Honestly this whole MTM vs non-MTM thing is why I switched to just having everything in a non-MTM account. Yeah I lose some tax advantages for frequent trading but the simplicity is worth it. No more worrying about transfers between accounts or what counts as trading vs investing.

This is a great discussion! I'm in a similar situation but with options instead of stocks. I have some TSLA calls that I bought in my MTM account about 6 weeks ago, and I'm thinking about transferring them to my non-MTM account since I want to hold them longer term now. From what I'm reading here, it sounds like I'd have to recognize any gains on the transfer date even though they're still unrealized. That's actually helpful to know because these calls are up about 60% right now, so I need to factor that tax hit into my decision. Does anyone know if the same "deemed disposition" rules apply to options transfers, or are there any special considerations for derivatives? I don't want to accidentally trigger a bigger tax bill than I'm expecting.

Did you claim EIC or child tax credit? Those usually trigger reviews

Had the exact same codes last year! The 570/971 combo is super common when you file Head of Household with dependents. Mine took about 6 weeks to clear but I got the full refund plus a tiny bit of interest. The notice they send usually asks for proof of your dependents or income verification. Just respond quickly when you get it and you should be good to go. Hang in there! 💪

Another approach is to use the DRAFT versions of forms that the IRS posts before final versions. They're at irs.gov/draftforms. They usually post these a few months before final versions. Just remember you can't file draft forms! But you can use them to prepare and then transfer the info to the final form when released.

Thanks everyone for the helpful advice! I was definitely leaning toward just modifying the 2023 form but I'm glad I asked here first. @Jackson Carter your explanation about the forms being year-specific really cleared things up for me. I'll wait for the official 2024 version to be released rather than risk processing delays or penalties. In the meantime, I'll sign up for those IRS e-News subscriptions that @Ella rollingthunder87 mentioned - that sounds like a much better way to stay on top of when new forms are available than constantly checking the website. This community has been so much more helpful than trying to navigate the IRS website on my own!

Has anyone here used specialized tax software for musicians instead of the general ones like TurboTax? I'm in a similar situation (musician + day job) and tracking mileage is just one part of what I need to figure out. Also need to handle equipment depreciation, home studio space, etc.

The advice here about Schedule C is spot-on. I've been filing as a self-employed musician for 3 years now after initially trying to figure out the QPA rules (which are basically obsolete for anyone with a day job). One thing I'd add about mileage tracking - consider using a smartphone app like MileIQ or Everlance to automatically track your drives. You can then categorize each trip as business or personal afterwards. This creates the contemporaneous log the IRS wants without having to remember to write everything down manually. Also, don't forget you can deduct other vehicle expenses beyond just mileage if you keep detailed records - things like parking fees at venues, tolls for gigs out of town, etc. Just make sure they're directly related to your music business activities. Your 8,500 miles at 58.5 cents per mile would be nearly $5,000 in deductions, so it's definitely worth getting this right. The key is showing you're operating as a business, not just a hobbyist who occasionally gets paid.

Not to go off-topic, but what tax software do people recommend for reporting gambling? I tried using TurboTax last year and it was terrible for handling my gambling - kept wanting me to enter every single session separately which would have been hundreds of entries.

I feel your frustration completely. I've been dealing with similar issues as a poker player who travels to tournaments. The current system is absolutely backwards - you can win $10,000 in January, lose $12,000 over the rest of the year, and still owe taxes on that $10,000 "income" even though you're net negative $2,000. What really gets me is that the IRS treats gambling differently from other activities. If you're a day trader and lose money, you can deduct those losses against other income (up to $3,000 per year). But gambling losses? Only deductible against gambling winnings, and only if you itemize. I've been following the legislative side of this issue, and unfortunately Omar is right - reform isn't happening anytime soon. The revenue loss estimates kill any momentum these bills might have. The gambling industry keeps pushing for change, but Congress sees those billions in tax revenue and won't budge. My advice? Keep those meticulous records you mentioned, consider whether you might qualify for trader/professional status if your volume is high enough, and maybe look into some of the tools others have mentioned here for better organization. The system sucks, but we're stuck with it for now.