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Hey tax ppl! So I'm super confused rn. Just logged into my IRS acct to check my transcripts (taking care of my mom's finances too so trying to stay on top of everything). My return transcript, account transcript, and record of account are all updated for 2023, but my wage & income transcript is completely blank?? Like literally nothing there. Is this normal for this time of yr? Should I be worried? Thx in advance for any help, just trying to figure this out asap!
I just found out that some states apparently don't charge any capital gains tax at all, which sounds too good to be true. If I sell stocks or property in one of these states, does that actually mean I don't pay ANY taxes on those gains? Or is there some sneaky way the IRS still comes after that money anyway? I'm thinking about moving in the next couple years and honestly this could be a factor in where I end up. I've got some investments that have done pretty well and I'm trying to figure out if relocating to one of these no-capital-gains-tax states before selling would actually save me significant money or if there's a catch I'm not seeing. Has anyone actually done this or know how it really works?
Has anyone here actually moved specifically for tax purposes and was it worth it? I'm considering leaving California for Nevada or Wyoming before selling my business next year (looking at a gain around $1.2 million), but wondering if the hassle is really worth the tax savings.
I moved from New York to Florida in 2021 specifically to avoid NY state tax on a large crypto windfall. Saved about $68,000 in state taxes, but California is even higher than NY so you'd save more. Totally worth it for me, but I was planning to leave NY anyway. Big warning though: establish residency AT LEAST a full year before your sale. NY department of revenue still tried to audit me even though I had clearly moved. Had to provide cell phone location data, utility bills, and even grocery receipts to prove I really lived in Florida.
With a $1.2 million gain, you're looking at potentially saving around $159,600 in California state taxes (13.3% top rate) by establishing residency in Nevada or Wyoming before selling. That's definitely life-changing money and worth the hassle for most people. However, California is notoriously aggressive about auditing people who move right before large financial events - they call it the "golden handcuffs" audit. You'll need to be absolutely meticulous about establishing true residency. I'd recommend: 1. Move at least 12-18 months before selling if possible 2. Spend at least 183+ days physically in your new state each year 3. Change EVERYTHING - voter registration, driver's license, bank accounts, doctors, etc. 4. Keep detailed records of where you spend each day 5. Consider selling your California residence entirely to show clear intent The audit risk is real but manageable if you truly commit to the move. Just don't try to fake it - California has sophisticated methods for tracking where people actually live and the penalties for getting caught are severe.
My daughter is a full-time college student, and we claim her as a dependent on our taxes. Last year, she did some freelance work and received a 1099-NEC showing $1,350 in income. This is her only income for the year, and I'm a bit confused about what we need to do for tax purposes. I've got a few questions I hope someone can help clarify: 1. Since her income is so low, does she actually need to file her own tax return? Or is she below some threshold? 2. Do I need to include her 1099-NEC income anywhere on my tax return since she's our dependent? 3. The company didn't withhold any Social Security or Medicare taxes on the 1099-NEC. Does she need to pay these herself somehow? If so, how do we handle that? 4. Does this 1099-NEC income qualify as earned income for any tax purposes? Does it affect her dependent status or any credits we might claim? Thanks in advance! This is our first time dealing with a dependent who has freelance income, and I want to make sure we're handling everything correctly.
One thing to consider - if your daughter had any expenses related to earning that 1099-NEC income, she should definitely track those and deduct them on Schedule C. This reduces her net profit and therefore reduces how much self-employment tax she owes. Common deductions for college students doing freelance work might include: portion of laptop/computer costs, software subscriptions, office supplies, books or materials related to the work, internet expenses (partial), etc. Every $100 in legitimate business expenses she can document will save her about $15 in self-employment taxes!
Great advice from everyone here! I just wanted to add one more thing that might help - since your daughter is a college student, she should also consider opening a separate bank account for her freelance income if she plans to continue this work. It makes tracking business income and expenses so much easier come tax time, and it looks more professional to clients too. Plus, if she does get audited down the road, having that clear separation between personal and business finances makes everything much cleaner. Also, if she's doing any kind of creative work (writing, design, etc.), she might want to look into whether she needs a business license in your state. Some states require it even for small freelance operations. Better to be safe than sorry! One last tip - have her set aside about 25-30% of any 1099 income she earns in a separate savings account for taxes. That way she won't be scrambling to find the money when tax time comes around next year.
Got this message from IRS on 02/17/2025 at 8:59 PM through their Secure Message Center and im really confused. Here's exactly what it said: "Greetings, We have received your response in the above referenced case, and we have closed the return. You do not need to respond to this message. Thank you, Input Correction ERS/Rejects" But I still havent gotten my refund. Does this mean im not getting my money or what? This message got me stressed cause I dont understand if closing the return is good or bad. The message came directly from their "Secure Message Center" late at night (8:59 PM) which seems weird timing. And why is it signed by something called "Input Correction ERS/Rejects"? What does that even mean? Is that a department or something? When I check the message on my phone it shows "9:12" at the top, and there's a "Reply" button at the bottom but they literally said "You do not need to respond to this message." So should I reply or not? The whole thing is super confusing. I've been waiting on my refund and thought I was making progress when they said they "received my response" but now I'm worried that "closed the return" means they've denied me or something. Can someone help me understand what's going on fr. Why would they close it and then not explain what happens with my refund?
Hey, people in the comments are right. I just did what they said and got my answer. My refund will be issued in another week. Thanks again for putting this out.
Hey Chloe! I had the exact same situation last month - got that cryptic "return closed" message from Input Correction ERS/Rejects and was totally panicked thinking they denied my refund. Turns out it's actually a good sign! It means they finished reviewing whatever flagged your return and cleared it for processing. I got my refund about 10 days after that message. The late night timing is normal too - their system sends these automated updates when they complete the review process. Hang tight, your money should be coming soon! π€
To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c
I'm in a similar situation - received my notice in early March and still waiting on the refund. From what I've read, the is experiencing significant processing delays this year. The 4-6 week timeframe they mention is more of a general guideline rather than a guarantee. I'd recommend checking your tax transcript online at irs.gov to see if there are any updates on your status. If it's been over 6 weeks since you received the CP12, you might want to call the hotline, though be prepared for long wait times. Hang in there - these refunds do eventually come through!
Ethan Scott
Have you checked if your employer actually submitted your W-2 information? Sometimes smaller employers miss deadlines or have filing errors. Did you receive physical W-2s or access them through an employer portal?
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Jordan Walker
I'm dealing with the exact same issue right now! Filed my return in mid-February and got my refund already, but my wage transcript is still completely blank. I was starting to panic thinking something was wrong with my filing. Reading through all these responses is so reassuring - sounds like this is just the IRS being slow with their transcript updates as usual. I'll stop checking obsessively and just wait it out. Thanks everyone for sharing your experiences, this really helped calm my nerves!
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