One thing that caught me off guard my first year trading was that you might also owe quarterly estimated taxes if your stock gains are substantial. Since taxes aren't automatically withheld from capital gains like they are from your paycheck, the IRS expects you to pay as you go if you'll owe more than $1000 at year-end. For your $4000 situation, this probably won't apply, but it's something to keep in mind for future years if your trading activity increases. I learned this the hard way when I had a good year and got hit with underpayment penalties. Also, don't forget about state taxes! Some states don't tax capital gains at all, while others treat them the same as regular income. Make sure you check your state's rules too.

Just wanted to add a perspective as someone who made similar mistakes when I first started trading. The $4000 you mentioned - make sure you understand that's the gross proceeds, not your taxable gain. I initially panicked thinking I'd owe taxes on my entire withdrawal amount until I learned you only pay on the profit. Also, keep detailed records of everything! I learned this lesson the hard way when my broker's 1099-B had some errors in the cost basis. Having your own spreadsheet with purchase dates, amounts, and sale info saved me when I had to correct things with the IRS. One more tip - if you had any losing trades this year, don't forget you can use those losses to offset your gains. You can deduct up to $3000 in net capital losses against ordinary income, and carry forward any excess to future years. This "tax loss harvesting" can really help reduce your overall tax burden. Good luck with your first year of stock taxes - it gets easier once you understand the basics!

This is a textbook case of tax identity theft that needs immediate attention. The timeline you've described - with a "wrong identifying number" notice from December 2023 followed by a refund freeze in February 2024 before you even filed - clearly indicates someone used your SSN to file a fraudulent return. The 290 code showing just a "$" symbol without an amount suggests the IRS system is struggling to calculate what you actually owe because it's trying to reconcile your legitimate returns with the fraudulent one already in the system. Here's your action plan: 1. Call the IRS Identity Protection Unit at 800-908-4490 TODAY - don't wait for any notices 2. File Form 14039 (Identity Theft Affidavit) immediately 3. Contact all three credit bureaus to place fraud alerts and check your credit reports 4. Consider freezing your credit entirely until this resolves 5. Keep detailed records of everything The multiple amendments you filed likely complicated things further because now the system has to sort through several legitimate returns plus the fraudulent one. This will take months to resolve, but acting quickly is crucial. Once the IRS confirms identity theft, they typically expedite processing of your legitimate refund, but the sooner you start this process, the better. Don't file your 2025 return until you speak with the identity theft unit about whether you'll need an IP PIN or special procedures going forward.

This is definitely a complex identity theft situation that requires immediate action. The sequence of events - December 2023 "wrong identifying number" notice, February 2024 refund freeze before you filed, and now a 290 code with no amount - all point to someone having filed a fraudulent return using your SSN. The 290 code typically shows "additional tax assessed" with a specific dollar amount, but yours showing just "$" suggests the system can't properly calculate what you owe because it's trying to reconcile your legitimate returns with the fraudulent one already in the system. Here's what you need to do immediately: 1. Call the IRS Identity Protection Specialized Unit at 800-908-4490 - don't wait for notices 2. File Form 14039 (Identity Theft Affidavit) right away 3. Place fraud alerts with all three credit bureaus and check your free credit reports 4. Consider freezing your credit entirely until this resolves 5. Request a complete account transcript to see all activity on your SSN Your multiple amendments likely complicated the situation further since the system now has to sort through several legitimate returns plus the fraudulent one. This will take months to resolve, but starting the identity theft process immediately is crucial. Once confirmed, the IRS typically expedites legitimate refunds. Also, don't file your 2025 return until you speak with the identity theft unit about whether you'll need an IP PIN or special filing procedures going forward. Document everything and keep detailed records - these cases require a lot of follow-up.

One thing nobody mentioned - check if your ex filed Head of Household with your child as the qualifying person. Even if she signed Form 8332 releasing the child as a dependent to you, she might still be using the child for HOH filing status, which is actually allowed. You can claim the child tax credit with the Form 8332, while she can still file HOH if the child lived with her more than half the year. This confuses a lot of people because they think signing Form 8332 means the other parent can't use the child for ANYTHING on their taxes, but that's not how it works.

Yes, that's absolutely correct! Form 8332 only releases the dependency exemption and child tax credit - it doesn't affect Head of Household filing status. The custodial parent (whoever the child lived with for more than half the year) can still file as Head of Household even after signing Form 8332. This is one of the most misunderstood aspects of divorce taxation. The IRS treats these as separate benefits: - Dependency exemption/child tax credit: Can be released via Form 8332 - Head of Household status: Based on who the child actually lived with - Earned Income Tax Credit: Always stays with the custodial parent regardless of Form 8332 So in your situation, @Miguel Diaz, if your son lived with you for more than half the year, you can absolutely still file as Head of Household even though you signed Form 8332. Just make sure you understand which parent is considered "custodial" for IRS purposes - it's based on nights spent in each home, not the custody arrangement percentage.

most likely ur return is under review and they havent updated the system yet. they do this all the time. u will probably get a letter in a few weeks asking for more documentation or telling u theres a problem. classic irs move to keep u in the dark while they take their sweet time 🙄

I went through this exact same nightmare about 6 months ago. Blank transcript for over 2 months, no responses from the IRS, complete radio silence. What finally worked for me was getting my local taxpayer advocate involved. You can find your local office on the IRS website and they actually have power to cut through the bureaucratic BS. They were able to see that my return had been flagged for manual review due to some automatic system error and got it moving within a week of contacting them. It's a free service and they're specifically there to help when the normal IRS channels fail you. Definitely worth trying if the phone calls and online troubleshooting aren't getting you anywhere. The advocate assigned to my case was super helpful and actually explained what was happening instead of giving me the runaround.

This has been an excellent discussion that really highlights how complex stock gifting strategies can be! As someone who works in financial planning, I wanted to add a few practical considerations that might help others thinking through similar decisions. One thing I've noticed from client experiences is that the emotional and relationship dynamics often get overlooked in favor of the tax optimization aspects. When you gift stocks with significant embedded losses or gains, you're essentially involving family members in your investment decisions and tax strategies. This can create unexpected pressure or awkwardness, especially if the stocks continue to decline or if the recipient feels obligated to sell at a particular time. I've also seen situations where the gifting strategy worked perfectly from a tax perspective, but created family tensions when the recipient held onto declining stocks longer than the giver expected, or sold at what the giver considered the "wrong" time. Another practical consideration is record-keeping complexity over time. The dual basis rules and documentation requirements mentioned in earlier comments become increasingly challenging to manage as years pass. I've worked with families who struggled to reconstruct the proper basis information years later when the recipient finally sold, especially when the original giver had passed away or the family circumstances had changed. For those considering this strategy, I'd suggest having very clear conversations upfront about expectations and responsibilities, while being careful not to create any appearance of coordination that could trigger IRS scrutiny. Sometimes the simplest approach of just taking your own losses and making a cash gift if you want to support family members financially ends up being less complicated overall.

As someone who recently went through a complex gifting situation myself, I want to echo the excellent points about relationship dynamics that @bc9ee73f627d raised. I gifted some tech stocks with embedded losses to my son last year, thinking I was being smart about taxes, but it created some unexpected stress in our relationship. My son felt pressured to monitor the stocks constantly and kept asking me when he should sell, even though I tried to make it clear the decision was his. He was worried about "messing up" the tax strategy, which wasn't the dynamic I intended at all. We eventually had to have several conversations to establish that this was truly his decision with no expectations from me. From a practical standpoint, what helped us was setting up a simple spreadsheet with all the key information (original basis, gift date, fair market value at gift, etc.) that we both could reference. This eliminated the back-and-forth about documentation and made it clear what records we each needed to keep. One lesson learned: if you do decide to go the gifting route, consider starting with smaller positions or less volatile stocks to test how the dynamic works with your family before committing to larger transactions. The tax benefits can be meaningful, but preserving family relationships is ultimately more valuable than optimizing every dollar of taxes. The suggestion about cash gifts instead is worth serious consideration - sometimes the simplest approach really is the best, especially when family harmony is factored into the equation.