One crucial thing that hasn't been mentioned - check your tax transcript! You can get this free online at the IRS website. Look for Transaction Code 971 with "Bankruptcy Discharge" noted. If that code appears for the tax years in question, print multiple copies as evidence. If it doesn't appear, that might be the root of your problem - the IRS system may not have properly recorded your discharge. Also, under bankruptcy law, the IRS can audit/review/assess taxes for previously unfiled returns even after discharge. Make sure you're not dealing with a different tax year or unfiled return that wasn't included in the original bankruptcy.

The IRS bankruptcy procedures are so messed up. I work in an accounting office and see this more than you'd think. Here's what usually happens: 1. Bankruptcy gets discharged properly 2. IRS central records note the discharge correctly (code 971) 3. But the collection system operates semi-independently 4. During system updates/migrations, the collection flags sometimes get dropped 5. Automated collection systems start up again even though central records show the discharge This isn't legal, but it happens due to their antiquated computer systems. The fastest resolution is usually getting someone from the Insolvency Unit to manually re-flag your account as discharged in both systems.

Just wanna mention - my ex and I alternated years claiming our kid when we were dealing with student loans and MFS. So one year she'd claim the kid, next year I would. Our tax guy said this was totally fine as long as we both agreed and it helped maximize our refunds over time. Maybe that's something to think about for future years?

Based on your situation, you should almost certainly claim your child on your return rather than your wife claiming him. Here's why: With your income at $16,000 and your wife's at $105,000, you're in a much better position to benefit from the Child Tax Credit. For married filing separately, the Child Tax Credit begins phasing out at $75,000 of adjusted gross income, so your wife would still get the full credit, but you're so far below that threshold that you'd definitely get the maximum benefit. More importantly, with your very low income, you might also qualify for the Additional Child Tax Credit (the refundable portion), which could give you money back even if you don't owe any taxes. This is huge when your income is this low. Also consider that you took unpaid leave specifically to care for your child - this strengthens your position as the primary caregiver from the IRS perspective, which matters for the dependency claim. I'd strongly recommend using tax software to run both scenarios (you claiming vs. your wife claiming) to see the actual dollar difference, but in most cases with this large of an income gap, the lower-income spouse claiming the child results in significantly better overall tax benefits for the household.

I've been through this exact situation twice in the past three years, and it's always nerve-wracking when you're counting on that money! Here's what I've learned from experience: The federal holiday will definitely push your deposit to the next business day - in your case, June 23rd. The ACH network doesn't operate on federal holidays, so even though the IRS has scheduled your DD for the 22nd, the actual transfer can't complete until banking resumes. One thing that really helped me was calling my bank directly to ask about their ACH processing schedule. Some banks will actually show you pending deposits 24-48 hours before they post, which can give you peace of mind that the transfer is in the system even if it hasn't hit your account yet. Your cycle code 20242205 is actually pretty standard for this time of year, so there's nothing unusual about your processing timeline. The Treasury Department doesn't have alternate procedures for holidays - they follow the same ACH rules as everyone else. My advice: plan for June 23rd (or Monday June 26th if the 23rd falls on a weekend) and don't schedule any automatic payments for the original date. I learned that lesson the hard way with overdraft fees! The money will definitely come through, just with the standard holiday delay.

I just went through this same scenario in April when my DD was scheduled for Good Friday. The deposit didn't show up that day, but appeared in my account the following Monday (since the weekend pushed it further). What really helped me was setting up account alerts with my bank so I'd get a text notification as soon as any deposit posted. That way I wasn't constantly checking my balance and stressing about it. One thing I wish someone had told me is that the "Where's My Refund" tool won't update to show the holiday delay - it'll still show your original DD date of June 22nd even though the actual deposit will be delayed to the 23rd. Don't panic if the tool doesn't reflect the change, that's totally normal. Also, if you're with a credit union or smaller bank, they might be more flexible about posting deposits early or providing better visibility into pending transactions. Larger banks tend to stick strictly to the business day rule. Either way, your money is definitely coming - just plan for the 23rd instead of the 22nd and you'll be golden!

Great question, Diego! I went through this exact situation last year. Your wife's real estate professional status definitely allows you to deduct the full $23,400 rental loss against your ordinary income on a joint return. One important thing to keep in mind beyond what others have mentioned - make sure you're tracking not just her property management hours, but also any time she spends on your personal rental property (showing units, coordinating repairs, reviewing financials, etc.). All of this counts toward her real estate activities. Also, consider whether you want to make a grouping election under Reg. 1.469-9 to treat all your rental properties as a single activity. This can be beneficial if you have multiple rentals or plan to acquire more in the future. You make this election by attaching a statement to your tax return. The $23,400 loss will reduce your taxable income dollar-for-dollar, which at your income level could save you around $5,600-$6,100 in federal taxes alone (depending on your effective tax rate). Don't forget about state tax savings too if you're in a state with income tax. Just make sure to keep detailed records of her hours - a simple spreadsheet with dates, activities, and time spent is usually sufficient. The IRS scrutinizes real estate professional claims closely, so good documentation is your best protection.

Just wanted to add a practical tip from my experience - make sure you're also aware of the depreciation recapture implications when you eventually sell the rental property. While being able to deduct the full $23,400 loss against ordinary income is fantastic now, any depreciation you've claimed over the years will be subject to recapture at up to 25% when you sell. This doesn't change the fact that claiming the loss now is still beneficial - the time value of money means getting the tax savings today is worth more than paying recapture later. But it's good to plan ahead and maybe set aside some of those tax savings for the eventual recapture bill. Also, since your wife qualifies as a real estate professional, you might want to consider whether it makes sense to accelerate any planned repairs or improvements this year to maximize your current year deductions. Things like new flooring, appliances, or HVAC systems can often be fully deducted under Section 199A or through bonus depreciation rules. One last thing - if you're in a high-tax state, the state tax savings from this loss deduction could be substantial too. In states like California or New York, you could be saving an additional $2,000+ on state taxes alone from that $23,400 loss.

Just want to add - make sure to request a "penalty abatement" when you finally reach the IRS! If this is your brother's first time missing a payment deadline for the 2290, the IRS has a "First Time Penalty Abatement" policy that can remove those extra charges. Sounds like the $42 might include penalties and interest that could potentially be removed.

I went through almost the exact same nightmare with my delivery business last year! The key thing that saved me was understanding that CP504B notices are often generated automatically even after you've paid, especially with Form 2290 where there can be significant processing delays. Here's what worked for me: Don't try to make another payment until you confirm whether your September payment was actually processed. Call the Practitioner Priority Service line at 866-860-4259 early in the morning (around 7 AM) - this line typically has shorter wait times than the main taxpayer assistance line. When you do get through, ask them to do a "payment tracer" on your September payment. They can tell you exactly where that money went and whether it was applied correctly. In my case, the payment had been received but was sitting in a suspense account because the reference information wasn't complete. Also, definitely get that authorization form from your brother ASAP. The IRS won't discuss anything without proper authorization, and you're wasting time on calls where they can't help you without it. The CP504B is scary but you typically have at least 30 days from the notice date before any actual levy action, so you have time to sort this out properly rather than panic-paying.