21 Has anyone here used Robinhood specifically for their Roth IRA? I'm trying to decide between them, Fidelity, and Vanguard. Are there any downsides to Robinhood for retirement accounts that I should know about?

Great question! I was in the exact same boat when I started my Roth IRA. The key thing to understand is that "post-tax" doesn't mean the brokerage takes taxes out - it means you're using money that's already been taxed. Think of it this way: when you get your paycheck, taxes are already withheld by your employer. So that $400 you deposited has already had income tax paid on it. That's why you see the full amount in your account ready to invest. The beauty of a Roth IRA is that since you've already paid taxes on this money, when you withdraw it in retirement (after age 59½ and the account has been open for 5+ years), you won't pay any taxes on the original contributions OR the growth. No action needed on your part for taxes right now - just invest that $400 and let it grow tax-free! The only thing to watch is not exceeding the annual contribution limits ($6,500 for 2023 if you're under 50).

I've seen this exact issue 4 times this tax season. Here's what worked for my clients: Step 1: Go to IRS.gov and request a Wage & Income Transcript for 2023 Step 2: Compare the AGI on that transcript with what you're entering Step 3: If they match and still get rejected, try entering $0 as the prior year AGI Step 4: If still rejected, file by mail with Form 8453-OL attached I'm concerned that both his total income and AGI are identical. This usually indicates no adjustments were taken (no student loan interest, no HSA contributions, etc). If he had marketplace insurance the previous year but didn't report it, the IRS might have flagged his account for review.

I'm dealing with something very similar right now! My client's return keeps getting rejected even though we're using the exact AGI from their 2023 return. What's frustrating is that the IRS error message is so vague - it just says "AGI doesn't match" without any hint about what might be wrong. One thing I learned from calling the Practitioner Priority Service (which took 3 hours of waiting) is that sometimes the IRS system doesn't update immediately when they make adjustments to prior year returns. The representative told me that if a return was adjusted after the initial processing, there can be a delay of several weeks before their e-file system reflects the correct AGI. Has your brother received any notices from the IRS about his 2023 return being adjusted? Even a small change like rounding or a calculation correction can throw off the AGI verification. I'd definitely recommend getting that transcript as others mentioned - it's the only way to see what the IRS actually has on file versus what Jackson Hewitt gave him.

Does anyone know if HRBlock handles this Form 8606 issue better than FreeTaxUSA? I'm considering switching tax software because I keep having issues with where to enter non-deductible contributions.

I ran into this exact same issue last year! The key is that FreeTaxUSA separates current year contributions from the basis tracking questions, which is super confusing. Here's what you need to do: 1. Go to the **Deductions** section (not the retirement/IRA section where you'd expect) 2. Look for "Traditional and Roth IRA Contributions" or similar wording 3. Enter your $7000 contribution for 2024 4. When it asks if the contribution is deductible, select **"No"** or **"Non-deductible"** 5. Complete any follow-up questions about income limits, etc. Once you do this, FreeTaxUSA should automatically populate Form 8606 Line 1 with your $7000. The form should then show: - Line 1: $7000 (2024 non-deductible contribution) - Line 2: $6500 (prior year basis) - Line 3: $13500 (total basis) The software will then correctly calculate that only the $1400 in gains from your 1099-R is taxable, not your $13500 in contributions. This workflow has caught me off guard before because logically you'd think all IRA stuff would be in the retirement section, but FreeTaxUSA requires you to enter contributions as potential deductions first before it knows to treat them as non-deductible basis.

Just wanted to share my experience from last year - I was in the exact same situation as you @c0a759d0a949! I had my paper 1040 ready to go but got so confused about the mailing addresses. After reading through all the conflicting info online, I ended up calling my local post office directly and they confirmed that the Ogden, UT address (Department of Treasury, Internal Revenue Service, Ogden, UT 84201-0002) is correct for California residents filing without payments via regular mail. I sent mine with certified mail for about $4 extra and got confirmation it was delivered within a week. The IRS processed my return normally and I got my refund without any issues. Don't overthink it - the address you found on the IRS website is the right one! Just make sure you're not including any payment checks, otherwise you'd need the Cincinnati address that others mentioned. If you're still worried about it, your local post office can double-check the address for you when you go to mail it. They deal with tax returns all the time during filing season.

I just went through this exact same situation last month! The confusion is totally understandable because there really are different addresses depending on how you're sending it. Since you're in California and filing a Form 1040 without a payment, the address you found is correct for regular USPS mail: Department of Treasury Internal Revenue Service Ogden, UT 84201-0002 The UPS employee was right that they can't use this address - private carriers like UPS and FedEx need the street address version, which would be: Internal Revenue Service 1973 Rulon White Blvd. Ogden, UT 84201 My advice? Just stick with regular USPS since you already have the correct address. You can even do certified mail for a few extra dollars if you want tracking and proof of delivery. I did that and had zero issues - got my refund processed normally. Don't stress about it too much, you've got the right info!

For budget-friendly back tax filing, I'd definitely recommend getting quotes from at least 3-4 different sources before deciding. In my experience, the price differences can be pretty significant - especially for multiple years. One thing to keep in mind is that many CPAs offer discounts for filing multiple years at once, so make sure to ask about that when you're calling around. The house sale year will likely cost more due to the additional forms needed, but for the other straightforward years, you should be able to find reasonable rates. Local CPAs are often your best bet for both price and personalized service. They're more likely to work with your budget and explain everything clearly. I'd also suggest asking if they offer payment plans - many will let you spread the cost out over a few months, which can help with cash flow. Don't forget to factor in any potential refunds your cousin might be owed from those back years - that could help offset some of the preparation costs!

Another option worth considering is checking if your cousin qualifies for the IRS Volunteer Income Tax Assistance (VITA) program or similar community programs. While most VITA sites focus on current year returns, some locations do offer back tax preparation services, especially during off-peak seasons. You might also want to look into whether your cousin actually needs to file all three years. If his income was below the filing threshold for any of those years and he had taxes withheld, he might only need to file to claim refunds (and there's a 3-year limit on claiming refunds). But if he owes money, definitely file ASAP to minimize penalties. For the house sale year specifically - if it was his primary residence and he lived there 2 of the last 5 years, he might qualify for the capital gains exclusion (up to $250k for single filers), which could simplify things significantly. Many CPAs handle basic home sales regularly, so don't feel like you need a specialist unless the situation is truly complex. One last tip: if money is really tight, your cousin can always file the returns himself using tax software and then hire a professional later for amendments if needed. Getting something filed stops the failure-to-file penalties, which are usually much steeper than any accuracy issues.