I went through this exact same situation a few months ago and completely understand the stress when you really need that refund money! The 5071C letter is actually pretty routine - it just means they need to verify you're really the person who filed the return. I'd definitely recommend trying the ID.me online verification first since it's usually faster. Just make sure you have good lighting for the facial recognition part and all your documents ready (ID, the letter with verification code, your tax return). The whole process took me about 20 minutes. If the online route gives you trouble, don't waste too much time fighting with it. The phone verification works just as well, though you might have to wait longer to get through. After I completed verification, my refund was processed in about 2.5 weeks. The key thing is to verify ASAP because your return is basically frozen until you do this step. Once you verify, the processing timeline starts fresh. Don't stress too much - this is way more common than you'd think and once you get through verification, you should see your money pretty soon after!

I've been through this process twice now and here's my honest take: the 5071C is annoying but not the end of the world. Yes, you absolutely need to verify your identity - ignoring it means no refund ever. For the online route, make sure your phone is fully charged and you have stable internet. The ID.me system can be glitchy and nothing's worse than getting halfway through and having technical issues. I'd also recommend doing it on a computer if possible - the mobile experience isn't great. One thing nobody mentions: after you verify, resist the urge to keep calling the IRS asking for updates. Your case goes into a queue and calling doesn't speed it up, just wastes your time. Most people see their refunds 2-4 weeks after successful verification. Also, if you're really strapped for cash and this is taking too long, look into whether your bank offers refund advance loans. Some will give you money upfront based on your expected refund amount, though there are fees involved. The whole system is frustrating but you'll get through it. Just stay patient and don't let the stress get to you!

Just went through this exact situation. One thing nobody mentioned yet - you might want to contact the annuity company and ask if they can process a "direct transfer" to another annuity instead of taking distributions. Some companies allow this for non-spouse beneficiaries, and it can preserve the tax-deferred status while still meeting the 5-year requirement. I transferred mine to a new annuity that I control, which gives me more investment options than what my grandfather had selected. Still have to take it all out within 5 years, but this way I have more control over when and how.

I'm sorry for your loss, Jay. Dealing with financial decisions while grieving is never easy. Based on what you've shared, I'd strongly recommend the stretch payment approach over the lump sum for several reasons: 1. **Tax bracket management**: Adding $77K to your $65K salary would push you well into higher tax brackets for that year, likely costing you significantly more than spreading it over 5 years. 2. **Time value**: Since you don't need the money immediately and already have stable income plus retirement savings, the stretch gives you time to plan and potentially optimize your overall tax situation each year. 3. **Flexibility**: You can always accelerate distributions in later years if your circumstances change, but you can't undo taking a lump sum. Given that you work for the county, you might also want to check if your employer offers any financial planning services through your benefits package. Many government employers provide access to retirement planning specialists who understand public sector benefits. Also consider maximizing your 457 contributions in the years you're taking distributions to help offset some of the tax impact. The combination of stretch payments plus increased pre-tax retirement contributions could significantly reduce your overall tax burden. Take your time with this decision - you have options and don't need to rush.

I'm going through the exact same thing right now! Got my verification letter about 2 weeks ago and completed the ID.me process immediately. It's so stressful not knowing when to expect the refund, especially when you're counting on that money. Reading through everyone's experiences here, it sounds like it really varies - some people get it in 2-3 weeks, others wait months. I'm going to start checking my transcript weekly like others suggested since that seems to update before the Where's My Refund tool. Thanks for posting this question - it's helpful to know I'm not alone in this frustrating process!

I went through ID verification last year and it took about 5 weeks to get my refund after completing the process. The waiting is absolutely nerve-wracking, especially when you're depending on that money! A few things that helped me stay sane: 1) Check your account transcript every Friday (it updates overnight Thursday-Friday), 2) Don't bother with Where's My Refund - it's always behind, 3) Look for code 846 on your transcript which means refund issued. Once I saw that code, my money was in my account within a week. The IRS says up to 9 weeks but most people I know got theirs between 3-6 weeks. Hang in there - it will come! Just try not to check every single day because that'll drive you crazy.

Has anyone dealt with proving the "unforeseen circumstances" part of this? We're in a similar boat but our move was due to a family health issue, not a job change. We lived in our home for 22 months before having to move to care for an ill parent. Trying to figure out if we qualify for a similar partial exemption.

Just wanted to add one more consideration that I learned the hard way - make sure you understand the timing of when your "2 out of 5 years" period is measured. The IRS looks at the 5-year period ending on the date of sale, not when you moved out. So if you sell in 2024, they look at 2019-2024 to see if you lived there for 2 years during that window. In your case, since you lived there for 18 months and are selling relatively soon after moving, you're clearly within the window. But I've seen people get tripped up thinking the 5-year period starts when they moved out, when it actually ends when they sell. Also, regarding the depreciation recapture that Yuki mentioned - don't forget you can potentially offset some of that with any capital improvements you made to the property while living there. Keep receipts for things like new HVAC, roof repairs, major renovations, etc. Those can be added to your cost basis and reduce your overall taxable gain. Good luck with the sale! Sounds like you've got a solid case for the partial exemption.

I'm going through the exact same thing right now! Got my 5071C letter in early October, completed ID verification through ID.me about 2.5 weeks ago, and I'm also stuck on that dreaded "processing" status. It's honestly driving me insane not knowing when to expect my refund. Reading through everyone's experiences here has been both helpful and anxiety-inducing - the timeline seems to vary so wildly from 4 weeks to 4+ months! I'm definitely going to check my transcript once I can access it and look for those status codes everyone keeps mentioning (570, 571, 846). The waiting is absolutely brutal, especially when you're counting on that money. But it's somewhat comforting to know so many others are in the same boat. At least we got through the ID verification part which seems to be the biggest hurdle. Fingers crossed we're all on the shorter end of that timeline! Has anyone found that calling actually helps speed things up, or is it just a waste of time trying to get through to them?

I'm dealing with this exact situation right now too! Got my 5071C letter in mid-September and completed ID verification through ID.me about 3 weeks ago. Still stuck on the "processing" status and it's so frustrating not having a clear timeline. From reading everyone's experiences here, it sounds like 6-9 weeks after verification is pretty standard, though some people have waited much longer. The transcript checking seems to be key - I'm counting down the days until I can access mine and look for those status codes (570, 571, 846) that everyone mentioned. One thing that's been helpful from this thread is learning that the WMR tool is basically useless during this phase. At least knowing that saves me from obsessively checking it every day! I'm also considering trying that taxr.ai service once I can access my transcript, since it sounds like it explains everything in plain English rather than cryptic IRS codes. The waiting is absolutely brutal when you're counting on that money, but it's reassuring to see so many others going through the same thing. We'll get through this eventually!