Anyone know what happens if you DO erroneously report a 1099-Q trustee transfer on your tax return? My accountant included mine last year before I realized it wasn't necessary. Should I file an amended return?

Just went through this exact same situation! I was panicking when I saw Box 6 checked on my 1099-Q forms after doing trustee-to-trustee transfers between 529 plans. Called my tax preparer and she confirmed what everyone else is saying here - these forms don't need to be reported on your tax return at all. The key thing to remember is that Box 4 being marked as "Trustee to Trustee Transfer" is what matters. That tells the IRS (and you) that this wasn't a taxable distribution. Box 6 being checked is just a quirk of how the form works - since technically Fidelity received the funds, not your children. I kept copies of the forms in my tax records folder, but didn't enter them into my tax software. Filed my return normally and everything went smoothly. Don't stress about it - you're handling it correctly by questioning it, but there's really nothing you need to do!

If you're still having trouble with the MS website, try clearing your browser cache and cookies first. Also make sure you're entering the refund amount exactly as it appears on your return - even being off by a dollar will cause it to not find your info. I had the same issue last year and that fixed it for me.

Another thing to check - if you amended your return or there were any corrections, that can delay processing significantly. Mississippi doesn't always update their system to show amended returns are being processed. I'd also recommend keeping copies of everything you submitted, especially if you filed by mail. Their processing center sometimes "loses" paperwork and you'll need to refile. Been through this nightmare twice now!

I'm dealing with a very similar situation right now! My 2023 refund has been stuck with 570/971 codes because I apparently never filed my 2020 return (completely forgot about it during the pandemic chaos). I got the CP63 notice last month and immediately prepared and mailed in my missing 2020 return to the address they specified. It's been about 3 weeks since I sent it in and I'm still seeing the PATH Act message on WMR, so I'm really encouraged to hear that yours changed to "being processed"! That gives me hope that mine might update soon too. From reading all these comments, it sounds like the processing message change is definitely a positive indicator that they received your documentation and are working on it. Really hoping both of our situations resolve quickly - this whole process is so stressful when you're counting on that refund money. Thanks for posting about your experience, it helps to know others are going through the same thing! 🤞

I went through almost the exact same thing! Had 570/971 codes holding up my 2022 refund because I never filed my 2019 return. The WMR message change you're seeing is definitely a great sign - that's exactly what happened for me about 2 weeks after I faxed in my missing return. From my experience, once you see that "being processed" message, you're probably looking at another 3-4 weeks before the refund actually hits your account. Keep checking your transcript weekly for code 571 (which will release the 570 hold) and then code 846 with your actual refund date. The 846 date was spot-on accurate for when my money was deposited. The whole process took about 6 weeks total from when I faxed my old return to getting my refund, but the hardest part is behind you now. The fact that they updated your status so quickly after you submitted your 2018 return shows they received it and are actively working on your case. Hang in there - you should see those transcript codes update soon!

Make sure the current owners understand the tax implications for THEM too! When they gift you equity, they might face gift tax consequences if the value exceeds the annual exclusion amount ($17,000 per person for 2023). If they're truly gifting it (not as compensation), they'll need to file gift tax returns, and it will count against their lifetime exemption. This could affect their estate planning. Worth having a conversation about who bears what tax burden in this transaction.

Be very careful about the distinction between a "gift" and compensation for services. Since you're an employee receiving this equity from your employer, the IRS will almost certainly treat this as compensation rather than a true gift, which means it's taxable income at ordinary rates. Given the $1.3M value you mentioned, you could be looking at a tax bill of $400K+ depending on your tax bracket. However, there are several strategies worth exploring: 1. **83(b) Election**: If the equity is subject to vesting, you can elect to pay tax on the current (potentially lower) value rather than when it vests. 2. **Installment Method**: Structure the transfer over multiple years to spread the tax burden. 3. **Company Structure Change**: If you're not already an LLC, consider converting to take advantage of profits interests. 4. **Employer Tax Gross-Up**: Ask if the company can provide additional compensation to cover the tax liability. The key is getting professional help BEFORE accepting the equity. A tax attorney or CPA specializing in business transactions can help structure this properly. Don't rely on online advice alone for a transaction this large - the stakes are too high to get it wrong.

To add some additional context: The American Rescue Plan Act (ARPA) enacted on March 11, 2021 included the provision that excluded up to $10,200 of unemployment compensation per recipient for tax year 2020 only. This was not renewed for subsequent tax years. For tax year 2023, all unemployment compensation is reported on Line 7 of Schedule 1 (Form 1040) and flows to your 1040. Ohio state tax treatment aligns with federal treatment in this case, so the full amount is also taxable on your Ohio IT-1040.

I can see there's been a lot of confusion around this topic, but everyone here is absolutely correct - the unemployment exclusion was only for 2020. As someone who works in tax preparation, I want to emphasize a few key points for anyone else reading this thread: 1. The $10,200 unemployment exclusion was a one-time COVID relief measure that applied ONLY to unemployment received in 2020 2. For 2023 unemployment benefits, report the full amount from Box 1 of your 1099-G 3. If taxes were withheld (Box 4 of the 1099-G), those will be credited toward your tax liability 4. Ohio follows federal tax treatment, so no special state considerations needed @Jordan Walker - you're safe to file now. There's no benefit to waiting, and you might be missing out on getting your refund sooner. The tax software will handle this correctly when you enter your 1099-G information.