I'm so sorry for your loss, Fatima. Losing both family members in the same year while having to handle their financial affairs must be incredibly overwhelming. You're absolutely right that you can file Married Filing Jointly for 2024 since both spouses died in the same tax year. Here are the key steps: 1. **Mark the return properly**: Write "DECEASED" with each spouse's date of death across the top of Form 1040 2. **Include all income earned up to death dates**: Report wages, pension, investment income through March for your brother and November for his wife 3. **Claim all applicable deductions**: Medical expenses from their final months can be substantial - gather all receipts as these are deductible subject to the 7.5% AGI threshold 4. **File necessary forms**: You'll likely need Form 1310 if expecting a refund, and consider Form 56 to notify the IRS you're acting as their representative Regarding their investments and pension - any payments received after the second spouse's death in November may need to be reported on an estate return (Form 1041) rather than their final 1040, depending on the amounts. Given the complexity of two deaths plus retirement accounts, I'd strongly recommend consulting a tax professional experienced with deceased taxpayer returns. Look for an Enrolled Agent or CPA who specializes in estate taxation - they can guide you through the specific rules and ensure you don't miss any important requirements. Take care of yourself during this difficult time.

I'm so deeply sorry for your loss, Fatima. Handling the tax affairs of loved ones while grieving is one of the most difficult things anyone can face, and you're being incredibly strong by taking this on. You're absolutely correct that you can still file Married Filing Jointly for 2024 since both spouses passed away in the same tax year. Here's what you need to know: **Essential steps:** - Write "DECEASED" with each spouse's date of death at the top of Form 1040 - Report all income earned through March for your brother and through November for his wife - You can claim all their usual deductions and credits - those medical expenses from their final months could provide significant relief - You'll need Form 1310 if there's a refund due, and consider Form 56 to formally notify the IRS of your role **Important considerations:** - Any pension or investment income received after November (second death) may need to go on an estate return (Form 1041) rather than their final 1040 - Medical expenses paid within one year after death can still be claimed on the final return - Keep detailed records of what income/expenses occurred before vs. after each death date Given the complexity of two deaths in one year plus retirement accounts, I strongly recommend finding a tax professional who specializes in deceased taxpayer returns. Look for an Enrolled Agent or CPA with estate taxation experience - most general preparers rarely handle these situations. You're doing something incredibly loving for your family during an unimaginably difficult time. Please be gentle with yourself through this process.

This is exactly what happened to me in 2018! The sequence of codes 613 followed by 612 is frustrating but actually gives you valuable information - it proves the IRS received and initially processed your payment before something went wrong. In my case, I had written the wrong tax year on my payment voucher (wrote 2017 instead of 2018), so they applied it to the wrong year initially, then reversed it when they couldn't match it to a return. The money sat in a suspense account for months while I was getting notices about unpaid taxes. When I finally got through to the IRS, they found my payment within 10 minutes using the check number and amount. They transferred it to the correct year and refunded the penalties they had charged me. The whole thing was resolved in one phone call once I reached the right person. Don't panic - your money is definitely in their system somewhere. Bring your bank statement, the check number, and those transaction codes when you call. Ask specifically for a payment trace and mention you can see codes 613/612 on your transcript. This will help the agent understand exactly what happened.

This is incredibly helpful information from everyone! As someone dealing with a similar transcript issue right now, I'm seeing the same 613/612 code sequence on my 2020 return. Reading through all these responses, it sounds like the key takeaways are: 1) The money isn't lost, just misallocated somewhere in the IRS system, 2) Having the bank statement with the cleared check and exact codes ready when calling is crucial, and 3) Asking specifically for a "payment tracer" or "IDRS check payment trace" will get you to the right department faster. I'm definitely going to try the landline tip when I call - I had no idea that could make a difference with their phone system disconnecting people. Has anyone had success calling early in the morning versus later in the day? I'm wondering if there are better times to get through to an actual person.

I'm new to this community and just wanted to say thank you to everyone who shared their experiences with IBKR prediction contract reporting! I'm in the exact same situation as Keisha - made a small profit on prediction contracts but got confused by the 1099-MISC showing gross proceeds instead of net profit. Reading through all these responses has been incredibly educational. I was initially planning to just report the full gross proceeds amount to avoid any potential issues, but now I understand that would mean paying taxes on income I never actually received. The explanations about why brokers report gross proceeds (regulatory requirements) versus what we actually owe taxes on (net profit) really clarified things for me. I'm going to follow the approach that multiple people here have used successfully: report my actual net profit on Schedule 1, Line 8z with a simple explanatory statement, and keep all my transaction documentation. It's so helpful to hear from people like CosmicCommander and Yara Haddad who went through this process and had their returns accepted without issues. Thanks again to this community for providing such detailed, practical advice based on real experiences!

I'm new to this community and just wanted to add my voice to thank everyone for this incredibly helpful discussion! I'm in a very similar situation with IBKR prediction contracts - made about $750 profit but the 1099-MISC shows the full gross proceeds, which had me completely confused about how to report it correctly. Reading through all these detailed responses from people who have actually been through this process successfully has been so reassuring. I was initially worried about reporting a different amount than what's on the 1099-MISC, but now I understand that reporting just the net profit is actually the correct approach, not "changing" anything. The explanations about why IBKR reports gross proceeds (regulatory requirements) versus what we actually owe taxes on (net profit) really helped me understand the bigger picture. I'm definitely going to follow the approach that multiple people here have used successfully: Schedule 1, Line 8z for the actual profit amount, plus a simple explanatory statement and keeping all my transaction documentation. It's such a relief to hear from people like CosmicCommander, Yara Haddad, and others who went through this exact process and had their returns accepted without any issues. This community is amazing for providing practical, experience-based advice!

Just wanted to add something that might help others - when you're dealing with excess FICA from multiple employers under the same parent company, make sure to check if any of the companies issued corrected W-2s after year-end. I had a similar situation where one of the three entities my spouse worked for automatically issued a W-2c (corrected W-2) in March that reduced the Social Security wages to account for the excess. This actually reduced our excess FICA amount by about $800, so we had to recalculate our Form 843 before submitting. Also, if you're using tax software like FreeTaxUSA, TurboTax, etc., most of them will automatically calculate excess FICA and include it as a credit on your regular tax return if the software detects it. But this only works if you had two employers max - if you had three or more employers like in your case, you'll likely need to file the separate Form 843. The IRS processing center addresses are definitely state-specific, so don't just use a generic IRS address. For most states, you'll be mailing to either Ogden, UT; Kansas City, MO; or Austin, TX depending on your location.

I had to deal with this exact situation last year when my company restructured and split payroll between different subsidiaries mid-year. The excess FICA refund process through Form 843 was actually pretty straightforward once I figured out the correct procedures. A few important points that haven't been mentioned yet: 1. **Timing matters** - You generally have 3 years from the date you filed your original return (or 2 years from when you paid the tax, whichever is later) to claim a refund for excess FICA. Don't wait too long! 2. **Interest on refunds** - The IRS actually pays interest on Form 843 refunds if they take longer than 45 days to process. It's not much, but it's something. 3. **Amended returns vs Form 843** - Some tax professionals will tell you to file an amended return (Form 1040X) instead of Form 843 for excess FICA, but Form 843 is specifically designed for this situation and tends to process faster. 4. **Record keeping** - Keep detailed records of when you mailed Form 843, including copies of everything. If there are any issues or delays, having this documentation will be crucial when you need to follow up. The processing time really varies - I've seen people get refunds in 6 weeks and others wait 4+ months. The key is making sure your form is filled out completely and accurately the first time to avoid any back-and-forth with the IRS.

Just a heads up - I do similar advantage play and got audited last year. The biggest issue wasn't the gambling itself but that I wasn't filing quarterly estimated tax payments. Since there's no withholding on gambling winnings (unlike a regular job), the IRS expects you to make quarterly payments if you're going to owe a significant amount. If you're making $40K profit, you definitely need to be making estimated tax payments throughout the year. Otherwise, you'll get hit with underpayment penalties on top of the taxes you owe.

This is a really complex situation and I appreciate everyone sharing their experiences. As someone who's dealt with similar tax issues, I want to emphasize a few key points: First, the distinction between hobby gambling and professional gambling is crucial for your tax strategy. If the IRS considers you a professional gambler (based on factors like regularity, time invested, expertise, and profit motive), you'd report your income on Schedule C and could deduct business expenses like travel, equipment, and even home office costs. However, you'd also pay self-employment tax. Second, for advantage play specifically, the IRS has been paying more attention to this activity recently. The systematic nature of bonus hunting and arbitrage betting can actually work in your favor for establishing professional status, but it also means you need bulletproof documentation. Third, regarding the services mentioned here - while they might be helpful, make sure any tax professional you work with understands the specific nuances of advantage play. Not all CPAs are familiar with how promotional offers, cashback, and arbitrage betting should be categorized. Finally, consider setting aside 25-30% of your profits for taxes from the start. Gambling income is taxed as ordinary income, so depending on your bracket, you could be looking at a significant tax bill. The quarterly payment advice mentioned earlier is spot-on - don't wait until next April to deal with this. Good luck with your tax planning!