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You might be dealing with a correction W2 rather than a split federal/state situation. Check the box that says "Corrected" at the top of the forms. If one is marked as corrected, you should only use that one and ignore the first one they sent you.
I double-checked both forms and neither has the "Corrected" box marked. They both have the same employer info and my info, but like I said, the second one only has state tax information (boxes 18-20) filled in and everything else is blank. Based on everyone's comments, it seems like this is a split W2 situation where federal and state are separate.
If neither is marked as corrected, then yes, you're definitely dealing with a split federal/state W2 situation. Your employer has filed your federal tax info on one form and state tax info on another. Both forms are valid and need to be entered separately. If TurboTax is giving you trouble, look for an option that says something like "This W2 contains only state information" when entering the second W2. Sometimes it's hidden in an "advanced" or "special situations" menu. If you still can't find it, then the suggestions others mentioned about using the override function or calling the IRS for guidance are your best options.
Has anyone successfully e-filed with split W2s using TurboTax? I'm trying to avoid paper filing but running into the same issue.
Yes! In TurboTax there's actually a checkbox specifically for state-only W2s. After you enter the employer information, look for "Special Situations" at the bottom of the screen and select "This W-2 has state information only." That should let you e-file without errors.
I just want to add some practical advice from my experience as someone who successfully deducted a partial home security system for my child with special needs: 1. Get a detailed invoice that separates out the components specifically for medical purposes versus general security 2. Have your doctor write a letter that specifically mentions which features are medically necessary and why 3. Take photos of any specialized components installed specifically for medical reasons 4. Keep a log of incidents that demonstrate the medical necessity (wandering episodes, etc) This documentation was crucial when I got a letter from the IRS questioning the deduction. Once I sent all this in, they approved it without further questions.
Did you have to get a specific form from your doctor, or was just a regular letter on their letterhead sufficient? My doctor's office is giving me pushback about providing documentation.
A regular letter on official letterhead was sufficient in my case. The key was making sure the letter specifically stated that the security system was "medically necessary" for managing my child's diagnosed condition, not just recommended or suggested. I found it helpful to provide my doctor with a template that outlined exactly what needed to be included. I explained to them that this was for tax purposes, and specified the exact components that were medically necessary (motion sensors, door alarms, etc). Many doctors aren't familiar with writing letters for tax purposes, so giving them guidance on what to include made it much easier.
Has anyone considered the home office deduction angle instead of medical? If you have a legitimate home office where you do therapy or medical management for your family member, some security costs might be deductible that way too.
That's an interesting approach, but be careful mixing these deductions. The IRS is very strict about home office deductions and they need to be exclusively used for business. If you're using the space for both personal family care and business, you could run into issues.
Have you checked your IRS transcript online? Sometimes that shows more detail than the Where's My Refund tool. You can access it by creating an account on IRS.gov if you don't already have one. The transcript might show specific codes that indicate what's happening with your return.
I tried to create an account but it wouldn't verify my identity because I don't have a credit card or loan history (I mostly use cash and debit). Is there another way to check?
You can request your transcript by mail if the online verification doesn't work for you. Go to IRS.gov and search for "Get Transcript by Mail" or use Form 4506-T. It takes about 5-10 days to arrive. Another option is to call the IRS automated transcript line at 800-908-9946. You won't speak to a person, but you can request that they mail your transcript. If you absolutely need to talk to someone, try calling the main IRS number (800-829-1040) early in the morning right when they open - that's usually when wait times are shortest.
Since this is your first time filing, did you file by paper or electronically? Paper returns can take MONTHS to process. Also, the EITC (Earned Income Tax Credit) returns are held until at least February 15th by law, so they couldn't start processing yours until after that date even though you filed earlier.
They said in the post they filed electronically with H&R Block. Reading comprehension lol
For what it's worth, I've been using different business codes in different tax programs for years with no issues. The IRS cares much more about whether you're reporting all your income correctly than which specific business code you choose. One tip: take a screenshot of the available codes in FreeTaxUSA and save it with your tax documents. That way, if there's ever a question years from now, you can show you selected the best option available in the software you were using.
Does this apply even if the business code is like COMPLETELY different though? For example, I used "Computer System Design Services" in TurboTax but FreeTaxUSA only has general "Technical Services" or something much broader.
Yes, it absolutely applies even with completely different codes. The business code system in tax software is primarily for the IRS's statistical purposes - they use this data to analyze trends across industries. The broader "Technical Services" code in FreeTaxUSA would be perfectly fine to use instead of the more specific "Computer System Design Services" from TurboTax. The IRS understands that different tax preparation methods might have different levels of specificity in their code options. What they ultimately care about is that your income, expenses, and deductions are all accurately reported.
I actually called FreeTaxUSA customer support about this exact issue. They told me they use a simplified version of the NAICS codes to make it easier for average users. The rep said to just pick the closest match and not worry about it being different from previous years.
CyberSiren
Something everyone's missing here - even if you avoid immediate gift tax issues because of the lifetime exemption, selling a property that far below market value will raise MAJOR red flags at the IRS. They're specifically trained to look for transactions like this as potential money laundering or tax evasion schemes. You'll almost certainly trigger an audit, and then you'll have to prove it was just generosity and not something else. And trust me, you don't want that level of scrutiny on all your finances. Plus, your friend could face issues with their mortgage lender if they try to refinance later, as the purchase price history will look suspicious.
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Miguel Alvarez
ā¢Do you know if there's a "safe" discount percentage that doesn't trigger audits? Like could I sell a house to my kid for 20% less than market value without raising flags?
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CyberSiren
ā¢There's no official "safe harbor" percentage the IRS publishes, but in my experience, anything beyond a 25% discount from clear market value starts increasing audit risk substantially. Small discounts between family members (10-15%) are fairly common and generally don't raise major concerns if properly documented. The key is documentation and consistency. If you're selling to a family member at a discount, get a professional appraisal first to establish fair market value, then document your gift intentions clearly. File the proper gift tax forms even if no tax is due because of exemptions. Also consider that different regional IRS offices may have different thresholds for what triggers additional scrutiny.
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Zainab Yusuf
Does the person receiving the house have to worry about property tax reassessment? I know when houses change hands the county often reassesses and raises the property taxes. Would they base it on the $100 sale price or the actual value?
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Connor O'Reilly
ā¢Property taxes are generally assessed based on the actual value of the property, not the sale price. While sales can trigger reassessments, the county assessor isn't going to value a house at $100 just because that's what you "sold" it for. They use comparable properties and other methods to determine fair market value.
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