I've been through three tax seasons with an IP PIN now. In 2022, I had to verify despite having the PIN. In 2023, no verification needed. This year, verification required again. From my conversations with the Taxpayer Advocate Service, the IP PIN primarily prevents someone else from filing under your SSN, but doesn't exempt you from the IRS's internal verification algorithms. These algorithms flag returns based on multiple factors including income changes, new credits claimed, address changes, etc. Your remote work situation might be triggering geographic inconsistency flags if your employer is in one state and you're working from another.

I've had an IP PIN for two years now and got hit with verification both times, so you're definitely not alone! The frustrating part is that the IRS documentation makes it sound like the PIN should streamline everything, but in reality it just prevents fraudulent filings - it doesn't bypass their verification algorithms at all. What really helped me was keeping detailed records of every interaction. I document every call, reference number, and rep name because the systems don't always talk to each other properly. Also, if you're still working remotely, make sure your W-2 address matches what you have on file with the IRS - mismatches there seem to trigger additional scrutiny even with a PIN.

I had a similar situation on April 15, 2023. My congressman's office received confirmation from TAS on May 2nd, 2023 that my refund would be processed. The actual deposit hit my account on May 17th, 2023 - exactly 15 days after TAS confirmed the release. The technical process involves the TAS issuing what's called an OAR (Operations Assistance Request) to the specific IRS department holding your return, which typically has a 5-10 business day response requirement.

Hey Cedric! I went through something very similar last year - filed in February and didn't get my refund until August after getting my congressman involved. The TAS process can feel really slow, but once they issue that Operations Assistance Request (OAR), things usually move pretty quickly. In my case, I got my refund about 10 days after receiving the confirmation email from TAS. The July 9th date is basically their internal deadline to give you an update, but your actual refund could come much sooner. I'd definitely recommend keeping an eye on your bank account and maybe checking your transcript online if you can access it. The waiting is the worst part, but you're in good hands with TAS - they really do get results!

I'm also curious about what software everyone recommends for 1099 income? I've used TurboTax in the past but it gets expensive when you have to add the self-employment package.

Just wanted to add - don't panic about the self-employment tax! I was in a very similar boat last year with about $3,000 in 1099 income and was terrified I'd owe a fortune. The key thing to remember is you can deduct business expenses to reduce your taxable income. Even small things like office supplies, software subscriptions, or part of your phone/internet bill if you use them for work. I managed to deduct about $400 in legitimate expenses which saved me around $60 in self-employment tax. Also, if this is your first year with 1099 income and you expect to make more next year, consider making quarterly estimated tax payments to avoid owing a big chunk all at once. The IRS has a safe harbor rule - if you pay at least what you owed last year, you won't get penalized even if you end up owing more. Good luck! It's really not as scary as it seems once you get through it the first time.

Just a heads up that if you decide to take the distribution, Fidelity will issue you a 1099-R for the distribution in January 2025 (for your 2024 taxes). Make sure you keep documentation showing this was a return of excess contributions so you can properly report it on your taxes. The form might not be coded correctly to indicate this was a correction, so you might need to explain it when filing.

One additional thing to consider - make sure you understand the timing requirements. The IRS requires that excess contributions be distributed by the tax filing deadline (including extensions) for the year the excess occurred. For 2023 overcontributions, that would typically be April 15, 2024, or October 15, 2024 if you file an extension. If you miss this deadline, you can still take the distribution later, but it becomes more complicated tax-wise. You'd potentially face the 6% excise tax for 2023, then need to take the distribution in a subsequent year (which would be taxable in that year), and you'd need to file Form 5329 with your tax return. Given that we're already past the April deadline, I'd recommend checking if you filed an extension for your 2023 taxes. If not, you might want to consult a tax professional about the best way to handle this situation going forward.

I'm dealing with a very similar situation and this thread has been incredibly helpful! I drive about 35,000 miles annually for work and get a $550 monthly car allowance that's also paid separately from my regular paycheck. My company handles gas and maintenance through a corporate card just like yours. After reading through all these responses, I'm now realizing I probably need to report that $6,600 as other income on my tax return. I had no idea about the difference between accountable and non-accountable plans - that distinction is crucial. Since my company just gives me a flat monthly amount without requiring me to document how I actually spend it on car expenses, it sounds like mine is also a non-accountable plan. One question I have is about estimated quarterly taxes. Since our employers aren't withholding taxes on these allowances, are we supposed to be making quarterly estimated tax payments throughout the year? I'm worried I might owe penalties for underpayment if I just wait until filing season to pay the taxes on this income.

This is such a helpful thread! I'm in a very similar boat - I get a monthly car allowance that's paid separately and not on my W-2, plus my company covers gas and maintenance through their corporate card. One thing I wanted to add is that you should definitely keep detailed records of your actual vehicle expenses (depreciation, insurance, repairs, etc.) even if you can't deduct them right now. The tax laws could change in the future, and having good documentation will be important if the rules shift back to allowing employee business expense deductions after 2025. Also, @Nia Jackson, you mentioned driving 48,000 miles annually - that's really significant wear and tear on your vehicle. Even though you can't deduct it now, you might want to calculate what your actual vehicle costs are versus the $650 allowance to see if you're breaking even. At the current IRS mileage rate of 65.5 cents per mile, 48,000 miles would be over $31,000 in vehicle costs, so your $7,800 allowance is probably not covering your true expenses. It's frustrating that the tax law doesn't account for this reality, but at least understanding the rules helps avoid any surprises with the IRS!