bruh the irs needs to get their act together. like how does this even happen 🤦‍♂️

This is a major red flag! Higher One banks are frequently used in tax refund fraud schemes. Here's what you need to do immediately: 1) Call Wells Fargo fraud department and ask them to explain why this account appeared, 2) Log into your IRS account online and check if your direct deposit info has been changed, 3) Call the IRS Identity Protection Unit at 800-908-4490. Don't wait - these scammers work fast once they've compromised your info. Also freeze your credit reports just to be safe!

This thread has been incredibly educational! As a newcomer to this community, I'm amazed by how much practical knowledge everyone has shared about DCNs. I had literally never heard of this concept before reading through all these responses. What really strikes me is how this seems to be one of those "hidden" aspects of tax filing that becomes crucial in specific situations but isn't commonly discussed. The analogy someone made about it being like your tax return's fingerprint really helped me understand its purpose. I just went through my own tax software (I use FreeTaxUSA) and managed to locate my DCN from this year's filing. It was buried in the confirmation details, but now I know exactly where to look! I'm definitely implementing some of the organization strategies mentioned here - the screenshot idea and keeping a dedicated tax reference document both seem like game-changers. Thanks to @Javier Morales for asking this question that clearly resonated with so many of us! And huge thanks to everyone who shared their real-world experiences and practical tips. This is exactly the kind of insider knowledge that makes navigating taxes feel less intimidating. Looking forward to being better prepared for any future IRS interactions! 🙏

This thread has been incredibly helpful! As someone who works in tax preparation software support, I see this confusion about DCNs all the time. You're definitely not alone in not knowing about this number! The DCN is essentially your tax return's unique identifier in the IRS system - think of it like a tracking number for a package, but for your entire tax return. While you don't need it for everyday things like checking refund status, it becomes invaluable when you need to speak with an IRS representative about specific issues. Since you mentioned using TaxAct, here's the easiest way to find your 2023 DCN: 1. Log into your TaxAct account 2. Navigate to "My Returns" or "Tax Home" 3. Select your 2023 tax year 4. Look for "Filing Details" or "Submission Summary" 5. The DCN should be listed there, usually labeled as "Declaration Control Number" or just "Control Number" Pro tip: Once you find it, save it in a secure note or document along with your filing date and confirmation number. I always recommend clients treat their DCN like they would any other important financial reference number - you hope you never need it, but when you do, you'll be so glad to have it readily available! The good news is that if you ever can't locate it, any future IRS correspondence will include your DCN, so don't stress too much about tracking down old ones unless you're actively dealing with an issue.

I've been through a similar situation with inherited rental property and large depreciation deductions. One important point that hasn't been fully addressed is the timing of when you can start taking depreciation on inherited property. You can begin depreciating the property when it's placed in service as a rental, not necessarily from the date of inheritance. If you inherited the property in late 2023 but didn't start renting it out until 2024, your depreciation would begin in 2024. Also, make sure you're using the correct depreciation method - residential rental property is typically depreciated over 27.5 years using straight-line depreciation. Given your stepped-up basis of $1.6M, you're looking at substantial annual depreciation (potentially $50K+ per year depending on the land/building allocation). The active participation exception allowing up to $25,000 in losses against other income is definitely your best route, but consider consulting with a tax professional who specializes in rental property taxation to ensure you're maximizing your deductions while staying compliant with all the passive activity rules.

For anyone dealing with inherited rental property and passive loss rules, I'd highly recommend getting familiar with Form 8582 (Passive Activity Loss Limitations) - this is where you'll actually report your rental losses and apply the active participation exception. The form can be tricky, especially when you're dealing with large depreciation amounts from stepped-up basis property. A few additional considerations that might help: if you're married filing jointly, the $25,000 active participation allowance applies to your combined income, not per spouse. Also, if you have multiple rental properties, the active participation rules apply differently - you need to actively participate in each property to use losses from that specific property. One strategy some people overlook is the timing of other income. If you have control over when you realize capital gains (like selling stocks), you might consider timing those gains strategically to stay below the MAGI thresholds for the passive loss exceptions. Just make sure any timing strategies make sense from an overall financial planning perspective, not just taxes. The documentation everyone's mentioned is crucial - I keep a simple spreadsheet tracking time spent on rental activities, decisions made, and communications with tenants/contractors. Takes just a few minutes each month but provides great audit protection.

I've been dealing with payroll and tax issues for years as a small business owner, and I can confirm that "TOTAL" in Box 20 is becoming more common with automated payroll systems. Here's what I'd recommend: 1. Don't panic - this is likely just a formatting issue, not a calculation error 2. Check your final December pay stub to see the locality breakdown 3. Verify that the sum of individual locality taxes on your pay stub matches Box 19 on your W-2 4. Keep detailed records of your pay stubs showing the specific localities If you moved mid-year like you mentioned, you'll probably need to file local tax returns for both cities. The good news is that most tax software can handle this - you just need to manually split the amounts based on your pay stub information. One thing to watch out for: some localities have different filing requirements or deadlines, so make sure you research the specific rules for both cities where you had taxes withheld. Don't let your HR department's slow response delay your filing if you're close to the deadline.

I work in tax preparation and see this "TOTAL" issue frequently during tax season. What's happening is your payroll system is consolidating multiple locality entries instead of listing them separately on the W-2. This is completely normal when you've had taxes withheld for more than one jurisdiction. Since you moved mid-year, you likely had local taxes withheld for both your old and new cities. The payroll system just summed them up and put "TOTAL" rather than trying to fit multiple city names in that small box. Here's what you need to do: 1. Get your final December pay stub - it should show the breakdown by locality 2. Verify the individual amounts add up to what's in Box 19 of your W-2 3. You'll need to file local tax returns for both cities where you had withholding 4. Keep copies of those pay stubs with your tax records Don't wait for HR if you're close to the deadline. This is a reporting format issue, not a calculation error. You can file confidently using the pay stub details to allocate the amounts correctly between the two localities.

From my experience going through this exact process last year, it took about 4-5 months total from start to finish. Here's roughly how it broke down: - 2-3 weeks to gather all documents and request IRS transcripts for missing forms - 1-2 weeks to actually prepare and file the returns (I did 3 years worth) - 12-16 weeks for the IRS to process and send refunds (as @Maxwell St. Laurent mentioned, prior year returns take much longer) The key is getting organized upfront and not rushing through the document gathering phase. I made the mistake of filing my first return before I had all my transcripts back from the IRS, and ended up having to file an amended return later when I discovered additional income I had missed. One tip that saved me time - I created a simple spreadsheet tracking which documents I had for each year and what was still missing. It helped me stay organized when dealing with multiple tax years and made sure I didn't file incomplete returns. The wait for refunds was definitely the most frustrating part, but seeing those direct deposits hit my account after months of work made it all worthwhile. Don't get discouraged by the timeline - just start the process and let it work through the system!

Just want to echo what everyone else has said about the 3-year rule - it's absolutely critical to understand those deadlines! I learned this the hard way when I discovered some old 1099s from 2018 and got excited thinking I could claim a refund, only to find out I was already past the statute of limitations. One thing I'd add that might be helpful - if you're unsure about whether you even had a filing requirement for some of those years, the IRS has income thresholds that determine if you needed to file. For example, if you were single and under 65, you only needed to file if your gross income was above certain amounts (which change each year). So even if you found old W-2s, you might not have been required to file returns for those years if your income was below the threshold. This could save you some time and effort if you're looking at years where your income was really low. The IRS website has historical filing requirement charts that show the income thresholds for each tax year going back several years. Good luck getting those refunds @Edison Estevez - sounds like you've got a solid plan now thanks to all the great advice in this thread!