Do you happen to know how long it typically takes for a credit card payment to show up in the IRS system? I need to make a payment ASAP but my electronic withdrawal is scheduled for next week.

In my experience, credit card payments typically take 3-5 business days to show up in the IRS system. However, the payment is considered made on the day you submit it, not when it appears in the IRS records - so you're protected from late payment penalties as long as you complete the transaction by the due date. If your electronic withdrawal is scheduled for next week, I'd recommend making your credit card payment immediately. Even if it doesn't show in the system before the withdrawal date, you can contact the IRS with your confirmation number if there's any issue with double payment. They can always refund overpayments, though it might take some time to process.

Good point about doing the math. Some premium travel cards give effectively 2-2.5% value for points when transferred to airline partners though, which can make it worthwhile even with the fees. I always use my Chase Sapphire Reserve for tax payments specifically because the points are worth more than the fees.

This!!! Same thing happened to me two years ago. The WMR never updated past "approved" but the money showed up in my account. Their systems don't communicate well with each other.

Exactly! Their systems are so outdated and disconnected from each other. Sometimes the left hand doesn't know what the right is doing. I've also noticed that if you're getting your refund via direct deposit, it sometimes shows up as pending in your bank account 1-2 days before the official deposit date the IRS gives you. Another tip: if you're using a tax preparation service like TurboTax or H&R Block and chose to have your fees taken out of your refund, your money actually goes through a third-party bank first, which can add 1-2 more days to the process. That might explain some delays too.

That's because they want their money faster than they want to give out money lol. Honestly though, different types of returns go through different processing channels. Simple returns with no credits and that owe money typically process faster.

Thanks for mentioning the Form 8606! Would I need to file that for the tax year when I make the contribution to the Traditional IRA, or for the tax year when I do the conversion to Roth? If I contribute now but don't convert until next year, which tax year would it fall under?

You need to file Form 8606 for the tax year in which you make the non-deductible contribution to your Traditional IRA. This establishes your "basis" (after-tax money) in the IRA. If you contribute now (2023 tax year) but don't convert until next year (2024), you would still report the non-deductible contribution on Form 8606 with your 2023 tax return. Then when you do the conversion in 2024, you'd receive a 1099-R for that tax year, and you'd file another Form 8606 with your 2024 return to report the conversion. This is why keeping good records is so important - you need to track your basis over time, especially if you don't convert immediately after contributing.

I use Fidelity for my backdoor Roth and it's super easy. You can open both account types online in about 10 minutes, and their conversion process is just a few clicks. Never had to call customer service once. They also have good educational resources about the process right on their website.

This is interesting! Would you use Schedule D for this instead of reporting as hobby income? And do you need to keep receipts for everything to prove what you originally paid?

I do customize some of them! I repaint about 30% of the models I sell, and sometimes do minor repairs on vintage pieces. I just wasn't sure if that was enough to count as a "real business" since it's still mostly just for fun. But it sounds like that could help my case?

That definitely strengthens your case! The customization and repairs show you're adding value through your skills and labor, which is a big factor in the business vs. hobby determination. Make sure you document your work process - take before and after photos of your customizations, track the time you spend on each project, and keep receipts for all supplies. Also, consider creating a separate Instagram or Facebook page showcasing your work, even if it's just casual. Having a business presence online is another factor that supports business treatment. You might also want to look into selling at model horse shows or conventions if you don't already - participating in trade shows is another indicator the IRS looks for when determining if something is a business. The key is to show that you're making decisions with the intent to eventually be profitable, even if you're not there yet.

Thank you for pointing this out! I did take my employer's insurance and have been covered all year through them. I definitely checked the box on my return saying I had coverage for all 12 months. So it sounds like I'm ok from what everyone is saying?

Yes, you're fine then! If you had employer coverage all year and indicated that on your return, the 1095-C is just documentation for your records. You don't need to amend your return or do anything else. The IRS already gets this information reported to them directly from your employer. Just keep the form with your tax records in case there are ever any questions, but you're all set!

100% agree. My 1095-B comes late EVERY year. I think employers have until March to send them out, but W-2s have to be out by January 31. The deadlines don't make any sense when tax filing starts in late January!

Thanks for confirming I'm not the only one! It's so frustrating. You'd think after all these years they'd figure out how to align these deadlines better. I always end up having to decide whether to file early and get my refund sooner, or wait for all my forms and risk delaying my refund.