Would filing a police report actually help speed up the resolution with the IRS? And should I file it in my local jurisdiction even if I have no idea where the identity theft occurred?

Filing a police report won't necessarily speed up the IRS process, but it creates an official record of the crime that strengthens your case with both the IRS and credit bureaus. It demonstrates you're taking legal steps to address the fraud, which can be important if there are any questions about the legitimacy of your claim. Yes, file the report with your local police department where you live. They understand that identity theft can happen anywhere, and they're required to take the report even if the actual crime might have occurred elsewhere. Ask for a copy of the report or at minimum the report number to include with your IRS documentation.

You definitely need to contact your state tax agency separately! I made the mistake of thinking the IRS would handle everything, but states have their own identity theft processes. When I finally contacted my state revenue department, I found out someone had also filed a fraudulent state return in my name and I had to go through a whole separate verification process.

Thanks for letting me know! I'll contact my state tax department right away. Did you need to submit the same documentation to them that you did to the IRS, or do they have different requirements?

This is super helpful advice. You can get the wage and income transcript online through the IRS website if you set up an account. I had to do this when I lost my 1099s from 2020 while moving.

That's a really smart point I hadn't considered. We're doing great, but I guess it makes sense to document everything properly regardless. Better to have clear boundaries even when things are good. Did you just write up something informal or did you use a specific format for your agreement?

We didn't have anything formal which is why it became a problem. What I recommend now (after learning the hard way) is a simple document that states: 1) Both parties' names and the property address, 2) The tax year it applies to, 3) The specific percentage split of mortgage interest and property tax deductions, 4) A statement that both parties understand this arrangement and won't claim more than their agreed portion, and 5) Both signatures and the date. It doesn't need to be notarized or anything fancy - just having something in writing helps prevent misunderstandings. You could even email it to each other so there's a digital timestamp. Some couples renew this agreement each tax year if their financial contributions change.

Smart move with the separate account. I was wondering though - does it matter who actually transfers the money to the mortgage company? Like if the payment comes from a joint account but one person set up the automatic payment, does the IRS care about that detail?

That's a great idea about asking for a sample pay stub! I didn't even think of that. Are HSA contributions similar to 401k in how they affect taxes? And do you know if parking deductions are pre-tax or post-tax?

HSA contributions are even better than 401k contributions tax-wise. They're pre-tax when made through payroll deduction, they grow tax-free, AND withdrawals are tax-free when used for qualified medical expenses. It's the only triple tax advantage account available. Definitely max it out if you have a High Deductible Health Plan. Parking and transit benefits are typically pre-tax up to the IRS limit (around $280/month for 2025), but it depends on whether your employer has set up a qualified transportation benefit program. Some smaller employers might just provide a taxable parking stipend instead. Definitely worth asking HR about the specifics of their program.

This is good advice but your math is a bit off. 65000/26 is actually $2,500 (not $2,400). Also, federal tax will probably be lower than 15% effective rate on $65k, especially with 401k contributions reducing taxable income.

I tried the Taxpayer Advocate last year and they told me they couldn't help with identity verification cases unless there was a genuine financial hardship. Has this policy changed recently?

The policy hasn't officially changed, but in practice, it varies by office and how you present your case. Identity verification cases can qualify if you can demonstrate actual financial hardship (like facing eviction, utility shutoff, inability to pay for medications, etc.) caused by not receiving your refund. What's also changed is that some Taxpayer Advocate offices now have specialized staff just for handling identity verification backlogs. Worth calling your local office to check their current procedures, as they've been updating their approach to handle the massive backlog of these cases.

I did this last month and it worked perfectly! Called the appointment line (844-545-5640), got an appointment for the following week at my local office. Brought my ID, social security card, the IRS letter, and copies of my tax returns. The agent verified my identity on the spot and released my return for processing. Refund showed up 3 weeks later!