That's a really good idea! I do remember paying online through my bank for some quarterly estimated payments too. Would showing the bank statements be enough though? I'm worried they'll say I need the actual tax forms.

Bank statements are considered strong supporting evidence, especially for proving payments were made. While they may not replace the actual return completely, they directly contradict the claim that you paid zero taxes. Include a brief letter explaining your situation and that you're providing the best documentation available to you. Most state auditors are reasonable when presented with clear evidence of compliance. The key is showing you're making an honest effort to resolve the issue. If possible, combine these bank statements with your W-2 from that year and any IRS transcript you can obtain. Together, these paint a clear picture of your tax situation.

I had to deal with this exact situation. What worked for me was getting wage transcripts from the IRS (shows all your income reported on W-2s and 1099s), bank statements showing tax payments, and any other financial records from that year. Put it all together with a letter explaining the situation. In my case, the state tax auditor was actually pretty understanding once I showed I had legitimate documentation, even if it wasn't the exact original return. The key was being proactive and not ignoring their requests.

This actually works! I had the same issue with TaxSlayer last year (not E-File, but similar problem). Cleared cookies, came back the next day and suddenly the premium upgrade was gone. These companies track your behavior and if they think you're getting frustrated, they sometimes back off on the upsells.

Thanks for the suggestion! I tried clearing my cookies and cache, and when I logged back in, it still showed the premium upgrade. BUT when I went to close the window out of frustration, a little popup appeared asking if I wanted to continue with the free version! So your abandonment cart trick worked perfectly! Just filed my taxes completely free. These dark pattern tactics are so annoying but I'm glad there are workarounds!

Cash App Tax (formerly Credit Karma Tax) is actually free with no income limits or hidden upgrades. I switched to them this year after TurboTax tried to charge me $89 for having a simple 1099-INT from my savings account. Might be worth looking into for next year!

That's actually brilliant! I'm still in touch with my old manager and the company is still around. Do you think the W-2 alone would be enough proof for the state audit, or do they specifically need to see the actual tax return?

The W-2 might be enough depending on what exactly the state is questioning. Since they claim you paid $0 in state taxes, the W-2 would directly contradict that by showing your withholding amounts. It's solid evidence of taxes being taken from your paychecks. For a complete defense, ideally you'd want both the W-2 and the tax return transcript. The W-2 proves what was withheld, while the return shows what you actually filed and calculated. Together they tell the complete story and leave the state little room to argue.

This is good advice. I work for a CPA firm and we always recommend sending what's called a "partial response" before the deadline if you can't get everything together. Document your efforts to comply - keep records of all calls, submission dates of forms, etc. Many state tax authorities will grant reasonable extensions if you're making good faith efforts.

Does the distribution code change if the conversion was within the same plan? My case was moving after-tax contributions from the regular Solo 401k into the Roth portion of the same Solo 401k, not to a separate Roth IRA. Some of the documentation I've read is confusing about this specific scenario.

When converting within the same plan (after-tax portion to Roth portion of the same Solo 401k), you should still use code "G" in Box 7. This indicates an in-plan direct rollover to a designated Roth account within the same plan. You'll also want to make sure Box 2a (taxable amount) reflects only the earnings portion that was converted, not your after-tax contributions themselves. The after-tax contributions have already been taxed, so only the growth between contribution and conversion is taxable. If your plan doesn't track this precisely, you may need to calculate it based on your account statements.

For 2025 filing season (for 2024 tax year), penalties for late 1099-R forms range from $50 to $290 per form depending on how late you file and whether the IRS determines it was intentional disregard. BUT... in this person's case, since they're technically both the filer and recipient, it's unlikely the IRS would ever assess a penalty for the recipient copy specifically since there's no third party to report the violation.

Thanks! I definitely started tracking everything more carefully after reading these responses. Do you know if apps like Robinhood automatically account for wash sales on their 1099 forms?

Robinhood does report wash sales on their 1099-B forms, which is helpful. You'll see adjustments to your cost basis when wash sales occur. However, there's a potential issue - if you trade the same security across different platforms (like Robinhood and Webull), those platforms don't communicate with each other about wash sales. So while each platform reports wash sales that happen within their system, they can't detect wash sales that might occur when you sell at a loss on one platform and rebuy on another within 30 days. In that case, you'd need to identify those wash sales yourself when filing. But for your current situation with just Robinhood and small amounts, their reporting should be sufficient.

I have to respectfully disagree with this advice. While it's true the IRS is unlikely to pursue such a small amount, recommending not filing when required isn't good practice. In this specific case, OP actually isn't required to file based on the dependent unearned income threshold, but that won't be true for everyone reading this thread. Better to understand the actual rules than risk problems down the road.

Fine, technically you're right. But let's be real - the IRS is severely understaffed and focused on high-value enforcement. The chance of any consequences for not filing when you're owed a tiny refund or owe virtually nothing is practically zero. But yes, everyone should "understand the actual rules" 🙄