My tax guy told me that when you have a 1099-R with code J, you should also include a statement with your tax return explaining the situation. He said its not technically required but can help prevent questions from the IRS later. Has anyone else been advised to do this?

I went through this exact situation last year with a 1099-R code J for an excess Roth contribution removal. Everyone's advice here is spot on - you'll report the full amount on line 4a and $0 on line 4b since it's just returning your already-taxed contribution. The most important thing that some tax software misses is Form 5329. You absolutely need to file this form to report the 6% excise tax for both 2022 and 2023. TurboTax should prompt you for this when you indicate it was an excess contribution removal, but double-check that it's including Form 5329 in your filing package. Also, don't worry about box 2b being checked - that's completely normal for this type of distribution. The brokerage is basically saying "we're not making the taxability determination, that's between you and the IRS," which is standard practice for excess contribution removals. Keep all your documentation from Vanguard showing the removal request and confirmation, plus records of the excise tax payments. This will be helpful if there are any questions later.

Has anyone here actually had their NOL challenged by the IRS? I'm worried about carrying forward my losses properly.

This is such a common source of confusion! I went through the exact same thing last year with my construction business. The key thing to remember is that for tax purposes, NOL is calculated from your bottom-line taxable income - meaning AFTER all legitimate business deductions including mortgage interest. In your example, you're absolutely correct that you'd have a $1300 NOL in year 1, and you'd carry forward $1040 (80% of $1300) to offset year 2's income. So you'd only owe taxes on $60 in year 2. The confusion often comes from mixing up accounting terminology (operating income) with tax terminology (taxable income). For IRS purposes, it's always about your final taxable income after ALL deductions. One tip: make sure you're tracking your NOL carryforward amounts carefully each year. I use a simple spreadsheet that shows the original NOL, how much I've used each year, and what's remaining. The IRS loves documentation if they ever question it.

Has anyone actually received their amended return refund recently? I filed a 1040X for 2021 back in August 2023 and still nothing. The "Where's My Amended Return" tool just says it's been received.

One thing I learned the hard way with my amendment last year - make sure you double-check all your math on the 1040X, especially in columns A, B, and C. I made a calculation error that caused a 3-month delay while they sent me a notice asking for clarification. Also, since you mentioned your tax liability isn't changing, make sure you write a clear explanation in Part III about what you're correcting and why. Something like "Correcting Form 8606 reporting for 1099-R distribution - no change to tax owed." The clearer your explanation, the less likely they are to have follow-up questions that slow down processing. Good luck with your amendment! At least you caught the error and are fixing it properly.

Don't forget about YouTube! There are some excellent tax professionals who share really detailed training videos for free. TaxFactor channel has helped me understand so many concepts, and The Enrolled Agent's channel breaks down complex topics really well. Obviously not as structured as a formal course, but great for supplementing whatever program you choose!

Great thread! I just wanted to add that if you're considering the EA route eventually, don't overlook the IRS's own Enrolled Agent Special Enrollment Examination (SEE) materials. They're completely free and available on the IRS website. While they're not structured like a traditional course, they're the actual source material for the exam and incredibly comprehensive. I used them alongside a paid prep course and found the IRS materials actually explained some concepts more clearly than my expensive course did. The Circular 230 regulations and Publication 17 are goldmines for understanding the fundamentals. Also, once you get started with any program, consider joining local tax professional groups or chapters. The networking and continuing education opportunities are invaluable, plus you'll meet people who can mentor you as you're learning. Many of these groups offer monthly meetings with educational sessions that are either free or very low cost for new members.

Honestly, podcasts have been my favorite way to learn! I listen to "Money Girl" and "Taxgirl" on my commute. They explain complicated tax concepts in everyday language and keep you updated on changes.

As someone who was completely overwhelmed by taxes when I started working, I found that combining multiple learning approaches worked best for me. Start with the IRS's free "Understanding Taxes" online modules - they're actually pretty well designed for beginners and cover the fundamentals without being too dry. What really helped me was creating a simple spreadsheet to track different tax concepts as I learned them. For example, I'd note down what each box on my W-2 meant, common deductions I might qualify for, and how tax brackets actually work (spoiler: it's not as scary as it sounds!). Also, don't underestimate the value of going through last year's tax return line by line, even if someone else prepared it. Understanding what happened with your own taxes is often the best way to learn the practical side of things. You can use tax software to "practice file" your previous year's return and see how different scenarios would change your outcome. The key is starting simple and building up your knowledge gradually. You don't need to become a tax expert overnight!