Just checking - did you make that $8k contribution for 2024? The annual IRA contribution limit for people over 50 is $8,000 for 2024 (the limit was $7,500 for 2023).

I'm dealing with a very similar situation right now! I had about $1,200 in earnings sitting in my Traditional IRA from an old rollover, and then I contributed $8,000 for my backdoor Roth conversion. Like you, I was confused when I saw the Form 8606 calculations. What really helped me understand it was realizing that the IRS treats ALL money in your Traditional IRA as one big pot when you do conversions. So even though you mentally think of the $600 as "old earnings" and the $8,000 as "new contributions," the IRS applies the pro-rata rule to the entire $8,600. Your TurboTax calculation actually looks correct to me. The roughly $607 taxable amount corresponds almost exactly to your $600 of pre-existing earnings (plus maybe a tiny bit of growth between when you made the contribution and when you converted). One thing that tripped me up initially - make sure you're reporting that $8,000 contribution properly on Form 8606 Part I. That's what establishes your basis and ensures you don't get double-taxed on money you've already paid taxes on.

Has anyone looked into whether these premiums might qualify for the Self-Employed Health Insurance Deduction instead? That's an above-the-line deduction so you don't need to itemize. I thought I read somewhere that might apply in certain situations even if you're employed by a company.

I went through almost the exact same situation last year! My employer's payroll system glitched and didn't deduct my health insurance premiums for about 8 months. Here's what I learned after consulting with a tax professional: First, definitely try the corrected W-2 route that Malik mentioned - it's the cleanest solution if your employer will cooperate. Since they acknowledged it was their error, they should be willing to issue a W-2c to fix it. If that doesn't work, you can absolutely deduct these as medical expenses on Schedule A, but as others mentioned, you need to exceed that 7.5% AGI threshold. Don't forget to include ALL your medical expenses for the year - copays, prescriptions, dental work, vision expenses, mileage to medical appointments, etc. You might be closer to that threshold than you think. One thing I didn't see mentioned: make sure you have clear documentation showing these were employer-sponsored premiums, not individual policy payments. Keep your pay stubs showing the missing deductions, correspondence with HR about the error, and receipts for the premium payments you made. The IRS will want to see that paper trail if they ever question the deduction. Also, since you're in Missouri, check if there are any state-level deductions or credits for health insurance premiums that might apply even if you can't benefit much at the federal level.

I went through this exact situation last year. I took the TurboTax advance to my Credit Karma card because I needed some money quickly. When my actual refund was processed by the IRS about 3 weeks later, the remainder (after they subtracted the advance amount) showed up on my Credit Karma card too. I remember being confused just like you because I was expecting it to go to my checking account like in previous years. I had to transfer the money from the Credit Karma card to my bank, which took about 2 days. Not the end of the world, but definitely something I wish I'd understood better beforehand.

I'm going through this exact same situation right now! Just took the TurboTax advance last week and it went to my Credit Karma card, but I had no idea the rest of my refund would automatically go there too. Reading through all these responses has been incredibly helpful - it sounds like once you accept that advance, you're locked into receiving everything through Credit Karma. For anyone else in this boat, it seems like the key takeaway is that you CAN transfer the money out to your regular bank account once it arrives, but you'll need to plan for that 1-3 day transfer time. Definitely something to keep in mind for next year if you prefer direct deposit to your own bank account! Thanks everyone for sharing your experiences - this community is so helpful for navigating these confusing tax situations! 🙏

I filed Form 8379 last March and received my refund in 9 weeks and 2 days, so there's definitely hope for getting it faster than the full 11 weeks! What really made a difference for me was being extremely thorough with the documentation upfront. I included a detailed breakdown of each spouse's income sources, tax withholdings, and even attached copies of our W-2s and 1099s to avoid any back-and-forth requests for clarification. One thing I wish I'd known earlier is that you can actually call the IRS around week 6-7 to confirm they have everything they need - sometimes they're waiting on a simple clarification that could have been resolved weeks earlier. Also, if your financial situation becomes more dire while waiting, don't hesitate to contact the Taxpayer Advocate Service. They helped a friend of mine get her refund expedited when she was facing eviction. The wait is stressful, but most people I know who filed in March got their refunds by late May or early June.

I filed Form 8379 in February 2023 and received my refund in exactly 8 weeks and 1 day, so definitely faster than the 11-week estimate! What helped me was calling the IRS practitioner hotline around week 6 to verify my case was progressing normally - they confirmed it was in the manual review queue and gave me a realistic timeline. One thing that might speed up your process is making sure your Form 8379 allocation percentages are crystal clear and add up to 100%. I spent extra time double-checking my income allocation calculations because any math errors seem to trigger additional review time. Also, since you filed electronically on March 1st, you're actually in a good position timing-wise - early March filers often see faster processing than those who file closer to the April deadline when the system gets more backlogged. Keep monitoring your transcript through your IRS online account rather than relying on Where's My Refund - the transcript codes will give you much better insight into where your case stands. Hang in there, most March filers I know got their refunds by mid to late May!

Just dealt with this exact scenario last month! Had a client with twins born in late November, SSNs issued in December. Same rejection code you got. What worked for us: I called the practitioner priority line (as Mason mentioned) and the rep actually walked me through a workaround. There's a specific form you can attach to a paper return called Form 8948 that expedites processing for SSN database mismatches. The key is writing "NEW DEPENDENT SSN - DATABASE MISMATCH" in red ink across the top of the first page. We paper filed with this approach and got the refund processed in just under 5 weeks, which was way faster than the 8-12 weeks they initially quoted. The rep also mentioned that February-March is actually prime time for these issues since so many December babies get their SSNs in January. One tip: make copies of everything and send via certified mail. The IRS has been losing a surprising number of paper returns lately, and you'll want that tracking confirmation.

This is such a frustrating but common issue! I've been dealing with these SSN database lag problems for years. One thing I'd add to the great advice already given - if you do decide to paper file, make sure to include a detailed cover letter explaining the situation and attach a copy of the SSN card and birth certificate. I've found that being very explicit about the timing (child born December, SSN issued January, filed in [current month]) helps the processors understand immediately what's happening and can sometimes speed up the review process. Also, definitely keep trying to e-file every 2-3 weeks if your clients are willing to wait. I've had cases where the SSN suddenly appeared in the system after 6 weeks, and others that took 10+ weeks. There's really no rhyme or reason to the timing. One last tip - if you do paper file and don't hear anything after 8 weeks, you can call and request a "tracer" on the return. Sometimes paper returns get stuck in processing and the tracer can help locate and expedite them.