I'm confused about which line on Form 6251 these specified private activity bond interest dividends go on. My tax software seems to be putting them on line 2g, but is that right? Also, if my AMT calculation ends up being lower than my regular tax (which it usually is), do I need to worry about this at all?

Great discussion everyone! As someone who just went through this exact situation, I wanted to add that it's also worth checking if your mutual fund company provides any supplementary tax information beyond what's on the 1099-DIV. Some fund companies will send additional documentation explaining the source of the private activity bond interest and whether it comes from bonds issued before or after August 7, 1986 (which can affect certain calculations). They might also break down which states the bonds were issued in, which could be relevant for state tax purposes. I found that understanding the underlying investments helped me feel more confident about how to handle the tax reporting, especially when explaining it to my accountant. The $2,800 you mentioned is a pretty substantial amount, so it's definitely worth making sure you're handling it correctly!

Has anyone actually received a corrected 1098 from their mortgage company? Mine told me they don't update Box 10 even if I request it because "it's optional information" for them to provide. Seems ridiculous that they can just leave off important tax info!

I went through this exact same situation last year and it was so frustrating! My Box 10 was completely blank too, and like you, I thought it meant I had zero property taxes to claim. What I ended up doing was calling my county tax assessor's office directly - they were actually super helpful and could tell me exactly when property taxes were paid on my address and by whom. Turns out my mortgage company had paid taxes twice during the year from my escrow account, but for some reason didn't report it in Box 10. I also found out that since I bought mid-year like you did, I needed to look at my HUD settlement statement from closing. There should be a line item for "real estate taxes" that shows what you paid upfront. In my case, I had paid about $900 at closing that I would have completely missed if I just relied on the 1098. Don't stress too much about it - you're definitely not alone in dealing with incomplete 1098 forms. The key is to track down what you actually paid rather than what the mortgage company reported. Your closing documents and mortgage statements should have all the info you need!

The difference being your SECT125 (health insurance) makes perfect sense. Many local municipalities tax health insurance premiums while others don't. That's why the numbers are different. You absolutely need to report both localities separately with their correct Box 18 and 19 amounts. Don't try to combine them or you'll trigger a notice from one or both localities.

I just went through this exact same situation last month! The key thing to understand is that you're looking at two different local tax jurisdictions, and each one treats your health insurance deduction differently. Since you mentioned you're a first-time filer, here's what I wish someone had told me: when you get to the W-2 entry section in your tax software, look for an "Add Local Tax" or "Multiple Localities" option. You'll need to create two separate entries - one for each locality shown in Box 20. For the first locality, enter the first Box 18 amount ($23,450) and first Box 19 amount ($231). For the second locality, enter the second Box 18 amount ($24,080) and second Box 19 amount ($67). The software will automatically handle the calculations for each jurisdiction. The reason the Box 18 amounts differ by your SECT125 amount is because one locality excludes pre-tax health insurance from taxable wages while the other includes it. This is totally normal and you don't need to do any math yourself - just enter the numbers exactly as they appear on your W-2. Don't stress too much about this - it's more common than you think, especially for school district employees!

Does anyone know if there's still time to make an IRA contribution for 2025? I haven't started my taxes yet but I'd like to reduce my tax bill if possible.

This is such a helpful thread! I was in the exact same boat last year trying to figure out the difference between 401k and IRA deductions. One thing that really helped me was keeping track of all my retirement contributions throughout the year in a simple spreadsheet. I record my 401k contributions from each paycheck (which I can see on my pay stub) and any separate IRA contributions I make. When tax time comes around, I can quickly reference this to see what I contributed where. For your 401k, you're right that it's already handled through payroll - you'll see the total amount in Box 12 of your W-2 with code "D" for traditional 401k contributions or "AA" for Roth. But like others mentioned, the traditional contributions already reduced your taxable income in Box 1, so no additional deduction needed. For your $2,500 IRA contribution, definitely check those income limits Sofia mentioned before claiming the deduction. If you're close to the phase-out ranges, you might want to consider making it a Roth IRA contribution instead since those don't have the same deduction restrictions (though they do have income limits for eligibility).

After reading this thread I downloaded my transcript and found the same code. Used taxr.ai to analyze it and it showed me exactly what's happening and why - turns out my 507 is because of partial income verification but it's actually progressing normally. Gives me a timeline and everything! So much better than guessing based on forum posts. https://taxr.ai

I've been in a similar situation and the status change from PATH Act message to "we are processing your return" is definitely a positive sign! The 507 code without a 971 notice code typically means they're doing internal verification and don't need additional documentation from you. Since you filed with EITC, these reviews are pretty standard - they're just making sure everything checks out. Based on what I've seen, most people with this exact pattern get their refund within 2-4 weeks after the status changes to processing. The fact that you're not seeing any additional freeze codes is really encouraging. Keep checking WMR for updates and try not to stress too much - it sounds like your return is moving through the system normally, just taking a bit longer due to the verification process.