Anyone know if TurboTax handles this ESPP situation correctly? Last year it seemed to mess up my cost basis and I ended up having to manually override some numbers.

Just wanted to add my experience as another data point - I had a very similar ESPP situation last year where I sold shares at a price between my discounted purchase price and the original FMV. The key thing that helped me understand it was realizing that the IRS essentially treats ESPP transactions as if you received the discount as regular compensation income, then immediately purchased the shares at full market value. So in your case, it's like the IRS views it as: you received $1.28 per share in compensation income, then bought shares at $8.56, and are now selling at $7.69. Hence the ordinary income on the discount plus the capital loss on the difference. One practical tip: make sure to keep detailed records of your grant dates, purchase dates, and the FMV on both dates. You'll need these for proper reporting, especially if you have multiple ESPP purchases throughout the year. The brokerage statements don't always make this clear.

I've been dealing with this exact issue for years as someone who regularly donates designer clothing and accessories. Here's what I've learned through experience and consultation with my tax preparer: The IRS absolutely allows you to use fair market value based on comparable sales - you don't have to use thrift store pricing for quality items. The key is having solid documentation to support your valuations. My process: I photograph each item clearly showing brand, condition, and any flaws. Then I research completed sales (not just listings) on eBay, Poshmark, and for higher-end items, sites like TheRealReal or Vestiaire Collective. I look for items in similar condition and average 3-5 actual sales prices. For a $2000 suit selling for $350 in similar condition on the secondary market, that's absolutely a defensible valuation - much more realistic than the $30 thrift store estimate. Just make sure you're being honest about condition and save screenshots of the completed sales with dates. One important note: if your total non-cash donations exceed $500, you'll need Form 8283. For individual items over $5000, you need a qualified appraisal. But for most designer clothing donations, your own research with proper documentation should be sufficient. The bottom line is fair market value means what a willing buyer would pay a willing seller - not what a thrift store prices items at for quick turnover.

This has been such a helpful discussion! I'm new to this community and facing the exact same situation with some designer pieces I want to donate. What I'm taking away from all these responses is that the key is thorough documentation and being realistic about condition. It sounds like using eBay completed sales, Poshmark, and similar platforms to establish fair market value is absolutely legitimate - you just need to save screenshots of actual sold listings (not just asking prices) and be honest about any wear or condition issues. The $30 thrift store valuation for a $2000 designer suit that's selling for $350 on the secondary market does seem ridiculously low. Fair market value should reflect what the item would actually sell for, not what a thrift store prices it at for quick turnover. I'm planning to follow the systematic approach several people mentioned: photograph items showing condition, research 3-5 comparable sales, create a simple spreadsheet with documentation, and be conservative when there's any question about condition. For anyone else new to this like me - it sounds like the documentation is key, especially if you're claiming higher values than standard donation guides suggest. Better to spend time upfront creating good records than worry about it later during tax season! Thanks everyone for sharing your experiences - this community is incredibly helpful for navigating these tax questions!

I filed through FreeTaxUSA on February 15th this year and got my federal refund deposited on February 28th - exactly 13 days! This was my first time using them after years with TurboTax, and I was pleasantly surprised by how smooth the whole process was. Like others mentioned, the refund timing really depends on the IRS processing, not the software. But I will say FreeTaxUSA's interface made it super easy to track my return status, and their email notifications kept me updated throughout the process. Since you have a straightforward return like mine (just W-2 and standard deduction), I'd expect you'll see your refund within 2 weeks of acceptance. The education credit shouldn't cause any delays as long as you have your 1098-T form properly entered. Good luck with those car repairs!

I switched to FreeTaxUSA this year too after getting tired of TurboTax's fees! Filed on February 3rd and got my refund on February 14th - 11 days total. Pretty standard timing from what I've experienced over the years. One tip: make sure you're checking the IRS "Where's My Refund" tool rather than just waiting for FreeTaxUSA notifications. Sometimes the IRS updates faster than the tax software can relay the info. Also, if you set up direct deposit, double-check that your bank routing and account numbers are exactly right - even a small typo can delay things by weeks. Your return sounds super straightforward, so I'd be surprised if you don't see it within the typical 10-14 day window. The education credit is pretty routine for the IRS to process, especially if you have all your 1098-T info entered correctly.

I've been through this exact situation with my partnership and can tell you that Rev Proc 84-35 denials are frustrating but very fixable if you know what the IRS is actually looking for. The biggest mistake people make is thinking that simply stating "all partners filed timely and reported their income" is enough proof. The IRS wants documented evidence, not just your word. Here's what likely happened with your request: **Common reasons for denial:** - Missing specific partner documentation (Schedule E copies) - Vague language that doesn't precisely match Rev Proc 84-35 requirements - Incomplete partner information (missing filing dates, exact income amounts) - Not properly certifying each element of the relief requirements **What to do now with your CP504B:** 1. Don't panic - this is still very resolvable 2. Call immediately to request a collection hold while you prepare proper documentation 3. Prepare a much more detailed reconsideration package **Key documents for reconsideration:** - Schedule E from each partner's 1040 showing partnership income reported - Signed certification from each partner with their filing date and income amount - Cover letter specifically referencing "Rev Proc 84-35 relief under IRM 20.1.2.3.3.1" - Table summarizing all partner information in one place The good news is that partnerships who truly qualify for this relief almost always get it approved on reconsideration when they provide complete documentation. The IRS just wants ironclad proof you meet the requirements - give them that and you should be fine. Time is critical with a CP504B though, so start gathering documents immediately while you call about the collection hold.

@Mateo Gonzalez - I completely understand your frustration with this situation. As a fellow small business owner who went through something very similar, I can tell you that Rev Proc 84-35 denials are incredibly common on the first attempt, but they're usually fixable with the right approach. The CP504B escalation sounds scary, but don't let it panic you into making hasty decisions. Here's what I'd recommend doing immediately: **Step 1: Call the IRS today** Use the number on your CP504B notice and specifically request a collection hold while you prepare additional documentation for Rev Proc 84-35 relief. Be clear that you're not disputing that you owe penalties, but that you believe you qualify for statutory relief and need time to provide proper documentation. **Step 2: Identify what went wrong** Most Rev Proc 84-35 requests get denied because the IRS didn't receive adequate proof that ALL partners actually reported their partnership income on timely filed returns. They want concrete evidence, not just statements from your tax professional. **Step 3: Prepare a bulletproof reconsideration package** - Get copies of Schedule E from each partner's Form 1040 showing the partnership income was reported - Create a detailed table with each partner's name, filing date, and exact partnership income amount - Have each partner sign and date a certification statement - Reference "Rev Proc 84-35 relief per IRM 20.1.2.3.3.1" in your cover letter - Send everything certified mail with return receipt The good news is that partnerships who genuinely qualify for this relief almost always get it approved on reconsideration when they provide complete documentation. You just need to give the IRS ironclad proof you meet every requirement. Time is critical with a CP504B, but this is absolutely resolvable if you act quickly and thoroughly. Don't give up on the relief you're entitled to!

Adjust your W-4 withholdings at work NOW to prepare for this change! My wife and I got hit with a huge shock when we couldn't claim our son anymore. Our refund dropped by almost $3800 and we weren't ready for it. Instead of getting a smaller refund, you could adjust your withholding to have less taken out of each paycheck throughout the year. This gives you more money with each check instead of waiting for a big refund. Just fill out a new W-4 with your employer.

I went through this exact situation two years ago with my oldest! You're right that 2024 will be the last year for the Child Tax Credit since she'll be 17 at the end of the year. But don't panic - there are still significant tax benefits available. If your daughter goes to college and meets the dependency requirements (full-time student under 24, lives with you more than half the year, you provide more than half her support), you can still claim her as a dependent. The American Opportunity Credit alone can be worth up to $2,500 per year for the first four years of college - that's actually MORE than the Child Tax Credit! Also, with your income level around $76k combined, you should definitely look into the Earned Income Credit with your younger child. And once you have college expenses, those education credits can really add up. The key is planning ahead - start researching what documentation you'll need for education credits and consider adjusting your withholding so you're not counting on that big refund. The financial impact might not be as bad as you think once you factor in all the education benefits available.