Great question! I was in a very similar situation last year. You're correct that you only need 2 years of ownership and use, not 5 years. Since you bought in August 2022 and are looking to sell in 2024, you should easily meet the requirements. One thing I'd add to the excellent advice already given - make sure you keep documentation of your move date and job offer. Even though you qualify for the full exclusion, having this paperwork can be helpful if the IRS ever questions the timing of your sale. Also, don't forget to factor in closing costs and any selling expenses when calculating your actual capital gain. These costs reduce your taxable gain, which might be especially helpful if you're close to the $250,000 exclusion limit. Good luck with the job opportunity! The Section 121 exclusion is one of the best tax benefits available to homeowners, so it's great that you can take advantage of it.

Just wanted to add another important point about the Section 121 exclusion - make sure you haven't used it on another property within the past 2 years before your sale date. The exclusion can generally only be used once every 2 years. Since this sounds like your first home sale, you should be fine, but it's worth mentioning for anyone else reading this thread. Also, if you're married, both spouses need to meet the use test (living there as primary residence for 2 out of 5 years) to qualify for the full $500,000 exclusion, though only one spouse needs to meet the ownership test. One more tip - if you do end up with a gain that exceeds the exclusion limit, you might want to look into timing the sale strategically. For example, if you're in a higher tax bracket this year due to your new job, it might be worth waiting until early next year if your income will be lower then, as long as you still meet the 2-year requirements.

I'm dealing with this exact same situation right now! Got an EIN last spring for what I thought would be a great online business opportunity, but between work getting busy and some personal stuff, I never actually did anything with it. Reading through everyone's experiences here has been such a relief - I was starting to panic that I'd somehow messed up by not filing something. The consensus from people who've actually dealt with this seems really clear: no business activity means no filing requirement from the IRS. But I'm really drawn to the approach that @Danielle Mays, @Aisha Mahmood, and others have described about filing a zero return anyway. The peace of mind argument is so compelling, especially when you hear that the IRS processes these normally without any issues. I think I'm going to go ahead and file a Schedule C showing zeros with my next tax return. Even if it's not technically required, spending an hour to create that official paper trail seems like such a small investment to eliminate all the uncertainty. Thanks everyone for sharing your real experiences - this thread should be pinned somewhere for anyone dealing with unused EINs!

I'm in this exact situation too! Got an EIN about 6 months ago for a small catering business I was planning to start with a friend, but we ended up going different directions before we ever used it for anything. No bank accounts, no state filings, no transactions - literally nothing except that EIN number sitting somewhere in the IRS system. Reading through all these experiences has been incredibly helpful and reassuring. The consistent message from people who've actually dealt with this situation - that unused EINs with zero activity don't create filing requirements - really puts my mind at ease. But I'm definitely leaning toward the approach many of you have taken of filing a zero return anyway. The peace of mind argument is so compelling, especially after hearing from @Danielle Mays, @Aisha Mahmood, and others about getting normal processing from the IRS without any issues. It seems like such a small time investment to create that official documentation and eliminate any future uncertainty. Thanks everyone for sharing your real-world experiences rather than just speculation - this thread has been exactly what I needed to figure out the best path forward!

Don't forget to check if your new employer offers any signing bonus or relocation that could help offset this repayment! When I had to repay about $11k in tuition to my old employer, I negotiated with my new company to include a "education reimbursement transition bonus" in my offer. I explained the situation frankly during negotiations, and they added $8k to my signing bonus specifically to help cover the repayment. Not all employers will do this, but many understand this common situation and want to remove barriers to hiring good candidates.

This thread has been incredibly helpful! I'm dealing with a similar situation where I have to repay $16,500 in tuition reimbursement but only received about $11,200 after taxes. One thing I'd add is to make sure you keep detailed records of EVERYTHING - the original reimbursement amounts, tax withholdings from each paycheck, and all communications with your former employer about the repayment. I learned this the hard way when my accountant needed documentation I hadn't saved. Also, if you're considering using any of the tools or services mentioned here, I'd recommend trying the free consultations first. Many tax professionals offer initial consultations specifically for education-related tax issues, and they can help you determine if your situation is complex enough to warrant additional help or if you can handle it with standard tax software. The most important thing is not to panic about the repayment amount - there are legitimate ways to recover the taxes you paid, you just need to approach it systematically and document everything properly.

I went through almost the exact same situation with my CP2000 last year! New baby, medical issues, and a tax oversight - it's like you're describing my life. The stress was overwhelming but I want to give you hope that this absolutely can be resolved. Here's what worked for me: I called the IRS directly (used that Claimyr service others mentioned because the hold times were insane) and specifically requested "First-Time Penalty Abatement" based on reasonable cause. The key is being very clear about your timeline of events and how they all contributed to the mistake. Document everything chronologically - when the baby was born, when you moved, when you were sick, when you were pregnant again. This paints a clear picture of why someone would reasonably make this oversight. The IRS agent I spoke with was actually very understanding once I explained the situation properly. Don't let the panic consume you - you have legitimate grounds for penalty relief, and the IRS does work with taxpayers in situations like yours. Focus on getting that response form back within the deadline first, then tackle the penalty abatement. You've got this!

I completely understand the panic you're feeling - I went through something very similar with my CP2000 notice about 18 months ago. Like you, I had missed including a W2 (my spouse's from a part-time job) due to a perfect storm of life events. The good news is that your circumstances sound ideal for First-Time Penalty Abatement. The IRS genuinely does consider major life events like childbirth, illness, and relocation as reasonable cause for tax oversights. What helped me was creating a simple timeline showing how all these events overlapped and contributed to the mistake. Here's my suggestion for your next steps: First, respond to the CP2000 within the 30-day deadline by checking "agree" if you do owe the additional tax from the missing W2. You can do this while simultaneously requesting penalty abatement - they're separate processes. Second, call the IRS using the number on your notice and specifically ask for "First-Time Penalty Abatement due to reasonable cause." When you call, be prepared to clearly explain your timeline of events. Don't apologize excessively or sound unsure - just state the facts: new baby, relocation, illness, pregnancy, and how these circumstances led to the oversight. Most IRS agents are actually quite reasonable when dealing with genuine life situations like yours. You've got legitimate grounds for relief here. The key is being organized and persistent while staying within their deadlines. You can absolutely get through this!

If the nonprofit isn't issuing 1099s, they're probably breaking the law themselves. Any business that pays a contractor $600+ in a year is required to file a 1099-NEC. Maybe you should let them know they could get in trouble too? This seems super sketchy for a nonprofit especially.

I'm a tax preparer and I see this situation fairly often. You're absolutely right to report the income regardless of whether you receive a 1099 - that's the law and it's the smart thing to do. Here's what many people don't realize: the IRS has increasingly sophisticated data matching systems. Even without a 1099, they can cross-reference your reported income with things like business expense deductions, lifestyle indicators, and yes, banking activity during audits. They also have agreements with state agencies that might have records of your work. The nonprofit telling you they "have no plans" to file a 1099 is concerning - they're legally required to issue one for payments over $600 to contractors. This could indicate poor record-keeping that might actually make them MORE likely to get audited, not less. My advice: Report the income, keep excellent records of all payments received (bank statements, invoices, contracts), and document any business expenses you can legitimately deduct. If you're audited, having organized records will make the process much smoother. The peace of mind from doing things correctly is worth way more than any short-term tax savings from underreporting.