Just want to add a important warning: if you worked remotely for your California company while living in Maryland, you might have Maryland AND California income tax obligations for that portion of the year! California is super aggressive about taxing remote workers of CA companies. When you moved to TN, make sure you formally notified your employer of your new address and had them update your state tax withholding. Check your recent paystubs to confirm they're no longer withholding Maryland or California taxes.

Hey Diego! As someone who recently went through a similar multi-state move situation, I wanted to share a few practical tips that might help you navigate this. First, definitely gather all your documentation showing when you established Tennessee residency - lease agreement, driver's license change date, voter registration, etc. This timeline will be crucial for determining which state has taxing rights on your capital gains. Since you mentioned you're 22 and just starting out, there's a good chance your total income might qualify you for the 0% federal long-term capital gains rate (currently applies if your taxable income is under $47,025 for single filers in 2024). That could save you a significant amount on the federal side. For the state piece, you'll likely need to file as a part-year resident in Maryland for the period you lived there, but the capital gains realized after establishing Tennessee residency should escape state taxation entirely since Tennessee doesn't tax capital gains. One thing I'd recommend is keeping detailed records of when you physically moved, when you changed your address with various institutions, and especially when you updated your information with your brokerage. The timing of these changes relative to when you sold your stocks will matter if either state questions your residency status. Also, double-check that your brokerage has your current Tennessee address on file - you don't want tax documents being sent to your old Maryland address next year!

Has anyone here actually gone through the streamlined process and then received confirmation from the IRS that everything is OK? I submitted mine about 10 months ago and haven't heard anything... getting anxious about whether they accepted it or if there's still some problem I don't know about.

I went through the streamlined procedure about 18 months ago as a dual US-German citizen, so I can share some specifics about costs and the process. I ended up paying around $2,800 for a specialist who handled everything, which was actually less than some of the quotes I got from traditional CPAs. A few things that helped keep costs down: I organized all my documents beforehand (bank statements, German tax returns, employment records), which saved billable hours. Also, since you've been paying Austrian taxes, you'll likely qualify for Foreign Tax Credits that should eliminate any US tax owed - this makes the process more straightforward and less expensive. One surprise cost I hadn't anticipated was getting certified translations of some German documents. Not sure if you'll need this for Austrian documents, but budget maybe $200-400 for translations if your tax preparer requests them. Also, if you have any Austrian pension contributions or investment accounts, those can complicate things and increase preparation fees. The peace of mind was totally worth it though. Now I'm compliant and can sleep at night without worrying about surprise IRS issues!

I received my refund last week after seeing the 846 code. Compared to my neighbor who filed a simple W-2 only return, my processing with retirement accounts took about 18 days longer. Your timeline seems consistent with what I've seen for returns that include Schedule D or Form 8606 distributions. The IRS seems to be moving faster this year than last year, when similar returns were taking 35-40 days for processing.

Congratulations on finally getting your 846 code! As someone who's been through this process multiple times with retirement income, I can relate to the anxiety of waiting and trying to decode all those transcript updates. The processing times for returns with Social Security and investment distributions have definitely been longer this year - I've seen similar 3-4 week delays in my community. One thing I learned from my tax preparer is that the IRS has been extra cautious with retirement income verification since the SECURE Act changes. Your timeline actually sounds pretty typical for returns that include both SS adjustments and investment distributions. The good news is that once you see that 846 code, it's a done deal - no more processing surprises. For future reference, I keep a simple spreadsheet tracking my filing date, transcript update dates, and any code changes. It helps me understand my personal processing pattern and reduces the stress of not knowing what's happening. Thanks for sharing your experience - it's helpful for others going through the same thing!

Has anyone used TurboTax for home office deductions? I'm worried it doesn't ask enough detailed questions about exclusive use and business startup costs. Is there better software for small business owners?

Don't panic - IRS inquiries about home office deductions are actually pretty common, especially when there's a significant expense with no corresponding income. The fact that they're asking for documentation doesn't necessarily mean you did anything wrong. However, there are a few potential issues with your approach. Business startup costs over $5,000 typically need to be amortized over 15 years rather than deducted all at once. Also, home improvements generally must be depreciated rather than expensed immediately, even for business use. The key things the IRS will be looking for: 1) Receipts and invoices showing the actual costs, 2) Evidence the basement is used exclusively for business (photos, floor plans), 3) Documentation showing legitimate business intent, and 4) Proper categorization of which expenses qualify as immediate deductions vs. depreciation. Gather all your renovation receipts, take photos of the current business setup, and consider consulting a tax professional who can help you amend your return if needed. Being proactive and transparent with the IRS usually leads to better outcomes than trying to defend questionable positions.

wait are we supposed to be reporting money from zelle?? I got like $22k last year from clients and didnt report any of it... am i gonna be in trouble??

This is a really important question, and I'm glad you're asking now rather than later! You're correct that Zelle doesn't issue 1099-K forms because it facilitates direct bank-to-bank transfers rather than acting as a third-party payment processor like PayPal or Venmo. However, the absence of a 1099-K absolutely does NOT mean you don't need to report the income. All income from your tutoring and freelance work is taxable and must be reported on your tax return, regardless of whether you receive any tax forms. The IRS is very clear on this - income is income, no matter how you received it. With $14,800 in business income, you're definitely over the threshold where this becomes significant. I'd strongly recommend: 1. Keep detailed records of all your Zelle transactions - dates, amounts, and what each payment was for 2. Separate business payments from personal transfers (like money from family/friends) 3. Consider setting up a separate business bank account to make tracking easier 4. Save money throughout the year for taxes since you won't have withholding Don't let the lack of official forms fool you into thinking this income is somehow "under the radar." The IRS has ways of detecting unreported income, and it's always better to be proactive about compliance than to deal with problems later.