I've been through this exact scenario twice in the past three years, and I completely understand the stress! The "we need more information" message is actually quite common - it's part of the IRS's enhanced fraud prevention measures they've implemented since 2021. From my experience, these letters typically fall into a few categories: income verification (especially if you had multiple W-2s or 1099s), dependent verification (Social Security numbers, birthdates, or custody documentation), or education credit verification (1098-T forms and proof of payment). One thing that really helped me was setting up an IRS online account at irs.gov if you haven't already. While it won't tell you specifically what they're asking for, you can verify they have your current address and monitor for any updates to your account. When the letter arrives, it will be very specific about what they need. In my first case, they wanted verification of my daughter's SSN because I had entered her name slightly differently than what appears on her Social Security card. Second time was education credit documentation. Both were resolved within 3-4 weeks of sending the requested documents. Your military background is actually an advantage here - you likely have better organization and documentation than most taxpayers. Just remember to send only what they specifically request via certified mail, and keep copies of everything. Try not to overthink it until you see what they're actually asking for!

This exact situation happened to me two years ago, and I totally get that "military family triple-check everything" mindset! In my case, the IRS needed verification for my spouse's income from a deployment - apparently having W-2s from both stateside and overseas duty stations triggered their review system. The waiting period is definitely the hardest part, but here's what I learned: the letter will be much more specific than that generic online message. Mine arrived in exactly 2 weeks and clearly outlined that they needed copies of both W-2s and my spouse's military orders showing the deployment dates. Since you mentioned being military family, make sure the IRS has your current address - we've all moved so many times! You can verify this through your IRS online account. And when you do get that letter, respond with certified mail and keep copies. The whole thing resolved in about 3 weeks once I sent what they requested. Your attention to detail will definitely pay off here - you probably have better documentation than 99% of taxpayers. Just hang tight for now and don't stress too much until you see what they actually need!

One important thing that confused me about the 1095-C - it's different from a 1095-B! My spouse got a 1095-B from their insurance company and I got a 1095-C from my employer and they contain different information. Just wanted to point this out in case anyone else has both forms in their household.

Just want to chime in with a simple summary for anyone still confused! Your 1095-C form is basically just proof that your employer offered you health insurance coverage. You DON'T need to mail it in with your tax return or enter specific numbers from it into tax software. Think of it like a receipt - keep it with your tax records in case you ever need to prove you had qualifying health coverage. The main thing it helps with is showing the IRS that you met the health insurance requirement and shouldn't be penalized. If you're using tax software like TurboTax or H&R Block, they might ask if you had employer-sponsored health insurance, and you can just answer "yes" based on having this form. But you won't need to type in the specific codes or dollar amounts from the 1095-C itself.

Anyone else think its crazy we cant update banking info in 2025? Like hello IRS get with the times 🙄

Pro tip: call the IRS at 1-800-829-1040 and ask them to put a "trace" on your refund if it's been more than 21 days since you filed. They can sometimes expedite the paper check process or give you a better timeline. Also, definitely check that your address is correct in your IRS online account - I've seen people wait months for checks that went to old addresses!

Does anyone know if there's a quick way to see this all in action on my actual tax return? I've been filing with H&R Block software and just entering the info as prompted, but I want to see exactly how the traditional vs Roth affects different lines.

One thing that helped me understand this better was looking at my actual paystubs alongside my W2. When you make traditional 401k contributions, you can see how your "taxable wages" on each paystub are lower than your "gross wages" by the amount of your 401k contribution. This reduced amount is what gets reported in Box 1 of your W2. With Roth 401k contributions, your paystub shows the full gross wages as taxable wages (since you're paying tax on the full amount), and this higher amount goes into Box 1 of your W2. So the difference in tax withholding you notice on your paychecks is because with traditional 401k, you're paying taxes on a smaller amount of income each pay period. With Roth, you're paying taxes on your full income, which is why more tax gets withheld from each paycheck. This is why Box 12 codes are important - they help verify that your employer correctly calculated your taxable wages and applied the right tax treatment to your contributions.

Just wanted to add one more important detail that hasn't been mentioned yet - make sure you're actually qualifying as a "trader" rather than an "investor" before making the 475(f) election. The IRS has specific criteria for this, including trading frequency, holding periods, and whether trading is your primary business activity. If you don't meet the trader status requirements, the election won't be valid and you could face issues down the road. The basic test is whether you're engaged in trading as a trade or business, not just for investment purposes. Things like having substantial trading activity, short holding periods, and deriving income from daily market movements rather than long-term appreciation all support trader status. I'd recommend documenting your trading activity thoroughly to support your qualification if the IRS ever questions it.

Great discussion everyone! As someone who's been through this process, I wanted to add a few practical tips that helped me. First, when you create your election statement, make sure to keep multiple copies - one for your records, one with your tax return, and a backup. I actually sent mine via certified mail just to have proof of delivery, even though I was filing electronically. Also, once you make the 475(f) election, remember it's generally irrevocable without IRS consent. This means you'll need to use mark-to-market accounting for all future years unless you get permission to change. Make sure you're really committed to being a full-time trader because switching back requires filing Form 3115 and getting IRS approval. One last thing - start keeping meticulous records right away. With MTM accounting, you'll need to mark all your positions to market value at year-end, which means tracking the fair market value of every security you hold on December 31st. This becomes much easier if you start organizing your record-keeping system early in the year rather than scrambling at tax time.