Just a heads up - make sure your wife's W-2 correctly reports the retirement contributions. Box 12 with code D shows the 401k contributions, and this needs to match what actually stayed in the plan (not including the excess that was returned). I've seen W-2s where the amount includes the excess, which can cause confusion when you're also reporting the return of excess. Double-check this before filing!

I went through this exact same situation last year and it was such a nightmare! The key thing that saved me was being really persistent with the plan administrator about getting that breakdown between the excess contribution and earnings. One tip that might help - when you're entering this into H&R Block, make sure you're in the "Other Income" section, not trying to add it as a regular 1099-R. There's usually a specific place for "Retirement Plan Distributions Not Reported on 1099-R" or something similar. Also, don't forget that if your wife is under 59½, the earnings portion will be subject to the 10% early withdrawal penalty on top of regular income tax. That caught me off guard when I first did this. The excess contribution itself won't be penalized since it was never supposed to be in there in the first place. The whole process is frustrating but you're definitely on the right track by trying to document everything properly!

This is possibly related to the amended return you submitted, which might, in some cases, cause temporary verification issues. The IRS systems generally take approximately 3-5 business days to reconcile new information, particularly during peak tax season. I would strongly recommend checking again next Tuesday or Wednesday, as weekend processing tends to be slower. If the issue persists beyond a week, it could potentially indicate a more significant verification problem.

I experienced this exact same issue about 2 months ago! The "information doesn't match" error appeared right after I filed an amended return, just like yours. What helped me was checking my IRS account transcript online - it showed my amended return was actually being processed even though WMR was throwing errors. The whole thing resolved in about 8 days, and my refund was deposited without any further issues. The amended return definitely seems to confuse their systems temporarily. Don't stress too much - your return is likely still in the system and being processed normally.

Another option nobody has mentioned - have you checked if the stimulus might have come as a debit card? My wife and I nearly threw ours away because it came in a plain envelope that looked like junk mail. The card was from "Money Network" and didn't clearly say it was the stimulus payment on the envelope.

I'm dealing with a similar issue but mine is even more confusing - my transcript shows TWO different stimulus payments were issued for 2021, but I only received one of them. The first one in March 2021 came through fine, but there's a second entry in July 2021 that I never got. Has anyone else seen multiple stimulus entries on their transcript? I'm wondering if this could be related to the plus-up payments they were sending out when people's 2020 tax returns showed they qualified for more money than their initial payment. The amounts don't match what I expected though, so I'm not sure what's going on. I might try one of those services people mentioned here since calling the IRS has been absolutely useless - I've been disconnected three times after waiting over an hour each time.

Has anyone used the new "simplified home office deduction" for Schedule C? Is it better than the regular method?

Great question! I went through the same confusion when I started my photography business. Here's what I learned: For your specific situation with $12,500 in revenue and $4,800 in tracked expenses, you're on the right track. Beyond materials/packaging/shipping, you can definitely deduct: **Internet & Phone**: Yes, deduct the business portion of your internet bill. If you use it 60% for business, deduct 60%. Same with your cell phone if you use it for customer communication. **Home Office**: If that spare bedroom is used EXCLUSIVELY for your business, you qualify for the home office deduction. Calculate the percentage of your home's square footage and deduct that percentage of rent/utilities/insurance. Or use the simplified method ($5 per sq ft up to 300 sq ft). **Other common Etsy deductions you might be missing**: - Etsy listing fees and transaction fees - PayPal/payment processing fees - Photography equipment (cameras, lighting, tripods) - business use percentage - Computer/software used for business - Mileage to buy supplies or ship items - Any business books, courses, or educational materials **Documentation**: Bank statements show you spent money, but receipts show what you bought. The IRS wants to see what the expense was for. Keep digital copies of all receipts - take photos immediately since thermal receipts fade. TurboTax's categories can be confusing, but when in doubt, "Other business expenses" works for legitimate costs that don't fit elsewhere. Just include a description of what it was for. You're doing great by tracking everything from the start!

Has anyone used TurboTax for non-resident filing? Their website says they support it but I'm hearing mixed things.

I went through this exact same situation two years ago as an H1B holder from Germany! The tax professional shortage during filing season is real - I called over 15 CPAs and EAs before finding help. A few things that might help while you're figuring out your filing strategy: 1. Double-check your substantial presence test calculation. Since you arrived in March 2024, you'll likely qualify as a resident alien for tax purposes and file Form 1040 (not 1040NR). The test looks at days present in the current year plus weighted days from prior years. 2. For California state taxes, you'll definitely need to file CA Form 540 or 540NR and will likely owe taxes plus potentially an underpayment penalty. California doesn't mess around with their tax collection. 3. Your Indian investment income will need to be reported regardless of your filing status. Look into the US-India tax treaty to see if you can claim foreign tax credits to avoid double taxation. 4. Don't forget about FBAR reporting if your foreign accounts exceeded $10,000 at any point during the year - this is separate from your tax return and has its own deadline. The learning curve is steep but manageable once you understand the basics. Consider setting aside extra time and maybe splitting the work over several days rather than trying to rush through everything at once.