anyone else think its ridiculous that we have to deal with all this complicated tax stuff just cuz our companies pay us in stocks sometimes?? like why cant the IRS and brokerages just talk to each other so this all happens automatically? ive been putting off doing my taxes for weeks cuz of my RSUs 😩

I've been using FreeTaxUSA for my RSU taxes for the past two years and it works perfectly fine! The key is understanding that most of the complexity comes from making sure you don't get double-taxed, not from the software limitations. Here's my simple process: 1) Import your W-2 normally (RSU income is already included), 2) When you get to the investment section for your 1099-B, manually enter the correct cost basis (the fair market value when your RSUs vested - this info should be in your company's RSU documents), 3) Check the box that says the 1099-B cost basis is incorrect if your broker reported it as $0 or some other wrong amount. The free version handles this just fine. I've never needed to upgrade to deluxe for RSU reporting. Don't overthink it - if you can handle entering your W-2, you can handle the RSU adjustments!

Has anyone figured out how to handle previous year mistakes on this? I just realized I've been carrying forward basis incorrectly on my 8606 for like 3 years. Do I need to file amended returns or can I just correct it going forward?

I went through this exact confusion last year! The key insight that helped me was understanding that "basis" is just the IRS's way of tracking money you've already paid taxes on, so you don't get double-taxed. With a clean backdoor Roth, here's what happens each year: 1. You contribute $6,500 (or $7,000 if 50+) of after-tax money to traditional IRA 2. This creates $6,500 of "basis" on Form 8606 3. You convert that $6,500 to Roth IRA 4. The conversion "uses up" your $6,500 basis, so no additional tax owed 5. Your basis resets to $0 for next year If you've been doing backdoor Roths correctly (contributing then converting the full amount), you shouldn't have accumulated basis. Each year should stand alone. The only way you'd build up basis is if you made non-deductible traditional IRA contributions but didn't convert them. Don't beat yourself up - this trips up tons of people! The terminology makes it sound more complicated than it actually is.

Could also be interest they paid you on your escrow account! My lender sent me a 1099 for $27.38 which was apparently the interest earned on my escrow funds. Totally forgot that was a thing, but if you live in a state that requires lenders to pay interest on escrow accounts, that might be it.

I went through this exact same confusion last year! In my case, the 1099-MISC was for a lender credit I received at closing that reduced my closing costs by $800. I had completely forgotten about it until I dug through all my closing paperwork. The tricky part is that these lender incentives (whether they're cashback, closing cost credits, or promotional bonuses) are considered taxable income by the IRS, even though they feel like discounts to us as borrowers. Your 1098 form for mortgage interest is completely separate and unaffected by this. If you still can't figure out what the 1099-MISC amount corresponds to, I'd recommend checking your Closing Disclosure (CD) form from your purchase. Look for any credits, rebates, or incentives listed there. The amount on your 1099-MISC should match one of those items. Sometimes they break down larger credits into smaller components too, so don't be surprised if the math isn't immediately obvious. When you file your taxes, you'll report this as "Other Income" and yes, you'll owe taxes on it at your regular income tax rate. It's annoying to discover after the fact, but at least now you know for any future home purchases!

I'm dealing with a very similar situation with about $5,900 in ERUS that's been completely frozen since the sanctions hit. This entire thread has been absolutely invaluable - I've learned more actionable information here than from months of getting nowhere with my broker (Vanguard) who keeps giving me the same "we're monitoring the situation" response without any actual guidance. What really strikes me is how this community has collectively assembled such a comprehensive, well-documented approach when the entire tax industry seemed unprepared for this unprecedented situation. The regulatory framework that's been built through everyone's research - IRS Publication 550, Revenue Ruling 2009-9, Notice 2020-53, combined with the BlackRock documentation strategy - creates an incredibly solid foundation for claiming these as worthless securities. I'm particularly encouraged by the consistent success stories from people like Paolo, Mae, Sean, Anastasia, and Emma who've all successfully obtained official BlackRock documentation using the same approach. The fact that BlackRock now has standardized language about "indefinite suspension with no reasonable prospect for resumption" really shows this has become a legitimate, established pathway. I'm planning to call BlackRock tomorrow using the proven method outlined here - specifically mentioning I need documentation for worthless security tax purposes, and having my account details and share count ready. Then I'll file using Form 8949 with code C and include a comprehensive explanatory statement referencing all the regulatory support documented throughout this thread. After almost two years of this significant amount being in limbo and getting absolutely nowhere through traditional channels, it's such a relief to finally have a clear, well-supported path forward. This community has solved a complex problem that stumped tax professionals and provided real solutions for recovering tax benefits from these frozen investments. Thank you to everyone who shared their experiences!

I'm facing the exact same situation with about $4,700 in ERUS that's been completely stuck since the sanctions hit. This thread has been absolutely incredible - I've gotten more practical guidance here than from months of frustrating calls to my broker (E*TRADE) and multiple tax consultations that all resulted in the same unhelpful "wait and see" advice. What gives me the most confidence is seeing the remarkable pattern of success across so many people using these well-documented approaches. The comprehensive regulatory framework everyone has built - IRS Publication 550, Revenue Ruling 2009-9, Notice 2020-53, combined with official BlackRock documentation - creates such a solid foundation that even someone new to tax situations like myself feels confident moving forward. I'm planning to call BlackRock this week using the proven approach outlined here (1-800-474-2737, specifically mentioning worthless security tax purposes). Based on everyone's success stories, I'll have my brokerage account details and share count ready to streamline the process. One thing I wanted to add that might help others - I found that keeping a detailed log of all my attempts to get guidance from E*TRADE actually strengthens the case that I made reasonable efforts through traditional channels before taking action. Their consistent inability to provide any helpful guidance over nearly two years really supports the position that waiting further isn't productive. After reading through everyone's experiences, I'm finally optimistic about getting some tax benefit from this frustrating situation. This community has provided solutions that the entire tax industry seemed unable to address. Thanks to everyone who shared their real-world experiences - you've given people hope and a clear path forward!

I'm dealing with something very similar right now! My refund showed as deposited on March 17th but it's March 22nd and still nothing in my account. Reading through everyone's experiences here has been incredibly helpful and reassuring - I had no idea this was such a common issue. Based on what I've learned from this thread, I just checked my tax transcript and found transaction code 846 dated March 17th, which matches what the Where's My Refund tool shows. I also called my bank's ACH department (thanks for that specific tip!) and they said they don't see any rejected government deposits, but they do have a 7-business-day review process for first-time government deposits over $3,000. The customer service rep I spoke with yesterday had no clue about this review process - she just kept saying "no pending deposits" which made me panic. It's frustrating that regular customer service doesn't have visibility into these backend processes! At least now I know my money isn't lost somewhere in cyberspace. For anyone else going through this - definitely call the ACH department specifically, not general customer service. They actually know what's happening with government deposits. Fingers crossed both our refunds show up soon! 🤞

I'm going through this exact same situation right now and this thread has been a lifesaver! My refund showed as deposited on March 16th but still hasn't appeared in my account. After reading everyone's experiences, I called my bank's ACH department this morning (instead of regular customer service) and discovered they have an automatic 5-7 business day review period for government deposits over $2,500 that don't show as "pending" to account holders. The ACH rep explained that this is for fraud prevention and happens completely behind the scenes. She was able to confirm they received the deposit and it's currently in this review queue, expected to clear by Wednesday. I never would have known to ask specifically for ACH without reading this thread - regular customer service just kept telling me "no pending deposits" which made me think my money was lost! For anyone else dealing with this nightmare: definitely call your bank's ACH department directly and ask about government deposit review processes. The peace of mind of knowing your money isn't actually missing is huge. Hoping everyone else's refunds clear soon! 🙏