Has anyone else noticed that the IRS seems way slower with correspondence this year? I filed in February and just got a similar letter in September about something minor. My tax guy said they're still catching up from the pandemic backlog.

This is exactly why I always recommend people set up their online IRS account if they haven't already. You can view your tax transcripts, account balance, and most importantly - see notices that have been issued even before they arrive in the mail. It would have saved you all that anxiety since you could have seen what the notice was about weeks ago. For anyone reading this who doesn't have an online account yet, go to irs.gov and create one. You'll need to verify your identity with ID.me, but once you're set up, you can monitor everything in real-time instead of waiting for snail mail. The transcripts update much faster than physical notices get processed and mailed out. Glad your letter turned out to be good news! Those small math corrections are super common and usually work in the taxpayer's favor.

been dealing w this for 2 months now...its ridiculous how broken the system is fr

Code 570 is basically the IRS putting a temporary hold on your refund while they review something. It's super frustrating but unfortunately pretty common. The good news is it's usually not a major issue - just takes time to resolve. I'd recommend checking your transcript regularly to see if any other codes pop up that might give you more info about what specifically they're reviewing. Also make sure you haven't missed any notices in the mail since those usually explain what they need from you.

Am I the only one who had issues with Fidelity's reporting? My T-bills matured in 2023 but some of the interest showed up in a supplemental 1099-OID form rather than the 1099-INT. Confused the heck out of me.

This is a great discussion! As someone who's been investing in T-bills for a few years now, I can confirm what others have said about the tax treatment. Just wanted to add a few practical tips: 1. Keep good records of your purchase dates and amounts - especially if you're laddering T-bills throughout the year. It makes tax time much easier when you can quickly match up your 1099 forms with your actual purchases. 2. If you're in a high-tax state, the state tax exemption on T-bills can be a significant advantage over CDs or high-yield savings accounts. I'm in New York and this saves me a meaningful amount each year. 3. For those using tax software, most major programs (TurboTax, FreeTaxUSA, etc.) handle T-bill reporting pretty well once you know to look for Box 3 on the 1099-INT. The software usually asks specifically about "Interest on government obligations" which makes it clear where the T-bill interest should go. One thing I haven't seen mentioned - if you're doing estimated quarterly tax payments, remember that T-bill interest can create a big lump of taxable income in the quarter when multiple bills mature. Plan accordingly!

Has anyone noticed how ridiculous it is that the 1095-C doesn't tell you the actual dollar amount of the employee contribution for family coverage? They only show the self-only coverage cost in box 11. When I was dealing with this, my employer plan wanted over $950/month for family coverage but only $210 for employee-only coverage!!! So according to the IRS, I had "affordable" coverage even though covering my family would have cost almost 25% of our income. This whole system is broken and designed to deny people tax credits.

This is such a frustrating situation that so many families face! I went through something similar last year and it's maddening how the rules work. Just to add to what others have said - make sure you keep really detailed records of everything. When I filed my Form 8962, I created a spreadsheet tracking each month: my employment status, whether I had an employer offer, my wife's eligibility status, and what portion of the premium each of us was eligible for credits on. Also, if you're doing this yourself, be extra careful with the math on Form 8962 Part IV. The allocation calculations can get really tricky, especially when you're switching between full household eligibility and partial eligibility throughout the year. I made an error initially and had to file an amended return. One more thing - if you received advance premium tax credits throughout the year (which most people do), you'll need to reconcile those against what you're actually eligible for. Depending on how the credits were calculated when you applied, you might end up owing some back for those months when you weren't eligible, or you might get additional credits for periods when you were both eligible. The whole system really needs an overhaul, but at least understanding how it works can help you get the credits you're entitled to!

15 Does anyone know if the 401k limit includes employer matching? My company matches 5% of my salary, not sure if that counts toward the $24,500 limit.

This is such a helpful thread! I've been maxing out my 401k for years but never realized I could also do the full Roth IRA contribution on top of it. I always assumed there was some combined limit that would prevent me from doing both. Just to make sure I understand correctly - if I'm 28 years old and make $95,000 annually, I can contribute: - $24,500 to my 401k - $7,500 to my Roth IRA - And my employer's 4% match doesn't count against either of those limits Is that right? This could be a game-changer for my retirement savings strategy. I've been leaving money on the table by not opening a Roth IRA thinking I was already "maxed out" with just my 401k contributions.