The IRS is such a joke fr taking 6 months to verify basic info 🤡

Wow, 6 months is insane but at least you got it sorted! Looking at all those codes and adjustments, it seems like the IRS was doing a deep dive review of your return. The fact that they reduced your prior tax assessment by over $6k in September suggests they found something significant in your favor. Quick question - did you have any major life changes or income sources that might have triggered the initial freeze? Trying to figure out if there's a pattern to these long delays 🤔

Before you file, double check if you qualify for Head of Household filing status since you have a dependent child! That gives you a way better standard deduction than filing Single. You'd be surprised how many people miss this.

As someone who's dealt with similar dependency questions, I'd definitely recommend keeping detailed records of all the support you provide - rent receipts, grocery receipts, utility bills, etc. The IRS can be pretty thorough if they decide to audit dependency claims for non-relatives. One thing to also consider is whether claiming your girlfriend might affect any benefits she could be eligible for in the future. Sometimes being claimed as a dependent can impact things like health insurance eligibility or other programs. Just something to think about alongside the tax benefits. Also, since you mentioned filing status - definitely look into Head of Household like others have suggested! With your daughter as a qualifying child, you should be eligible for that filing status which could save you way more than the additional dependent exemption.

One more angle to consider that I haven't seen mentioned - if you have any employer stock options or RSUs vesting early next year, that could also impact your timing decision. I learned this the hard way when I exercised some options in January and it pushed me into a higher bracket than I had planned for, making some December stock sales more expensive than they needed to be. Also, if you're married and file jointly, make sure you're considering your spouse's income trajectory for next year too. Sometimes couples focus on just one person's investment timing without thinking about how both incomes combined affect the brackets. The tax planning really is more complex than just looking at the capital gains rates in isolation - there are so many interconnected pieces that can affect the total tax picture.

Great discussion here! One additional timing consideration that might be relevant - if you're planning any charitable giving before year-end, that could also factor into your decision. If you donate appreciated securities directly to charity instead of selling them, you avoid the capital gains tax entirely while still getting the full fair market value deduction. This strategy works particularly well if you were planning to make charitable contributions anyway. You could donate some of your appreciated securities from the brokerage account in December, then withdraw cash instead of selling other positions. This way you reduce your capital gains exposure for 2024 while still accessing the funds you need. The timing interaction between charitable giving and capital gains realization is something a lot of people miss, but it can be a really effective way to manage your overall tax situation across both years.

Anyone else notice the IRS rules for retirement accounts seem designed to be confusing? Some random thoughts that might help: 1) if u have a 401k at work, the ira deduction phases out at high incomes 2) if ur over the limits, backdoor roth is usually better than non-deductible trad ira 3) dont forget u can do both 401k AND ira in same year, just might not get trad ira deduction 4) also check if ur 401k has after-tax contributions with in-plan roth conversions... thats the "mega backdoor roth" and is awesome if available!!

Great question! I was in a similar situation last year and learned this the hard way. Since you're covered by a 401(k) at work and earning $210k, you won't be able to deduct traditional IRA contributions at all - the deduction phases out completely for single filers around $90k and married filing jointly around $136k when you have workplace retirement coverage. Your strategy of splitting $17k traditional 401(k) + $7k traditional IRA wouldn't give you the full $24k in deductions you're hoping for. The $7k IRA contribution would be non-deductible. Instead, consider these options: 1) Max out traditional 401(k) at $24k for full deduction 2) Split between traditional and Roth 401(k) for tax diversification 3) Do backdoor Roth IRA with that extra $7k (but watch out for pro-rata rule with your existing rollover IRA) The backdoor Roth might be tricky since you mentioned having a rollover IRA. You'd either need to roll that into your current 401(k) first (if allowed) or deal with pro-rata taxation on the conversion. Definitely worth running the numbers on different scenarios to see what works best for your situation!

One thing nobody's mentioned yet - the timing might matter here too. Were these Incentive Stock Options (ISOs) or Non-qualified Stock Options (NSOs)? Because if they were ISOs and you didn't hold them long enough after exercise (at least 1 year from exercise and 2 years from grant), they get disqualified and treated as NSOs which changes the tax treatment.

I've seen this happen a lot with my clients. Most tax software lets you make this adjustment pretty easily. Which tax program are you using to file?