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.

for anyone facing similar issues - GET YOUR TRANSCRIPT TO AN EXPERT. I wasted 4 months trying to decode mine last year when I could've just had someone who knows what they're doing look at it. The IRS website is like reading hieroglyphics to most of us normal people.

I've been dealing with transcript codes for years and wanted to add some context to what others have shared. The 570 code specifically means "Additional Account Action Pending" - it's basically the IRS saying "hold up, we need to look at something before we process your refund." Given that you filed in April and it's been 3+ months, this is definitely worth following up on. A few things to check: 1. Make sure all your W-2s and 1099s match what you reported exactly 2. Double-check your bank account info if you chose direct deposit 3. Verify your identity info (SSN, address, etc.) matches IRS records The good news is your refund amount looks substantial ($5,800+), so it's worth the effort to resolve. The bad news is 570 holds can be unpredictable - I've seen them clear in 2 weeks or drag on for months depending on the issue. If you haven't received any correspondence from the IRS yet, that could mean they're still determining what action to take. Keep checking your transcript weekly for updates and definitely try calling if you can get through. Sometimes a simple phone call can identify exactly what's causing the hold. Hang in there - most 570 codes do eventually resolve!

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!

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!