Something similar happened to me and my accountant said it's also important to know WHEN you received the check for tax purposes! If you got it between January-April 2025 but it's for 2024 contributions, it still counts as 2025 income, not 2024. Also, the amount will be reported on your W-2 for 2025, and you'll get a 1099-R showing the distribution. Make sure both numbers match up when you file your taxes.

This is definitely confusing when it first happens! Just to add some clarity on the tax timing since there seems to be some confusion in the thread - Diego is correct. The refund check you receive counts as taxable income in the year you actually receive it, not the year the original contribution was made. So if you got your check in 2025, it's 2025 taxable income even if it was from 2024 contributions. The IRS treats it as a distribution in the year received. Your employer should issue you a 1099-R for the distribution year. One thing I'd suggest is asking your HR department if they've considered implementing automatic enrollment or increasing the company match to help with participation rates. Sometimes these changes can help smaller companies pass the nondiscrimination tests more easily. You might also want to ask them what the actual testing results were - they should be able to tell you the participation percentages that caused the failure. Good luck with everything, and don't stress too much - this really is more common than you'd think with smaller employers!

This thread is absolutely incredible! As someone who just had to set up my first payment plan with the IRS last month, I'm simultaneously relieved and horrified reading all these experiences. Relieved because now I know this glitch is super common and not something I need to panic about if it happens to me. Horrified because wow, the IRS really has such a broken system for something this critical! I took screenshots of everything after reading this, and I'm definitely going to keep a manual spreadsheet tracking my payments. Thank you SO much to everyone who shared their stories - this is the kind of real-world knowledge you just can't get anywhere else. This community is amazing! 🙏

This thread has been such a lifesaver! I'm completely new to dealing with IRS payment plans and honestly had no idea their online portal was this unreliable. Reading everyone's experiences has taught me so much about what to expect and how to protect myself. I'm definitely implementing the screenshot strategy immediately - can't believe I didn't think of that before! It's both comforting and frustrating to know this is such a widespread issue. Thank you all for being so generous with sharing your real-world experiences. This is exactly why online communities are so valuable - you get the honest truth about what actually happens, not just the sanitized official version. Really appreciate everyone taking the time to help newcomers like me navigate this confusing system! 🙏

FYI - Credit Karma tax was actually acquired by Cash App in 2020, so technically you're using Cash App Taxes now, not Credit Karma. This might explain why the experience is diff from what you expected. The IRS sends the $ regardless of which tax prep you used, but sometimes the routing can take an extra day depending on your bank. FWIW, my CK/Cash App tax refund hit exactly on my DDD last year, not early like some other services.

I'm also waiting for my Credit Karma/Cash App refund with a 3/22 DDD! Based on what I've experienced in previous years, most banks process ACH deposits in waves throughout the day. My bank (Chase) typically posts refunds between 12-3 PM on the deposit date, but I've seen some people get theirs as early as 6 AM or as late as 8 PM on their DDD. The key thing is that your transcript shows code 846 - that means the Treasury has already sent the payment and it's just a matter of your bank processing it. I'd give it until end of business today before worrying. If nothing by Monday morning, then definitely call your bank to see if there are any issues with the ACH transfer.

I'm going through the exact same thing right now and this thread has been a lifesaver! I've been stuck on this TurboTax screen for two days thinking I must have lost some important tax form. The way they phrase "previous year tax liability from Form 2210" is so misleading - it really does make it sound like you should have filed Form 2210 last year. After reading all these explanations, I finally understand that they just need the total tax amount from line 24 of my 2024 Form 1040. I found my old return and that line definitely has a number on it, even though I never filed any Form 2210. It's such a relief to know this is normal and I didn't miss filing something important! The safe harbor explanation really helps too - knowing that paying enough based on last year's taxes can protect you from penalties makes the whole Form 2210 process make more sense. Thanks everyone for breaking this down so clearly. About to enter that line 24 number and hopefully get past this frustrating roadblock!

I just went through this exact same issue yesterday and was so confused! Like everyone else mentioned, TurboTax's wording is really misleading. When they ask for "previous year tax liability from Form 2210," they're not saying you filed Form 2210 last year - they need your total tax from line 24 of your 2024 Form 1040 to determine if you should file Form 2210 THIS year. I was frantically searching through all my paperwork looking for a Form 2210 that didn't exist! Once I realized they just wanted the number from line 24 of my regular tax return, everything made sense. That line shows your total tax liability for the year, regardless of how much you still owe or have paid. TurboTax uses this number to check if you qualify for "safe harbor" protection from underpayment penalties. Basically, if you paid at least as much as your previous year's total tax (or 110% for higher incomes), you're generally protected from penalties even if you owe money this year. Don't put zero if line 24 has an amount - use that number and you should be able to move forward with your filing!

I'm dealing with this exact same issue right now! My 1099-B from Schwab is about 800 pages and TurboTax keeps giving me that error message about the file being too large. It's so frustrating because I thought e-filing was supposed to make everything simpler. I'm really interested in the CSV/flash drive option that Sophia mentioned - that sounds way more reasonable than printing and mailing a phone book worth of trading data. Does anyone know if Schwab provides data in the IRS Publication 1220 format, or would I need to convert it myself? Also curious about the alternative tax software suggestions. I've been loyal to TurboTax for years but if FreeTaxUSA can handle large trading volumes without all this hassle, it might be worth switching. The cost savings alone would probably pay for the switch multiple times over.

I've been dealing with this same frustration for the past three tax seasons as an active options trader. The key thing to understand is that the IRS e-file system has hard limits on attachment sizes, and your 1200+ page 1099-B definitely exceeds those limits. Here's what I've learned through trial and error: 1. **You absolutely must send the physical documents** - Form 8453 is specifically designed for this situation where you e-file your main return but have supporting docs that couldn't be transmitted electronically. 2. **Timing matters** - Mail these as soon as possible after your e-filed return is accepted. The IRS considers your filing incomplete until they receive these supporting documents. 3. **Use certified mail** - For something this important, spend the extra money for certified mail with return receipt. You'll want proof of delivery if any questions arise later. 4. **Alternative for next year** - Consider switching to a different tax software that handles large trading volumes better. I've heard good things about FreeTaxUSA and TaxAct for high-volume traders, though I haven't personally tested them. The whole situation is definitely archaic, but unfortunately it's the current reality for active traders with massive 1099-Bs. The medium flat-rate priority box from USPS is probably your best shipping option cost-wise.