Based on all the excellent advice in this thread, you're definitely in a much better position than most people dealing with bonus repayments since everything is happening within 2025. Your 66.7% calculation ($5,000 of the $7,500 gross bonus) looks correct for the 8-month shortfall. The key takeaway from everyone's experience is absolutely getting written documentation BEFORE making any repayment. I'd specifically recommend asking for: 1. **Exact repayment amount confirmation** - Make sure you and your employer are calculating the pro-rating the same way 2. **W-2 adjustment guarantee** - Written confirmation they'll reduce Box 1 wages, Box 2 federal withholding, and Boxes 3/5 FICA by the appropriate amounts 3. **Original bonus tax breakdown** - Since it was combined with regular pay, get details on how much federal/state/FICA was withheld from just the bonus portion The suggestion several people made about having it deducted from your final paycheck is brilliant - it would essentially reverse the original transaction through the same payroll system and make the tax adjustments automatic. Don't let HR pressure you into making a quick repayment without proper documentation. Same-year repayments should result in a clean W-2 adjustment, but only if your employer handles it correctly. Take advantage of the time you have before your last day to get all these details sorted out properly. Good luck with your new position!

This thread has been incredibly helpful! I can't thank everyone enough for sharing their experiences and professional insights. Based on all the advice here, I feel much more confident about handling this situation properly. My plan is to schedule a meeting with both HR and payroll this week to get everything documented before I make any repayment. I'll specifically request: 1. Written confirmation of the exact $5,000 repayment amount (66.7% of gross bonus) 2. Detailed breakdown of how the original $7,500 bonus was taxed in my February paycheck 3. Written guarantee that my 2025 W-2 will be adjusted to reduce wages and all associated withholdings 4. Information about processing this as a deduction from my final paycheck The consensus from everyone - especially the tax professionals who commented - is crystal clear: don't pay anything back without proper documentation of the W-2 adjustment process. Since I'm fortunate to be repaying in the same tax year, this should be much cleaner than cross-year situations. I'll make sure to get everything in writing and will follow up if I run into any issues. Thanks again to everyone who shared their experiences and expertise - this community is amazing!

This has been an incredibly comprehensive and educational discussion! As someone who's been dealing with NOL carryforwards from a failed business venture, I can't thank everyone enough for breaking down all these complex interactions. What really stands out to me is how this started as a seemingly straightforward question about NOLs offsetting capital gains, but evolved into a masterclass on integrated tax planning. The 80% limitation is definitely real for post-2020 NOLs, but as many have pointed out, the strategic considerations go far beyond just that basic rule. I'm particularly grateful for the insights about state tax conformity issues - I'm in Illinois and had no idea that state NOL rules might differ from federal rules. That alone could significantly impact my planning for a potential property sale next year. The recommendation to get a comprehensive multi-year tax projection rather than just a quick consultation really resonates. Given all the variables discussed here - NIIT thresholds, depreciation recapture rates, suspended passive losses, timing strategies, and broader investment goals - it's clear that optimizing this requires professional modeling. One thing I'm curious about that hasn't been fully addressed - for those of us with NOLs from business failures rather than rental property losses, are there any additional considerations when applying them against real estate capital gains? I assume the same 80% limitation applies regardless of the NOL source, but wanted to confirm that. Thanks again to everyone who contributed such detailed expertise. This community is invaluable for navigating complex tax situations!

This has been an absolutely fascinating and comprehensive discussion that I've been following closely! As someone who's been wrestling with NOL carryforwards from my consulting business that struggled during the pandemic, I really appreciate how thoroughly everyone has covered the intersection of NOLs and capital gains. The confirmation that NOLs can indeed offset capital gains (with the 80% limitation for post-2020 losses) is exactly what I needed to hear. I've been sitting on some appreciated stock positions and wasn't sure whether it made sense to realize those gains this year given my NOL situation. What's particularly valuable is how this discussion has highlighted all the interconnected considerations - from state tax conformity issues to NIIT thresholds to the timing strategies for multi-year optimization. I had been thinking about this as just a simple federal tax question, but clearly there are many more layers to consider. The recommendation for comprehensive tax projections rather than quick consultations really hits home. Given the complexity everyone has outlined here, it's obvious that optimizing NOL usage requires professional modeling that accounts for all these variables simultaneously. One question I haven't seen addressed - for those of us with NOLs who are also considering Roth IRA conversions, how do NOLs interact with conversion income? Can NOLs offset the taxable income from Roth conversions, potentially creating opportunities to convert at lower effective tax rates? Thanks to everyone who has shared such detailed expertise - this community continues to amaze me with the quality of tax planning discussions!

Just wanted to chime in - be careful about what's on your EIN letter. Mine also mentioned Form 720, but my accountant explained that the IRS often lists ALL potential forms a business might need, not necessarily what your specific business requires. Form 720 is pretty specialized for excise taxes on specific products/services.

I run a small greenhouse business which has some similarities to landscaping. I've never had to file Form 720 because I don't deal with any of the excise taxable items. If you're just doing regular landscaping you should be fine without it! My advice is to check Schedule C instructions (if you're a single-member LLC) to make sure you're handling your tax situation correctly for your business type.

Has anyone run into issues with employees who moved further away after going remote? We have some team members who relocated to rural areas 60+ miles from our client base after we went fully remote. When they come in for client meetings, they're claiming much higher mileage than when they lived closer to the metro area.

This is a great question that many remote-first companies are grappling with! Based on everything discussed here, it sounds like you're actually handling this correctly already. When employees work from home 100% of the time and don't have a regular office they report to, their home becomes their established workplace for tax purposes. The key factors that support your current approach: - Your team is truly 100% remote (no physical office they report to) - Travel from home to client sites constitutes business travel, not commuting - Reimbursing at the standard IRS rate keeps it non-taxable for employees A few recommendations to strengthen your compliance: 1. Update your employee handbook/agreements to explicitly designate home as the official workplace 2. Implement stronger documentation requirements (business purpose, exact addresses, odometer readings) 3. Ensure you're following accountable plan rules (timely submission, business connection, excess repayment) The fact that you don't have a brick-and-mortar office actually makes this cleaner from a tax perspective - there's no ambiguity about where employees' "regular workplace" is located. Keep doing what you're doing, just tighten up the documentation!

I went through something very similar last year - filed in February and didn't get my refund until July! It turned out the IRS had flagged my return for manual review because I claimed both the Child Tax Credit and education credits, which apparently triggers additional scrutiny. A few things that helped me get answers: 1. **Check your tax transcript** - Giovanni's advice about this is spot on. The codes will tell you way more than the "Where's My Refund" tool ever will. 2. **Don't wait for letters** - In my experience, IRS notices can take weeks to arrive or sometimes get lost in the mail. If your transcript shows a 971 code, call them directly rather than waiting. 3. **Document everything** - Keep records of every call attempt, reference numbers, and what representatives tell you. This becomes important if you need to escalate. 4. **Consider the Taxpayer Advocate Service** - If you've been waiting over 120 days (which you have), they can intervene. They're actually pretty effective at cutting through the bureaucracy. The frustrating reality is that certain combinations of credits and deductions just automatically trigger delays, even when everything is perfectly correct. It's not fair, but knowing this helps you prepare for next year. Hang in there - you will get your money!

I'm dealing with a similar situation and wanted to share what I've learned after months of research and calls. The IRS doesn't publish an official list of which credits trigger delays, but based on my experience and talking to multiple agents, here are the common culprits: **High-risk combinations that often cause delays:** - Child Tax Credit + Education Credits (AOTC/Lifetime Learning) - Earned Income Tax Credit (EITC) + Additional Child Tax Credit - Recovery Rebate Credit claims (missing stimulus payments) - First-time homebuyer credits - Premium Tax Credits with marketplace insurance **Single items that frequently trigger review:** - Large charitable deductions (especially non-cash) - Home office deductions for self-employed - Casualty loss claims - Prior year minimum tax credits The agents won't always tell you upfront what triggered the review - I had to specifically ask "What caused my return to be flagged?" and even then, some representatives were vague about it. One agent finally explained that their system uses algorithms to score returns for fraud risk, and certain combinations just automatically get higher scores. For future years, if you know you'll be claiming these credits, file as early as possible and consider using direct deposit to speed up the process once it's approved. The delays are frustrating but usually resolve eventually - just takes patience and persistence!