'd recommend asking during consultations to gauge their communication style?

I'd suggest asking these questions during consultations: "Can you explain how you typically handle communication throughout a complex resolution case like this?" This reveals their process and how frequently they update clients. "What's your approach when working with clients who have limited English proficiency?" Their answer will show if they've dealt with similar situations and what accommodations they might offer. "How do you explain complex tax concepts to clients who aren't familiar with tax terminology?" This tests their ability to translate complicated ideas into plain language. Also, pay attention to how they react when hearing about the 15 years of unfiled returns. Do they seem judgmental or solution-focused? The right professional will skip the lecture and move straight to creating a plan. Trust your gut feeling about whether they seem patient and understanding.

This is incorrect information. The statute of limitations for assessment doesn't begin until a return is filed. For unfiled returns, the IRS can go back indefinitely. Please don't spread misinformation that could get people in serious trouble.

What about political donations? I also gave about $1,500 to various campaigns last year - I'm guessing those aren't deductible either?

Political contributions are indeed not tax-deductible. This includes donations to political campaigns, political action committees (PACs), political parties, and organizations that primarily engage in political activities. The IRS specifically excludes these from qualifying as charitable contributions. This is a common misconception since you're giving money to support a cause you believe in, but the tax code treats political and charitable giving differently. The same applies to lobbying organizations, even if they're advocating for issues you consider charitable in nature.

I regularly donate 10-12% of my income and haven't had issues. Keep good records and you'll be fine. The IRS typically starts looking more closely at charitable deductions when they're unusually large compared to income (like 30%+) or if there are other red flags.

Yeah I realized that after I posted. Turns out my frustration was more about the principle of the thing than the actual work involved. Do you know if the free version of TurboTax handles Schedule D or would I need to upgrade?

The free version of TurboTax doesn't support Schedule D - capital gains/losses require upgrading to at least the Deluxe version which is around $60-70 depending on current promotions. If you're concerned about paying that much for reporting a $0.31 loss, you might want to look into the IRS Free File options or other free tax software like FreeTaxUSA which handles capital gains for free. Credit Karma Tax (now Cash App Taxes) is another free option that includes Schedule D.

This is good advice but I've found it depends entirely on the brokerage. Fidelity offers this consolidated view but Robinhood forces you to report every single stupid fractional share transaction. Drove me CRAZY last year.

So these improvements would increase my basis in the home and therefore reduce the calculated gain? I've done quite a bit to the house over the years - replaced all windows, completely renovated the kitchen, added a bathroom, and put in a new HVAC system. I didn't realize those would factor into the capital gains calculation.

Exactly right! All those improvements you mentioned increase your cost basis, which means less taxable gain when you sell. The formula is basically: Sale price - (Purchase price + Improvements + Selling costs) = Capital gain. Those renovations you mentioned are perfect examples of what qualifies. The new windows, kitchen renovation, additional bathroom, and HVAC replacement all increase your basis. Make sure you have documentation for these expenses if possible. Even if you don't have every receipt, estimates with supporting evidence (like before/after photos, contractor statements, etc.) can help if you're ever audited. This could potentially save you thousands in taxes!

The safe harbor rule usually applies to whether something qualifies as a repair vs. capital improvement, not to capital gains exclusions on home sales. I think you might be mixing up concepts?