Have you checked both of your credit reports recently? Sometimes people are surprised by offsets because they weren't aware of delinquent federal debts. According to https://www.consumer.ftc.gov/articles/0258-understanding-your-credit-report, federal debts like student loans should appear there. Might be worth looking into if you're concerned about potential offsets?

Just want to add my experience as someone who went through this exact situation! Filed jointly for the first time last year and was also worried about potential offsets. The key thing is that offsets are actually pretty transparent - you'll definitely see them on your transcript with the TC 796 code everyone mentioned. What really helped me was understanding that the IRS is required to show ALL transactions affecting your account, including offsets. It's not like they hide this information from you. If you're not seeing any 700-series codes on your account transcript, then no offset has been processed. The delay you're experiencing is most likely just normal processing backlog, especially common for first-time joint filers since the system has to cross-reference both spouses' information. Keep checking your transcript every few days and you should see movement soon!

As someone completely new to this community and the world of lottery taxation, this thread has been absolutely mind-blowing! I had no idea the gap between those flashy jackpot advertisements and actual take-home amounts could be so enormous. The $2 million to $700k reality check is honestly shocking, but what's even more frustrating is learning how that 24% automatic withholding seems designed to give winners false confidence about their tax situation. Reading through all the real experiences shared here - from @Kingston Bellamy's $25k win ending up at $16k to @AaliyahAli's brother facing those penalty surprises - really shows how brutal this system can be for regular people. The consistent advice about immediately setting aside 50% of any winnings and not touching the money for months clearly comes from hard-earned experience. It seems like the only safe approach given all the layers of federal taxes, state taxes, bracket changes, and other complications that can arise. I'm definitely bookmarking all the resource recommendations mentioned throughout this discussion too - taxr.ai for accurate tax calculations and Claimyr for actually getting through to the IRS when you need answers. Having professional tools to navigate this complexity rather than just hoping for the best seems absolutely crucial. This whole conversation really makes me think lottery advertising should be required to include realistic take-home estimates instead of just those eye-catching jackpot numbers that are essentially meaningless. Thanks to everyone for sharing their experiences and practical advice - this has been incredibly educational for someone just trying to understand how this all actually works!

As someone brand new to this community and completely overwhelmed by lottery tax complexity, this entire discussion has been absolutely invaluable! I had no idea that winning big could be so financially complicated. The reality that a $2 million jackpot might only net you $700k is honestly shocking, but reading everyone's real experiences has been so educational. What really gets me is how that 24% automatic withholding seems to create this false sense of security - like @Kingston Bellamy's experience going from expecting around $19k to actually getting $16k really drives home how the withholding is just the beginning. The consistent advice about immediately setting aside 50% and not touching winnings for months makes total sense now. Between federal taxes, state taxes, bracket changes, and even impacts on other tax benefits, it's clear this gets incredibly complex very quickly. I'm definitely taking notes on the resource recommendations too - having tools like taxr.ai for calculations and Claimyr for IRS questions seems so much smarter than trying to navigate this maze alone. This whole thread really makes me think lottery advertising should be required to show realistic take-home amounts instead of just those eye-catching jackpot numbers. It would help people make much more informed decisions about whether those tickets are actually worth buying. Thanks to everyone for sharing such practical, real-world advice!

Slightly off-topic but related - make sure you check if your home country requires you to report your US LLC interest or allows you to claim the losses on your home country tax return! I'm from Australia, and I have to report my US LLC interest on my Australian tax return too, even though I already file a 1040-NR in the US. Some countries treat US LLCs as corporations while others treat them as flow-through entities like the US does. This "hybrid entity" issue can create tax mismatches where losses get trapped in one country.

As someone who went through a similar situation last year, I can confirm what others have said - you absolutely need to file Form 1040-NR even with only losses from your LLC partnership. The filing requirement is triggered by being "engaged in a trade or business in the United States," not by having positive income. One thing I'd add that hasn't been mentioned yet - make sure you keep detailed records of these losses because they become valuable when carried forward. The IRS may ask for supporting documentation in future years when you try to use the losses against profitable income. Also, if your LLC made any estimated tax payments on your behalf during 2024 (which sometimes happens even in loss years for various reasons), you'll want to make sure those are properly reported on your 1040-NR so you can get credit for any overpayments. Check box 16 on your K-1 to see if there were any payments made. The $17,400 loss figure you mentioned should go on Schedule E of your 1040-NR. Don't let the complexity intimidate you - it's a standard filing requirement for non-US persons with US business interests.

I would probably contact Dave again, but specifically ask to speak with their ACH department or a supervisor. Sometimes the frontline customer service representatives don't have visibility into pending transactions that haven't fully posted yet. In my experience, using the phrase "I need to speak with someone who can verify pending ACH transfers that might not be visible in the system yet" can get you to someone more helpful. If that doesn't work within 24 hours, you might need to consider filing a CFPB complaint, which often prompts faster action from financial institutions.

I've been through this exact situation with Dave last year! Here's what actually helped me get results: when you call Dave, specifically ask to be transferred to their "Payment Operations" or "ACH Processing" department - don't just talk to regular customer service. The front-line reps literally cannot see pending ACH transfers that are in their processing queue. Also, get a reference number from Cross River for the transaction they sent - this gives you something concrete to reference when Dave claims they haven't received anything. In my case, Dave had received the deposit 2 days earlier but it was sitting in their internal review system. Once I had the Cross River reference number and spoke to the right department, they located it immediately and released it the same day.

Has anyone here used Roth conversions as part of their strategy? I'm 56 and considering converting some traditional IRA money to Roth during years when my income is lower. Seems like it could help manage the tax brackets and ACA subsidies long-term.

Great discussion here! I'm in a similar situation planning for early retirement and wanted to add a few points that might help others: One thing to be really careful about is the Net Investment Income Tax (NIIT) - if your modified adjusted gross income exceeds $250k for married filing jointly, you'll pay an additional 3.8% tax on investment income including capital gains. This can push your effective capital gains rate from 15% to 18.8%. Also, regarding ACA subsidies, there are some "cliff effects" where small changes in income can dramatically impact your premiums. The subsidy calculations use very specific income thresholds, so it's worth modeling different withdrawal scenarios. Sometimes it's better to realize slightly less income to stay under a threshold, even if it means paying 0% capital gains tax on a smaller amount. For those managing their own withdrawals, consider the "bucket strategy" - keep 1-2 years of expenses in cash/CDs, 3-7 years in bonds, and the rest in stocks. This lets you avoid selling stocks during market downturns and gives you more flexibility in managing your annual tax situation. The tax planning in early retirement is definitely complex, but taking the time to understand these interactions can save thousands per year!