Can it import the already completed Sch D and 8949 forms that OP mentioned, or would they have to re-enter all their crypto transactions manually?

Unfortunately it doesn't have a direct import feature for already completed forms. You would need to manually re-enter the information from your Schedule D and Form 8949. This is actually one downside compared to some other options mentioned. If you have a lot of crypto transactions, re-entering everything could be quite time-consuming.

Learned this the hard way too. Also date everything! I wrote notes on some of my forms but didn't put dates and couldn't remember which version was final when I got audited.

Do these Tax Topic 151 reviews usually result in reduced refunds? Or is it just a verification process and you still get your full amount if everything checks out?

It really depends on what they find during the review. If all your documentation supports your claims and everything checks out, you'll receive the full refund amount, though obviously delayed. If they determine certain deductions or credits aren't valid, they'll adjust your return and you'll receive a reduced amount. In some cases, if they find significant issues, you could even end up owing more instead of getting a refund. The vast majority of cases are just verification though, and many people do receive their full refund after providing documentation.

I waited almost 60 days last year before I got my letter. Called multiple times and kept getting told "it's in process." When the letter finally came, it was something simple they could have told me over the phone. The IRS is still dealing with backlogs from Covid even now.

I didn't know the IRS could restrict your withholding choices! Has this happened to you or someone you know? How extreme would the withholding need to be for them to do this?

It's never happened to me personally, but I've seen it happen to a colleague. In their case, they were having about 50% of their check withheld when their actual tax liability would have only required about 15-20%. The IRS typically only issues lock-in letters when there's a significant discrepancy. For your situation, wanting a $12k refund on $150k income with 3 kids isn't extreme enough to trigger concern. It would be more problematic if you were trying to have, say, $40k withheld when your likely tax liability is only $15k. They generally don't mind reasonable overwithholding - many people use tax refunds as a savings method.

Do you know which states offer tax benefits for homeschooling? I'm in Illinois and considering homeschooling next year.

Illinois doesn't currently offer specific tax benefits for homeschooling expenses, unfortunately. States that do include Louisiana (deduction up to $5,000), Indiana (deduction up to $1,000 per child), Minnesota (education tax credit), and a few others. Even without state-specific benefits, don't forget about potential federal benefits like the Lifetime Learning Credit depending on how you structure your homeschooling program. Some families also set up small educational businesses alongside their homeschooling which can provide some tax advantages if done properly.

This is super helpful! One question though - if you've been making deductible Traditional IRA contributions for years and then make some non-deductible contributions before converting to Roth, do you only pay tax on the deductible portion? Or is it more complicated?

It's a bit more complicated. The IRS uses what's called the "pro-rata rule" for conversions. You can't cherry-pick which dollars to convert first. If you have both deductible and non-deductible contributions in your Traditional IRAs, you must calculate the percentage of your total IRA balance that represents non-deductible contributions. That same percentage of your conversion will be tax-free. For example, if 20% of your total IRA balance across all accounts represents non-deductible contributions, then 20% of your conversion would be tax-free.

I used TurboTax last year for this exact situation. It works but you need to be careful. When you enter your 1099-R, it initially shows the full amount as taxable. Later in the process, it will ask about non-deductible contributions and previous Form 8606 filings. Make sure you don't miss that section!

Thanks for the info! I was worried I'd miss something important. I'll keep an eye out for that section about non-deductible contributions. Did you have to pay for the premium version to access Form 8606?

That's actually not a bad idea if they're local! My old job was cool about it. The HR lady even apologized and said a bunch got lost in the mail. Way better than waiting on hold with the IRS.

This is great advice, thank you! I'll start keeping track of my attempts to get it. Do you think a simple log with dates and times of calls would be sufficient, or should I be sending emails so I have written proof?

Email is definitely better because it gives you a clear paper trail. Send a polite email to HR or payroll requesting your W-2, mentioning that you haven't received it yet and the January 31st deadline has passed. If you call, follow up with an email summarizing the call ("As we discussed on the phone today..."). For extra protection, if they don't respond to regular emails after a week, send a certified letter with return receipt. This proves they received your request. The IRS takes this stuff seriously, and if your employer is systematically failing to provide W-2s, your documentation could help with any potential investigation.