Just wanted to add my perspective as someone who's been dealing with 72(t) distributions for about three years now. The 1099-R coding issue is unfortunately very common - I've had to get corrected forms from Vanguard twice now for the same reason. One thing I haven't seen mentioned yet is that you should also make sure your tax software is set up correctly to handle the 72(t) exception. Even if you get a corrected 1099-R with code 2, some tax software programs will still flag early distributions for review. In TurboTax specifically, there's a section where you need to explicitly indicate that your distribution qualifies for the 72(t) exception. Also, for future years, consider reaching out to Fidelity proactively each January to remind them about your SEPP status. I started doing this with Vanguard after the second coding error, and they've been much better about getting it right the first time. They can add notes to your account that help prevent these mistakes. The stress of dealing with this isn't worth it when there are simple preventive steps you can take. Good luck getting it sorted out!

I've been following this thread with great interest as I'm planning to start my own 72(t) SEPP distributions next year. The consistency of this 1099-R coding issue across multiple brokerages (Fidelity, Vanguard, Schwab, E*Trade) is really eye-opening - it seems like this is more of a systemic problem with how these firms handle automated tax reporting for SEPP distributions. What strikes me most is how well-established the workaround solutions are. Between getting corrected 1099-Rs from the tax operations departments and using Form 5329 with exception code 02, it's clear the IRS is very familiar with this scenario. The fact that multiple people have successfully used both approaches without audit issues gives me a lot of confidence. I'm particularly grateful for Cassandra's proactive approach suggestion about contacting the brokerage each January. That seems like such a simple way to prevent the headache entirely. I'm also planning to keep extremely detailed documentation of my SEPP calculations and methodology after reading Natasha's cautionary tale about the strict compliance requirements. Thanks to everyone who shared their experiences - this thread has become an incredibly comprehensive guide for handling 72(t) distribution tax reporting issues!

Does anyone know if the adoption tax credit is still non-refundable for 2024 filings? I'm planning to adopt next year and trying to figure out how this will impact our taxes.

Thanks for starting this thread, Liam! The adoption tax credit carryforward rules can definitely be confusing. Just to add some clarity to what's already been shared: You're correct that the 5-year carryforward period includes the original year you qualified (2020). So your deadline to use any remaining credit is indeed 2024 - this is your final year to claim it. One important thing to keep in mind: make sure you have enough tax liability to absorb the credit. Since it's non-refundable, you can only use it to offset taxes you actually owe. If you don't have sufficient tax liability in 2024, any unused portion will unfortunately expire. I'd also recommend keeping detailed records of how much you've used each year. The IRS doesn't automatically track this for you, so you'll need to calculate your remaining balance yourself when filing. Form 8839 is required each year you claim any portion of the credit, including carryforward amounts. Good luck with your 2024 filing!

I'm experiencing the exact same issues with FreeTaxUSA today! Started trying around 10am and it's been completely unreliable - sometimes it loads partially, other times I get timeout errors. Really frustrating since I also planned today specifically for tax filing. Based on what others are saying here, it sounds like this is pretty normal for tax season and the site should work better during off-peak hours. I'm going to try again tonight around 10pm or early tomorrow morning. For what it's worth, I used FreeTaxUSA last year and had a great experience once I actually got on the site - their interface is clean and the price can't be beat. I think it's worth being patient rather than switching to something more expensive like TurboTax just because of temporary server issues. Thanks everyone for sharing your experiences and workarounds! This community is really helpful during stressful tax season.

I've been having the same exact issue! Started trying to access FreeTaxUSA around noon and it's been nothing but error messages and timeouts. Really glad to see it's not just me - I was starting to worry there was something wrong with my internet connection. Based on everyone's experiences here, it sounds like this is just peak season server overload. I'm going to try the late evening approach that several people mentioned worked for them. Has anyone tried reaching out to FreeTaxUSA directly on social media for status updates? Might be worth checking their Facebook or Twitter for real-time information about when their systems are running normally again. I really don't want to switch back to TurboTax after all the good things I've heard about FreeTaxUSA's pricing and features.

Another approach that worked for me last tax season - check if H&R Block has a "Review" or "Summary" section before you file. Many tax software programs generate a comprehensive review document that includes all your entries in a more accessible format. In H&R Block, look for something like "Review Your Return" or "Tax Summary" - this often creates a consolidated view of all your forms and schedules. Sometimes this review format is more copy-friendly than the individual input screens. Also, if you're comfortable with it, you might try using browser developer tools if you're using the online version of H&R Block. Press F12, go to the Console tab, and sometimes you can access the underlying data that way. It's a bit technical but I've seen people extract form data this way when normal copy functions are blocked. The combination of these suggestions from everyone should definitely save you from having to manually type all 51 transactions!

Just wanted to share another potential workaround that saved me last year - if you have access to the actual 1099-B forms from your broker (Fidelity in your case), you might be able to download them directly from their website in a more Excel-friendly format. Most major brokerages like Fidelity, Schwab, etc. allow you to download your tax documents as PDFs, and some even offer CSV or Excel exports of your transaction history. Log into your Fidelity account and look for a "Tax Documents" or "Year-End Documents" section. The advantage is that this data comes straight from the source and won't have any transcription errors that might occur from copying between software programs. You can then use this to verify what you've entered in H&R Block rather than trying to extract it from the tax software. I found my broker's export was actually more detailed than what the tax software showed, which helped me catch a few small discrepancies. Worth checking before going through all the screenshot/OCR steps!

I've been following a similar strategy for about 2 years now, overpaying by roughly $18K annually. One thing that's given me peace of mind is working with a tax professional who helped me establish a defensible estimation methodology. What we do is create quarterly projections that account for variable income scenarios - like potential bonuses, freelance work, or investment gains that might materialize. I document these projections each quarter, showing how I arrived at my estimated payment amounts. Sometimes the income materializes, sometimes it doesn't, but the important thing is having a reasonable basis for each payment. The processing fees (around 1.9%) are definitely worth it when you're hitting signup bonuses that can be 15-20% returns in just a few months. Just make sure you're not putting all your overpayments on one card or making it too obvious that you're manufactured spending. My advice would be to treat this as legitimate tax planning first, credit card optimization second. Keep good records, vary your amounts somewhat year to year, and make sure you can articulate why your estimates led to overpayments if ever asked. The IRS isn't going to penalize you for being conservative with your tax planning.

I've been considering this strategy myself and appreciate all the insights here. One additional angle I'd suggest is looking at safe harbor rules for estimated taxes. If you pay either 100% of last year's tax liability or 110% (for higher income earners), you're automatically safe from underpayment penalties regardless of how much you actually owe. This gives you a legitimate framework for "conservative" estimates that could result in systematic overpayments. You could base your estimated payments on projections that ensure you hit these safe harbor thresholds, and if your actual income ends up lower, the overpayment becomes a natural byproduct of following IRS safe harbor guidelines. The beauty of this approach is that you're literally following an IRS-recommended strategy for avoiding penalties. It's hard for them to question a methodology they explicitly endorse, even if it results in consistent overpayments when combined with credit card optimization. Just make sure to document your safe harbor calculations each year to show you're following established tax planning principles rather than arbitrary overpayment amounts.