Does anyone know if there's still time to make an IRA contribution for 2025? I haven't started my taxes yet but I'd like to reduce my tax bill if possible.

This is such a helpful thread! I was in the exact same boat last year trying to figure out the difference between 401k and IRA deductions. One thing that really helped me was keeping track of all my retirement contributions throughout the year in a simple spreadsheet. I record my 401k contributions from each paycheck (which I can see on my pay stub) and any separate IRA contributions I make. When tax time comes around, I can quickly reference this to see what I contributed where. For your 401k, you're right that it's already handled through payroll - you'll see the total amount in Box 12 of your W-2 with code "D" for traditional 401k contributions or "AA" for Roth. But like others mentioned, the traditional contributions already reduced your taxable income in Box 1, so no additional deduction needed. For your $2,500 IRA contribution, definitely check those income limits Sofia mentioned before claiming the deduction. If you're close to the phase-out ranges, you might want to consider making it a Roth IRA contribution instead since those don't have the same deduction restrictions (though they do have income limits for eligibility).

I'm in a similar situation - verified through ID.me about 5 weeks ago and still no movement on my transcript. The waiting is really stressful, especially when you need the money for important expenses like your medical bills. From reading everyone's experiences here, it sounds like the timeline is all over the place - some people get updates in 3-4 weeks, others wait 2-3 months or more. One thing that's helped me stay sane is checking my transcript on Wednesdays and Fridays like someone mentioned earlier, rather than obsessing over it daily. I've also been keeping a log of when I verified and any updates so I can track the timeline better. The hardest part is not knowing if there's an issue or if it's just sitting in a queue somewhere. But seeing all these success stories gives me hope that movement will happen eventually. Hang in there - you're definitely not alone in this frustrating process!

I'm in a very similar situation - verified through ID.me about 6 weeks ago after my return was flagged, and still seeing absolutely no movement on my transcript. The agent told me the same thing about it being processed but no timeline. It's so frustrating not knowing if there's an actual issue or if it's just sitting in some digital pile somewhere. What's really getting to me is that I filed in early March, so we're looking at almost 6 months total now. I've been following the Wednesday/Friday checking schedule that others mentioned, which has helped my sanity a bit compared to checking daily. Has anyone here had success calling the IRS after verification to get an update? I'm wondering if it's worth trying to get through to someone or if they'll just tell me to keep waiting. The uncertainty is almost worse than just knowing it would take X amount of time. Really hoping we all see movement soon - this whole process has been such a nightmare this year!

Has anyone ran the actual numbers on this? I did some calculations and found that even with the higher ordinary income tax rates, the traditional 401k still came out ahead of taxable accounts in most scenarios I tested. The immediate tax deduction and decades of compounding on a larger starting amount (because of that deduction) created such a big advantage that it usually overcame the ordinary income tax treatment at the end.

You're asking the right questions, but I think you're underestimating the power of tax-deferred compounding. Here's what changed my mind: when you get that upfront tax deduction, you're essentially investing with Uncle Sam's money too. Let's say you're in the 24% bracket and contribute $6,000 to a traditional IRA. You save $1,440 in taxes, so your actual out-of-pocket is only $4,560. But the full $6,000 is working for you in the market. Over 30 years at 7% growth, that $6,000 becomes about $45,600. If you instead put that same $4,560 out-of-pocket into a taxable account (to make it apples-to-apples), it would only grow to about $34,700 at 7%. Even if you paid 22% ordinary income tax on the entire $45,600 withdrawal, you'd still net $35,568 - more than the taxable account. The math gets even better if you're disciplined enough to invest that annual tax savings too. The key insight is that traditional accounts let you invest with pre-tax dollars while taxable accounts force you to invest with after-tax dollars. That said, tax diversification is still smart - having some of each gives you flexibility to manage your tax brackets in retirement.

I think I might have been in a somewhat similar situation last year? My refund had an offset for child support (probably not your situation, but the process is basically the same I believe). I sort of expected to be able to check the offset immediately, but it actually took about 5 or 6 days after my deposit date before it showed up when I called that number. The remaining portion of my refund did come on the correct day though, so that was nice I guess. Just be prepared to wait a bit before you can confirm all the details.

I went through this exact situation in 2023 with a student loan offset. Here's what I learned: the TOP system lag is real and frustrating, but pretty consistent. You'll likely get your remaining refund on 3/15 as scheduled, but the offset won't show in the automated system until around 3/19-3/22 (4-5 business days later). I made the mistake of calling multiple times a day those first few days - completely pointless. Now I just mark my calendar for day 4 after DDD and call once then. Saves the stress of repeatedly hearing "no offset found" when you know there definitely is one. The system works, it's just slow during tax season.

I'm not sure this helps, but my tax guy said the IRS is MASSIVELY backed up on processing amended returns right now. Like 6-8 months behind. He said they're so overloaded they're making tons of errors like this. Something to do with their antiquated computer systems not being able to properly track amended returns vs. original returns when they're processed out of sequence.

This is exactly why I always recommend keeping detailed records when dealing with amended returns. Your situation is frustrating but definitely fixable. Since you have the tracking confirmation that the voided check was delivered, you're in a good position. Here's what I'd do immediately: 1) Call the IRS Collections department directly at 1-800-829-7650 (not the general line) and explain this is about a levy notice you received in error. 2) When you get an agent, ask them to look at your account for "transaction code 570" - this should show when they received your returned check back in August. 3) Request an immediate "collection hold" on your account while this gets sorted out. They can place a 60-day hold which prevents any levy action. 4) Ask the agent to send you Form 12153 (Collection Due Process) if they can't resolve it immediately. This gives you formal appeal rights and stops collection activity. Also, definitely consider filing that Form 911 with Taxpayer Advocate Service that others mentioned. Your case has all the elements they look for: IRS error causing financial hardship, multiple failed attempts to resolve through normal channels, and imminent collection action. The key is being persistent and documenting every conversation. Don't let them brush you off - you have proof you followed their own agent's instructions by returning that check.