Has anyone used TurboTax Self-Employed for this kind of situation? I'm wondering if it handles the Schedule C and depreciation calculations correctly for computer equipment.

One thing to keep in mind is that business losses from Schedule C can only offset other income (like your W-2) up to your basis in the business. Since you're a sole proprietor, this usually isn't an issue, but it's worth noting. Also, regarding the computer depreciation question - since you bought the parts separately, you could technically treat each component as a separate asset if you want to maximize current deductions. Any single component under $2,500 can be expensed immediately under the de minimis rule, assuming your business doesn't have an applicable financial statement. However, from a practical standpoint, treating the assembled computer as one asset and using Section 179 to expense the full amount immediately might be simpler for record-keeping. Just make sure you can document that it's used more than 50% for business purposes since computers are considered "listed property" by the IRS. Keep detailed records of your business use percentage and consider taking photos of your setup with timestamps to support your deduction if questioned later.

Are you sure you calculated your excess SS tax correctly? The limit is only on the amount of wages subject to SS tax, not the actual tax amount itself. For 2024, the wage base limit was $168,600. If your combined wages from both jobs exceeded that amount, then you would be entitled to a refund of the excess SS tax. But if your total wages were under that limit, you wouldn't be entitled to any excess SS tax refund.

I went through this exact same situation two years ago with multiple employers. The IRS verification process for excess Social Security tax claims is pretty standard - they just want to make sure the math checks out. Your calculation looks spot on. The key thing to remember is that each employer withholds Social Security tax independently without knowing what other employers have withheld from you during the year. So even though your total wages might be well below the $168,600 limit, you can still end up with excess withholding. When you respond to their letter, make sure to include: 1. Copies of both W-2s (not originals) 2. A simple calculation showing the excess like you did here 3. Your SSN written on every page 4. A copy of their letter Send it certified mail so you have proof of delivery. In my experience, once they see the W-2s, they process the refund pretty quickly. This is definitely not audit territory - just routine verification. Don't stress about it!

This is such a comprehensive discussion! I'm learning so much from everyone's experiences. I have a slightly different angle to add - we have twins born in 2019 and opened separate 529 accounts for each of them. One thing I'm wondering about is whether the $35,000 lifetime rollover limit applies per beneficiary or per account owner. Since we're the owners of both accounts but they have different beneficiaries, I'm hoping each child would get their own $35,000 limit when they're older. Also, has anyone considered how this might affect financial aid calculations? I know 529 accounts owned by parents are assessed at a lower rate than student assets for FAFSA purposes. But once funds are rolled into the student's Roth IRA, those become student assets. For families who might be eligible for need-based aid, this could be an important factor in timing these rollovers - maybe it makes sense to wait until after college when financial aid is no longer a consideration? The strategic possibilities are really interesting, but there are so many variables to consider!

This has been such an educational thread! As a newcomer to the community, I'm amazed by how much collective knowledge everyone has shared about these new 529-to-Roth rollover rules. I'm in a similar boat with a 2-year-old daughter and have been contributing to her Illinois 529 for about 18 months now. Reading through all these comments, I'm realizing I need to think much more strategically about this than I initially planned. A few things that really stood out to me from this discussion: - The importance of starting the 529 early to get that 15-year clock running - The earned income requirement meaning we'll need to wait until she has a job as a teenager/young adult - The potential FAFSA implications that @Lena Kowalski mentioned - I hadn't considered how timing rollovers could affect financial aid eligibility One question I have that I didn't see addressed: if my daughter ends up going to graduate school or professional school (like medical or law school), would it make sense to delay rollovers until after all her education is complete? Or are there scenarios where doing a partial rollover during graduate school years might be beneficial? Also wondering if anyone has thoughts on how inflation might affect that $35,000 lifetime limit over the next 15-20 years. Seems like that amount might not go as far by the time our young kids are adults! Thanks to everyone for sharing such detailed insights - this community is incredibly helpful for navigating these complex financial decisions.

I'm going through the exact same thing right now! Filed in early February and got the verification notice about 3 weeks ago. Still no letter and I'm getting really anxious about it. Reading through all these responses is both helpful and terrifying - sounds like this is a widespread issue with their system this year. I'm definitely going to try the 7 AM calling strategy that several people mentioned. Also thinking about scheduling a TAC appointment as backup since it seems like talking to an actual person is the key to getting this resolved. The idea about contacting my congressional representative is interesting too - never thought that was an option for tax issues. Really hoping we both get this sorted out soon. $4,200 is a lot of money to have tied up in IRS limbo! Keep us posted on what works for you.

I'm dealing with almost the identical situation! Filed in mid-March and got the verification notice about 4 weeks ago. Still waiting for that letter and checking the mailbox obsessively every day. It's so frustrating when you need that refund money but feel completely powerless in this process. Reading through everyone's experiences here has been really eye-opening - sounds like the verification letter system is having major problems this year. I'm definitely going to try the 7 AM calling strategy that multiple people have mentioned worked for them. Also looking into scheduling a TAC appointment since it seems like getting to talk to an actual human is the key. The congressional representative suggestion is something I never would have thought of - had no idea that was even an option for tax issues! Might be worth exploring if the other methods don't work out. Thanks to everyone sharing their experiences and advice. It's oddly comforting to know we're all in this together dealing with the IRS chaos. Hoping we all get our refunds soon! 🤞

Just a quick tip from someone who processes these requests at a financial institution - call your broker immediately rather than submitting online if possible. Explain that you're bumping up against the deadline and ask if there's any way to expedite. Sometimes we can push these through faster when there's a legitimate time crunch like a tax deadline. No guarantees, but it's worth asking! The phone rep might also be able to help you prepare everything correctly so it doesn't get delayed by errors.

I've been through a similar situation and wanted to share what worked for me. First, definitely file that extension (Form 4868) TODAY - you can do it online through the IRS website in about 10 minutes. This buys you until October 15th. Here's what I learned the hard way: even though your broker says 10 days, call them directly and explain you're facing a tax penalty deadline. Many brokers can expedite excess contribution removals when there's a legitimate time crunch. When you call, use the exact phrase "removal of excess contribution plus associated earnings for tax year 2023" - this ensures they code it correctly. Also, don't stress too much about the earnings calculation - your broker handles that automatically based on your account performance since the contribution date. Once you get the extension filed, you'll have plenty of time to complete the withdrawal and file the necessary forms (you'll need Form 5329 with your return to document the correction). The key is getting that extension filed immediately to stop the clock on the penalty deadline!