What tax software are most people using to handle these bank failure losses? TurboTax was confusing me last year when I tried to enter some investments that went to zero.

I'm sorry to hear about your FRC loss - that's a significant hit. One thing I'd add to the excellent advice already given is to make sure you understand the wash sale rules don't apply here since the stock became completely worthless rather than being sold and repurchased. Also, if you have any other capital gains this year, this loss can directly offset them dollar-for-dollar, which might help reduce your overall tax burden. Even if you don't have gains this year, as others mentioned, you can deduct $3,000 against ordinary income and carry the rest forward. Since you mentioned already owing taxes this year, definitely consider whether this loss might change your estimated tax payment situation. The $3,000 deduction against ordinary income could reduce what you owe by several hundred dollars depending on your tax bracket.

I totally understand your frustration! I went through something very similar earlier this year. That 570 code is basically the IRS putting a temporary hold on your refund while they review something - in your case, it's most likely because of that substantial EIC amount ($4,972). From what I can see, your refund calculation looks correct: $843 withholding + $4,972 EIC = approximately $5,815 total. The good news is all the right pieces are there on your transcript. A few suggestions from my experience: - Check your transcript every Friday morning (that's when they typically update) - Make sure all your W-2 amounts match exactly what you reported - Keep an eye out for any mail from the IRS, though no mail could actually be good news - Document everything in case you need to escalate later I know 3+ months feels like forever, but EIC reviews are taking longer this year due to staffing issues. Most 570 codes do eventually resolve once they complete their verification process. Try not to stress too much - your situation looks straightforward with no red flags, just a routine income verification hold. Your refund is substantial enough that it'll be worth the wait once it finally comes through. Hang in there!

I'm dealing with a very similar situation right now! Filed in February and have been stuck with code 570 for about 4 months. That code combined with a large EIC like yours typically means they're doing an income verification review - basically cross-checking that everything you reported matches what your employers submitted to them. The waiting is absolutely torture, especially when there's zero communication about timelines. I finally got through to an IRS agent last month (called right at 7 AM) and they confirmed it's just a standard verification process for large EIC claims. No issues with my return, just backed up due to staffing. Your transcript actually looks really clean - the math adds up perfectly ($843 + $4,972 = $5,815 expected refund), and you don't have any of the scary codes that indicate actual problems. The 570 is frustrating but it's basically just saying "hold on while we verify this." I know everyone says this, but try to check your transcript only on Friday mornings when they actually update. Checking daily was driving me insane and never showed any changes anyway. Most of these EIC verification holds do resolve eventually, it's just a matter of waiting out their process. Hang in there - that's a substantial refund that'll be worth the wait once it finally processes! 🤞

Has anyone tried negotiating a stipend with their employer for home office expenses since the tax deduction isn't available? My company gives us $150/month tax-free for internet, utilities, etc because they don't have to pay for office space for remote workers.

Great advice about negotiating a stipend! I'm definitely going to bring this up with my employer. Since they're saving money on office space, it seems like a win-win situation. One other thing I've found helpful as a remote W2 employee is keeping detailed records of any work-related expenses throughout the year, even if you can't deduct them federally. You never know when tax laws might change, and having good documentation is always valuable. Plus, if you do switch to 1099 status in the future, you'll already have a system in place. Also worth mentioning - if you're taking any online courses or certifications to improve your job skills, those educational expenses might still be deductible as a Lifetime Learning Credit, depending on your income level. It's not the same as a home office deduction, but every bit helps!

Lol am I the only one who's been manually rounding all my numbers before entering them into FreeTaxUSA all these years? 🤦‍♂️

Hey Sean! I totally get why you'd be worried about this - I was in the exact same boat when I first started doing my own taxes. The rounding is completely normal and actually required by the IRS, so FreeTaxUSA is doing exactly what it should be doing. One thing that helped me feel more confident was keeping a simple spreadsheet with my original exact amounts alongside what appeared on the final forms, just for my own peace of mind. That way I could see that everything was accounted for properly even after rounding. Since you're filing for the first time, I'd also suggest double-checking that you didn't miss any tax documents (like a second W-2 if you had multiple jobs, or any 1099s from banks/investments). Those are way more likely to cause issues than the rounding. You've got this!

This "placed in service" stuff gets even more complicated if you lived in the property yourself before converting it to a rental. That was my situation and it created a whole different set of rules about basis calculation and depreciation start dates.

The conversion from personal residence to rental property adds another layer of complexity! When you convert your former home to rental property, the "placed in service" date is generally when you make it available for rent, not when you moved out. Here's what I learned from my own conversion: Your basis for depreciation becomes the LOWER of either the property's fair market value on the conversion date OR your adjusted basis (what you paid plus improvements minus any depreciation if it was ever rental before). This is different from a property you buy specifically for rental. For timing, if you moved out in February but are still doing renovations, your placed in service date would be when renovations are complete and you start actively marketing it for rent. The period between moving out and placing in service is considered a "conversion period" where expenses like mortgage interest and property taxes are treated differently - they're not rental expenses yet, but they're also not personal residence expenses anymore since you don't live there. Make sure to get a professional appraisal or at least a comparative market analysis (CMA) from a realtor showing the property's fair market value on your conversion date - you'll need this to establish your depreciable basis correctly!