One thing to remember is that any money withheld from an IRA conversion for taxes counts as taxes paid on April 15th of the following year, not when the withholding actually happens. So if you do a conversion in January 2025 with withholding, that withholding counts as paid on April 15, 2026 for purposes of estimated tax requirements. This can mess up your estimated tax calculations if you're not aware of it!

Great question! I went through this same process last year and learned some important details the hard way. Yes, you absolutely need to report the full conversion amount as taxable income - including any withholding. So if you convert $50,000 and have $10,000 withheld for taxes, you'll report $50,000 as income on Form 8606 and your 1040. The $10,000 withholding will show up as taxes paid on your W-2 equivalent form (1099-R). Regarding refunds - any overpayment comes back to you as a regular tax refund, not back into your IRA. Once money leaves the IRA as withholding, it's gone from your retirement account permanently. One thing I wish I'd known: if you're under 59.5, the withheld amount may be subject to the 10% early withdrawal penalty since it's not going into the Roth. I ended up paying the conversion taxes from my regular savings account to avoid this issue and maximize what actually gets converted to the Roth. Consider doing a test run with a smaller amount first to see how the tax treatment works out before doing your full conversion!

anybody else's WMR still showing 'being processed'? verified 3 weeks ago and nothings changed

I'm going through the same thing right now - completed ID.me verification about 18 days ago and still waiting on the letter. My tax pro told me that the IRS has been running behind on sending these verification letters this season, but as long as your ID.me verification was successful, you should be good. The letter is more of a formality to confirm the process completed. Have you been able to access your online account transcript since verifying? That's usually a good sign that everything went through properly.

I'm dealing with this exact same issue! Filed on February 12th with Child Tax Credit for my twin boys (ages 4 and 6), and I've been stuck on "accepted" status for 12 days now with a refund of about $4,200. Reading through everyone's experiences here has been incredibly helpful and reassuring. I had absolutely no idea about the mandatory hold period for Child Tax Credit returns or that the IRS implemented stricter fraud detection this year. I was starting to worry I'd made some major error on my return. Just created my IRS online account after seeing how many people recommended checking the tax transcript instead of relying on that "Where's My Refund" tool. You're all absolutely right - it provides so much more detailed information! Found some processing codes that actually give me hope there's movement happening behind the scenes. It's such a relief to know this is happening to so many people and that most are getting approved after 3-4 weeks. The waiting is definitely stressful when you're counting on that money for important expenses, but knowing it's just extra verification rather than a problem with my return makes it much more bearable. Thanks everyone for sharing your stories - this community support makes all the difference during tax season!

I'm going through this exact situation too! Filed on February 5th with Child Tax Credit for my 7-year-old, and I've been stuck on "accepted" for 19 days now. My refund is about $3,100. This thread has been absolutely invaluable - I honestly had no idea about the mandatory hold periods for Child Tax Credit returns or the enhanced fraud detection systems the IRS implemented this year. I was starting to panic thinking I'd screwed something up on my return! Just set up my IRS online account after seeing so many people recommend checking the tax transcript. What a difference compared to that "Where's My Refund" tool that basically tells you nothing! I can actually see processing codes and dates that give me some sense of what's happening behind the scenes. It's such a relief to know this delay is completely normal this year, especially for returns claiming the Child Tax Credit. Reading everyone's experiences - people waiting 3-4 weeks and then getting approved - gives me so much hope. The uncertainty was really getting to me since I need this refund to cover some unexpected car repairs. Thanks to everyone for sharing their stories and advice. Knowing we're all in the same boat makes this waiting game so much more manageable. Fingers crossed we all see our refunds approved soon!

I'm going through the exact same thing right now! Got my verification letter about 2 weeks ago and completed the ID.me process immediately. It's so stressful not knowing when to expect the refund, especially when you're counting on that money. Reading through everyone's experiences here, it sounds like it really varies - some people get it in 2-3 weeks, others wait months. I'm going to start checking my transcript weekly like others suggested since that seems to update before the Where's My Refund tool. Thanks for posting this question - it's helpful to know I'm not alone in this frustrating process!

I went through ID verification last year and it took about 5 weeks to get my refund after completing the process. The waiting is absolutely nerve-wracking, especially when you're depending on that money! A few things that helped me stay sane: 1) Check your account transcript every Friday (it updates overnight Thursday-Friday), 2) Don't bother with Where's My Refund - it's always behind, 3) Look for code 846 on your transcript which means refund issued. Once I saw that code, my money was in my account within a week. The IRS says up to 9 weeks but most people I know got theirs between 3-6 weeks. Hang in there - it will come! Just try not to check every single day because that'll drive you crazy.

This is such a comprehensive discussion - thank you everyone for sharing your experiences! As someone who just received my first K-1 with Box 11 entries, I was completely lost until I found this thread. I want to emphasize something that really helped me understand the situation: the distinction between "for AGI" and "from AGI" deductions that was mentioned earlier. Box 11A deductions are "for AGI" (above-the-line), which means they reduce your adjusted gross income and can be taken regardless of whether you itemize. Box 11B deductions are "from AGI" (below-the-line), which means they can only be taken if you itemize and your total itemized deductions exceed the standard deduction. This framework helped me understand why the tax code treats these two types of deductions differently - it's not arbitrary, it's based on fundamental tax principles about when and how different types of deductions can be claimed. For anyone still struggling with this decision, I'd strongly recommend using the comparison approach that several people mentioned. Calculate your total potential itemized deductions (including Box 11B) versus your standard deduction amount, and don't forget to factor in the Box 11A deduction that you get to claim either way on Schedule 1. Most importantly, don't let perfect be the enemy of good. Even if you can't claim every possible deduction, you're likely still getting a substantial tax benefit from the standard deduction plus the Box 11A amount.

I've been dealing with K-1s for several years now and wanted to add one more perspective that might help. While everyone has correctly explained that Box 11B deductions can only be claimed if you itemize, there's one scenario worth considering that hasn't been fully explored. If you're close to the threshold where itemizing might make sense, don't forget to factor in any state tax benefits. Some states have different rules for itemized deductions or lower standard deduction amounts. In rare cases, you might find that itemizing makes sense at the state level even if it doesn't at the federal level, or vice versa. Also, if you have significant charitable contributions planned for the current tax year, you might want to consider bunching strategies. For example, if you're planning to make charitable donations over the next couple of years, you could potentially bunch them into the current year along with your Box 11B deduction to push your itemized deductions above the standard deduction threshold. That said, I want to echo what others have mentioned - in the vast majority of cases, you'll still come out ahead with the standard deduction even without being able to claim Box 11B. The standard deduction amounts have increased significantly in recent years and are designed to provide a good baseline benefit for most taxpayers. The most important thing is not to miss that Box 11A deduction on Schedule 1, line 24k. That's a valuable above-the-line deduction that reduces your AGI regardless of whether you itemize or take the standard deduction.