Serious question: Has anyone successfully claimed their dog as a dependent? Asking for a friend... 🐶💼

I'm dealing with something similar! Filed in early March and did the identity verification about 3 weeks ago. Still stuck on "received" status too. What's really frustrating is that they give you these timeframes (like "21 days after verification") but then there's no follow-up when they don't meet them. I've been checking the transcript tool that @Anastasia Sokolov mentioned - it does show a bit more detail than the basic refund tracker. Hang in there, hopefully we'll see movement soon! 🤞

Just wanted to add that I made this exact same mistake last year! The IRS actually flagged my return and sent me a notice because I had dental insurance premiums on both Schedule C and as part of my self-employed health insurance deduction. It created a total mess.

I went through this exact same frustrating situation last year! As a self-employed contractor with marketplace insurance, I learned the hard way that dental insurance premiums need to be handled very carefully to avoid messing up your premium tax credits. Here's what I discovered: Your dental insurance premiums should be combined with your health insurance premiums and entered as one total amount under the "Self-Employed Health Insurance Deduction" on your Form 1040 (not Schedule C business expenses). This keeps it separate from your AGI calculation that affects premium tax credits. The reason your refund went down is exactly what Diego explained - by lowering your AGI with a business expense, you're triggering a recalculation that makes you owe back some premium tax credits. But when you properly categorize dental premiums as part of your self-employed health insurance deduction, it doesn't create this circular problem. In TurboTax, remove the dental premium from business expenses and add it to your total health insurance amount in the self-employed health insurance section. You should see your refund go back up to where it was before, plus get the benefit of the dental deduction without the premium tax credit penalty!

Did you check if the address IRS has on file for you is current? I moved in 2021 and never got any notices until the final one cuz they were sending everything to my old address. You can update your address with them using Form 8822 and also request copies of any previous notices they claim to have sent.

I'm so sorry you're going through this stress! I had a very similar situation last year with a CP503 notice that seemed to come out of nowhere. Here's what I learned from my experience: First, don't panic - these notices can look scarier than they actually are. The IRS computer systems often generate inflated amounts when they think forms are missing, but once you provide the correct documentation, the amount owed frequently drops significantly or disappears entirely. Since you mentioned you paid a tax professional, definitely start there. They should have records of exactly what was filed and can tell you immediately if Form 8949 was included. If it wasn't, that's likely the entire problem - the IRS sees crypto transactions reported on other forms but no supporting detail form, so their system assumes you underreported. Also, request a wage and income transcript from the IRS website for 2021. This will show you exactly what third-party reports (like from crypto exchanges) they received about your transactions. Sometimes exchanges send corrected forms that you never saw, which can create discrepancies. The key is responding within their deadline with proper documentation. Even if your tax preparer made an error, you can usually resolve this without owing the full amount they're claiming. Good luck!

Has anyone had experience with how the IP PIN affects business owners who file multiple types of returns? For instance, if you have a personal return, Schedule C, and maybe an S-Corp return as well?

As someone who just went through the IP PIN process for my small business last year, I'd definitely recommend considering it if you're concerned about tax identity theft. The IRS has made it much easier to obtain one voluntarily - you can request it through their "Get an IP PIN" tool on irs.gov. One thing that really helped me understand the whole system was realizing that the IP PIN is tied to your SSN, not your business EIN. So if you file a Schedule C with your personal return (Form 1040), the IP PIN protects both your personal income and business income on that return. But if you have a separate business entity like an LLC taxed as a corporation, those returns use the EIN and don't require an IP PIN. The process is pretty straightforward once you get it - you just enter the 6-digit code when filing. And honestly, the peace of mind is worth the minor extra step during tax season. Just make sure to keep it secure and give it to your tax preparer if you use one!

Wait, nobody mentioned that discrimination settlements might qualify for special tax treatment under section 1681! In my experience, settlement payments for civil rights violations may be eligible for income averaging which could lower the tax hit.

Based on your situation, you'll want to set aside about 30-35% of that $15k to be safe. Here's the breakdown: Since your settlement was for emotional distress and lost wages (as you mentioned in your response to Isabella), the entire $15k is taxable as ordinary income. With your $67k base income plus the $15k settlement, you're still in the 22% federal bracket, but you also need to account for: - Federal income tax: ~22% ($3,300) - State income tax (Illinois): 4.95% (~$743) - Potential additional Medicare tax if you're close to thresholds - Any local taxes depending on your municipality The good news is that since the company paid your attorney fees directly (not deducted from your settlement), you don't need to worry about the complexity of deducting attorney fees on your return. I'd recommend setting aside $4,500-$5,250 to cover all tax obligations. It's better to have a little extra that you can use after filing than to come up short and owe penalties. Also, remember that if the settlement included any interest component (which you mentioned was $1,200), that gets reported separately as interest income. Consider making an estimated tax payment for Q1 2025 since this is additional income that wasn't subject to withholding.