Just wanted to add my experience as someone who's dealt with several PTP Section 751 situations - the reporting can get tricky when you have multiple PTPs with different types of gains. One thing I've learned is to always request the detailed Section 751 calculation from the partnership if it's not clearly attached to the return. Sometimes partnerships will just put the final number in Box 1 without showing the breakdown of which assets triggered the ordinary income treatment. This becomes important if you're preparing returns for partners who have other capital losses they're trying to offset - they need to understand that the Section 751 portion can't be used to offset those losses since it's characterized as ordinary income. Also, for future reference, if you ever encounter a situation where the partnership didn't properly identify Section 751 property, the individual partners would need to make the adjustment themselves using Form 4797. But from your description, it sounds like your partnership did everything correctly. ProSystems FX can be frustrating with the lack of clear tagging, but as long as the income flows to Schedule E and you've verified the partnership's Section 751 calculation, you should be in good shape.

This is exactly the kind of Section 751 confusion that trips up a lot of practitioners! You're handling it correctly - when the partnership properly characterizes the Section 751 gain as ordinary income in Box 1 with code AB in Box 20, it should flow to Schedule E on the individual returns, not Form 4797. The key distinction is that Section 751 doesn't automatically mean Form 4797 treatment at the partner level. The partnership has already done the "heavy lifting" of identifying the hot assets and recharacterizing what would have been capital gain into ordinary income. That ordinary income then flows through like any other Box 1 income. Your ProSystems FX software is actually working correctly - it's just not making the Section 751 aspect visually obvious. The code AB in Box 20 is the flag that tells you (and the IRS) that this ordinary income includes Section 751 gain, but since it's already characterized as ordinary income, no additional forms are needed on the individual returns. One thing to double-check: make sure your partnership's Section 751 statement is comprehensive and clearly shows the calculation. If any partners ask questions later, you'll want to be able to explain how the partnership arrived at that $13,500 ordinary income figure from what was originally a partnership interest sale.

I can relate to the confusion! I went through the same thing with TurboTax and Credit Karma last year. What you're seeing is definitely just the advance portion - think of it as TurboTax giving you a small loan against your expected refund while the IRS takes their sweet time processing everything. The "accepted but not approved" status is totally normal right now. The IRS is swamped and running behind this season. Your actual refund is still sitting in their queue waiting to be fully processed. Once they approve it, the full amount goes to TurboTax first, they take back what they already advanced you (plus their fees), and then deposit the remainder to your Credit Karma account. Based on current processing times, I'd expect to see the rest of your refund in the next 2-3 weeks. Just keep checking Where's My Refund - once it switches to "approved" status, you'll know the rest is on its way!

I had the exact same confusion when I used TurboTax with Credit Karma last year! What you received is definitely just the refund advance - essentially a loan against your expected refund amount. The IRS hasn't actually processed your return yet, which is why WMR shows "accepted but not approved." Here's the timeline: TurboTax estimated your refund amount and gave you a portion upfront (the advance). Meanwhile, your actual tax return is still working through the IRS system. Once they finish processing and approve your return, they'll send the full refund to TurboTax. TurboTax then keeps what they already advanced you, deducts their processing fees, and deposits the remaining balance to your Credit Karma account. Since you filed 4 weeks ago and it's still showing as accepted but not approved, you're probably looking at another 1-2 weeks before seeing the rest. The IRS is running pretty slow this season. Just keep checking WMR - once it switches to approved with a deposit date, that's when you'll get the remainder of your refund!

Tyler, you're absolutely doing the right thing by wanting to report your tips properly! I went through something very similar last year working at a small diner where tip reporting was pretty much nonexistent. Here's what I learned: reporting those unreported tips will likely work in your favor financially. At your income level, the additional reported income should significantly boost your Earned Income Credit, which could easily offset the extra taxes you'll owe on the tips. I ended up with a bigger refund than I expected! For the practical stuff - you'll need Form 4137 to report tips you didn't tell your employer about. It calculates the Social Security and Medicare taxes on those unreported tips. Don't stress too much about perfect documentation - even rough daily estimates or weekly totals written in a notebook are fine. The IRS understands that cash tips aren't always tracked precisely. As for audit risk, reporting unreported income actually reduces your audit risk rather than increasing it. The IRS is much more concerned about people hiding income than people voluntarily coming forward to report it properly. And you're not going to get your restaurant in trouble - your personal tax obligations are separate from their reporting requirements. The difference between $600 and $5.5k does matter somewhat, but either way, using Form 4137 is the correct approach. Just be honest about your best estimate of total tip income for the year. Better to slightly overestimate than underestimate if you're unsure. You've got this! It might seem scary now, but you'll feel so much better having everything reported properly.

Tyler, I'm glad you're thinking about doing the right thing here! I was in almost exactly your situation a couple years ago - working at a small family restaurant where tip reporting was basically non-existent, and I was super stressed about tax time. Here's the reality: reporting your unreported tips is not only the legally correct thing to do, but it's also likely to benefit you financially. At your income level ($22k base), those additional reported earnings will probably push your Earned Income Credit higher, and that increase could very well exceed any additional taxes you owe on the tip income. A few practical points: - You'll use Form 4137 to report tips you didn't tell your employer about - The form calculates the Social Security and Medicare taxes you owe on those unreported tips - You don't need perfect documentation - reasonable estimates based on whatever records you have (even rough daily notes) are fine - The IRS expects this situation and that's exactly why Form 4137 exists As for audit risk - you're actually REDUCING your audit risk by voluntarily reporting previously unreported income. The IRS is much more concerned with people hiding income than people coming forward to report it properly. And don't worry about the restaurant - your personal tax return is completely separate from their reporting obligations. You're taking responsibility for your own tax situation, which is exactly what you should do. Whether it's $600 or $5.5k, the approach is the same: be honest about your best estimate of total annual tip income and report it using Form 4137. You'll sleep much better knowing everything is handled correctly!

I work for a tax prep company and see this confusion all the time! What's happening is that TurboTax is showing you their internal tracking system - "Accepted" just means the IRS received your electronic filing successfully. It's basically like getting a receipt that says "we got your package" but doesn't mean they've opened it yet. The IRS Where's My Refund tool shows the actual processing status. Right now you're at step 1 of 3: Return Received. You'll need to wait for it to move to "Return Approved" (step 2) and then "Refund Sent" (step 3). Those TurboTax fees for "5 days early" and such are just their way of advancing you money against your expected refund - they can't actually speed up IRS processing. The IRS doesn't care what software you used or what promises they made. Typical timeline is 21 days from e-file date for straightforward returns, but it can be longer during busy season. Since you filed on 1/22, I'd expect movement by mid-February if everything goes smoothly. Stick with the IRS site for accurate updates!

I had this exact same situation happen to me last year! TurboTax showing "accepted" while IRS only showed "received" drove me crazy for weeks. Turns out the IRS systems are just slower to update their public-facing tools compared to their internal processing systems. What helped me was understanding that there are actually multiple stages between "received" and "approved" that the Where's My Refund tool doesn't show you. Your return could be getting processed in the background even though the status hasn't changed yet. One thing I learned - if you have any credits like EITC or Child Tax Credit, it automatically adds extra processing time regardless of what TurboTax promises. They're required by law to hold those refunds until mid-February even if everything else is perfect. I'd say give it another week or two before worrying. The 21-day timeframe is business days, not calendar days, so weekends don't count. And like others said, checking your transcript can sometimes give you more detailed info about what's actually happening behind the scenes.

I'm also an F1 student and just went through this same exact situation! After months of confusion and frustration, I finally understand what's happening here. The issue isn't that Fidelity doesn't understand your paperwork - they're actually following IRS rules correctly. As a nonresident alien for tax purposes (which F1 students are for their first 5 calendar years), you simply cannot contribute to a Roth IRA, period. This is federal tax law, not a company policy. When you submit a W8 form, you're essentially confirming your nonresident alien status, which automatically disqualifies you from Roth IRA eligibility. That's why they keep asking for a W9 - because only people who can use that form (US citizens and resident aliens) are eligible for Roth IRAs. Here's what finally worked for me: I stopped trying to force the Roth IRA and opened a regular taxable brokerage account instead. I went with Vanguard and their international team handled my W8-BEN form perfectly - no confusion at all. Yes, you lose the tax advantages, but you can still invest in the same index funds and start building wealth. The good news is this is temporary! Once you hit your 6th calendar year in the US, you'll typically qualify as a resident alien and can then open a Roth IRA. I have a reminder set for exactly when that happens. Don't let this discourage you from starting your financial journey - just think of it as taking a different route to the same destination. You're still being smart by wanting to invest early!

As someone who went through this exact same frustration as an F1 student, I completely understand how maddening this situation feels! After reading through all these incredibly helpful responses, it's clear that the community has given you the definitive answer: as a nonresident alien (which F1 students are for their first 5 calendar years), you cannot contribute to a Roth IRA under IRS rules. What really resonated with me from this thread is the shift from seeing this as a roadblock to viewing it as a timing issue. The advice about opening a taxable brokerage account in the meantime is spot-on - you'll still be building wealth and gaining investment experience while waiting for your status to change. I'd especially recommend the suggestions about Vanguard and Schwab's international services teams, as multiple people have had success with their clear processes for handling W8 forms for regular investment accounts. The calendar reminder strategy is brilliant too - it gives you something concrete to look forward to rather than feeling indefinitely stuck. Don't let this discourage you from your financial goals! Sometimes the path looks different than we initially planned, but starting your investment journey now (even in a taxable account) puts you way ahead of most people your age. By the time you're eligible for retirement accounts, you'll already be an experienced investor with a solid foundation.