This happens literally every year with retirement accounts. Brokerages NEVER have the 5498 forms ready by tax time because they have until May 31 to issue them. It's annoying but normal. The good news is that for Roth IRAs you don't need to report the contributions on your tax return anyway!

This is exactly why I always tell people to keep a separate folder for retirement account forms! Form 5498 is one of those "late arrivals" that shows up after you've already filed, but as others have mentioned, it's purely informational for Roth IRAs since the contributions don't affect your current year taxes. One thing I'd add - make sure to keep that 5498 in a safe place because it documents your contribution basis. This becomes important years down the road if you ever need to withdraw contributions early (you can withdraw Roth contributions penalty-free, but you need records to prove how much you contributed vs. how much is earnings). I learned this the hard way when I needed documentation for an early withdrawal and had to track down old forms from multiple years! The timing issue with these forms is frustrating but totally normal. Custodians have until May 31st to send them out, so they rarely make it in time for early filers.

Have you checked if you accidentally included Form 8949 with basis not reported to IRS? I had this same error and it turned out I had checked the wrong box for some stock sales, indicating the basis wasn't reported to the IRS when it actually was. TurboTax is really bad about explaining which specific forms are causing e-file issues. Sometimes it helps to go through your return using the Forms view rather than the interview format to spot issues.

I've been following this thread and wanted to share another common cause of e-filing rejections that hasn't been mentioned yet - Form 1116 for foreign tax credits. Even if you don't think you have foreign income, sometimes investment accounts or mutual funds generate small amounts of foreign tax that create this form automatically. Also check if you have any estimated tax payments (Form 1040ES) that might have been entered incorrectly. If the payment dates or amounts don't match what the IRS has on record, it can trigger an e-file rejection. One more thing to try: in TurboTax, go to Federal Taxes > Wages & Income > Show All Income, then look for any items marked with warning triangles or error indicators. Sometimes there are validation issues that only show up in this summary view, not during the regular interview process. If all else fails, you might need to temporarily remove sections of your return one by one and try to e-file after each removal to isolate which specific area is causing the problem. It's tedious but often the only way to identify the culprit when TurboTax won't tell you directly.

Has anyone calculated how much money you lose by getting a huge refund like this? I mean $22k sitting with the IRS for a year instead of in your pocket is a serious opportunity cost.

The $22k refund is definitely a sign of significant overwithholding! Based on what you've shared, the most likely culprit is that both you and your spouse selected "Married Filing Jointly" on your W4s without accounting for having two incomes. Here's what probably happened: The withholding tables assume when you check "Married Filing Jointly" that you're the primary or only earner. When both spouses do this, you end up withholding as if each income is taxed at lower brackets, but when you file jointly, your combined income pushes you into higher tax brackets - creating a massive overwithholding situation. Quick fixes to try: 1. Both of you should check box 2(c) on new W4s ("If there are only two jobs total, you may check this box") 2. Stop that extra $175/paycheck your spouse is withholding 3. Consider using the IRS withholding estimator to fine-tune You'll want to submit updated W4s ASAP since you're essentially giving the government an interest-free loan on $22k. At current savings rates, that's nearly $1,000 in lost opportunity cost per year!

Just want to add that you should also look into the Child and Dependent Care Credit if you're paying for childcare while working! It's separate from the Child Tax Credit and can give you additional savings. With your income level, you might qualify for a higher percentage of your childcare costs back. Worth checking out when you file!

Just wanted to chime in as someone who's been through this! With your $12k income and two kids, you're definitely in good shape for tax credits. Like others mentioned, you'll get the $1,800 refundable portion per kid through the Additional Child Tax Credit, plus you should absolutely look into the Earned Income Tax Credit (EITC) - that could be another $3,000+ depending on your exact situation. Also don't sleep on filing early! The IRS usually starts accepting returns in late January, and getting your refund sooner rather than later can make a huge difference when you're working part-time. Good luck! 💪

I faced this exact scenario in 2022 and can confirm your understanding is correct. The timing that matters is when you originally took out the mortgage, not when it was canceled or forgiven. In my case, I had purchased the home in 2019 as my primary residence with a conventional mortgage. Due to job relocation, I moved out in 2021 and started renting it out. When I went through a short sale in 2022, I was worried the $45,000 in forgiven debt wouldn't qualify for QPRI exclusion since it was no longer my main home. However, after consulting with a tax professional and reviewing IRS Publication 4681, it was clear that the debt qualified because the home WAS my principal residence when I acquired the mortgage. The exclusion applied in full. Keep your original loan documents and any evidence showing the property was your main home when you took out the mortgage (utility bills, voter registration, etc.). The IRS may request this documentation to verify the original qualification. Also remember that if you've claimed depreciation on the property while it was a rental, you may need to recapture some of that depreciation, but that's a separate issue from the QPRI exclusion.

I went through this exact situation last year and can add some perspective to what others have shared. My mortgage originated in 2019 when the property was definitely my primary residence, but I had to move for work in 2021. When the lender canceled about $67,000 in debt through a deed-in-lieu in 2023, I was initially panicked thinking I'd owe taxes on the full amount. After working with a tax professional, we confirmed that the debt absolutely qualified for QPRI exclusion. The critical factor is that acquisition indebtedness test - the loan was used to purchase what was my main home at the time of origination. One thing I'd add that hasn't been mentioned: make sure you understand the basis reduction requirements that come with claiming the QPRI exclusion. When you exclude canceled debt from income under QPRI, you generally have to reduce your basis in the property by the amount excluded (though since the property was likely sold/foreclosed, this may not be relevant in your case). Also, keep excellent records. I kept copies of my original loan application, purchase contract, utility bills from when I lived there, and voter registration records from that time period. The IRS never asked for them, but having that documentation gave me peace of mind that I could prove it was my principal residence when I took out the mortgage.