I'm confused about one thing - isn't there a household employee situation here? I thought if you're paying someone regularly to provide care in their home, they're not your employee but an independent contractor. But I've heard if they come to your house, they're a household employee and you need to pay Social Security/Medicare taxes (aka "nanny tax"). OP, does your sitter watch your child in her home or yours? This might affect what forms you need.

As a healthcare worker myself, I completely understand the childcare challenges with evening shifts! Based on your situation, here are some practical steps you can take: Since the care is provided at her home with multiple children, she's an independent contractor (not your employee), which simplifies things - no employment taxes for you to worry about. For the Child and Dependent Care Credit, you'll need: 1. Her full name, address, and SSN/EIN for Form 2441 2. Documentation of payments (even if it's a log you create showing dates and amounts) Before claiming the credit, I'd strongly recommend having a conversation with your sitter about the tax implications. You could explain that: - She'll need to report this income (likely as self-employment) - She can deduct business expenses (portion of home used for childcare, utilities, supplies, meals for kids, etc.) - These deductions can significantly reduce her tax liability - She'll also earn Social Security credits and potentially qualify for other benefits Given how difficult it is to find reliable evening childcare, preserving your arrangement might be worth more than the tax credit if she's not willing to report the income. The credit could save you around $1,000-1,400, but finding new childcare for hospital shifts could be nearly impossible. Whatever you decide, document everything going forward - it'll make next year's taxes much easier!

Don't forget about state taxes! Depending on where you live, the state tax treatment of stock option exercises can vary significantly from federal treatment. Some states like California are particularly aggressive about taxing stock compensation. Also, if you moved between states during the year you exercised OR during the vesting period, you might need to apportion the income between states. I did an option exercise after moving from NY to FL and had to pay NY tax on the portion that vested while I was a NY resident, even though I exercised everything while living in FL.

Great question about NQSOs! I went through something similar last year. One thing I'd add to the excellent advice already given - make sure you understand the timing of when you'll owe taxes versus when taxes were withheld. Even though your company withheld taxes at exercise, you might still owe additional taxes at filing time depending on your total tax situation for the year. The withholding rate companies use (often 22% federal) might not match your actual marginal tax rate, especially if the option exercise pushed you into a higher tax bracket. Also, keep detailed records of everything - not just for cost basis calculations, but because stock option reporting can sometimes trigger IRS notices if there are discrepancies between what your employer reports and what your broker reports when you eventually sell. Having your exercise confirmations, vesting schedules, and FMV documentation will save you headaches down the road. One last tip: if you're planning to exercise more options in the future, consider the timing carefully. Bunching exercises into certain tax years can help you manage your overall tax liability, especially if you expect your income to fluctuate year to year.

Has your son considered taking the mother back to court to update the custody agreement? If the actual situation doesn't match the legal documents, that's a problem for tax purposes. The IRS generally follows the custody agreement. If he can get the agreement modified to reflect reality (that the child lives with him/you most of the time), it would be much easier to legitimately claim the child on taxes going forward. Also, make sure to look into the Child Tax Credit and the Credit for Other Dependents. Depending on your income and situation, you might qualify for one of these if you're able to claim your granddaughter.

I went through something very similar with my grandson a few years ago. The situation you're describing - where you're providing all the care but someone else has legal custody - is unfortunately common. Here's what I learned: The IRS uses what's called the "tie-breaker rules" when multiple people could potentially claim the same child. Generally, the parent with whom the child lived for the greater number of nights during the year gets to claim them. But when parents aren't living together, the custodial parent (according to the divorce decree or separation agreement) typically has the right to claim the child. However, there's an important exception: if you can prove that your granddaughter lived with you for more than half the year (183+ nights) and you provided more than half of her support, you might be able to claim her as a "qualifying relative" rather than a "qualifying child." My advice: Start documenting everything NOW for next year's taxes. Keep a detailed calendar of where she sleeps each night, save every receipt for her expenses, and get letters from her school, doctor, etc. showing your address as her primary residence. You might also want to consult with a tax professional who specializes in family situations like this - the rules can be tricky but there are often ways to make it work legally.

I went through something very similar last year when my LLC (taxed as partnership) dissolved. The key thing I learned is to make absolutely sure you have all your basis adjustments correct before claiming the loss. Don't just rely on what the final K-1 shows for ending basis - go back through all your previous K-1s and verify that you properly adjusted your basis for distributions, allocated losses, and any debt basis you might have had. I initially thought I had a $15k capital loss, but after going through everything carefully, it was actually only $8k because I had missed some distributions from earlier years. Also, if this was a business partnership (not just an investment), consider whether any portion of the loss might qualify as an ordinary loss under Section 1244 or as a business bad debt. The capital loss treatment is usually correct, but it's worth double-checking since ordinary losses can offset regular income without the $3k annual limit. One more tip - attach a statement to your return explaining the partnership dissolution and how you calculated your basis. It might help avoid questions later if the IRS reviews your return.

One thing I haven't seen mentioned yet is timing considerations for when to actually report this loss. Since you received your final K-1 for the partnership's last tax year, make sure you're reporting the capital loss in the correct tax year - it should be the year the partnership actually terminated, not necessarily when you received the K-1. Also, if this partnership had any Section 754 elections in effect or if there were any special basis adjustments, those could affect your final basis calculation. These adjustments might not be clearly reflected on your K-1, so you may need to contact the partnership's former accountant to get a complete picture. For anyone in a similar situation, I'd also recommend getting a written confirmation from the partnership that it has fully dissolved and distributed all assets. This documentation could be valuable if the IRS ever questions whether the loss was truly from a complete disposition versus just a temporary suspension of operations.

I'm in the exact same situation! Filed my amended return in early March for missed 1099-NEC income and just saw the TC 740 code appear on my transcript yesterday. I had no idea what it meant and was honestly worried something was wrong since I hadn't heard anything from the IRS in months. Reading through all these responses has been incredibly reassuring - it's such a relief to know that this code is actually good news and means they're actively processing my amendment. The complete radio silence from the IRS during this process is honestly maddening. It's 2025 and they still can't send a simple "we received your amendment and it's being processed" notification? Based on everyone's timelines here, it looks like I'm right on track at about 11 weeks since filing. Really appreciate everyone sharing their specific experiences - makes this anxiety-inducing waiting game so much more manageable when you know the silence is actually normal (even though it absolutely shouldn't be). Now I know to watch for that TC 290 code in the coming weeks. Thanks for creating this thread - saved me from spiraling into worry mode!

This thread has been so helpful! I'm dealing with a very similar situation - filed my amended return in late February for some missed 1099-NEC income and have been in complete radio silence mode with the IRS ever since. Just checked my transcript this morning and finally saw the TC 740 code appear! It's honestly mind-boggling that in 2025 we still have to play detective with these cryptic transaction codes just to figure out what's happening with our own tax returns. The IRS could easily send automated status updates, but instead they leave us all in the dark for months wondering if our paperwork got lost in some black hole. Reading through everyone's experiences and timelines here has been incredibly reassuring though. Sounds like I'm hitting the typical 12-week mark when this code usually shows up. Now I know to keep an eye out for that TC 290 code in the coming weeks. The waiting game is absolutely brutal, but at least I know my amendment is actually being processed instead of sitting in some forgotten pile somewhere. Thanks to everyone who shared their specific timelines and experiences - this community support makes such a stressful process so much more bearable! The fact that we all ended up here trying to crowdsource basic information about our tax returns really highlights how broken the IRS communication system is.