One additional resource that might be helpful is the SEC's EDGAR database. You can search for IBM's Form 8-K filings from late 2021 which should contain the official details about the Kyndryl spin-off, including the exact distribution ratio and valuation methods used. I had a similar issue with a Verizon/Frontier spin-off a few years ago, and finding the original SEC filing gave me the definitive documentation I needed to convince my broker to make the corrections. The Form 8-K will typically include a section called "Material Agreement" or "Other Events" that describes the distribution terms in detail. Also, if you're still having trouble after trying all the excellent suggestions here, consider filing a complaint with FINRA if Fidelity refuses to correct obviously incorrect cost basis information. Brokers are required to maintain accurate records, and persistent refusal to fix clear errors can sometimes prompt faster resolution when regulatory pressure is involved. The key is being prepared with multiple sources of official documentation - the Kyndryl website allocation info, IBM's SEC filings, and any IRS forms the companies filed. Having that comprehensive paper trail makes it very difficult for a brokerage to claim the correction isn't warranted.

I just wanted to thank everyone who contributed to this thread - the collective knowledge shared here is absolutely incredible! As someone who was completely overwhelmed by this IBM/KD cost basis issue when I first posted, I now feel like I have a comprehensive roadmap for getting it resolved. The step-by-step guidance from folks who've been through the exact same situation, the professional insights from the CPA, the practical tips about timing calls to Fidelity, and the additional resources like SEC filings - this is exactly the kind of detailed, actionable advice that makes online communities so valuable. I'm planning to tackle this systematically using the approach outlined here: gather all the official documentation (IBM's spin-off materials, SEC Form 8-K, Form 8937 if available), create a detailed spreadsheet showing my original purchases and the proper 96%/4% allocation, then call Fidelity's cost basis department during off-peak hours and ask specifically about corporate action notifications for the IBM/KD spin-off. I'll definitely follow up in this thread once I get it resolved to let others know how it goes. Based on everyone's experiences, it sounds like persistence and having the right documentation should do the trick, but knowing about the FINRA complaint option as a backup is reassuring too. Thanks again to this amazing community for turning what felt like an impossible problem into a manageable process with clear next steps!

You're dealing with a really frustrating situation that goes beyond just tax filing - this is about fundamental financial responsibility and fairness in your marriage. From a purely tax perspective, filing separately would likely cost you both significantly more money. You'd face higher tax rates, lose access to many credits (potentially including the full Child Tax Credit), and miss out on the higher standard deduction for joint filers. The math usually shows couples paying $2,000-$5,000+ more annually by filing separately. But here's the thing - sometimes protecting your financial sanity is worth paying extra for. If your husband continues to refuse reasonable solutions like adjusting his W-4 or setting aside money monthly for taxes, then filing separately might be your way of establishing clear financial boundaries. You'd be saying "your tax choices are your responsibility" rather than enabling this pattern year after year. Before making that decision though, I'd suggest one final conversation with concrete numbers. Calculate exactly what filing separately would cost you both, then present it as: "We can either save $X by filing jointly with these conditions (proper withholding or monthly tax savings), or we can file separately and you handle your own tax debt." Sometimes seeing the real financial impact of their choices helps people understand the consequences. The bottom line is you shouldn't have to subsidize his poor financial planning indefinitely, regardless of which filing status you choose.

I've been through a very similar situation and want to share what actually worked for us. My spouse was also deliberately underwithholding, and I was getting tired of covering their tax debt every year while being responsible with my own withholdings. Here's what I learned: Filing separately is expensive but sometimes necessary for establishing boundaries. We actually did file separately for two years, and yes, it cost us about $3,200 more annually in taxes. But it was worth every penny because it forced my spouse to face the real consequences of their underwithholding choices. The key was being completely transparent about the decision. I showed them the math - "Joint filing saves us $3,200, but I'm not willing to subsidize your poor tax planning anymore. So we can either file jointly with you properly adjusting your W-4 and setting aside monthly tax money, or we file separately and you handle your own $7,000+ tax bill." After two years of paying significantly more in taxes AND dealing with their own large tax debt, they finally adjusted their withholdings. Now we file jointly again, but with clear agreements about tax responsibility. Sometimes you have to be willing to pay extra to establish healthy financial boundaries. The resentment from constantly bailing out a financially irresponsible spouse isn't worth the tax savings.

As someone who's also new to this community and dealing with IRS correspondence for the first time, I really appreciate how thoroughly everyone explained this situation! I'm 66 and will be filing my first tax return that includes Social Security benefits next year, so this whole thread has been like a masterclass in what to expect. The fact that TurboTax automatically switches to the 1040SR form for seniors is something I had no idea about. And knowing that CP12 notices are common for first-time Social Security filers actually makes me feel less anxious about potentially receiving one myself. One question for those with experience - is there a way to double-check the Social Security benefits calculation before filing to avoid these adjustments? Or is it just one of those things where you have to be extra careful with data entry and hope for the best?

As a newcomer to this community, I want to thank everyone for this incredibly detailed discussion! I'm 69 and have been receiving Social Security for a few years now, but I've been fortunate enough to avoid any IRS notices until recently. Reading through this thread helped me understand that my own CP12 notice (which I was panicking about) is actually pretty standard. Like the original poster, mine showed a zero balance after they adjusted my Social Security benefits calculation. I was so confused by the letter's wording, but seeing how common this is among seniors filing the 1040SR has put my mind at ease. The advice about keeping the SSA-1099 handy and reviewing Publication 915 is something I wish I'd known earlier. I've been relying entirely on TurboTax without double-checking the Social Security calculations myself. Definitely going to be more proactive about that going forward! It's reassuring to find a community where people take the time to explain these confusing tax situations in plain English. Looking forward to contributing more as I learn!

Don't you all realize you can just check your credit report? It should show both loan servicers and you can see the balance transfer date. Then use your bank statements to see what payments you made to Mohela before the transfer date.

I went through this exact same nightmare with Mohela last year! Here's what finally worked for me: Try calling Mohela super early in the morning (like 7-8 AM) when their call volume is lowest. I got through in about 15 minutes versus the 2+ hours I was waiting during normal business hours. When you do get through, ask them to email you the 1098-E directly - don't rely on mail. They can usually do this immediately while you're on the phone. If that still doesn't work, you can absolutely use your bank statements to calculate the interest. The IRS is fine with this approach. Look for any monthly statements or payment confirmations you might have saved that show the principal/interest breakdown. Also, double-check your tax software or tax preparer - sometimes they can help you estimate the interest based on your loan balance and interest rate if you have that information. The student loan interest deduction is too valuable to miss out on, so don't give up!

As someone who's been through this exact same confusion, I can definitely confirm that your tax preparer was misleading you! When you file your taxes on 1099-NEC income and pay self-employment tax, you ARE absolutely contributing to Social Security. Here's what's happening: You pay 15.3% in self-employment tax (12.4% for Social Security + 2.9% for Medicare) on your net contractor earnings. This is equivalent to both the employee and employer portions that W-2 workers and their companies pay separately. The Social Security Administration tracks these contributions just like they would for traditional employment. You don't need an EIN or any special payroll setup to contribute to Social Security as a contractor. That tax preparer was likely trying to pitch you on S-Corp services that you probably don't need at your income level - those typically only make sense when you're earning $80K+ and want to potentially reduce some self-employment taxes. My advice: Keep doing exactly what you've been doing with Schedule C and Schedule SE. Your Social Security credits are being properly earned and recorded. If you want peace of mind, create an account at ssa.gov to review your earnings history and confirm your 1099 income is being credited correctly. Don't let pushy preparers convince you that the standard, correct approach is somehow inadequate!

I'm dealing with a very similar situation right now! I've been contracting with our local community college for two years, receiving 1099-NECs, and just had a consultation with a tax preparer who told me almost the exact same thing - that I wasn't contributing to Social Security and needed to set up payroll services through his company. Reading through all these responses has been incredibly eye-opening. I had no idea that the self-employment tax I've been paying (which honestly felt like a huge burden at 15.3%) was actually my Social Security and Medicare contributions. The tax preparer made it sound like that money was just disappearing into some void! I'm definitely going to check my SSA account online to make sure my contractor earnings are being properly recorded. It's frustrating that tax preparers would try to confuse people about something so fundamental just to sell additional services. Thanks to everyone who shared their experiences - this thread probably saved me from making an expensive mistake! Has anyone else noticed that some tax preparers seem to deliberately make the 1099 process sound more complicated than it actually is?