Friendly reminder to everyone that the IRS is SEVERELY understaffed and underfunded! They're still dealing with backlogs from the pandemic and system limitations. The people answering phones are doing their best with limited resources. My sister works for the IRS and says amended returns are processed in the order received, but there are exceptions where returns get flagged for various reasons that require manual review. Sometimes these get stuck in queues waiting for available staff. Yes it's frustrating but the frontline employees aren't the ones creating these delays! They literally can't process returns any faster than the antiquated systems and staffing levels allow.

I completely understand your frustration - 9 months is definitely excessive for an amended return, especially when your 2020 amendment was processed quickly. Based on what others have shared here, it sounds like there might be a specific issue holding up your 2021 return that the phone reps aren't identifying. I'd strongly recommend trying multiple approaches simultaneously: 1. Request your account transcript online through the IRS website - this often shows processing codes and flags that phone reps don't mention 2. Contact the Taxpayer Advocate Service at 877-777-4778 - they're specifically designed to help with situations like yours where normal channels aren't working 3. Reach out to your Congressional representative's office - many have constituent services that can inquire directly with the IRS on your behalf The fact that you mentioned unemployment income and a change from HOH to married filing status might be relevant - sometimes these changes trigger additional reviews that can cause delays. When you call next, specifically ask if there are any "freeze codes" or "hold codes" on your account and request to speak with someone who can actually review your file rather than just check the general status. Don't give up - 9 months with no clear explanation is not acceptable, and you have legitimate options to escalate this beyond the standard phone support.

Quick question - I'm in a similar situation with my rental's driveway. Should I be depreciating my asphalt driveway separately from the house too? I've just been lumping everything together as one property but it sounds like I'm doing it wrong?

Just wanted to add a practical tip for anyone handling their own rental property taxes - keep detailed records of when you make any improvements to parking areas, driveways, or other land improvements. I learned this the hard way when I repaved part of my rental's parking lot last year. The IRS distinguishes between repairs (deductible immediately) and improvements (must be depreciated). If you're just filling potholes or sealing cracks, that's typically a repair. But if you're repaving a significant portion or expanding the parking area, that's an improvement that starts a new 15-year depreciation schedule. I made the mistake of deducting my $8,000 repaving job as a repair expense initially. After doing more research (and getting some advice similar to what's been shared here), I realized it should be depreciated as an improvement. Had to file an amended return, but it actually worked out better in the long run since I can depreciate future improvements more aggressively than the straight-line method I was using for everything else. The key is documenting what work was done and why - take photos before/after and keep all contractor invoices. Makes it much easier to justify your depreciation choices if questions come up later.

One more tip that really helped me when I was in your exact situation - consider opening a separate checking account just for your eBay activities, even if you're not sure if this is going to be a regular business yet. I started doing this after my first year of decent eBay sales and it made tracking everything SO much easier. All the PayPal deposits go into that account, and I pay for shipping supplies, packaging materials, and any items I buy to resell from that same account. At the end of the year, it's super easy to see exactly what came in vs. what went out. Also, since you mentioned you're past the $600 threshold and will get a 1099-K, definitely keep in mind that the IRS gets a copy too. So even if some of your sales were at a loss, you'll want to be able to document that on your return. The 1099-K just shows gross payments received - it doesn't account for your original costs or the fact that some items were sold at a loss. For quarterly payments, if you think you'll owe more than $1,000 in taxes on your eBay income after deducting all your costs and losses, then yes, you should probably start making estimated payments to avoid penalties. The IRS has a form 1040ES that helps you calculate this.

This thread has been incredibly helpful! I'm in a similar situation but with a twist - I inherited a bunch of vintage items from my grandmother and have been selling them on eBay. Since I didn't actually purchase these items myself, how do I determine the "cost basis" for tax purposes? I've made about $3,200 so far selling her old jewelry, china, and collectibles. Some pieces I know were valuable (like her wedding ring set), but others I have no idea what she originally paid or what they were worth when I inherited them. Do I need to get everything appraised? Can I use the fair market value at the time of inheritance as my cost basis? I'm worried about accidentally owing taxes on what might actually be losses if these items were worth more when she passed than what I'm selling them for now. Also wondering if anyone has dealt with inheritance situations like this - seems like it might be different from just selling your own old stuff?

Have you considered hiring a tax attorney to do some due diligence? That's what I did when buying a small manufacturing business. They can do a more thorough check than most of us could do ourselves. Though it costs money, it's WAY cheaper than getting stuck with someone else's tax problems!

Another option is to request a business credit report from Dun & Bradstreet or Experian Business. These often show tax liens and can give you insight into payment patterns. Many suppliers and vendors report to these agencies, so it gives a picture of how they handle financial obligations.

This is such a smart approach to think about optimizing your deductions as a household! You're absolutely right that sometimes it makes more financial sense for one person to claim the full deduction rather than splitting 50/50. Just to add to what others have said - make sure you also consider the state tax implications if you're in a state with income tax. Some states have different rules or limits for mortgage interest deductions that might affect your optimization strategy. Also, since you mentioned you're both on the title, you might want to document your agreement about how you're handling the tax deductions. It's not required, but having a simple written agreement between you two about who claims what can be helpful if questions ever come up later. This is especially useful if you decide to change your approach in future years. The key thing the IRS cares about is that the person claiming the deduction actually paid that portion of the expense, so as long as you set up your payment structure to match your deduction claims, you should be in good shape!

Great question about changing strategies year to year! It's completely normal and acceptable to adjust your deduction approach annually based on your circumstances - the IRS doesn't expect you to stick with the same split forever. What matters is that each year's approach accurately reflects who actually paid what expenses that year. Regarding state-specific rules, most states follow federal guidelines for mortgage interest deductions, but there are some exceptions to watch out for. For example, some states have lower caps on mortgage interest deductions than federal limits, and a few states don't allow mortgage interest deductions at all (like states with no income tax). States like California generally follow federal rules but have their own forms and sometimes different AGI thresholds that could affect whether itemizing makes sense. New York has some unique rules around property tax deductions that might impact your optimization strategy. I'd recommend checking your specific state's tax guidelines or consulting with a local tax professional who knows your state's quirks. The strategy that works best federally might not always be optimal when you factor in state taxes, especially if you're in a high-tax state with different deduction limits or phaseout rules.