You might want to check if you qualified for any partial Roth contribution during those years instead of assuming you couldn't contribute anything. The income limits have a phaseout range where you can make reduced contributions. For 2017, the phaseout for single filers was between $118,000-$133,000. Unless you were completely above the upper threshold, you might have been eligible to contribute something.

This is a really helpful thread! I'm dealing with a similar situation but from 2020-2022. One thing I learned from my tax preparer is that you should also check if your employer offers a 401(k) - if you have workplace retirement coverage, it can affect your ability to deduct Traditional IRA contributions, which impacts the backdoor Roth strategy that people mentioned. Also, make sure to keep detailed records of everything when you're going through the correction process. The IRS may ask for documentation years later, and having your Form 5329s, withdrawal confirmations from Vanguard, and calculation worksheets all organized will save you major headaches if they ever audit this. One last tip - if you end up owing multiple years of the 6% excise tax, you can sometimes set up a payment plan with the IRS rather than paying it all at once. Just call them (or use that Claimyr service others mentioned) to discuss options.

Just a heads up that the person BUYING the property in this scenario also needs to consider tax implications. When my mom sold me her house below market value, I didn't have to pay gift tax (that was on her), but when I eventually sold the property years later, I had to use HER original basis for calculating capital gains, not the discounted price I paid. This is called "basis carryover" for related party transactions and it really surprised me at tax time.

One important thing I haven't seen mentioned yet is the timing aspect of getting your appraisal. The IRS expects the fair market value to be determined as close to the transaction date as possible. If you're using an appraisal that's several months old, they might question its validity, especially in a volatile real estate market. Also, make sure your appraiser knows this is for a family transaction that will likely involve gift tax reporting. Some appraisers will note this in their report and provide additional documentation about their methodology, which can be helpful if the IRS ever questions the valuation. I learned this the hard way when my first appraisal didn't have enough detail and I had to get a second one specifically for tax purposes. The key is having rock-solid documentation for every aspect of this transaction - the appraisal, the reasons for the below-market sale, and proper filing of all required forms. It's definitely worth consulting with a tax professional who has experience with family property transfers before you proceed.

Has anyone had success calling STPG directly to get an updated timeline? Last year I was in this exact situation and tried calling but couldn't get through to anyone helpful. This year I'm considering asking my tax preparer to follow up on my behalf instead - do they have a special line or contact method that's more effective than what's available to us directly?

I've been through this process multiple times and can share some insights. STPG cashier's checks typically arrive within 5-7 business days of when they show "funds received" on their portal, but I've noticed the timing can vary significantly based on your location and current USPS delivery speeds. Regarding your question about higher income affecting timelines - in my experience, it's not the income amount itself but rather any changes in your tax situation that might trigger additional IRS review before funds are even released to STPG. The cashier's check option does add extra time compared to direct deposit, but it's usually more predictable than people think. One tip: if your STPG portal shows they've received your funds but it's been more than 7 business days without receiving your check, definitely have your tax preparer contact them directly. They have better access to STPG customer service and can often get real-time updates on your check's status or request a replacement if it's been lost in transit.

Can someone explain what tax bracket these bonuses fall under? I got a $500 Amazon gift card for opening a premium checking account. Will this push me into a higher tax bracket? I'm already close to the next bracket with my regular income.

Something to keep in mind is that you might also want to factor in the tax cost when evaluating these bank bonuses. For example, if you're in the 22% tax bracket and get a $300 Amazon gift card, you'll owe about $66 in taxes on it. So the "real" value of the bonus to you is closer to $234. I've started keeping a spreadsheet tracking all my bank bonuses throughout the year so I can set aside money for the tax bill. It's easy to forget about these when tax time comes around, especially if you opened multiple accounts. Just received a $400 bonus from Wells Fargo last month and immediately moved $88 to my tax savings account (assuming 22% bracket). Also worth noting - some banks are better about sending the 1099-INT forms than others. Credit unions in particular seem to be inconsistent with reporting, but you're still legally required to report the income regardless.

I was in the 0805 cycle last year and had almost given up when my refund suddenly appeared. What helped me was checking my Account Transcript rather than just the Return Transcript - it showed a different status that explained the delay. My sister had the same issue this year and her 0805 refund just hit her account yesterday after a 5-week wait.

I'm also stuck in the 0805 cycle and it's been 6 weeks since I filed! Filed on January 28th, got the 0805 code by February 14th, but still no direct deposit date. My transcript shows a "150 Transcript" with cycle code 20240805 but no 846 refund issued code yet. I've been checking WMR daily and it just says "still being processed." Starting to wonder if there's a systematic issue with certain 0805 returns this year. Has anyone tried calling the practitioner priority line or is that only for tax professionals?