I went through this exact same situation last year when I moved from California to Nevada! The key thing to remember is that you absolutely cannot modify the W2 yourself - that's considered tax document fraud. What worked for me was calling my employer's payroll department and explaining that the W2 shows the wrong state for where I actually performed work. I had to provide documentation of my move (lease agreement, utility bills) to prove I was a Nevada resident during the tax year. They issued a corrected W2-c within about 10 days. One tip: when you call, don't just say "I moved" - be specific that the STATE shown on the W2 is incorrect for where you physically performed your work duties. That helps them understand it's not just an address change but a tax withholding issue. Since Washington has no state income tax, make sure they didn't withhold any Oregon state tax from your paychecks either - if they did, you'll want that corrected too so you can get a refund from Oregon. The sooner you contact them the better, especially with the filing deadline approaching!

I just went through this exact same issue a few months ago! You definitely cannot change the W2 yourself - that's tampering with a tax document and can get you in serious trouble. You need to contact your employer's payroll department immediately and request a corrected W2 (Form W-2c). Since you moved in December 2023 and worked in Washington all of 2024, the W2 should definitely show Washington as your work state. The good news is that since Washington has no state income tax, you shouldn't have had any state tax withheld from your paychecks - double check your pay stubs to make sure they weren't taking out Oregon state tax all year. When you call payroll, be very specific that this isn't just an address change but that the WORK STATE is wrong on your W2. Have your documentation ready (lease agreement, utility bills) showing you lived and worked in Washington during 2024. Most employers are pretty good about fixing these once they understand the issue. If they drag their feet, you can file Form 4852 (Substitute for Form W-2) with your tax return, but getting the corrected W2 is definitely the cleaner solution. Don't let this delay your filing - start the process with your employer today!

Make sure to keep copies of both the original 401k provider's 1099-R AND documentation from Vanguard showing the rollover was completed. My friend got audited for exactly this situation and having both sets of documents made it super easy to resolve. The IRS just wanted to verify the money actually went into another retirement account.

Just to add some reassurance - I work in retirement plan administration and see this situation all the time. The key thing to remember is that if your 1099-R has distribution code G in box 7, the IRS already knows this was a direct trustee-to-trustee rollover. They're not going to come after you with penalties or anything dramatic. That said, you absolutely should amend to properly report it. The IRS has automated systems that match 1099 forms to tax returns, and eventually they'll send you a notice asking about the missing form. It's much easier to proactively amend than to respond to an IRS notice later. When you amend, you'll report the gross distribution on your 1040 but then show it as a nontaxable rollover, so your tax liability won't change. The amendment is really just about proper reporting compliance. FreeTaxUSA's amendment process is pretty straightforward once you have your refund in hand.

I'm dealing with a similar situation and want to share something that helped me understand the process better. After reading through all these helpful responses, I decided to speak with a tax professional who specializes in gift tax issues, and they confirmed everything that's been shared here. One thing that really put my mind at ease was learning that the IRS actually expects people to use their lifetime exemption for situations exactly like this - helping family members with major purchases like homes. The $13.61 million exemption exists specifically so that families can transfer wealth without immediate tax consequences. What surprised me most was finding out that the Form 709 is actually protecting you in a way. By filing it properly, you're officially documenting your exemption usage, which prevents any confusion or disputes with the IRS later. It's like getting a receipt for using part of your allowance. For anyone still feeling anxious about this process, I'd recommend focusing on the fact that you're helping your child achieve homeownership - something that's becoming increasingly difficult for young people today. The paperwork is just administrative; the real impact is giving your family member a foundation for their future. That perspective helped me stop worrying about the technical details and appreciate what I was actually accomplishing. The Form 709 might seem intimidating, but it's really just the IRS's way of keeping track of something you're already entitled to do. Don't let the complexity overshadow the positive impact you're making!

As someone who just went through this exact process a few months ago, I can definitely relate to your stress about the potential tax implications! I helped my daughter with $475k for her first home and was initially terrified about what I thought would be massive gift taxes. The good news is that everything shared in this thread is absolutely correct - you'll need to file Form 709, but you almost certainly won't owe any actual gift tax. The $601k over your annual exclusion will just count against your $13.61 million lifetime exemption, which means you're using less than 5% of your total allowance. One thing I learned that really helped was keeping detailed records of exactly how the gift was used. Since your daughter used it for a house purchase, save copies of the closing documents showing how your gift funds were applied. This documentation can be really valuable if there are ever any questions down the line. Also, don't be surprised if the whole process feels overwhelming at first - that's completely normal for anyone dealing with gift tax forms for the first time. Once you work with a qualified tax professional and get the 709 filed correctly, you'll have peace of mind knowing everything is properly documented. The most important thing to remember is that you've given your daughter an incredible opportunity to achieve homeownership in this challenging market. The Form 709 is just paperwork - the real value is in what you've made possible for your family!

This is exactly the situation I was dreading when I got my W-2Gs this year. I have about $95k in reported winnings but I'm actually down for the year too. Reading through everyone's responses has been incredibly helpful - I didn't realize you could use the session method or that itemizing was essentially mandatory for this situation. One question I haven't seen addressed: what if you gambled at multiple different casinos throughout the year? Do you need separate logs for each venue or can you combine everything into one master gambling log? Also, for those who've been through this - roughly how long did it take you to organize all your documentation and create a proper gambling log? I'm feeling less panicked after reading these responses, but still overwhelmed by the documentation requirements. It sounds like having something is better than having nothing, even if it's not perfect.

I'm in a very similar boat - got about $156k in W-2Gs this year but ended up losing everything and then some. This thread has been incredibly reassuring because I was absolutely terrified about owing taxes on money I don't have. A few things I learned from my research that might help others: - The IRS Publication 525 specifically addresses gambling winnings and losses, worth reading if you want the official guidance - Keep any emails or statements from casino player rewards programs - they often show your annual activity summary which can help fill gaps in your records - If you used credit cards for cash advances at casinos, those statements can help establish when and where you gambled even if you don't remember exact amounts I'm still working on organizing my documentation but feeling much more confident about this after seeing how many people have successfully navigated similar situations. The session method seems like the way to go for someone like me who didn't keep perfect records throughout the year. Thanks to everyone who shared their experiences - it's made this whole process feel much less overwhelming!

Just a practical tip: consider doing a cost segregation study on your rental property. It doesn't solve the passive activity loss problem directly, but it frontloads depreciation by breaking out components of the building that can be depreciated over 5, 7, or 15 years instead of 27.5 years. This creates bigger paper losses which might be more helpful when you can eventually use them (either through the $25k allowance or when you sell).

One more option to consider: if you're handy and can increase your involvement in the rental property, you might be able to qualify for material participation. The IRS has seven tests for material participation, and Test #1 is participating more than 500 hours per year in the activity. If you can document doing maintenance, repairs, tenant screening, marketing, bookkeeping, and property management yourself instead of hiring others, those hours add up quickly. I switched from using a property management company to self-managing and now I easily hit 500+ hours annually across my two rentals. This made all my rental losses non-passive, so they offset my regular W-2 income. The key is contemporaneous record keeping - log your hours as you do them, not at year-end. I use a simple phone app to track time spent on each property activity. Worth considering if you're willing to be more hands-on!