This thread has been incredibly helpful! I'm facing a similar situation with a K-1 showing losses across 8 states, and like many others here, I was initially panicking about the potential filing costs. After reading through everyone's experiences, I think the key takeaway is that there's no universal answer - it really depends on your specific circumstances and the states involved. The approach of researching each state's individual requirements rather than just accepting the "file everywhere" default from tax software makes a lot of sense. I'm particularly interested in the suggestion to check state websites directly for nonresident filing thresholds. Has anyone found certain states to be consistently more lenient with pass-through loss situations? I'm seeing mentions of states like Oregon having specific exemptions, but I'd love to hear if there are other states known for reasonable thresholds. Also, for those who've taken the selective filing approach, do you typically err on the side of caution for borderline situations, or have you found that states are generally reasonable when there's genuinely no tax liability involved? I'm leaning toward doing the research upfront and making informed decisions state by state, but I want to make sure I'm not missing any important considerations before I commit to that approach.

I've been following this discussion with great interest as someone who just received my first multi-state K-1 showing losses in 5 states. The range of approaches and experiences shared here is really eye-opening! What strikes me most is how the "default to file everywhere" advice from most tax software seems to be more about legal protection for the software companies than actual necessity. The fact that so many experienced members here have successfully used selective filing approaches based on state-specific research gives me confidence that this isn't just about paying unnecessary fees. I'm planning to take the hybrid approach that seems to be emerging from this thread: research each state's specific requirements first, document my findings, and then make informed decisions state by state. For the 2-3 states where the rules are unclear or borderline, I'll probably err on the side of filing to avoid any future headaches. One question I haven't seen addressed much: for those who have partnerships that fluctuate between profits and losses year to year, how do you handle the consistency aspect? Do you establish filing in all relevant states during profitable years and then continue filing during loss years, or do you adjust your approach based on each year's specific situation? Thanks to everyone who's shared their real-world experiences - this has been far more helpful than any generic tax advice I've found elsewhere!

Hey Ashley! I just went through this exact situation a few weeks ago. Had the 846 code with my DDD, then boom - Tax Topic 203 showed up the next day. Super stressful! In my case, the 898 offset code didn't appear on my transcript until 3 days after my original DDD, but when it did, it showed exactly how much was taken and for what debt. Since student loans are paused until May, it's almost certainly that NY Labor debt that's going to get collected. One thing that helped me was calling the Bureau of Fiscal Service at 855-868-0151 - they can tell you ahead of time if there's an offset coming and from which agency. Way better than just waiting and wondering! The whole process took about a week total for me, but I did get the remaining balance after the offset was taken. Hope this helps ease some of the anxiety - I know how nerve-wracking it is when you're expecting that refund! 💙

I've been dealing with similar transcript confusion lately! From what I've learned through this whole process, the 846 code with DDD followed by Tax Topic 203 is unfortunately a pretty clear sign that an offset is coming. The transcript updates can be really inconsistent - sometimes the 898 offset code shows up the same day, other times it takes several days after your DDD. Since student loans are still paused until May, that NY Labor debt is most likely what's triggering the offset. Even though they didn't take it last year doesn't mean they won't this year - state agencies can be pretty unpredictable about when they decide to collect. I'd recommend calling the Treasury Offset Program at 1-800-304-3107 to get the exact details on what debt is being offset and for how much. That way you'll know exactly what to expect instead of just waiting and wondering. The uncertainty is honestly the worst part of this whole situation! Keep checking your transcript daily for that 898 code - once it posts you'll have all the details about the offset amount and your remaining refund. Hang in there, this whole process is super stressful but you'll get through it! 💪

I'm surprised nobody mentioned quarterly estimated taxes yet! If you're making money from self-employment, you might need to make quarterly tax payments to avoid penalties. The IRS expects you to pay taxes throughout the year, not just at filing time.

As someone who went through this exact situation a few years ago, I can share what worked for me. First, yes you do need to report this income since you're over the $400 threshold for self-employment. But don't stress too much about the bank deposits - for amounts under $10k, they typically won't question where the cash came from. Here's what I wish someone had told me: start keeping better records NOW. Create a simple spreadsheet with dates, jobs, and payments. Also track your expenses like gas, equipment, supplies - these deductions can significantly reduce what you owe. I ended up saving about $400 in taxes just by deducting my lawn mower, gas, and maintenance costs. For filing, you'll use Schedule C and Schedule SE along with Form 1040. The self-employment tax is about 15.3%, but you might not owe income tax depending on your total income. Since your parents claim you as a dependent, you still need to file your own return. Consider it good practice for adult life! Most tax software can handle this situation, or you might want to have your parents help you through it the first time.

I completely understand your BNA frustrations! I've been working with tax software for over a decade and BNA definitely has one of the steepest learning curves I've encountered. The good news is that once you get through the initial pain, it really is quite powerful for complex planning scenarios. For your S-Corp issues, I'd recommend starting with their "Entity Setup Wizard" if you haven't already - it's buried under Tools > Wizards but it walks you through all the required fields in a logical order. This prevents the random error messages you get when trying to enter data manually. Regarding depreciation modeling, make sure you're using the "Asset Comparison" feature rather than trying to manually switch methods between scenarios. Go to Planning > Asset Analysis > Comparison Tool and you can set up side-by-side comparisons of different depreciation methods for the same assets. This keeps your baseline data intact while showing the tax impact of each approach. One resource that's been invaluable for me is the BNA Tax & Accounting User Forum on LinkedIn - it's an active group where users share tips and troubleshoot issues together. Much more helpful than their official documentation! You're definitely not alone in this struggle.

I've been struggling with BNA for about 6 months now after our firm made the switch, so I totally feel your pain! One thing that's helped me tremendously is creating my own "cheat sheet" document with screenshots of the most common workflows. For S-Corp data entry, I've found that the order matters more than BNA lets on - always enter the basic entity information first, then shareholders, then financials. If you try to jump around, it gets confused and throws errors that don't make sense. The depreciation scenario modeling was driving me crazy until I realized you have to "lock" your baseline scenario before creating alternatives. There's a tiny padlock icon next to the scenario name that most people miss. Once you lock it, your comparisons will stop messing up your original projections. Also, if you haven't already, go to Help > Training Resources and look for the "BNA Tax Planner Quick Start Guide" - it's much more practical than those old tutorial videos. It actually walks through real examples rather than generic explanations. The learning curve is absolutely brutal, but it does click eventually. Hang in there!

has anyone tried using the free version of turbotax online? not sure if i need to pay for deluxe or if the free version would work for my situation (just w2 income

For your situation with W-2 plus some 1099 income, I'd actually lean toward the online version. I've been filing taxes for my family for years and the online version handles 1099s really well - it walks you through everything step by step and has gotten much better at importing data directly from employers and clients. The main advantage for you would be convenience - you can work on it from anywhere, and it automatically saves your progress. Since you're not dealing with super complex stuff like rental properties or multiple businesses, you probably don't need the extra forms and control that the desktop version offers. One tip though - don't get trapped by their "free" marketing. With 1099 income, you'll likely need at least the Deluxe version ($60-80 typically) to handle the self-employment forms properly. But honestly, that's still worth it compared to paying a tax preparer hundreds of dollars for what sounds like a pretty straightforward return.