has anyone actually gotten a refund after fixing this error? I made the exact same mistake but Im worried if I call the IRS theyre just going to audit me or something. my additional medicare tax was like $1,300 and thats exactly what my refund was short. so frustrating!!!

I had this EXACT same problem last year! Put my Additional Medicare Tax withholding on line 25c instead of line 26 and the IRS adjusted my refund down by that exact amount. It's such a common mistake because the Form 8959 instructions aren't super clear about where the withholding amount goes on the 1040. The good news is that once you understand what happened, it's usually fixable. Like others mentioned, the withholding from Form 8959 line 24 should go on line 26 with your other federal tax withholding, not on line 25c. The IRS computer system catches this and moves it to the correct line, which is why your refund calculation changed. If you haven't heard back from them yet with a correction notice, you might want to call and explain that you misreported the withholding location. Most agents understand this is a common filing error and can help you get it sorted out. Don't stress too much - you're definitely not the first person to make this mistake!

Definitely report it! I didn't report an inherited property sale a few years ago because it sold for less than the appraised value at death. Ended up getting a letter from the IRS asking about it, and had to go through the hassle of amending my return. Even though you don't owe any taxes, the title company reports the sale to the IRS on a 1099-S form, so they know about the transaction. Better to report it properly the first time than deal with questions later!

Just went through this exact situation with my grandmother's house last year! Even though we had no capital gains (actually a small loss), our tax preparer emphasized that we absolutely had to report it. The IRS gets a copy of the 1099-S from the title company showing the sale, so they'll be expecting to see it on your return. One tip that saved us some headaches - make sure you have clear documentation of the stepped-up basis. We used the estate's formal appraisal, but I've heard some people successfully use other methods like comparative market analysis if done close to the date of death. Since there are multiple siblings involved, each of you will report your portion of the sale on your individual tax returns. So if you inherited equal shares, you'd each report 1/3 of both the sale price and the stepped-up basis. Definitely smart to get professional help for this year - inherited property sales have some nuances that are worth getting right the first time!

I'm a tax preparer and wanted to share what I've been telling clients in similar situations. The key thing to remember is that even if your 1099s are delayed, you can still file your taxes accurately using other documentation. For interest income, your December bank statement will show the year-to-date interest earned, which should match what appears on your 1099-INT when it arrives. For investment accounts, your year-end brokerage statement will have the dividend and capital gains information you need. The IRS matches the income you report against the 1099s they receive from financial institutions, but this matching process happens months after you file. As long as you report the correct amounts (which you can get from your statements), you won't have any issues even if the official 1099 arrives after you've already filed. Just make sure to keep those year-end statements with your tax records in case you ever need to substantiate the numbers you reported. Don't let missing 1099s delay your filing if you have the information you need from other sources!

I'm going through the exact same thing with Chase! I've been checking my online portal daily for the past week and still nothing. What's really frustrating is that I called them in early January and the rep confidently told me "all 1099 forms will be available online by January 31st." I'm learning a lot from this thread though - I had no idea about the February 15th legal deadline. That actually makes me feel a bit better about the delay. I think I'm going to try the approach of using my December statement for now since I can see my total interest earned for the year there. Has anyone else noticed if Chase is worse about this than other banks? I got my 1099s from my credit union and Ally Bank weeks ago, but Chase seems to always be the slowest. Makes me wonder if I should just switch to a bank that's more reliable with tax documents.

As someone who's been preparing taxes for several years, I'd strongly recommend avoiding the refund transfer route. The complications far outweigh the benefits - you're dealing with third-party processors, additional fees for your client, potential delays, and as others mentioned, the risk of offsets completely derailing payment. I've found the most successful approach is requesting payment upfront for basic preparation work (maybe 50%) and the remainder upon completion but before e-filing. This protects both parties - you get compensated for your time, and they get to review everything before final payment. Most clients understand this is standard business practice, just like any other professional service. The peace of mind is worth way more than the perceived convenience of deducting from their refund!

I've been doing taxes for my neighbors for the past 3 years and learned this lesson the hard way! My first year, I tried the refund transfer route thinking it would be "easier" for everyone. What a nightmare! Between the extra fees, delayed processing, and one client whose refund got intercepted for an old tax debt (leaving me unpaid), I quickly realized it's not worth it. Now I just ask for payment when I hand over their completed return - before I hit submit on the e-file. Most people are totally fine with this since they can see exactly what their refund will be. I use a simple invoice app on my phone and accept Venmo, Zelle, or cash. Way cleaner, no third parties involved, and I sleep better at night knowing I'll actually get paid for my work! Sometimes the old-fashioned way really is the best way.

Great question! I went through this exact situation last year when I bought my first rental property in another state. The key thing to understand is that your inspection travel expenses can't be deducted immediately as regular rental expenses since you don't own the property yet. Instead, these costs get added to your "cost basis" in the property - essentially increasing what you paid for it. So if you buy the property for $200,000 and spend $1,500 on inspection travel, your basis becomes $201,500. This reduces your taxable gain when you eventually sell. Make sure to keep detailed records of everything - flights, hotel, rental car, meals (though meals are only 50% deductible), and most importantly, document that the PRIMARY purpose was business inspection. I kept a detailed itinerary, took photos during the inspection, and saved all correspondence with the inspector. Once you own the property, future trips for maintenance, repairs, or tenant management would be fully deductible against your rental income. But this initial inspection trip is treated as an acquisition cost. Also worth noting - if for some reason you decide not to purchase after the inspection, those expenses generally can't be deducted at all under current tax law, so factor that risk into your decision-making.

Just want to add another perspective from someone who made this exact mistake early on. I deducted my pre-purchase inspection travel expenses immediately as rental expenses on my first property, thinking "well, it's going to be a rental so it's a business expense, right?" Big mistake. Got a letter from the IRS about 18 months later questioning the deduction since I didn't actually own rental property generating income at the time of the expenses. Had to file an amended return and pay penalties plus interest. The silver lining was that my tax preparer helped me correctly add those costs to my basis instead. When I sold that property three years later, having those inspection costs in my basis actually saved me more in capital gains taxes than the immediate deduction would have saved in regular income taxes anyway. So definitely listen to the advice here about adding it to your basis rather than trying to deduct it immediately. The IRS is pretty strict about the timing of when expenses can be claimed versus when they have to be capitalized. Better to do it right the first time than deal with amendments and penalties later!