I'm dealing with a Letter 12C situation right now too and this thread has been super helpful! Just wanted to add that I called the IRS customer service line last week about my verification and they confirmed that the N/A transcript status is completely normal during the review process. The agent told me that when they receive your faxed documents, they actually remove your return from the normal processing queue to manually verify everything - that's why it shows N/A instead of your usual return info. She said not to worry unless it's been more than 12 weeks total since you first faxed your response. @Ryan since you faxed on Feb 20th and it's been 4 weeks, you're still well within the normal timeframe. The peak tax season backlog is real but they do eventually get through everything. I'd definitely wait the full 8 weeks before calling again since they'll just tell you the same thing anyway. Keep that fax confirmation safe though - that's your proof you responded on time if any issues come up later! Hang in there, we're all in this waiting game together 💪

I'm in almost the exact same situation! Got my Letter 12C about 5 weeks ago for a W-2 verification issue (different amount but same process). The waiting is absolutely nerve-wracking, especially when you see that N/A status on your transcript and start wondering if your documents got lost in the system. What's been helping me is keeping track of the timeline - like @Ian mentioned, the IRS agent confirmed that 12 weeks total is when you should actually start worrying. Since you faxed on Feb 20th, you're still well within normal processing time even with the peak season delays. I also used HelloFax like @Jessica suggested and got a confirmation receipt, which definitely helps with peace of mind. The online fax services seem way more reliable than traditional fax machines, especially when dealing with something this important. The hardest part is just the waiting game when your refund is sitting there in limbo. But from everything I've read and heard, as long as you responded within that 20-day window (which you did), you should be good. The IRS is just incredibly backed up right now. Hang in there - we're all riding this out together! 🤞

Jessica, I completely understand your panic about this situation! As someone who's worked in payroll administration for several years, I want to echo what everyone else has said - you absolutely should NOT have to guess at your employment classification. This is a legal determination that your employer is required to make based on Department of Labor guidelines. The fact that they're asking you to choose is honestly concerning and suggests either poor HR software design or a lack of understanding about FLSA compliance on their part. Employment classification affects your overtime eligibility, tax withholdings, and legal protections - it's not a personal preference you get to select. Here's what I'd do with your tomorrow deadline: **Tonight:** Send an email to your supervisor AND HR (if available) saying: "I'm completing my payroll forms and need clarification on my exempt/non-exempt classification. Since this affects overtime eligibility and must comply with FLSA requirements, could you please confirm which classification applies to my specific position and job duties?" **If no response:** Choose "non-exempt" as your default. About 60% of all employees are non-exempt, and it's much safer to potentially receive overtime pay you weren't entitled to (easily corrected) than to waive overtime rights you should legally have. **Document everything:** Keep records of your attempts to get proper guidance. This protects you if there are any payroll issues later. Please don't feel bad about asking - employment law is complex, and you're actually helping your company avoid potential compliance violations by seeking clarification. Any reasonable employer will appreciate your diligence rather than just guessing on something this important. You've got this! Focus on excelling in your actual job duties - that's what really matters in your first week.

Jessica, I can absolutely feel your stress about this deadline! As a newer employee who went through something very similar, I want to reassure you that you're handling this exactly right by seeking clarification rather than just guessing. Everyone here has given you spot-on advice - this classification should definitely be your employer's legal determination, not your personal choice. The FLSA requirements are pretty specific about job duties, salary thresholds, and decision-making authority, and these factors should drive the classification, not employee preference. Since you're pressed for time, here's what worked for me in a similar situation: I sent a brief email to both my supervisor and HR saying "I'm completing my payroll setup and want to ensure I select the correct exempt/non-exempt classification for compliance purposes. Could you please confirm which applies to my role as [job title]? I want to make sure everything is accurate from day one." If you absolutely must choose without guidance by tomorrow, definitely go with non-exempt as your default - it's the safer option since most positions fall into this category, and it protects your overtime rights while things get sorted out. Don't worry about seeming inexperienced by asking this question. Honestly, employment classification is complex enough that even HR professionals sometimes need to research specific situations. You're showing good judgment by wanting to get this right rather than guessing. This is totally fixable if adjustments are needed later, so try not to let it stress you out too much. Focus on doing great work in your new role - that's what will really matter in the long run!

I've been dealing with this exact same frustrating situation! Filed back in February and have been getting that useless "still processing" message for months now. Reading through all these success stories has given me so much hope - I had no idea about the payment line strategy! I'm definitely going to try calling 800-829-1040 tomorrow morning at 7am Eastern and selecting the payment options instead of the refund inquiry. The fact that multiple people are getting through in 15-25 minutes versus hours on the regular line is incredible. I've got my SSN, last year's AGI, and expected refund amount ($2,100) all organized and ready to go. What really strikes me is how many of these delays seem to be simple verification issues that get resolved quickly once you actually reach a human being. My return included the Child Tax Credit too, so I'm wondering if that might be what's holding mine up as well. Thanks to everyone who took the time to share what actually worked for them - this community has been more helpful than anything on the official IRS website! I'll definitely report back with how the call goes. It's so encouraging to know there are real solutions out there instead of just waiting indefinitely and hoping something changes.

I've been struggling with this exact same issue for over two months now! Filed in February and still stuck with that maddening "still processing" message. After reading through all these incredibly helpful success stories, I'm feeling more hopeful than I have in weeks. The payment line strategy at 800-829-1040 seems to be the clear winner here - so many people getting through in 15-25 minutes versus the endless holds on regular refund lines. I'm definitely going to try the 7am Eastern approach on Thursday morning with all my documentation ready (SSN, last year's AGI, and expected refund amount of $3,800). What really gives me confidence is seeing how many of these delays turn out to be simple verification issues that get resolved immediately once you reach an actual human. My return included both the Child Tax Credit and American Opportunity Tax Credit, so based on other stories here, that might be exactly what's triggering the hold. Thanks to everyone for sharing what actually works instead of just the generic "keep waiting" advice you get everywhere else. This community has been more helpful than months of trying to figure this out on my own! I'll definitely update with results - hopefully adding another success story to this amazing thread. The fact that we all have to jump through these hoops just to get information about our own money is ridiculous, but at least we're not alone in this fight!

Has anyone used TaxAct instead of TurboTax for this? I have a similar situation with a 1099-S but I'm using TaxAct this year to save money, and I can't find where to input this form.

I dealt with this exact situation two years ago when my father-in-law sold his rental property and we received proceeds as beneficiaries. The substitute 1099-S can be tricky in TurboTax, but here's what worked for me: First, make sure you're treating this correctly - since it was his father's vacation property (not primary residence), this is likely investment property for tax purposes. You'll need to determine if your husband's portion was received as a gift during his father's lifetime or through inheritance. For the basis calculation that's giving you trouble, you'll need the original purchase price of the property plus any major improvements made over the years. Your husband's basis would be his percentage share of that total amount. If you can't find exact records from 30 years ago, county assessor records often have historical sale data, or you can research comparable sales from that time period. One tip: if the field TurboTax is asking about seems confusing, try clicking the "?" or help icon next to it - sometimes it explains exactly what information they need. Also, don't forget to account for any selling expenses (realtor fees, closing costs, etc.) as these can reduce the taxable gain. The most important thing is to be as accurate as possible with the basis calculation since that determines how much of the proceeds are taxable. When in doubt, it's worth consulting a tax professional for this type of transaction.

Am I the only one who thinks it's completely ridiculous that we have to jump through all these hoops just to save for retirement? Like why does the backdoor Roth even exist? Why not just let people contribute directly to Roth IRAs without income limits? And then on top of that, every state has different rules?! I moved from Washington (no state income tax) to Oregon last year and suddenly my backdoor Roth conversion cost me an extra $600 in state taxes. Absolute madness.

This is exactly why I always recommend double-checking your state's specific rules each year, even if nothing seems to have changed in your situation. State tax laws around retirement accounts are constantly evolving, and sometimes the changes aren't well-publicized. One thing that might help is to pull your Form 8606 from both years and compare them line by line. Look specifically at Part I (lines 1-18) which deals with nondeductible contributions and conversions. If there's a difference in how your basis was calculated or reported between years, that could explain the state tax discrepancy. Also worth noting - some states have "conformity" issues where they don't automatically adopt federal tax changes or interpretations. So even if the federal treatment of your backdoor Roth was identical both years, your state might have changed how they handle it independently. The fact that others in this thread found actual policy changes in their states suggests this might be more common than we realize.