I'm confused about why everyone's focusing just on Schedule C. Couldn't OP potentially use these expenses to qualify for education credits instead? If the courses and software are improving skills related to your current job, they might qualify for the Lifetime Learning Credit. That would be worth looking into!

I faced a similar situation when I transitioned from freelancing to full-time employment. Here's what I learned from working with a tax professional: The IRS requires that Schedule C be used only for legitimate business income and expenses. Without any 1099 income or other self-employment earnings, you can't file Schedule C just to deduct professional expenses related to your W-2 job. However, you have a few potential options: 1. **Start small freelance work**: Even minimal freelance income (say $500-1000) would allow you to legitimately file Schedule C, as long as you have genuine profit motive and aren't just doing it to claim deductions. 2. **Check if your employer will reimburse**: Many employers will cover professional development, software subscriptions, or other job-related expenses if you ask. This is often more valuable than a tax deduction. 3. **Look into state-specific deductions**: Some states have deductions for remote work expenses or professional development that you might qualify for on your state return. 4. **Consider the educator expense deduction**: If you do any teaching or training as part of your work, you might qualify for up to $300 in unreimbursed educator expenses. The key is being honest about your intent and ensuring any business activity has genuine profit motive. The IRS looks unfavorably on arrangements that seem designed primarily to generate tax deductions rather than income.

This is a great discussion with really solid advice! I went through something very similar when my grandmother passed and left me her duplex. The key thing that helped me was understanding the difference between "beneficial interest" (knowing you'll eventually inherit) versus "beneficial ownership" (actually having legal control). Even though the will clearly stated the property was mine, my attorney was very clear that until probate closed and the deed was transferred, the estate was the legal owner for tax purposes. We filed Form 1041 for the estate, and all rental income stayed there. What really drove this home for me was when I tried to contact the property management company about a repair issue - they wouldn't even talk to me because I wasn't the legal owner yet! That's when it clicked that if I can't make decisions about the property, I certainly shouldn't be reporting its income on my taxes. The stepped-up basis benefit others mentioned is huge too. My grandmother had owned her duplex since the 1980s and had depreciated it significantly. When I inherited it, I got to start fresh with the current market value as my basis - saved me thousands in future taxes. Stick with your instincts on this one. Your mother-in-law means well, but the estate should be handling this until probate closes.

As a newcomer to this community, I found this discussion incredibly helpful and educational. The consensus here seems very clear - property still in probate should be reported on the estate's Form 1041, not on the beneficiary's personal Schedule E. What really struck me from reading through all these responses is how many people have faced similar situations, and how the practical realities (like not being able to contact property managers or access rental accounts) align perfectly with the tax reporting requirements. It makes sense that if you can't control or manage the property, you shouldn't be reporting its income. For someone like me who might face this situation in the future, the key takeaways seem to be: 1. Legal title matters more than beneficial interest for tax reporting 2. The estate should file Form 1041 until probate closes 3. Get that date-of-death appraisal for stepped-up basis 4. Don't rush the process - it's better to be correct than quick Thanks to everyone who shared their experiences and expertise. This is exactly the kind of practical, real-world guidance that makes this community so valuable!

I've been dealing with amended returns for years and here's my tried-and-true approach: Call 1-800-829-1040 on Tuesday or Wednesday right at 7:00 AM ET sharp. Have your SSN, both returns (original and amended), and your bank routing info ready. But here's the insider tip most people don't know - ask the rep to check for any "unpostables" on your account. Sometimes amended returns get stuck because of small mismatches (like a slightly different name format from what's in their system). The rep can usually resolve these on the spot. Also, if you're expecting a refund over $1,000, they might transfer you to a different department that handles larger refunds - this is normal, don't hang up! The wait time resets but you'll get someone who can actually move things along. I've seen people get their refunds released same-day after being stuck for months once the right person looked at their case.

Based on everyone's experiences here, I'd suggest trying multiple approaches since amended returns can be tricky. First, try calling 1-800-829-1040 early Tuesday morning around 7 AM ET with all your documentation ready (SSN, both returns, AGI from both, mailing address). If that doesn't work, the Taxpayer Advocate Service at 877-777-4778 might have shorter wait times. Since you filed in January and it's now March with no updates in the WMAR tool, you're getting close to that 16-20 week processing window others mentioned. One thing to consider - if this is causing financial hardship, definitely mention that when you call as it can sometimes expedite processing. Also worth checking your online IRS account for any transcript updates that might show processing codes before spending hours on hold. Sometimes the system updates there before the WMAR tool catches up. Good luck getting through - the waiting game with amended returns is frustrating but you're definitely entitled to know what's happening!

I'm dealing with a very similar situation right now - been waiting since February with a 570 code on my amended return. Reading everyone's explanations about what "sending it over" means has been incredibly helpful! I had no idea that tax advocates have these special internal channels and priority systems. One thing I'm curious about - did your advocate give you any kind of reference number or case ID when she said she was sending it over? My advocate mentioned something about providing me with tracking information, but I haven't received anything yet. Also, are you able to see any changes on your IRS online account or transcript yet, or does that usually update after the processing is complete? Thanks for sharing your experience - it's so reassuring to know that others have gone through this exact process and come out the other side! Keeping my fingers crossed that your 570 code gets released soon.

I'm going through something very similar right now! I've had a 570 code since December and just got assigned a tax advocate two weeks ago. Reading all these explanations about what "sending it over" actually means has been so enlightening - I had no idea there were all these internal processes and priority systems working behind the scenes. My advocate used almost identical language when we spoke last Friday. She said she was "forwarding my case" to the processing department and that I should expect movement within 2-3 weeks. Based on everyone's experiences here, it sounds like this is actually a really positive development! The whole OAR (Operations Assistance Request) system that @Isaiah Cross mentioned makes so much sense. It explains why some amended returns seem to get processed so much faster than others. After 4+ months of feeling completely in the dark about what was happening with my return, it's such a relief to finally understand the actual process. Connor, it sounds like your advocate is doing exactly what she should be doing. The fact that she's staying on your case and actively monitoring the progress is a great sign. Fingers crossed that both of our 570 codes get released soon - this waiting game has been exhausting! Keep us posted on any updates you get.

Great question! I went through this same struggle last year. Here are some additional red flags to watch out for that I learned the hard way: Be wary of EAs who guarantee huge refunds before seeing your documents - that's a major red flag. Also avoid anyone who asks you to sign blank forms or won't give you copies of your returns. One thing that really helped me was asking potential EAs about their experience with IRS audits and notices. Even if you don't expect problems, you want someone who can handle representation if issues arise. A good EA should be able to describe their process for dealing with IRS correspondence. Also, don't be afraid to ask about their continuing education. EAs are required to complete 72 hours of continuing education every 3 years, but many good ones do more. Someone who mentions recent tax law seminars or specialized training shows they're staying current. For your investment income and side business, specifically ask about their experience with Schedule C (business income) and Schedule D (capital gains). These are common enough that any competent EA should be comfortable with them, but you want someone who handles them regularly, not just occasionally.

One thing I haven't seen mentioned yet is checking with your state's Board of Accountancy or licensing department. Many states maintain databases where you can verify not just that someone is an EA, but also check for any disciplinary actions or complaints filed against them. I learned this after hiring an EA who turned out to have had multiple client complaints (though nothing severe enough to lose their license). While the work was technically correct, the communication and professionalism issues made tax season much more stressful than it needed to be. For your investment income and side business situation, I'd also recommend asking potential EAs about their experience with quarterly estimated payments. Since you'll likely need to make these payments for your business income, you want someone who can help you calculate the right amounts and avoid underpayment penalties. Another practical tip: ask how they handle document collection and organization. A good EA should provide you with a checklist of what documents you'll need and may even offer secure online portals for sharing sensitive financial information. This becomes especially important when you have multiple income sources like you do. Finally, trust your gut during consultations. Technical competence is crucial, but you also want someone who explains things clearly and makes you feel comfortable asking questions. Tax issues can be stressful enough without having to deal with poor communication on top of it.