Another thing that helped me was learning about the "as of" date at the top of your transcript - that's not when your transcript was generated, but the latest date the IRS has processed information through. So if you filed recently and don't see your return info yet, check if your filing date is after that "as of" date. Also, the cycle code (the first 4 digits after the date) can tell you a lot - odd cycles process weekly, even cycles process every other week. Made a huge difference once I understood the timing!

I feel your pain! Just went through this exact same struggle last month. The key thing that finally clicked for me was understanding that you need to look at your Account Transcript specifically (not the Record of Account one). On there, focus on the rightmost column with the dates - those are cycle dates that follow a pattern. If you see TC 150, your return was processed. TC 846 with a future date means your refund is scheduled for that date. TC 570 means there's a hold (which sucks but usually resolves). The cycle codes also matter - if yours starts with 20XX, you're on a weekly cycle. Don't drive yourself crazy checking daily - transcripts typically update overnight Thursday into Friday. Hope this helps decode the madness! 🤞

Just a heads up that if you decide to take the distribution, Fidelity will issue you a 1099-R for the distribution in January 2025 (for your 2024 taxes). Make sure you keep documentation showing this was a return of excess contributions so you can properly report it on your taxes. The form might not be coded correctly to indicate this was a correction, so you might need to explain it when filing.

One additional thing to consider - make sure you understand the timing requirements. The IRS requires that excess contributions be distributed by the tax filing deadline (including extensions) for the year the excess occurred. For 2023 overcontributions, that would typically be April 15, 2024, or October 15, 2024 if you file an extension. If you miss this deadline, you can still take the distribution later, but it becomes more complicated tax-wise. You'd potentially face the 6% excise tax for 2023, then need to take the distribution in a subsequent year (which would be taxable in that year), and you'd need to file Form 5329 with your tax return. Given that we're already past the April deadline, I'd recommend checking if you filed an extension for your 2023 taxes. If not, you might want to consult a tax professional about the best way to handle this situation going forward.

Has anyone here used TurboTax for this situation? I'm trying to figure out how to enter our mortgage interest correctly when filing. When I try to enter the Form 1098, it assumes I'm claiming the full amount but I only want to claim my 50%.

This is such a common situation! I went through this exact same thing with my partner two years ago. The key thing to remember is that you can only deduct what you actually paid, not what's on the deed or mortgage paperwork. Since you mentioned you've been splitting bills 50/50 but have a 60/40 mortgage split, you'll want to look at your actual payment records. If you can show that you each paid 50% of the mortgage interest and property taxes through bank statements or other documentation, then you can each deduct 50%. One thing that really helped us was keeping a simple spreadsheet showing who paid what each month. We had similar ownership percentages but different payment arrangements, and having clear records made tax time much easier. Also, don't forget to check if itemizing even makes sense for both of you. With the higher standard deduction now ($13,850 for single filers in 2023), you need a decent amount of itemized deductions to make it worthwhile. Sometimes it makes more sense for just one person to itemize and claim all the house-related deductions while the other takes the standard deduction.

Anyone know what kind of penalties might be involved here? I'm in a similar situation and freaking out about potentially owing thousands.

I went through this exact same situation two years ago - claimed HOH while living with my parents rent-free and got audited. It's stressful but definitely manageable if you handle it right. The most important thing is to respond to the audit notice promptly and be completely honest about the situation. Don't try to create fake receipts or claim you paid expenses you didn't actually pay - the IRS can verify these things and it'll only make things worse. When I responded to my audit, I explained that I misunderstood the HOH requirements and thought that just supporting my child qualified me. I included documentation showing all the legitimate expenses I paid for my son (school supplies, medical bills, clothing, etc.) to demonstrate that I was genuinely supporting him, even though I couldn't qualify for HOH. The IRS accepted my explanation, I filed an amended return changing to Single status, and I was able to keep my dependent deduction. I did owe about $800 more in taxes plus some interest, but they waived the penalties since it was my first mistake and I cooperated fully. The key is showing good faith - admit the error, provide documentation of what you did pay for your daughter, and emphasize that this was an honest misunderstanding of complex tax rules. Most IRS agents are reasonable when you're upfront with them.

Has anyone used TurboTax for reporting excess deferrals? I'm in a similar situation and wondering if it handles this properly or if I need to manually override something.

I went through this exact same situation last year and can confirm you're handling it correctly! The key thing to remember is that excess deferrals are treated differently than regular 401k contributions for tax purposes. Just to add to what others have said - when you report the $2,600 on line 1h of your 2024 return, you're essentially treating it as regular taxable income since it exceeded the contribution limit. This prevents you from getting an improper tax deduction on money you weren't supposed to contribute in the first place. One thing I wish someone had told me: keep really good records of all this. Save your correspondence with Fidelity about the excess distribution, any statements showing the amounts, and a copy of how you reported it on your 2024 return. When you get those 1099-Rs in 2026, you'll want to cross-reference everything to make sure it all matches up correctly. The timing is definitely confusing, but you're doing it right by addressing it now rather than waiting. Good catch on getting the excess withdrawn before the April deadline!