Has anyone compared what happens with futures and section 1256 contracts under regular vs MTM? I trade a lot of ES and NQ futures and right now I'm getting that sweet 60/40 split between long-term and short-term rates. Wondering if MTM would hurt or help in my case?

Great thread! As someone who made the MTM election two years ago, I wanted to add a few practical considerations that might help with your decision: One thing to consider is the timing of when you actually start generating significant trading income under MTM. If you're planning to scale up your trading activity significantly in 2025, the ordinary income treatment might actually work in your favor if you're able to deduct business expenses that you couldn't before (like a home office, equipment, education, etc.). Also, regarding your multiple brokerage accounts - while the MTM election does apply to all securities under your SSN, I've found it helpful to designate one account specifically for "business trading" and another for "personal investments" even before setting up any entities. This makes the record-keeping much cleaner if you do decide to go the LLC route later. One more tip: if you do sell your NVDA position before year-end to lock in those long-term gains, be mindful of the wash sale rules if you plan to repurchase it within 30 days. Even though MTM eliminates wash sales going forward, the rules still apply to your 2024 transactions under regular tax treatment. The complexity definitely increases, but the benefits can be substantial if you're doing high-volume trading. Just make sure you have a solid bookkeeping system in place!

I'm going through something very similar right now! My WMR just switched from PATH to processing yesterday, and I also have the 570 and 768 codes on my transcript. It's reassuring to see others have experienced this exact combination. From what I've been reading, the 570 code with EIC (768) seems pretty standard during the PATH Act verification period. I'm hoping mine resolves as quickly as some of the experiences shared here. Has anyone noticed if the day of the week matters for when transcript updates occur? I've heard they typically update on certain days, but I'm not sure if that's accurate.

This is exactly what happened to me last month! The progression from PATH to processing with those specific codes is a really good sign. I had the 570 and 768 combination too, and like others mentioned, mine resolved in about 18 days without any action needed from me. The fact that you don't see a 971 code means they're not requesting additional documentation, which is great news. Since you mentioned amending paperwork earlier, the 570 is likely just the system doing a final verification check on those changes. I found it helpful to check my transcript every Thursday since that's when most updates seem to post. You're definitely on the right track - just need to be patient while the system works through its process!

I went through this exact same situation when I started college last year! The anxiety about potentially messing up my parents' tax situation was real, but I can confirm what everyone else is saying - changing your mailing address with USPS has absolutely zero impact on your tax home status. What really put my mind at ease was learning that the IRS has very specific rules designed exactly for situations like ours. As a full-time student under 24 whose parents provide more than half your support, you're in a well-established category that the tax code handles smoothly. I've been successfully managing this for over a year now: my mail gets forwarded to my dorm, my tax home remains at my parents' house, and they continue to claim me as a dependent without any issues. The key thing to remember is that these are completely separate administrative systems that don't talk to each other. One practical tip that helped me: when I filled out the USPS change of address form, I made sure to select "temporary" rather than "permanent" since I'll be returning home after graduation. This just helps keep everything clear and prevents any confusion with other services that might use USPS data. You're being really smart to think about this ahead of time, but honestly, you can relax about it! This is such a common situation for college students that the systems are designed to handle it without complications.

I'm a college financial aid advisor and deal with this exact question all the time! You're absolutely right to be thinking about this, but I can put your mind at ease - changing your mailing address with USPS will not affect your tax home status or your parents' ability to claim you as a dependent. The IRS and USPS operate completely independently. Your tax home is determined by factors like where your permanent ties are, where you plan to return after college, and your dependency status - not where your mail gets delivered. Since you're under 24, a full-time student, and your parents provide more than half your support, you clearly qualify as their dependent regardless of your mailing address. I see hundreds of students every year who forward their mail to campus while maintaining their tax home at their parents' address. One quick tip: make sure you select "temporary" on the USPS form rather than "permanent" since you're just away for school. This helps avoid confusion with other systems like voter registration or insurance that sometimes use USPS data. You're being very responsible by thinking this through, but it's actually much simpler than it seems! The tax code has clear provisions for exactly your situation.

This whole Zelle tax thing is soooo overblown in the media. I literally checked with my accountant last week. She said unless you're running a BUSINESS through Zelle you have NOTHING to worry about. All your rent splitting, family gifts, friend reimbursements, etc. are totally NOT taxable and never have been. The only change is that payment platforms have to send 1099-Ks at a lower threshold now. But the actual TAX LAWS about what's income haven't changed at all. If it wasn't taxable income before, it still isn't now!

I'm dealing with a similar situation and this thread has been super helpful! I use Zelle constantly for splitting utilities with roommates, paying my share of group gifts, and getting reimbursed when I pick up groceries for friends. I was getting really anxious thinking I'd have to track and report every single transaction. From what everyone's saying here, it sounds like the key is just being able to distinguish between actual business income versus personal transfers and reimbursements. For those computer builds you mentioned, as long as you're truly just getting reimbursed for parts costs without making a profit, that shouldn't be taxable income. I think I'm going to start keeping better records of my Zelle transactions just in case - maybe screenshots of the transaction descriptions or quick notes about what each payment was for. That way if I ever do get a 1099-K or have questions from the IRS, I can easily show that these were legitimate personal transfers and not unreported business income.

This thread has been incredibly enlightening! I'm in a similar boat with my 10-year-old's UTMA account and have been doing the annual gain harvesting for three years now. After reading all these insights, I'm realizing I may have been overthinking this. The kiddie tax threshold at $2,300 is particularly concerning - I hadn't fully grasped that gains above that amount would be taxed at MY rate, not my daughter's. Given that I'm in the 32% bracket, this completely defeats the purpose of my strategy if we ever exceed that threshold. What's really got me thinking is the compounding argument. Even if I'm only paying small amounts in taxes each year, that money could be growing for another 8+ years. The financial aid implications are also something I never considered - definitely don't want to inadvertently hurt her college funding prospects. I think I'm going to stop the harvesting and just let it ride. Worst case scenario, if she has significant income at 18, we can reassess then. But for now, the potential downsides seem to outweigh the modest tax benefits, especially when you factor in state taxes (I'm in Massachusetts) and all the administrative complexity. Thanks everyone for sharing your experiences - this community is amazing for working through these complex scenarios!

This discussion has been incredibly helpful! I'm dealing with a similar situation with my 12-year-old's UTMA account, and like many of you, I've been second-guessing my gain harvesting approach. One aspect I'd love to get more clarity on: what happens if you're right at that $2,300 kiddie tax threshold? Is it worth trying to harvest gains up to exactly that amount each year, or does the administrative complexity make it not worth the effort? For context, my daughter's account has grown to about $35,000, and I estimate we could harvest around $2,000-2,500 in gains annually. We're in the 24% tax bracket, so exceeding the threshold would definitely hurt. Also, for those who mentioned using analysis tools - has anyone compared the results across different tools? I'm curious if they all reach similar conclusions or if there's significant variation in their projections. The financial aid angle is particularly concerning since we'll likely be applying for need-based aid. It sounds like the timing of when gains are realized during the college years could make a huge difference in aid eligibility.