Has anyone here actually gone over the $10k SALT cap? I'm wondering if it's even worth the effort to time my payments since I'm probably only going to hit about $9,700 with both property tax payments. Would the extra few hundred in deductions even make a significant difference?

Great question about the SALT cap timing! I was in a similar situation last year with my supplemental property tax bill. One thing I learned is that even if you're close to the $10k limit, it's worth doing the math on your total itemized deductions vs. the standard deduction. In my case, I was at about $9,800 in SALT taxes, but when I added mortgage interest, charitable donations, and some medical expenses, my total itemized deductions were still higher than the standard deduction. So that extra $200 in property tax deductions actually did save me money. Also, don't forget that the SALT cap includes both property taxes AND state income taxes (or sales tax if you choose that). So if you paid estimated state taxes or had withholding, those count toward your $10k limit too. I almost missed that and would have been over the cap without realizing it!

Those 60-day letters are absolutely the worst! I went through the exact same thing earlier this year - got THREE of them between March and August. The complete lack of real information is what made it so stressful. Like everyone else here, I was stuck with that useless "Where's My Refund" tool showing "still processing" for months. What finally gave me peace of mind was downloading my tax transcript from the IRS website (irs.gov - look for "Get Transcript Online"). You have to create an account, but once you see those transaction codes, you'll finally understand what's actually happening behind the scenes. In my case, it was just a routine income verification that had been flagged automatically - nothing scary like I'd been imagining! The transcript shows WAY more detail than that generic "still processing" message. You can see dates, transaction codes, and the actual progress of your return through their system. It's honestly frustrating that the IRS makes this information so hard to find when it would eliminate so much anxiety for taxpayers. Hang in there - the vast majority of these cases are just routine reviews that got backed up in their system. Once you can see what's actually flagging your return, you'll probably find it's much less dramatic than all the worst-case scenarios your mind has been creating!

I'm dealing with this exact situation right now and honestly, these 60-day letters are driving me insane! Filed back in March and just got my second one last week. The "Where's My Refund" tool has been completely useless - just shows "still processing" with zero helpful information for months now. Reading through all these comments has been incredibly eye-opening though. I had absolutely no idea you could download your own tax transcript or that there were AI tools to help decode what's actually happening. It's honestly ridiculous that the IRS has all this detailed information but keeps us completely in the dark with these vague form letters. The anxiety of not knowing whether you made a mistake or if it's just routine processing is honestly worse than the delay itself. I've been imagining all sorts of worst-case scenarios when it sounds like most of these are just verification issues that got backed up in their system. Definitely going to try the transcript download approach tonight - seems like that's the key to finally getting some real answers instead of just waiting helplessly for the next 60-day letter to show up. Thanks to everyone who shared their experiences and solutions here. It's both frustrating and comforting to know this is such a widespread problem!

Great question about depreciation! One important thing to add - since you purchased the property in November 2024, you'll need to use the mid-month convention for your first year of depreciation. This means you can only claim 1.5 months of depreciation for 2024 (November counts as a half month, plus December). So instead of a full year's worth, you'd calculate your annual depreciation amount and multiply by 1.5/12. Also, keep detailed records of when you move out completely and convert to 100% rental use. The IRS considers this a "change in use" and you'll need to document the exact date for your depreciation calculations going forward. Take photos showing the property is ready for rental and keep records of when you start advertising or get your first tenant - this helps establish the conversion date if you're ever audited. One more tip: consider getting a professional appraisal that breaks down land vs building value. It's worth the cost for a $1.35M property to ensure you're maximizing your depreciable basis correctly.

Don't forget about the Section 199A deduction (QBI deduction) for rental real estate! Since you'll be operating a rental property business, you may qualify for up to a 20% deduction on your rental income. However, there are income limitations and the property needs to qualify as a "trade or business" rather than just passive investment activity. To qualify, you'll generally need to spend at least 250 hours per year on rental activities (advertising, maintenance, tenant screening, etc.) and keep detailed records of your time. Given that you're doing renovations and actively managing the property conversion, you're likely already meeting the activity requirements. Also, since you mentioned this is a high-value property in a presumably good area, consider whether you'll hit the income phase-out limits for the QBI deduction. The deduction starts phasing out at $191,950 for single filers in 2024. If your total income is above this threshold, the deduction calculation becomes more complex but could still provide significant tax savings. This deduction can be substantial - on $50k of rental income, it could save you up to $10k annually in taxes if you qualify fully. Definitely worth discussing with a tax professional alongside your depreciation strategy!

mine came through last week! took 97 days total. check your transcripts daily, thats how i knew it was coming

Been through this exact same situation last year. Got the 60-day letter in March, didn't see my refund until mid-July (about 110 days total). The waiting is brutal but most people do eventually get their money. The key is staying on top of your transcript - once you see the 846 code appear, your refund usually hits within a week. Don't give up hope!

Congratulations on becoming a dad soon! This is definitely a confusing area, but the good news is that you're overthinking it a bit. Health insurance coverage and tax dependency are completely separate systems with different rules. Your girlfriend can absolutely add your son to her health insurance while you claim him as your tax dependent. There's no requirement that the person providing health insurance must also be the one claiming the child on their taxes. These benefits operate independently of each other. For your work's childcare subsidy, they only care that you legitimately qualify to claim your son as a dependent on your tax return. This means you need to provide more than half of his total support for the year and he needs to live with you for more than half the year (which should be easy since you live together). The IRS won't have any issues with this arrangement, and your employer's childcare benefit program won't either. Just make sure you and your girlfriend don't both try to claim him as a dependent on your respective tax returns - only one of you can do that, and it should be whoever actually provides more than half of his financial support. Keep good records of what you're paying for (formula, diapers, clothes, medical expenses not covered by insurance, etc.) to document that you're providing the majority of his support. This will help if you're ever questioned about your dependent claim.

The arrangement you're describing is totally fine and very common! Health insurance coverage and tax dependency are governed by completely separate rules, so there's no conflict with your girlfriend having your son on her insurance while you claim him as your dependent. For the IRS dependency test, what matters is that you provide more than half of your son's total support for the year and that he lives with you for more than half the year (which is satisfied since you live together). The fact that he's on her health insurance doesn't affect your ability to claim him as a dependent at all. Your employer's childcare subsidy program will only verify that you legitimately qualify to claim your son as a dependent on your tax return - they won't even know or care whose health insurance he's on. These are completely separate benefit systems. Just make sure you keep good documentation of all the expenses you pay for your son (formula, diapers, clothes, toys, childcare costs, medical expenses not covered by insurance, etc.) to prove you're providing more than half his support. This will be important if you're ever audited or questioned about your dependent claim. Also coordinate with your girlfriend to ensure you don't both try to claim him - only the person who actually provides more than half the financial support should claim the dependency exemption. But based on your question about wanting the work subsidy, it sounds like you're planning to be the primary financial provider, which would make you the correct person to claim him. Congratulations on the upcoming addition to your family!