I'm in a similar boat but we're getting married in November. Our accountant told us to keep SUPER detailed records of who paid what for the house this year since we'll be filing separately but then jointly next year. Apparently this makes things easier during an audit. He had us create a spreadsheet tracking each mortgage payment, who paid what percentage, all house expenses, etc. Might be overkill but thought I'd share!

Just wanted to add my experience since I went through something very similar! We got married in May 2024 and bought our house in January 2024. The December 31st rule is definitely strict - we had to file separately for 2023 taxes even though we were engaged and living together. One thing that really helped us was creating a simple agreement document outlining how we'd split all house-related expenses and deductions. We did 50/50 on everything since we both contributed equally, but your 60/40 split sounds totally reasonable. Just make sure you're consistent - if you split the down payment 60/40, try to keep that same ratio for ongoing mortgage payments and property taxes throughout the year. Also, don't forget about PMI (private mortgage insurance) if you're paying it - that's also deductible and should be split the same way as your other mortgage costs. We almost missed that one! The good news is once you're married next year, filing jointly will likely save you money overall, especially with the house deductions.

Did your tax preparer give you a copy of the return they filed? It's like having a recipe and then being surprised when the cake comes out different - you need to compare the ingredients. States often apply different rules than federal returns, much like how different ovens might require temperature adjustments. What was the percentage difference between expected and actual? Small discrepancies under 10% are common, but larger ones usually indicate a specific disallowed item rather than a calculation error.

I went through something very similar last year! My state refund was about $150 less than what my tax preparer calculated. It turned out the state had different rules for a charitable deduction that I claimed - they required additional documentation that wasn't needed for the federal return. The frustrating part was that the adjustment notice didn't arrive until almost a month after I received the reduced refund. I'd definitely recommend logging into your state's tax portal if they have one - that's where I found the detailed explanation of what was adjusted. Also, don't hesitate to reach out to your tax preparer about this. Mine was very helpful in explaining the state-specific rules and even helped me gather the proper documentation for future years.

For the phantom IRA distribution - check if someone stole your identity! My dad had something similar happen and it turned out someone had opened an account in his name. When they withdrew funds, the 1099-R got reported to my dad's SSN. Took almost a year to sort out with the IRS and credit bureaus.

Just to add another perspective - don't beat yourself up too much about these errors. Tax law is incredibly complex, especially with rental properties, and even professionals make mistakes. The fact that you caught these errors shows you're being diligent. For the years beyond the 3-year amendment window, document everything you found but don't stress about it unless the IRS comes knocking. Keep good records going forward and consider having a tax professional review your returns annually to catch issues early. That phantom IRA distribution is definitely the priority item here. Even if it's outside the amendment period, you should still contact the IRS about it. Sometimes they can make administrative corrections for clear errors, especially if it involves identity theft or third-party reporting mistakes. The worst case is they say no, but at least you'll have it on record that you tried to resolve it. Good luck sorting this out! These situations are stressful but usually more manageable than they seem at first.

i had the same issue last month and tried searching all over youtube and reddit to understand what was happening. after days of research and confusion I tried taxr.ai and it gave me a whole breakdown of what was happening with explanations for all the codes. saved me soooo much time and stress.

Don't panic! I went through the exact same thing last year and those codes had me stressed for weeks. Code 570 just means they put a temporary hold on your refund while they review something - it's actually pretty common, especially if you claimed EIC or child tax credits like you mentioned. The 971 code means they're sending you a notice explaining what they're reviewing. Since you don't see a TC 898 code (which would indicate an offset), they're most likely not taking your whole refund. They're probably just verifying your income or checking some calculations. I ended up getting my full refund about 3 weeks after those codes appeared on my transcript. My advice: wait for the letter they're sending you before calling. It'll explain exactly what they need or what adjustment they're making. If you don't get anything in 2-3 weeks, then definitely call the Treasury Offset Program number someone mentioned earlier to rule out any debts, and if that's clear, try to get through to an IRS agent. But honestly, with EIC and child tax credits, these delays are super normal even though they're stressful as hell!

Question about contribution limits - does the Code D amount still matter for checking if you've exceeded the annual limit? I'm trying to max out my 401k and want to make sure I'm counting it right for next year.

This is a great question and you're absolutely right to double-check! As someone who's dealt with similar timing issues, I can confirm that your payroll department is handling this correctly. The Code D box on your W-2 should reflect what was actually deducted from your paychecks during 2024, regardless of when your 401k administrator received and processed those funds. This timing discrepancy is especially common with December contributions - your employer withholds the money before year-end, but the 401k company might not process it until early January. For tax purposes, what matters is when the deduction reduced your taxable income (i.e., when it came out of your paycheck), not when it hit your retirement account. Since you're under the contribution limit and the numbers add up based on your paycheck deductions, you're all set. Use the W-2 Code D amount for your tax filing and don't worry about the difference with your 401k administrator's records - that's purely a timing issue that won't affect your taxes at all.