Possible reasons for verification: - Income discrepancy - Identity verification needed - Missing documents - Suspicious activity flag Best thing to do is wait for their letter or use taxr.ai to get specific insights about your case. That tool saved me so much time figuring out what was wrong with my return last month.

I went through this exact same thing last month! Got the "We need more information" notice and was freaking out thinking I did something wrong. Turns out it was just routine identity verification - they sent me a letter asking me to confirm some basic info like previous addresses and loan amounts. The whole process took about 3 weeks from when I mailed back the verification form to getting my refund deposited. Don't stress too much about it! The fact that you got your state refund is actually a good sign that your return info is correct. The IRS is just being extra cautious with their fraud prevention this year. Make sure to respond promptly when you get their letter and you should be good to go. Hang in there! 🙂

I never trust the WMR tool anymore. Last year it told me my return was still processing AFTER I already received my refund. This year it gave me a deposit date, then changed to "still processing" after that date passed, then a week later the money just showed up. It's completely unreliable.

I'm going through the exact same thing with Cross River Bank! Filed on 3/6, got accepted immediately, WMR showed 3/14 deposit date, and here we are on 3/20 with nothing. Called Cross River twice and they keep saying they haven't received anything from the IRS yet. It's so frustrating because I really needed that money for rent this week. Has anyone had success getting through to the IRS phone lines? I've been trying for two days straight and can't get past the "call volumes are too high" message. Starting to wonder if there's some kind of systematic issue with Cross River and IRS deposits this year since so many of us seem to be having the same problem.

I see a lot of great math advice here but nobody's mentioned WHERE to actually set up your Solo 401k. After a ton of research, I went with Fidelity for mine because they don't charge any setup or maintenance fees and their investment options are solid. Vanguard is another good option. Avoid the ones that charge annual fees if possible - those fees eat into your returns over time!

Just wanted to chime in as someone who went through this exact confusion last year! Your math looks right - the ~20% calculation after SE tax adjustment is correct for the employer contribution portion. But like others mentioned, you're missing the huge opportunity of the employee contribution side. What really helped me understand it was thinking of it this way: as a sole proprietor, you're literally both the boss AND the worker. The "boss" you can contribute about 20% of net profit (employer contribution), and the "worker" you can defer up to $22,500 of your earnings (employee contribution) - even without a formal payroll setup. So with your $13,500 profit, you could potentially contribute your calculated $1,675 PLUS up to $13,500 more as an employee deferral (limited by your total net income). That's a massive difference in retirement savings potential! Just make sure you establish the plan by Dec 31st if you want to contribute for this tax year.

This is such a complex area of tax law! I've been dealing with a similar situation and found that the key is running detailed calculations both ways. One thing that really helped me was creating a spreadsheet that modeled different election amounts (you can elect just a portion of your qualified dividends, not all or nothing). In your case with $11,000 in qualified dividends and $12,500 in investment interest expense, you'd only need to elect $10,000 of dividends ($12,500 - $2,500 regular interest income) to get the full deduction. The remaining $1,000 in qualified dividends could still get preferential treatment. The breakeven point really depends on your marginal tax rates. If you're in the 22% or 24% bracket and paying 15% on qualified dividends, you might come out ahead. But if you're in the 12% bracket or subject to AMT, the math could work against you. I'd definitely recommend modeling this carefully or consulting with a tax professional who can run the scenarios for your specific situation.

The partial election strategy mentioned by Ana is spot-on and often overlooked! For the documentation requirements, you'll need to complete Form 4952 (Investment Interest Expense Deduction) where you report the election on line 4g. You'll also need to attach a statement to your return explaining the amount of qualified dividends you're electing to treat as investment income. One additional consideration - if you're making this election, make sure to coordinate with your Schedule D reporting. The elected amount should be reported as ordinary income rather than qualified dividends, so you'll need to adjust your Schedule D accordingly. I'd also suggest keeping detailed records of your calculation methodology in case of future IRS questions. Document which dividends you're electing, the amounts, and your reasoning for the partial election amount. This becomes especially important if you're making different election amounts in different tax years based on changing circumstances.

Will this affect my current year return? Filed 2023 already. Don't want delays.

For investment portfolio discrepancies specifically, make sure you have all your corrected 1099 forms (1099-B, 1099-DIV, 1099-INT) and any Schedule D adjustments ready before filing. I had a similar situation where my broker issued corrected forms after I'd already filed. The key is being thorough - include a detailed explanation letter with your Form 1040-X explaining exactly what changed and why. Also, if your amendment results in owing additional tax, you'll owe interest from the original due date, so factor that into your calculations. The good news is investment corrections are pretty straightforward compared to business amendments.