I've been dealing with this exact same W2 confusion for weeks! The way you described it - seeing that extra $5,000 in income pop up in your tax software - is exactly what happened to me. What finally helped me understand was realizing that Box 10 is like a "total benefits received" box, not just employer contributions. So your $11,983.68 includes your DCFSA money ($5,869.81) PLUS your employer's contributions PLUS any other dependent care benefits like backup childcare. The frustrating part is that your DCFSA money went in pre-tax, but then gets partially added back as taxable income because of that $5,000 combined limit. It feels like you're being taxed twice, but really it's just the IRS clawing back the tax benefit on amounts over $5,000. One thing that helped me feel better about the situation: I calculated my effective tax rate on just that excess amount vs. what I would have paid if ALL my dependent care expenses were out-of-pocket with no DCFSA at all. Even with some of it becoming taxable again, I still came out ahead using the DCFSA. Also definitely look into the Child and Dependent Care Credit like others mentioned - it can provide some relief on the expenses beyond that $5,000 limit!

I went through this exact same confusion last year and it's honestly one of the most confusing parts of tax season! Your situation sounds completely normal for someone with both DCFSA contributions and employer-provided dependent care benefits. The key thing to understand is that Box 10 ($11,983.68) represents ALL dependent care assistance you received during the year - your DCFSA contributions, employer contributions, AND any other benefits like backup childcare services. Since the tax-free limit is $5,000 combined, everything above that becomes taxable income, which is why TurboTax is adding $6,983.68 back to your taxable income. Here's likely what happened with your numbers: - Your DCFSA: $5,869.81 - Employer contributions (including that 2023 retroactive payment): ~$4,100 - Other dependent care benefits (backup childcare, etc.): ~$2,000 That retroactive payment from 2023 that was paid in 2024 gets included on your 2024 W2 because W2s report what was actually paid during the tax year, not when the services were originally provided. Don't forget to check if you qualify for the Child and Dependent Care Credit on expenses that exceeded the $5,000 DCFSA limit - with high daycare costs, this credit could help offset some of the additional tax burden from that excess dependent care income. The numbers are frustrating but they're likely correct. You're still coming out ahead using the DCFSA compared to paying all childcare costs with after-tax dollars!

The waiting is brutal, I feel you! I'm going through something similar - been waiting 11 months for my refund and just got assigned an advocate last week. From what I've read, the 4-12 week timeframe that Malik mentioned seems pretty accurate. The advocate has to actually investigate what's causing the delay and work with different IRS departments to fix it. At least you're in the system now and have someone specifically working on your case. That's more progress than most people get! Keep us posted on how it goes.

I went through this exact situation last year. Got assigned a Taxpayer Advocate in March after waiting 13 months, and it took another 8 weeks before I saw any real movement. The advocate actually called me around week 5 to update me that they had identified the issue (some coding error on the IRS side) and were working to resolve it. Don't give up hope - 3 weeks is still early in the process. The advocate system really does work, it just moves at government speed unfortunately. Try to get the direct phone number for your specific advocate if you don't already have it, makes follow-up much easier.

I just want to echo what others have said - don't let the tax software companies scare you with "Schedule 3"! I'm a tax professional and I see this confusion all the time. The most common reason people need Schedule 3 is actually something GOOD for them - it's often because they're owed money back from excess Social Security withholding when they worked multiple jobs. The IRS limits total Social Security tax to $10,788 for 2024 (on income up to $168,600), but if you had two employers, each one withheld Social Security tax separately without knowing about the other job. Before paying TurboTax's upgrade fee, definitely check out the free alternatives people mentioned. The IRS Free File program is legitimate and works with forms like Schedule 3. You can also try FreeTaxUSA or even the IRS's own fillable forms if you're comfortable with a little DIY approach. The bottom line: Schedule 3 sounds scarier than it is, and you have options that won't cost you $49!

I'm going through the exact same situation right now! TurboTax hit me with that $49 upgrade demand when I got to the Schedule 3 part and I was so frustrated. Reading through all these responses has been incredibly helpful - I had no idea there were so many free alternatives available. I think I'm going to try the IRS Free File program first since my income definitely qualifies, and if that doesn't work out I'll give FreeTaxUSA a shot. It's really annoying how the tax software companies make Schedule 3 sound like this super complicated advanced form when it's apparently just a standard supplement that lots of people need. Thanks everyone for sharing your experiences and solutions - this thread probably just saved me $49 and a lot of unnecessary stress!

Is there any expiration on capital loss carryovers? I've been carrying some for almost 4 years now.

One thing I'd add to the great advice already shared - make sure you're applying your capital loss carryover in the correct order! The IRS requires you to use the oldest carryover losses first (FIFO - first in, first out). Since you had a $20,000 loss in 2022, that entire amount should be applied against your 2023 gains before you can use any losses from 2023 itself. This shouldn't affect your calculation (you'll still net $30,000), but it's important for record-keeping purposes. Also, double-check that you actually filed your 2022 return and properly reported that $20,000 loss. If for some reason it wasn't properly documented on your 2022 Schedule D, you might run into issues when the IRS processes your 2023 return. The carryover amount needs to have a paper trail from your previous filing.

I'm brand new to this community but had to jump in because I'm literally experiencing this exact same situation right now! My spouse and I just got married last year, moved across states, and filed jointly for the first time. We also received our refund about 3 weeks ago and now have two separate IRS letters showing up in informed delivery today. I was having a complete panic attack until I found this thread! Reading through everyone's experiences has been incredibly calming. It's amazing how common this scenario seems to be for newlyweds who moved and changed their filing status. The explanation about the Individual Master File system from the tax professionals really opened my eyes - I had no idea the IRS kept separate records for each spouse even when filing jointly. What really struck me is how consistent everyone's stories are. Practically every couple in our situation (marriage + move + name change + filing status change) seems to get these routine verification notices a few weeks after their refund processes. The timing aspect is so reassuring too - if there were serious problems, they would have caught them before releasing our money. I'm still nervous waiting for the actual letters to arrive, but I'm feeling much more confident now that this is just boring administrative paperwork rather than anything we need to worry about. Thank you to everyone who shared their experiences - this community has been a lifesaver for managing tax anxiety! I'll definitely be following this thread to see what the mystery letters actually say. Fingers crossed we can all celebrate mundane government paperwork later today! 😊

I'm completely new to this community but had to join after stumbling across this thread while frantically googling "why did IRS send me letters after refund" - I'm in the EXACT same situation! My husband and I got married 8 months ago, moved states twice for his job, and just filed jointly for the first time. Got our refund 3 weeks ago and now there are two separate IRS letters in informed delivery. I've been a wreck all day! This thread has been such a lifesaver though - I can't believe how many people have dealt with this identical scenario. The consistency is incredible and really reassuring. Between getting married, changing my name, moving multiple times, and switching from single to married filing jointly, we basically hit every trigger for routine verification notices that everyone's mentioned. The explanation about Individual Master File updates makes so much sense now. I was completely panicking thinking we'd made some catastrophic error, but hearing from actual tax professionals that this is standard administrative stuff for couples in our situation has really calmed me down. Plus the timing factor - getting notices AFTER our refund processed successfully - seems to be a really positive sign. Thank you to everyone who shared their experiences and expertise! I'll definitely be refreshing this thread obsessively waiting to see what the original poster's letters actually say. Hoping we can all celebrate boring government paperwork together! 🤞