Has anyone handled mileage reimbursement for their nanny? Mine uses her personal car to take our kids to activities a few times a week, and I've been paying her the standard IRS mileage rate (65.5 cents per mile in 2023) based on a log she keeps. I'm treating these as non-taxable reimbursements, but I'm not 100% sure that's correct.

This is such a helpful thread! I'm dealing with similar issues as a new household employer. One thing I'd add about the accountable plan - make sure you're clear about what constitutes a "business purpose" for your nanny's expenses. I learned the hard way that while admission to educational activities (museums, zoo, science centers) typically qualify as legitimate childcare expenses, things like birthday party gifts or personal snacks for the nanny herself don't meet the business connection requirement. Also, for anyone considering the educational assistance program route - check if your state has any additional requirements. Some states have their own rules about what constitutes taxable vs. non-taxable educational benefits for household employees. California, for example, has some specific guidance that differs slightly from federal rules. The documentation piece cannot be overstated. I now have my nanny submit a simple expense report monthly with receipts attached, and it's made tax time so much smoother. Having that paper trail makes all the difference if you're ever questioned about your treatment of these expenses.

Hey GalaxyGlider! I went through almost the exact same thing last year - got that weird "TAX REFUND PROC for RFND DISB" description and was missing about $900 from my expected refund. That description is totally normal, so don't worry about it being fraudulent. The missing $1,150 is most likely due to an offset through the Treasury Offset Program. This happens when you have outstanding federal debts like defaulted student loans, unpaid child support, or even old tax debts you might have forgotten about. The frustrating part is they don't warn you beforehand - you just get less money than expected. Here's what helped me get answers immediately instead of waiting weeks for a letter: **Call 1-800-304-3107** (Treasury Offset Program) - They can tell you right away if any agency claimed part of your refund and which debt it went toward. This was a game-changer for me. **Check your IRS online account** at irs.gov/account - Look for any notices that might already be posted there before the paper letter arrives. **Get your tax transcript** - Request a "2023 Account Transcript" online. It shows all the transaction codes and will have a code 846 for what they sent you, plus any offset codes. In my case, it turned out to be an old student loan from years ago that had gone into default without me realizing it. I was even able to get a partial refund back by proving financial hardship. Don't panic - your money went somewhere legitimate, you just need to figure out where!

I've been dealing with IRS refund issues for years as a tax preparer, and this situation is unfortunately very common. The "TAX REFUND PROC for RFND DISB" description is completely legitimate - it's just how certain bank systems display Treasury-processed refunds. Your missing $1,150 is almost certainly due to an offset. The Treasury Offset Program automatically intercepts refunds to pay outstanding federal debts, and they're legally required to do this before you even receive the money. Common reasons include: - Defaulted federal student loans (even old ones you might have forgotten) - Past-due child support obligations - Unpaid federal taxes from previous years - Overpaid unemployment benefits or other federal program debts The quickest way to find out exactly what happened is to call the Bureau of Fiscal Service at 1-800-304-3107. They handle all federal offsets and can tell you immediately which agency claimed your money and the exact amount. This is much faster than waiting for the IRS notice, which can take 4-6 weeks. Also check your IRS online account at irs.gov/account - sometimes offset notices appear there before the paper letter arrives. Don't stress too much - your money went toward a legitimate debt, and in some cases you may be able to request a partial return if you qualify for hardship exemptions.

The IRS is such a joke fr taking 6 months to verify basic info 🤡

Wow, 6 months is insane but at least you got it sorted! Looking at all those codes and adjustments, it seems like the IRS was doing a deep dive review of your return. The fact that they reduced your prior tax assessment by over $6k in September suggests they found something significant in your favor. Quick question - did you have any major life changes or income sources that might have triggered the initial freeze? Trying to figure out if there's a pattern to these long delays 🤔

Quick question - does anyone know if this NUA strategy still makes sense if you're going to be in a lower tax bracket in retirement? I'm trying to decide between traditional NUA and just rolling everything to an IRA and taking distributions later.

This is a great discussion and really helpful for understanding NUA taxation. One thing I'd add for anyone considering this strategy - make sure to understand the timing requirements. You have to take the entire distribution of your employer stock in the same tax year to qualify for NUA treatment. You can't spread it out over multiple years. Also, there's a "lump sum distribution" requirement that means you have to distribute your entire 401k balance within one tax year after a qualifying event (like separation from service). You can't just take out the employer stock and leave other funds in the 401k. The IRS is pretty strict about these requirements, so if you're planning an NUA transaction, work closely with both your 401k provider and tax advisor to make sure you meet all the criteria. Missing any of these requirements means you lose the favorable tax treatment and everything gets taxed as ordinary income.

For Pennsylvania residents filing 2020 Form 1040 with payment, the correct address is indeed the Cincinnati service center that Javier mentioned. However, I'd strongly recommend double-checking this on the current IRS website since mailing addresses can occasionally change. One thing I haven't seen mentioned yet - since you're filing so late, you might want to consider requesting penalty relief if you have reasonable cause. The IRS can waive failure-to-file and failure-to-pay penalties (though not interest) in certain circumstances like serious illness, natural disasters, or other situations beyond your control. You'd need to include Form 843 (Claim for Refund and Request for Abatement) with your return if you want to request this. Also, make sure you're using the 2020 version of Form 1040 and its instructions, not the current year's form. You can download it from the IRS website under "Prior Year Products." The tax law and forms do change from year to year, so using the correct year's forms is important. Definitely use certified mail with return receipt requested so you have proof of mailing and delivery!

Just to add another perspective - if you're really concerned about your late 2020 return getting lost in the mail or taking forever to process, you might want to consider hiring a tax professional to help you navigate this situation. Many CPAs and enrolled agents have direct lines to IRS practitioner hotlines that can be much more efficient than trying to get through as an individual taxpayer. A tax pro can also help you calculate the exact penalties and interest you'll owe, determine if you qualify for any penalty relief, and ensure your return is prepared correctly to avoid any processing delays or audit flags. Yes, it costs money, but if you're dealing with a complex situation or significant tax liability, the peace of mind and potential savings from their expertise often outweigh the fees. Also, for future reference - the IRS offers payment plans if you can't pay your full tax liability at once. Even for late returns, you can set up an installment agreement either online or by including Form 9465 with your return. This can help manage the financial impact of those accumulated penalties and interest.