Anyone know if Turbo Tax handles these conversions correctly? My situation is pretty simple - just converting an old 401k that was rolled to an IRA into a Roth this year.

One thing that might help ease your concerns about the conversion process - you can always do a partial conversion first to test the waters. Convert maybe $10,000-20,000 initially and see how the tax reporting works out, then do the rest later in the year or next year once you're comfortable with the process. This approach also helps with tax planning since you can better control which tax bracket the conversion income falls into. Plus, if you're worried about making mistakes, starting smaller gives you a chance to work through any issues before converting your entire rollover IRA balance. The tax treatment will be exactly the same whether you convert it all at once or spread it across multiple transactions - the full converted amount (including withholdings) is taxable income, and you get credit for taxes already withheld.

Has anyone tried contacting the Taxpayer Advocate Service about this issue? They're supposed to help with systemic problems in the tax code, and the outdated $5/sq ft rate seems to qualify.

This is such a frustrating issue! I've been dealing with the same problem - using about 250 sq ft of my home office and watching my actual costs climb year after year while stuck with that same $1,250 deduction. What really gets me is that they adjust tax brackets, standard deductions, and plenty of other tax provisions for inflation, but somehow this one got forgotten. I think the key is getting more taxpayers to speak up about this. The Taxpayer Advocate Service suggestion is great - if enough people submit complaints about the same issue, it's more likely to get attention in their annual report to Congress. We could also try reaching out to small business organizations like NFIB or local chambers of commerce, since this affects so many self-employed people and small business owners who work from home. In the meantime, I'm definitely going to run the numbers on the regular method. If housing costs have doubled in many areas since 2013, it seems like a no-brainer that the actual expense method would come out ahead for most homeowners, even with the depreciation complications.

Before you stress too much, just Google the codes along with your employer name. Thats what I did when I had weird codes. Turns out most big companies use similar codes and someone has probably asked this same question before. Also check if your company has an HR portal where they explain benefit deductions.

Just wanted to chime in as someone who's dealt with SF-specific W-2 codes before! Since you confirmed you're in San Francisco, those codes are definitely city-related benefits. A few additional tips: 1. Keep that W-2 handy when you file your CA state return - you'll likely need those DINSF amounts for the SDI deduction line 2. If you're using tax software, make sure it's updated for California/SF tax rules since the city has some unique provisions 3. Your employer should have sent out a benefits guide explaining these codes, but if you can't find it, most SF employers are required to provide this info upon request The good news is these are all legitimate deductions/benefits, so nothing to worry about tax-wise. Just make sure you're getting credit for any deductible amounts on your state return!

I remember last year my transcript had cycle 05 but then suddenly changed to cycle 02. Does anyone know if that means I was moved from weekly to daily processing? And would that happen this year too?

Yes, that can happen! When the IRS moves you from cycle 05 (weekly) to cycle 02 (daily), it usually means your return has moved into active processing or requires additional review. Daily cycles typically indicate more frequent updates, which can actually be a good sign that things are progressing. However, it's not guaranteed to happen every year - your cycle assignment depends on various factors like when you filed, complexity of your return, and current IRS processing volumes. If you do get moved to daily processing again this year, you'd see updates Monday through Thursday instead of just Thursdays.

anyone else notice these codes always update on friday mornings?

Just went through this exact same thing! My transcript showed the 971 code on a Friday morning and I got my 846 (refund issued) code the following Wednesday. Direct deposit hit my account 2 days after that. The notice I received in the mail was just confirming a small adjustment they made to my refund amount. Stay patient - once you see that 971, you're definitely in the final stretch! 🙏