OP, I think you need to check if your tax software correctly classified your Traditional IRA contribution as non-deductible. At your income level with a workplace plan, you're definitely above the deduction phaseout limits. What should happen is: 1. Your capital loss of $3k reduces your taxable income by $3k 2. Your Traditional IRA contribution should be classified as non-deductible 3. You should file Form 8606 to track your non-deductible contributions The $700 reduction in tax due is roughly consistent with just the $3k capital loss deduction at your tax bracket. You're probably not getting any deduction for the IRA contribution, which is correct based on your income.

Has anyone used the "What-If" scenario feature in tax software to see how different retirement contributions affect your tax outcome? I always run these before finalizing my return.

Quick tip from a tax preparer: If you receive a 1099-K that includes personal transfers, make sure you keep a "contemporaneous log" of your business income. Basically, track tips as you receive them in a notebook or app - date, amount, and maybe client first name (for privacy). This real-time tracking is MUCH stronger evidence than trying to sort it out later. If you're ever audited, having records you created at the time of the transactions will be viewed much more favorably than a spreadsheet you made right before filing taxes.

As someone who went through this exact situation last year, I can't stress enough how important it is to start organizing your records NOW rather than waiting until tax time. The 1099-K will show the gross amount, and you'll need to be able to justify which portions aren't taxable income. One thing I learned the hard way: Venmo's transaction descriptions can be super helpful for sorting business vs personal. Look for patterns - your massage clients probably use words like "tip," "service," or "massage" in their payment notes, while personal transactions might say things like "dinner," "rent," or just be emoji. Also, don't panic about hiring an accountant immediately. Try going through your transactions yourself first using the export feature, and if you get overwhelmed or your situation is more complex than expected, then consider professional help. Many tax preparers are familiar with this 1099-K mess now since it's affecting so many people. The key is documentation - keep everything showing how you determined what was business income versus personal transfers. Screenshots, spreadsheets, notes about regular clients, anything that shows your reasoning was legitimate and not just trying to avoid taxes.

Here's exactly what you need to do with your cycle code situation: 1. First, understand that 20250705 breaks down as: 2025 (IRS fiscal year) + 07 (7th week of processing) + 05 (Thursday processing day) 2. Next, check your account transcript for TC 846 code - this is your refund code 3. If you see TC 846, note the date next to it - that's your scheduled deposit date 4. If no TC 846 yet but you see TC 150 (return filed), you're in normal processing 5. Check again next Thursday morning as Thursday cycle codes typically update weekly Your W2 information is on a separate transcript and doesn't affect refund timing. With tuition due May 15th, you should have your refund well before then based on current processing times.

I understand your anxiety about the timing with tuition due May 15th! The good news is that cycle code 20250705 is actually a positive indicator - it means your return has been processed and assigned to the Thursday update cycle (that's what the "05" means). Since you filed March 1st and are seeing this update on April 12th, you're well within normal processing timeframes. The missing W2 information you mentioned is likely on your Wage & Income transcript rather than your Account transcript - these are separate documents that update at different times. I'd recommend checking your transcript again next Thursday morning, as that's when Thursday cycle codes typically get their next update. Based on the timing patterns others have shared here, you should definitely have your refund well before your May 15th tuition deadline. Hang in there!

One thing nobody's mentioned - if you carried back your 1256 losses, make sure you ALSO adjust your state tax return if your state bases income on your federal AGI. I forgot to do this and ended up getting a notice from my state tax authority about a discrepancy.

For anyone still struggling with 1256 contract loss carrybacks, I want to emphasize the importance of timing your election properly. You must make the section 1212(c) election by the due date (including extensions) of the return for the loss year - in your case, that would be the due date for your 2023 return. If you missed this deadline, you can't carry back the losses even if everything else is correct. This is a strict requirement that trips up a lot of people. The IRS won't accept a late carryback election even if you file an amended return later. Also, remember that you can only carry back losses to years where you had section 1256 contract gains OR other income. If 2022 was a loss year for you overall, the carryback might not provide any benefit and you'd be better off carrying the losses forward instead. Make sure to keep detailed records of all your SPX options trades, including the specific contract months and strike prices, as the IRS may request this information during their review process.

One thing nobody mentioned - check box 12 on your W-2 for code DD. If you see that, it shows the total cost of your employer-sponsored health coverage. This includes BOTH what your employer paid AND what you paid. This amount is just informational and not taxable. Most people don't realize their employer often pays a lot more than they do for health insurance. My DD amount was like $18,500 even though I only contributed about $3,600 myself through payroll!

Don't forget that if you're self-employed (which doesn't sound like your case, but for others reading), health insurance premiums ARE deductible as an adjustment to income (above-the-line deduction). I'm a freelancer and deduct 100% of my premiums without having to itemize. It's one of the few perks of self-employment lol.