Think of the IRS processing system like a massive traffic jam where some lanes move faster than others. Your cycle code is like your lane assignment. Sometimes being in the 0605 lane is great, other times it's the slowest one on the highway. From what I've seen across multiple tax seasons, there's no real advantage to any particular cycle code - it's more about what's in your return. Credits like CTC or EIC are like driving a wide load that requires special handling and slows everything down.

I'm also a 0605 cycle and filed on February 15th - still no movement on my transcript after 23 days. What's really frustrating is that I filed the exact same forms last year (1040 with Schedule C for my side business) and got my refund in 14 days. This year feels completely different. I've been reading that the IRS is dealing with staffing issues and new system updates that are causing delays across the board. At least it sounds like we're not alone in this! I'm trying to be patient but it's hard when you're expecting that refund for planned expenses.

3 Quick question - how much of the Child Tax Credit can you actually claim with an ITIN? I thought there were limitations for non-citizens?

Just wanted to share my experience as someone who went through this exact process last year with my two kids on an H1B visa! You can definitely apply for ITINs and claim your children as dependents on the same tax return. Here are a few key tips from my experience: 1. Make sure you're using the most current W-7 form - the IRS updates it periodically and they'll reject outdated versions 2. For the supporting documents, certified copies from the issuing agency work just as well as originals and are much safer to mail 3. When filling out your 1040, write "ITIN Applied For" in the SSN field for each child 4. Processing typically takes 7-11 weeks, but you can still e-file your return while the ITIN applications are pending The Child Tax Credit alone made this worth doing immediately rather than waiting until next year. For two kids, you're looking at potentially $4,000-$6,000 in tax benefits depending on your income level. One thing I wish I'd known earlier - if you have any issues or questions after submitting, calling the IRS directly can be nearly impossible. Consider keeping documentation of everything you submit and maybe look into services that can help you get through to an actual IRS agent if needed. Good luck with your first tax filing as a US resident!

Just to add something - make sure your improvements were properly permitted! My cousin tried claiming a bunch of DIY improvements on his basis and got audited because he didn't have permits. IRS wanted proof everything was legit.

This is really helpful information! I'm dealing with a similar situation where I installed a new septic system last year for $15,000. One thing I learned from my accountant is that you should also keep records of any related costs like site preparation, permits, and inspection fees - these can all be added to your basis too, not just the actual equipment costs. For your well and septic installation, if you had to do any excavation, electrical work, or landscaping restoration as part of the project, those costs would also qualify as part of the improvement. Sometimes people forget about these "indirect" costs but they can really add up and further increase your basis. Also, since you mentioned this was your primary residence the whole time, you're probably going to be just fine with the $500,000 exclusion anyway, but it's always good to have your documentation ready just in case!

Has anybody tried just printing and mailing their return instead of e-filing? After my second rejection I just said screw it and mailed everything in. No rejection possible that way!

Thanks for sharing this solution! I went through the exact same frustrating cycle of rejections last month. What made it even more confusing was that H&R Block's error message just said "incorrect AGI" without any mention that amendments could be the culprit. For anyone else dealing with this - another thing to watch out for is if you filed a superseding return (not just an amendment) the previous year. The IRS treats these differently than regular 1040-X amendments, and you might need the AGI from your very first filing, not the superseding return. Also, if you can't locate your original pre-amendment AGI, you can request a wage and income transcript from the IRS website (irs.gov) which will show exactly what they have on file for verification purposes. Way faster than calling and waiting on hold!

Am I the only one who thinks it's completely ridiculous that we have to jump through all these hoops just to save for retirement? Like why does the backdoor Roth even exist? Why not just let people contribute directly to Roth IRAs without income limits? And then on top of that, every state has different rules?! I moved from Washington (no state income tax) to Oregon last year and suddenly my backdoor Roth conversion cost me an extra $600 in state taxes. Absolute madness.

This is exactly why I always recommend double-checking your state's specific rules each year, even if nothing seems to have changed in your situation. State tax laws around retirement accounts are constantly evolving, and sometimes the changes aren't well-publicized. One thing that might help is to pull your Form 8606 from both years and compare them line by line. Look specifically at Part I (lines 1-18) which deals with nondeductible contributions and conversions. If there's a difference in how your basis was calculated or reported between years, that could explain the state tax discrepancy. Also worth noting - some states have "conformity" issues where they don't automatically adopt federal tax changes or interpretations. So even if the federal treatment of your backdoor Roth was identical both years, your state might have changed how they handle it independently. The fact that others in this thread found actual policy changes in their states suggests this might be more common than we realize.