New member here and dealing with this exact nightmare! Filed my NY return on February 1st and been stuck in that useless "further review" status for about 4 weeks now. Really needed that refund for some urgent home repairs but looks like I'm joining the waiting game with everyone else here. This thread has been incredibly helpful - both reassuring to know it's not just me and sobering to realize how widespread this issue is. Really appreciate @Sean Doyle for actually calling and getting that 10-16 week timeline from them. It's brutal but at least it's realistic expectations instead of that completely unhelpful "further review" message on their website. Definitely going to try calling that 518 number this week even though the hold time sounds miserable. Also considering that taxr.ai tool since everyone keeps mentioning it and honestly anything has to be better than refreshing NY's garbage website every day hoping for updates that never come. Thanks @Lily Young for creating this thread - it's been way more informative than anything NY provides officially! Here's hoping we all start seeing some movement soon 🤞

Newcomer here and going through the exact same thing! Filed my NY return on January 18th and it's been stuck in that frustrating "further review" status for about 7 weeks now. Was really counting on that refund to help with student loan payments but clearly I'm in for the long haul like everyone else. This thread has been such a relief - I was starting to think I messed something up on my return but now I see it's just NY being completely dysfunctional this year. Really appreciate @Sean Doyle for actually calling and getting that brutal but honest 10-16 week timeline from them. At least now we know what we're dealing with instead of that completely useless "further review" message that tells us absolutely nothing. Definitely going to try calling that 518 number this week even though 90+ minutes on hold sounds like torture. Also thinking about trying that taxr.ai tool everyone keeps mentioning since literally anything has to be more informative than NY's garbage website. Thanks @Lily Young for starting this thread - it's been way more helpful than any official NY resource! Here's hoping we all start seeing some movement soon because this is getting ridiculous 🙄

I've been dealing with bond accrued interest issues for years, and the key thing to remember is that this is essentially a timing difference that corrects itself. When you bought the bond in November 2024 and paid $125 in accrued interest, you were compensating the seller for interest that had built up during their ownership period. Think of it this way: that $750 payment you'll receive in March 2025 includes interest for the entire quarter, including the period before you owned the bond. By subtracting the $125 on your 2025 Schedule B, you're only claiming the interest income for the period you actually owned the bond. The IRS wants to see this matching occur in the same tax year because it provides a clearer picture of your actual economic income from the investment. If you deducted the $125 in 2024 but didn't report any offsetting interest income until 2025, it would distort your income across both years. Make sure to keep your purchase confirmation showing the accrued interest breakdown - you'll need this documentation when preparing your 2025 return.

This thread has been incredibly helpful! I had a similar situation with municipal bonds last year and made the mistake of deducting the accrued interest in the wrong tax year. The IRS sent me a notice asking for clarification, which led to months of correspondence. What I learned from that experience is that keeping detailed records is absolutely crucial. Beyond just the purchase confirmation, I now also keep a spreadsheet tracking each bond's purchase date, accrued interest paid, and expected interest payment dates. This helps me remember which adjustments to make when preparing returns the following year. For anyone dealing with multiple bond purchases throughout the year, consider setting up a simple tracking system. It's much easier to organize this information as you go rather than trying to reconstruct everything at tax time. The matching principle makes perfect sense once you understand it, but it's easy to forget the details when you're preparing returns months later.

This is exactly the kind of S-corp confusion I had when I first started! The key insight that helped me was realizing that your K-1 is essentially telling two different stories: (1) how much profit the business made that you need to pay tax on, and (2) how much cash you actually took out. The $39,000 on Line 1 (ordinary business income) flows to Schedule E and becomes taxable income on your 1040 - this is unavoidable. The $39,000 on Line 16c (distributions) is just informational tracking and doesn't create additional tax liability since you're already being taxed on the business profit. Think of it this way: your S-corp earned $39k in profit, which increases your "stake" in the company by $39k. Then you took out $39k in cash, which decreases your stake by $39k. Net effect on your ownership basis: zero. Net effect on your taxes: you pay income tax on the $39k profit regardless of whether you left it in the business or took it out. The beauty of S-corps is avoiding double taxation - you're only taxed once on the business income, not again when you distribute those same earnings to yourself!

One thing to watch out for that hasn't been mentioned yet is making sure your $38,000 salary is considered "reasonable compensation" by the IRS. They scrutinize S-corp owner salaries closely because there's an incentive to minimize salary (which is subject to payroll taxes) in favor of distributions (which aren't). With $77,000 in sales and $39,000 in profit after your salary, your 50/50 split between salary and distributions seems reasonable, but it's worth documenting why that salary amount is appropriate for your role and industry. The IRS has been increasing audits on S-corps where owner salaries seem too low relative to the business income. Also, don't forget that your $38,000 salary gets reported on your W-2 and goes on your 1040 as wages (subject to payroll taxes), while the $39,000 business income from the K-1 goes on Schedule E and flows to your 1040 as business income (not subject to self-employment tax). So you'll actually have income from two different sources on your return!

Super important piece of advice: make sure you submit your 1040-X ASAP. The longer you wait, the more interest will accrue on any additional tax you owe from using the wrong W-2.

I went through almost the exact same situation last year! My accountant used an old 1099 by mistake and then basically ghosted me when I tried to get it fixed. Super frustrating when you're paying someone to handle this stuff properly. Here's what I learned: definitely file the 1040-X yourself if your accountant won't help. It's really not as scary as it seems, especially if you have tax software to guide you through it. The key things to remember are to clearly label which W-2 was incorrect, include both versions with your amendment, and write a brief explanation of what happened. Also, since you caught this relatively quickly, you're in a much better position than if the IRS had discovered it first. They tend to be more understanding when you're proactively fixing mistakes. Good luck getting this sorted out!

Another thing to consider is that lottery winnings can affect your eligibility for certain government benefits if you receive any. I had a relative win about $30k and it disqualified them from Medicaid for that year. Also impacted their kid's financial aid for college. Just something to keep in mind - winning might actually cost you in unexpected ways beyond just the direct taxes.

This is such a comprehensive discussion! As someone who works in tax preparation, I see clients struggle with lottery winnings every year. One thing I'd add is that you should definitely consult with a tax professional BEFORE claiming any substantial prize - not after. Many states allow you some time (usually 90-180 days) to claim winnings, which gives you opportunity to plan. A good tax advisor can help you decide between lump sum vs annuity, set up proper withholding, and plan for estimated payments to avoid penalties. Also, for those mentioning benefit impacts - this is huge! We've seen clients lose SNAP benefits, housing assistance, and Medicare subsidies because lottery winnings pushed them over income thresholds. Sometimes the "prize" really does end up costing more than it's worth when you factor in lost benefits and tax implications. The key is planning ahead rather than trying to deal with the tax mess after you've already claimed the prize.