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22 The same thing happened to me last year! Check your Nerdwallet confirmation email very carefully - there should be a section that shows the scheduled payment date. A lot of tax software defaults to withdrawing on the due date (April 15th) rather than immediately when you file. If you're worried, you could always make a direct payment through the IRS website using their Direct Pay feature, but keep records of both payment attempts in case you need to request a refund for double payment later.
4 I had this issue too and found the payment date buried in a PDF attachment to the confirmation email, not in the email itself. Worth checking all attachments!
I had a very similar experience with FreeTaxUSA last year! The key thing to understand is that there's often a delay between when your return is "accepted" and when the payment is actually processed. The IRS acceptance just means they received your tax forms successfully, but the payment processing happens on a separate timeline. What saved me a lot of stress was checking my original filing confirmation very carefully - it turned out I had unknowingly selected a payment date of April 15th instead of immediate withdrawal when I filed in early March. Many tax software programs default to the tax deadline date unless you specifically choose otherwise. I'd recommend logging into your Nerdwallet account and looking for any payment scheduling details in your filing summary. Also check all email confirmations and PDF attachments - sometimes the payment date is buried in there. If you can't find it or want peace of mind, you could always make a backup payment through IRS Direct Pay, just keep detailed records in case you need to request a refund for any overpayment later.
My accountant told me to just use a percentage of the original purchase price rather than trying to figure out fair market value. He said 70% of original cost for items 1-2 years old, 50% for 3-4 years old, and 30% for 5+ years old. Has anyone else heard of this approach?
This is exactly the situation I was in last year! I converted my townhouse to a rental and kept most of my furniture. Here's what I learned through the process: You definitely can depreciate those items, but documentation is key. I created a spreadsheet with each item, its original purchase date, estimated fair market value at conversion, and took photos of everything. For valuation, I checked similar items on Facebook Marketplace and eBay sold listings to get realistic fair market values. One tip that saved me time: for items under $100 each, I grouped them by room (like "Living room decor - $250" or "Kitchen utensils - $180"). This kept the paperwork manageable while still capturing the value. The IRS allows reasonable estimates for fair market value, so don't stress too much about being exact to the dollar. Just be consistent in your approach and keep good records. I used the 5-year MACRS depreciation schedule for everything except some electronics that qualified for 3-year depreciation. Also, consider whether you want to take Section 179 deduction for some items instead of depreciating them over time - sometimes it makes sense to expense smaller items immediately rather than depreciating them.
This is super helpful! I'm just starting to learn about rental property taxes and the Section 179 deduction is something I hadn't heard about yet. Can you explain more about when it makes sense to use that instead of regular depreciation? Like what's the threshold where you'd choose to expense something immediately versus depreciating it over 5 years?
This isn't legal advice, but I'm a tax preparer and we see this question occasionally. The biological product vs service distinction is key here. The IRS has ruled in similar cases (like plasma donation) that selling biological materials is not self-employment. Look at PLR 8814010 and the Garber case for precedent. Those deal with plasma, but the principle applies to sperm donation too. To be safe, report the income on Schedule 1, Line 8 (Other Income) and include a brief description like "Biological materials donation - 1099-MISC." This clearly shows you're not trying to hide income but also aren't classifying it as self-employment.
Thanks for the specific references! That's super helpful. Just to clarify, I should write that exact description in the line on Schedule 1? And by doing this, I won't need to pay the 15.3% self-employment tax, right?
Yes, write a brief description like that in the line provided on Schedule 1. Being specific helps if there's ever a question. Correct - by reporting it as Other Income on Schedule 1, you'll only pay regular income tax on the amount, not the additional 15.3% self-employment tax that would apply if you filed Schedule C. The income still increases your tax liability, but without the extra SE tax burden.
Random question - but did they withhold any taxes from your payments? When I donated last year they didn't withhold anything and I got hit with a big tax bill because I didn't set aside money. Just a heads up to maybe make estimated tax payments if you continue donating.
They didn't withhold anything from my payments. Thanks for the warning - I definitely hadn't thought about setting aside money for taxes. Do you know approximately what percentage I should be saving from each payment to cover the taxes?
A rough rule of thumb is to set aside 25-30% of your 1099 income for taxes, but it depends on your total income and tax bracket. If you're in the 22% bracket, you'd pay 22% federal income tax plus any state taxes on that $4,200. Since it's "other income" and not self-employment (as discussed above), you won't owe the additional 15.3% SE tax, which saves you money. You can use Form 1040ES to calculate your estimated payments more precisely based on your expected total income for the year. The IRS also has a withholding calculator on their website that can help you figure out if you need to adjust your regular job's withholding or make quarterly payments.
Just a quick question for all of you who've dealt with this - which tax software did you use to file with a foreign spouse's ITIN? I used TurboTax last year and it was a nightmare with the ITIN application. Looking for something better for 2023 taxes.
I went through almost the exact same situation with my husband's ITIN application last year. The CP565 followed by CP567 is frustrating but surprisingly common. In our case, the rejection was due to a mismatch in how his birth country was listed - I had put "Republic of Korea" on the W-7 but his passport showed "Korea, Republic of" and apparently that tiny difference was enough to trigger a rejection. The key thing to understand is that your 2022 return is completely safe and processed. The ITIN they assigned is in their system and won't be retroactively invalidated. However, you'll need to resolve this before filing your 2023 taxes. Here's what worked for us: I called the ITIN unit and they explained the exact discrepancy. Then I submitted a corrected W-7 marked as "reapplication" with the original ITIN number referenced, included a copy of both the CP565 and CP567 notices, and provided fresh certified copies of all documentation with the exact spelling/formatting from the passport. The whole process took about 8 weeks to get the corrected approval. Don't stress too much - this is fixable and your current tax situation is secure!
Thank you so much for sharing your experience! This gives me hope that it's actually a straightforward fix. The "Republic of Korea" vs "Korea, Republic of" example is really helpful - I never would have thought such a small formatting difference could cause issues. Quick question - when you say you submitted a "corrected W-7 marked as reapplication," did you fill out the entire form again or just the sections that had the errors? And did you have to go back to an acceptance facility or could you mail it directly to the IRS? Also, did they send you a new CP565 after the corrected application was processed, or just some other confirmation that the issue was resolved?
Chris King
Called them and the rep said these letters dont mean anything anymore cause theyre so backed up. might as well be using carrier pigeons at this point lmaooo
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Rachel Clark
ā¢carrier pigeons might be faster tbh š
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Aisha Mahmood
Been waiting 67 days since my review letter and finally got some movement yesterday! My transcript updated with a release date for next Friday. Hang in there everyone - they're definitely working through the backlog, just super slowly. The waiting is brutal but there's light at the end of the tunnel š
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