Has anyone actually successfully qualified for trader tax status while doing swing trading? I'm holding positions for about 2-3 weeks on average, making maybe 6-8 trades per week. My tax guy says I'm nowhere near the volume needed, but then I read about others claiming trader status with similar patterns.

The consensus here is spot on - swing trading with your holding periods typically won't qualify for trader tax status or provide the tax benefits you're hoping for with an LLC or S-Corp structure. However, there's one angle that hasn't been fully explored: if you're planning to scale up your trading activities significantly in 2025, it might be worth considering the entity structure now to avoid complications later. The administrative burden of transferring existing positions from individual to business accounts can be substantial. That said, at your current activity level, you're likely better off focusing on maximizing the deductions you can already take as an individual investor - things like investment advisory fees, research subscriptions, trading software, and a portion of your home office if used exclusively for trading research. The real question is whether you see your trading evolving into something more substantial where you'd eventually meet the criteria for trader tax status. If not, the entity formation is probably an unnecessary expense and complication for your current situation.

I'm new to this community but currently dealing with this exact same 8822b processing delay - submitted mine 8 weeks ago to the Cincinnati service center with zero confirmation. This thread has been absolutely invaluable! Reading through everyone's experiences, I'm struck by how much more practical and actionable the advice here is compared to anything available through official IRS channels. The systematic approach that's emerged from multiple success stories is really compelling: check your business transcript online first (using the Account Transcript option during off-peak hours as Hunter suggested), then send a targeted follow-up letter with Caleb's specific language requesting an updated transcript be mailed to your new address. What gives me the most confidence is seeing recent success stories like Cameron's that prove this method actually works within a reasonable timeframe. The insight about asking for a specific action (mail the transcript) rather than just requesting status updates seems to be the key difference. I'm planning to start with the transcript verification this week and then send the follow-up letter including my certified mail tracking number and phone number if my old address is still showing. It's unfortunate we have to develop our own workarounds for something so straightforward, but this community has created an incredibly valuable resource. I'll definitely update with my results to help others going through the same frustrating process!

I'm new to this community but dealing with the exact same 8822b processing nightmare - submitted mine about 3 weeks ago and already getting anxious after reading everyone's experiences with 8+ week delays. This thread has been absolutely incredible though! The systematic approach that's emerged here is so much more helpful than anything on the IRS website. I'm taking notes on the combination strategy: check Account Transcript online during off-peak hours to verify old address is still showing, then send targeted follow-up letter using Caleb's specific template requesting updated transcript be mailed to new address. What's particularly encouraging is seeing multiple recent success stories confirming this method actually works. Cameron's detailed breakdown of including certified mail tracking numbers and phone numbers seems crucial too. I'm planning to give it another 2-3 weeks before starting the transcript verification process, but it's reassuring to know there's a proven path forward rather than just endless waiting. Thanks to everyone who shared what actually worked - this community has solved a problem the IRS should have clear guidance for but doesn't. Will definitely report back with my results to help others!

I've been dealing with tax prep for years and this AMT confusion happens more often than you'd think. Here's what's likely happening: TurboTax is asking for your prior year AMT information because it needs to calculate your current year AMT credit carryforward, if any. Even if you didn't explicitly "pay" AMT last year, the calculation might have been done behind the scenes. Check lines 10-11 on your previous year's Form 1040 - if there's any amount on line 45 (Alternative Minimum Tax), that's what TurboTax needs. If you're confident you had no AMT last year and your income was under the exemption amounts, entering zeros should be fine. But the safest approach is to get your prior year return transcript from the IRS website (takes about 5 minutes if you can verify identity online) or access your old TurboTax account if you used them before. Don't stress too much - this is a common software quirk, not a sign you did anything wrong!

I had this exact same problem last year! The frustrating thing is that TurboTax doesn't clearly explain WHY it's asking for this information. After going through this headache myself, I learned that the software needs your prior year AMT data to properly calculate any AMT credit you might be entitled to this year. Here's what worked for me: Log into your IRS online account at irs.gov and request a "Tax Return Transcript" for last year. It's free and if you can verify your identity online, you'll get it instantly. Look for any AMT-related entries - they'll be clearly labeled. If you used TurboTax last year, you can also log into your old account and view/download your previous return as a PDF. The AMT information will be buried in there somewhere, usually as part of the Form 6251 calculation even if you didn't owe any AMT. Worst case scenario, if you're absolutely certain you had no AMT last year (income under $75k, standard deduction, no complex investments), then entering zeros is probably safe. But getting the actual numbers from your prior return is always the better approach to avoid any issues down the road.

I'm in a very similar situation and have been researching this extensively! Just wanted to confirm what others have said - yes, you can absolutely both file as Head of Household from the same address. The IRS doesn't have any rule limiting HOH status by address. The key is that you each need to independently meet the three main requirements: 1. Be unmarried (or considered unmarried) at the end of the tax year ✓ 2. Pay more than half the cost of keeping up a home ✓ 3. Have a qualifying person (your children) live with you for more than half the year ✓ Since you're splitting household expenses and each claiming a different child, you should be fine. Just make sure to keep good records of how you divide expenses in case you ever need to justify your filing status. One tip: consider documenting your expense split in writing (even just a simple spreadsheet) showing who pays what percentage of rent, utilities, groceries, etc. This way if there are ever questions, you can clearly show that you each pay more than 50% of the household maintenance costs. Good luck with your filing! The HOH status will definitely save you both money compared to filing as single.

Just wanted to jump in here as someone who went through this exact situation last year! You're absolutely right to look into both filing as Head of Household - it can save you a significant amount compared to filing as single. The good news is that the IRS does allow two people at the same address to both claim HOH status, as long as you each meet the requirements independently. Since you have two children and are splitting household responsibilities, you should be fine. One thing I'd recommend is being very clear about how you're dividing expenses. Even though you contribute "equally," make sure you can each show that you're paying more than half of the household costs for yourself and your qualifying dependent. This might mean one of you pays a bit more toward rent while the other covers more utilities and groceries - just ensure the split works out mathematically. Also, keep detailed records! Bank statements, receipts, rent payments, utility bills, etc. The IRS rarely questions HOH status, but if they do, you'll want to be able to clearly demonstrate your expense split and that each child primarily lives with their respective parent. The tax savings from HOH vs. single status is definitely worth getting this right. You're smart to research it thoroughly before filing!

I'm just starting to deal with something very similar and this thread has been incredibly educational! Based on everyone's experiences, it sounds like the most common cause is indeed missing or mismatched 1099s from clients. One thing I wanted to add that might help others - when you're gathering your documentation, don't forget about any business expense receipts related to that income. Since the IRS is reducing your self-employment income to zero, they're also likely disallowing any associated business deductions you claimed on Schedule C. While proving your income is the priority, having your expense documentation ready might be important too if they question those separately. Also, for anyone using business banking accounts, those statements can be particularly valuable because they clearly separate business transactions from personal ones. If you were mixing business and personal in the same account, you might want to highlight or annotate the business-related deposits to make it easier for the IRS to follow. The 30-day response deadline is definitely real, but from what I'm reading here, this is totally manageable with good organization and documentation. Thanks to everyone who shared their experiences - it's really helping those of us just starting to navigate this process!

I'm new to dealing with IRS issues but this thread has been incredibly helpful! I'm facing a similar situation where they've reduced my self-employment income to zero, and I was honestly panicking before reading all these experiences. One thing that really stands out to me from everyone's advice is how important it is to be proactive about contacting clients regarding their 1099 filings. I work with about 6 different small businesses and I'm realizing now that I never actually confirmed whether they filed the required forms or not - I just assumed they knew what they were doing. I'm planning to start there tomorrow and then move on to gathering all my documentation using the spreadsheet method several people mentioned. The idea of matching each bank deposit to its corresponding invoice with dates and amounts seems like exactly the kind of systematic approach that would make sense to an IRS agent reviewing the case. For those who successfully resolved similar issues - approximately how much documentation did you end up submitting? I'm trying to get a sense of whether we're talking about a few pages or a thick packet of materials. I want to be thorough but also don't want to overwhelm them with unnecessary paperwork. Thanks again to everyone who shared their stories here. It's really reassuring to know this is solvable with the right approach!