I'm going to disagree slightly with some advice here. While technically all interest is taxable, I've never reported the small interest amounts from the IRS (under $20) and never had an issue. The IRS has bigger fish to fry than chasing down $40 of interest income. Just my two cents.

I had this exact same situation with my 2020 amended return that finally got processed in 2023. The IRS paid me $62 in interest, and I was confused about reporting it too. What ended up happening was that I received the 1099-INT from the IRS about 6 weeks after getting my refund check. It came in a separate mailing, so don't panic if you don't get it right away with your refund. However, you're absolutely right to plan on reporting it regardless of whether you receive the form. One thing that caught me off guard - make sure you're reporting the interest in the correct tax year. Since you received the interest payment in 2024, it goes on your 2024 tax return (filed in 2025), not your 2019 return that was amended. I almost made that mistake! For TurboTax, when you get to the interest income section, you'll enter "United States Treasury" as the payer and the exact interest amount. You don't need to worry about finding their EIN or anything like that - TurboTax handles government interest payments automatically once you identify the payer correctly.

Does anyone know if there's a minimum business size where you don't have to worry about the inventory stuff? I heard somewhere that very small businesses can just use cash method and expense inventory when purchased...

This is exactly the kind of inventory confusion that trips up so many small business owners! I went through the same thing when I first started my retail business. One thing that really helped me understand it was thinking about it this way: that $135,000 of ending inventory isn't an expense yet - it's still an asset sitting on your shelves that you'll sell next year. So you can't deduct it as a business expense this year because you haven't actually "used it up" to generate revenue yet. The COGS calculation essentially says "okay, you bought $675,000 worth of stuff, but $135,000 of it is still unsold, so you only actually 'consumed' $540,000 worth of inventory to generate this year's sales." I'd also recommend keeping really good records of your physical inventory counts at year-end. The IRS can get picky about this stuff during audits, and having solid documentation of what you actually had on hand makes everything much smoother. Good luck with tax season!

Just wanted to chime in with a personal experience that might help! My spouse and I had a very similar situation last year - combined income around $130k, one child, and I was working across state lines (NJ/NY). We spent way too much time agonizing over MFJ vs MFS and finally just ran the numbers both ways using tax software. The difference was stark - MFJ saved us about $2,800, primarily because of the Child Tax Credit and the better tax brackets. With MFS, we would have lost a significant portion of the Child Tax Credit due to the income phase-out thresholds being much lower. The multi-state aspect was honestly less complicated than I expected. The software handled the resident/non-resident returns automatically, and the tax credit between states worked exactly as described by others here. My advice: don't overthink it. Given your income levels and having a qualifying child, MFJ is almost certainly your best bet. The only time I've seen MFS make sense for married couples is when there are major deductions that can't be shared (like huge medical expenses) or serious concerns about the other spouse's tax compliance.

Based on all the great advice here, I wanted to share a quick calculation method that might help visualize the MFJ vs MFS decision for your situation: **Quick MFJ estimate:** - Combined taxable income: ~$126,000 - Standard deduction: $30,700 (including blindness addition) - Taxable after standard deduction: ~$95,300 - Approximate federal tax: ~$10,800 - Child Tax Credit: -$2,000 - **Estimated federal tax: ~$8,800** **Quick MFS estimate (if you each filed separately):** - Your tax on $55,000: ~$6,200 - Husband's tax on $71,000: ~$8,100 - Combined: ~$14,300 - Reduced/eliminated Child Tax Credit due to income limits - **Estimated federal tax: ~$12,300-$14,300** That's potentially $3,500-$5,500 more in taxes with MFS! Plus you'd lose the simplicity of one return and face restrictions on various deductions and credits. The multi-state aspect (CT/RI) adds complexity to your state returns but won't change this fundamental federal math. Given your income levels and family situation, MFJ is almost certainly your best choice unless there are major factors (like significant medical expenses or student loan considerations) that you haven't mentioned.

Just wanted to jump in as someone who's been lurking in this community for a while but never had to deal with tax delays until now. This thread is exactly what I needed to see! I'm about 2 weeks into my own congressional inquiry after being stuck since April with the same "additional information needed" runaround that everyone here seems to have experienced. The detailed timelines everyone has shared are incredibly helpful - it's giving me realistic expectations instead of the wild hope that this would somehow resolve overnight. @Isabella Russo, that transcript code advice is brilliant! I had no idea there was a way to actually track what's happening instead of just calling and getting generic responses. @Emily Nguyen-Smith, your deployment paperwork comparison is spot on - except at least with military paperwork you know it's going to take forever from the start! 😅 With tax refunds, they get your hopes up with those early approval dates and then... crickets. Thanks to everyone for sharing their experiences and creating such a supportive community around what is otherwise a pretty isolating and frustrating process. I'll definitely be checking back to share my own updates as things progress. Fingers crossed we all get our resolutions soon!

As someone who just joined this community after stumbling into my own tax refund nightmare, I can't tell you how reassuring this entire thread has been! I'm currently 10 days into waiting for my TAS advocate to contact me after my congressman's office got involved, and reading everyone's detailed timelines is helping me stay sane during this process. @Emily Nguyen-Smith, your deployment paperwork comparison absolutely killed me - except you're right that at least military paperwork doesn't involve getting your hopes up first! 😂 The whole "approved March 29, then approved March 30, then surprise 60-day review" sequence sounds like they're just messing with us at this point. The transcript code tracking advice from @Isabella Russo is something I'm definitely implementing today. I've been checking my account obsessively but had no idea those codes could actually tell me what's happening behind the scenes instead of just showing generic "processing" status. Based on everyone's experiences here, it sounds like I should expect somewhere in the 3-8 week range once TAS gets involved, which honestly feels manageable now that I know there's an actual structured process happening. Thanks to everyone for sharing their stories and creating such a supportive space for those of us navigating this frustrating maze!

You're absolutely right that you can file Form 709 separately from your 1040! This is actually the most common approach since Form 709 must be paper-filed (no e-filing option available) while you can e-file your 1040 through TurboTax as usual. Your planned approach won't cause any issues with the IRS. Just make sure to: - Mail Form 709 to the correct IRS service center based on your state (check the form instructions) - Keep the same April 15th deadline for both forms - Consider using certified mail for Form 709 to have proof of delivery However, before you file Form 709, I'd definitely verify whether it's actually required in your situation. You mentioned paying for your nephew's college tuition directly to the school - if you literally wrote the check to the educational institution (not to your nephew), this qualifies for the unlimited educational expense exclusion under Section 2503(e) of the tax code. This means no Form 709 would be needed regardless of the amount. The distinction is crucial: direct payment to school = no filing required, but giving money to your nephew who then pays = Form 709 needed if over the annual exclusion. If you're unsure about the exact payment method or have other gifts to report, it might be worth consulting with a tax professional to make sure you're handling everything correctly!

You can absolutely file Form 709 separately from your Form 1040 - that's actually the standard approach since Form 709 must be paper-filed while your 1040 can be e-filed through TurboTax as planned. Just a heads up though - before you go through the hassle of filing Form 709, you should double-check if it's actually required in your case. Since you mentioned paying your nephew's tuition "directly to the school," this could qualify for the educational expense exclusion under IRC Section 2503(e). If you literally paid the educational institution directly (wrote the check to the school, not to your nephew), then no Form 709 is needed regardless of the amount. The key distinction is: - Payment directly to educational institution = no Form 709 required - Money given to nephew who then pays school = Form 709 needed if over annual exclusion If you do need to file Form 709, make sure to mail it to the correct IRS processing center (check the form instructions for your state's address) and consider using certified mail for proof of delivery. Both forms share the same April 15th deadline. Hope this helps clarify things!