One thing nobody mentioned yet - if you filed through a tax preparer like H&R Block or TurboTax, sometimes they have additional tools or resources to help track your refund or explain statuses like Tax Topic 152. I had this same issue last year and when I logged into my TurboTax account, they had more detailed tracking info than the IRS website provided. Plus they had an explanation of what Tax Topic 152 usually means for different filing situations.

Tax Topic 152 actually showed up on my return status for about 3 weeks last year. I claimed both EIC and the Child Tax Credit. The bars disappeared and I got that topic message instead. I freaked out at first, but then my refund suddenly appeared in my account with no other updates or notices. The WMR tool never even updated to "approved" status for me - it went straight from Topic 152 to "refund sent" after it was already in my account. So sometimes the system just doesn't update properly even though your refund is being processed normally. The IRS systems are ridiculously outdated.

Something nobody's mentioned yet: check your local laws regarding short-term rentals! Many cities have restrictions or outright bans on Airbnb-type rentals, especially in apartment buildings. You'd hate to set this all up, deal with the tax complications, and then get shut down by your city or landlord. Also, most leases have clauses against subletting, so you might be risking eviction. The tax benefits (or lack thereof) might be the least of your worries!

I actually tried doing exactly what you're describing last year! Here's how it played out tax-wise: I rented a 2-bedroom apartment for $1,900/month and sublet one room on Airbnb. Made about $9,800 for the year in rental income, and claimed expenses of: - 50% of rent ($11,400) - 50% of utilities ($2,200) - New furniture ($1,700) - Cleaning supplies, sheets, etc ($800) - Internet upgrade ($580) So I showed a loss of about $6,880, but my accountant explained I couldn't use it against my W2 income because: 1. It's considered a passive activity loss 2. The $25K exception requires ownership 3. I didn't qualify as a real estate professional The losses got suspended and I can only use them against future rental income. It was still worth it financially because the Airbnb income offset a good chunk of my rent, but didn't help with taxes like I'd hoped.

My accountant told me the 1095-C is basically just proof that your employer offered you qualifying health insurance. The info on it is reported to the IRS by your employer anyway, which is why tax software doesn't ask for it. Just keep it in your records for 3 years like any other tax document.

One thing nobody mentioned - make sure the information on your 1095-C is actually correct! My employer had me listed with coverage for months I wasn't employed there and it caused a huge headache. Check the coverage months in Part II to make sure they match when you actually had the insurance.

Did you file your Form 990 while waiting for 501(c)(3) determination? A lot of new nonprofits don't realize you still need to file some type of 990 (usually 990-N for small orgs) even while your 1023 is pending. If you missed filing for 3 consecutive years, that could trigger automated notices like what you're describing.

One small additional tip - call your Secretary of State's office in MA to confirm your nonprofit corporation status is in good standing. Sometimes these IRS notices happen because there's a problem at the state level (like a missed annual report) that hasn't been communicated to you directly. Take photos of EVERYTHING you send to the IRS and keep detailed notes of every call (date, time, agent ID if they give one). You'll need this documentation if things get more complicated. Also, I'd seriously consider getting a consultation with a nonprofit tax attorney. Most will do a 30-minute consult for a reasonable fee, and having someone who can look at your specific situation could save you thousands in the long run.

Just to add another perspective - I amended a return last year using TurboTax and it wasn't too difficult. If you filed your original return with tax software, check if they offer an amendment service. Often they can pull your original information and you just need to make the changes. Keep in mind that amended returns take FOREVER to process right now. Mine took almost 9 months to be processed completely. But at least you'll be in compliance and avoid those penalties others mentioned.

Don't forget that if you and your ex are still splitting the refund, you'll need to work out how this amendment affects that split. If you end up owing money instead of getting more back, who's responsible for paying it? Make sure you have that conversation before filing the amendment to avoid more drama later. Also save copies of EVERYTHING. My ex "lost" all our tax documents after our divorce and it was a nightmare sorting it out. Make sure you have your own copies of the original return, the W2s, and the amendment.