I feel your pain! That same message drove me crazy for weeks. The "being processed" status is basically the IRS's way of saying "we got it but we're not done yet" - super frustrating when you need that refund money. Since you filed in February and claimed EIC/CTC, that definitely explains the delay. Those credits trigger extra review steps that can add months to processing time. I'd honestly recommend checking out taxr.ai like others mentioned - it'll decode your transcript and give you actual insights instead of that generic message. Way better than calling and waiting on hold for hours! Hang in there, it'll come through eventually 🤞

Ugh, I'm in the exact same situation! Filed in late January and still getting that "being processed" message. It's been driving me absolutely nuts checking every day for updates. The worst part is not knowing if something's wrong or if it's just normal delays. I've been tempted to call but everyone says it's impossible to get through. Maybe I should try that taxr.ai thing people are mentioning - at least then I'd know if there are any actual issues with my return or if it's just stuck in the queue. This whole process is so stressful when you're depending on that refund! 😫

Thanks everyone for the detailed explanations! This thread has been incredibly helpful. I just want to confirm my understanding based on what @Layla Sanders outlined - so for my situation, I should report $460,000 ($475,000 - $15,000 credits) as my gross proceeds on Schedule D line 1d, then subtract my basis of $350,000 ($310,000 purchase + $40,000 improvements) plus any other selling expenses like realtor commission? Also, since this was my primary residence for the entire time I owned it (2016-2024), I should qualify for the $250,000 exclusion as a single filer. With a gain of around $110,000 before other selling expenses, it looks like I won't owe any capital gains tax on this sale. Does that sound right? One more question - should I still report this sale on my tax return even if the entire gain is excluded, or can I skip Schedule D altogether?

Just wanted to add a practical tip for anyone in a similar situation - when you're preparing your tax return, double-check that your closing statement clearly separates the buyer credits from other closing costs. I sold my home last year and initially got confused because my settlement statement showed the credits in two different places - some as a reduction to my net proceeds and others listed with the buyer's closing costs. My tax preparer explained that what matters for your taxes is the bottom line: how much money you actually walked away with after all credits and fees. Also, keep in mind that if you used any of those buyer credits to pay for repairs or improvements that you completed before closing, you might be able to add those amounts to your cost basis instead of treating them as a reduction in sales price. This could potentially save you some money if your gain is close to the exclusion limit. Worth discussing with a tax professional if the numbers are tight!

From a technical perspective, the IRS uses specific criteria to auto-refer cases to TAS, including: - Refund delays exceeding 60 days from filing date - Schedule A with medical expenses exceeding 7.5% of AGI - Hardship indicators in return data - Form 8962 (Premium Tax Credit) with certain codes I received an auto-referral in the 2023 tax season with $9,800 in medical expenses. The TAS advocate saved me approximately $1,240 in penalties by identifying an error in how my medical deductions were processed. Their service costs nothing and they have direct lines to specialized IRS units that can resolve issues faster than the general phone lines.

I can definitely understand your confusion - getting unexpected government correspondence is always nerve-wracking! Based on what others have shared here, it sounds like your medical expense deductions likely triggered an automatic TAS referral, which is actually a protective measure. Here's what I'd recommend to verify authenticity: • Call the main TAS number (877-777-4778) rather than any number on the letter • Ask them to confirm if case #[whatever's on your letter] exists in their system • Check if your letter includes Form 911 - that's their standard intake form The timing makes sense too - if you filed in March with significant medical expenses, the 45-60 day processing window would put you right around now for potential delays that trigger TAS involvement. Even if it turns out to be legitimate, you're not obligated to work with them if you don't want to. But given that their service is free and they have direct access to specialized IRS units, it might actually speed up your refund process. Stay cautious but don't panic - this could genuinely be the IRS trying to help for once!

Has anyone used TurboTax for handling this situation? I'm trying to figure out if it can properly account for partial city tax based on days worked remotely vs. in office.

I went through this exact situation last year and it was such a headache! My city initially told me I still owed the full tax, but after digging deeper I found out they have a "days worked" calculation method. You'll need to keep detailed records of which days you worked from home vs. in the office. I created a simple spreadsheet tracking this throughout the year. When I filed, I was able to reduce my city tax by about 85% since I only went into the office maybe 2-3 times per month. The key is being proactive about documentation. Don't wait until tax time to start tracking this - start now for next year. Also, check if your city has issued any specific guidance about remote work policies. Many cities updated their rules during 2020-2021 but haven't been great about publicizing the changes. One tip: if you're unsure, it might be worth paying a local tax professional for a consultation. The money you save could easily pay for their fee, especially if you've been overpaying for multiple years.

Has anyone used one of those DIY cost segregation software programs? I've seen a few advertised that supposedly let you do your own study for a few hundred bucks. Wondering if those are legitimate or just asking for trouble.

I was in a similar situation with my rental duplex last year. My CPA initially suggested the case law approach, but after reading all these responses, I decided to go with a hybrid solution and used the taxr.ai service that Ella mentioned. What really sold me was that it gave me professional-level documentation without the full engineering study cost. The report they generated was detailed enough that my CPA was comfortable filing it, and it included specific references to the methodology they used for categorizing different property components. For your $875K property, you're probably looking at significant potential savings. I'd suggest at least getting a quote from taxr.ai to compare against what a full engineering study would cost. In my case, the additional first-year deductions more than paid for the service cost, and I feel much more confident about audit defense than I would have with just the case law approach. The peace of mind was worth it for me - especially since rental property depreciation can be scrutinized more closely by the IRS.