Thank you! I wouldn't have thought about the certified mail part. Do you know if I should organize the documents in any specific way? Like should I create a cover letter explaining each item or just send everything with the letter they sent me?

Absolutely create a cover letter! Reference the letter ID number and your tax ID number at the top. Then make a list of every document you're including and what specific item on your tax return it supports. For each category of expenses they're questioning, group those documents together with a summary sheet showing how they add up to the amount you claimed. Making it easy for the IRS agent to review your documentation increases your chances of a quick and favorable response. The easier you make their job, the better the outcome usually.

Does color-coding help? I'm super visual and thinking about using different colored folders for different expense categories when I send everything in.

1 I actually didn't know that was an option! Would the loan show up on my credit report? And what happens if I leave my current job before it's paid back?

22 401k loans don't appear on your credit report since you're essentially borrowing from yourself, not a financial institution. If you leave your job before repaying the loan, that's where it gets tricky. You'll typically need to repay the full remaining loan balance by the tax filing deadline (including extensions) for the year you leave your job. If you don't repay by that deadline, the outstanding loan amount is treated as a distribution, subject to taxes and the 10% early withdrawal penalty - exactly what you were trying to avoid in the first place. So only do this if you're stable in your job.

17 Does tax software like TurboTax automatically include this form when you report a 401k withdrawal or do you have to specifically request it?

I asked my tax preparer about this last week! Amended returns for tax year 2021 would normally be due by April 18, 2023 (the standard 3-year amendment period). If you're in the disaster area, this deadline is also extended to October 16, 2023. So yes, you have until October to file that 2021 amended return!

Thank you so much for checking on this! That's a huge relief as I'm still gathering documentation for some expenses that were damaged in the flooding. Good to know I have until October to get everything together for the amendment.

It's automatic! If your primary residence or business is located in the federally declared disaster area, you don't need to file any extension forms. The IRS automatically provides the relief to anyone in the covered disaster areas. The system is set up to recognize your location based on your address on file with the IRS.

Thanks for that reminder! How much interest did they pay you, if you don't mind me asking? Mine was only $18.42 for a refund that was delayed about 4 months. I wonder if it's even worth reporting such a small amount?

Mine was only $32.16 for a refund delayed about 6 months, but yes, you absolutely should report even small amounts like $18.42! The IRS computer systems automatically match all 1099-INTs against your return, regardless of amount. There's technically no minimum threshold for reporting interest income. Even though it seems insignificant, the IRS notice I received for forgetting to include it cost me far more in penalties and interest than the original amount. Plus, dealing with IRS notices is a huge headache that's definitely not worth risking over a small amount.

It's taxed exactly the same as any other interest income (like from a bank account). It will be taxed at your ordinary income tax rate - not at capital gains rates. So if you're in the 22% tax bracket, you'll pay 22% on that interest. Just report it on Schedule B along with any other interest income you received during the year.

Thanks for this info! I had no idea the IRS could help with missing W2s or that employers had a deadline for sending them. My company is definitely past that February 15th deadline now so maybe that's why they're being so slow about it. I'll definitely try calling that number. Do you know if there's a way to check online whether my employer has already submitted my W2 info to the IRS? That would save me time on the phone if I could see it's already in their system.

Unfortunately there isn't an online way to check if your specific W2 has been filed with the IRS yet. The only way to get that information is by calling them directly. One thing you might try though is creating an account on the IRS website (if you don't already have one) at irs.gov/account. While it won't show your current year W2 info before you file, it will at least give you access to request a wage and income transcript from previous years, which can be helpful for reference.

This is the most important advice in the thread honestly. The extension is ONLY for filing paperwork, not for paying what you owe! I think a lot of people don't realize this.