I'm a bit confused by some of these responses. Does the time zone thing apply to all IRS deadlines or just the April filing deadline? What about estimated tax payments?

Don't panic! You're absolutely fine. The IRS operates on a "timely filed" principle based on your local time zone, not Eastern Time. Since you submitted at 11:23pm Pacific Time on April 15th, your return is considered filed on time according to IRS regulations. The April 16th date on your confirmation is likely just when the tax software's servers processed your return or when they transmitted it to the IRS - this can happen due to high traffic volumes on deadline day. What matters legally is when YOU hit submit in your time zone. You should receive an official IRS acceptance email within 24-48 hours that will show the correct filing date. Keep that email as your official record. I've seen this exact situation countless times and it's never been an issue. The IRS systems are designed to handle time zone differences properly. If you're still worried, you can always call the IRS to confirm (though expect long wait times), but based on your description, you're completely in the clear. No late penalties for you!

Another approach - i filed with cashapp last yr and went through this exact thing. what i did was just not claim the foreign tax credit at all. my reasoning was that the standard deduction ($12950 for single filers) was way more than my itemized deductions would've been even with the foreign taxes included, so i just took the standard and called it a day. yeah, i missed out on like $700, but it was worth it to not have to deal with the form 1116 hassle or switching software. sometimes the mental health savings is worth more than the tax savings lol.

I've been in a similar situation with foreign tax credits and after researching this extensively, here's what I've learned: You technically cannot voluntarily underreport your foreign taxes just to avoid Form 1116. The IRS rules are clear that if your qualified foreign taxes exceed $600, you must use Form 1116 to claim the credit. However, you do have legitimate options: 1) Don't claim any foreign tax credit at all (which is perfectly legal), 2) Use a tool like the ones mentioned above to help prepare Form 1116, or 3) Fill out Form 1116 manually and attach it to your mailed return. From a practical standpoint, many people in your exact situation have successfully used the manual approach with Cash App - you enter the credit amount in the software and then include the physical Form 1116 when you mail your return. It's actually not as complicated as it initially seems, especially for straightforward mutual fund situations. The $223 you'd be giving up is real money, so it might be worth spending an hour or two to claim it properly rather than risk compliance issues down the road.

Just wanted to mention - the $600 threshold is per person. So if you're married filing jointly and you each have foreign taxes, you could each claim up to $600 (total $1,200) without Form 1116. Might not help the original poster but could help others reading this thread.

Glad to hear you got it sorted out with FreeTaxUSA! For anyone else dealing with similar foreign tax credit situations, I'd also recommend keeping detailed records of your foreign tax payments throughout the year. I learned the hard way that some brokerages don't always provide complete foreign tax information on their 1099s, especially for complex international funds. Now I track my quarterly statements to make sure I'm capturing all foreign taxes paid - it's saved me from missing credits in subsequent years. The IRS also allows you to carry forward unused foreign tax credits for up to 10 years if you can't use them all in the current year due to income limitations, so Form 1116 can actually be beneficial beyond just the current tax year in some cases.

Why when I log in to my where is my refund it says topic 151 but on my transcript it says code 766 ??

Tax Topic 151 can be confusing, but it generally means your refund is being held for review or offset. This could be due to several reasons: unpaid debts (student loans, child support, back taxes), identity verification issues, or the IRS needing additional documentation to verify your claims (like dependents or credits). Even if you don't think you owe anything, there might be old debts or issues from previous years. I'd recommend calling the IRS directly at 1-800-829-1040 to get specific details about your situation, or check your account transcript online which will show any holds or codes. The wait times can be long, but it's the best way to get clarity on why your refund is delayed.

For real tho, dont forget to look into sales tax issues too. Depends on your state, but most require you to collect sales tax on the stuff you make and sell. It's separate from income tax and can bite you if you ignore it.

Great question about the sales tax! It really depends on your state, but many states do tax construction/remodeling services differently than just selling products. In my state, if you're providing both materials AND labor (like a full kitchen remodel), you typically need to collect sales tax on the total project cost, not just the materials. However, some states only tax the materials portion, and others have exemptions for certain types of construction work. Since Jessica mentioned a $14,500 kitchen remodel, that's definitely substantial enough that she should check with her state's department of revenue about sales tax requirements. The tricky part is that once you start doing bigger projects like this, you're clearly operating as a business rather than just selling occasional hobby items. Most states have thresholds where you need to register for a sales tax permit once you hit certain revenue levels. Better to get ahead of it now before it becomes a bigger issue down the road!