Great practical advice! I found a lot cheaper parking 4 blocks away from my building. It's $7/day instead of $12. The walk is actually nice when weather is good and I'm saving almost $100 a month!

Thank you for the insider perspective! That's really helpful. Do you know if there's any way I can request that they issue a proper W-2C instead of just this "updated W-2"? I'm worried about potential issues with my amended return without the proper documentation.

You should contact your payroll department again and specifically request a W-2C, explaining that you've already filed using the incorrect W-2 and need the proper correction form for your amended return. Mention that this is the standard procedure according to IRS guidelines. If they continue to refuse, you can still file your amended return with the documentation you have. Include a written explanation that you requested a W-2C but the employer only provided an updated W-2. The IRS is familiar with employers not always following proper procedures, and your explanation should help prevent any issues with your amended return.

Does H&R Block software handle this too? I'm in a similar situation but using H&R Block and can't figure out how to enter the correction.

Thank you so much for this insight! This is exactly what I was hoping to hear from someone with real experience. I'll definitely keep all my transaction records just in case, but I feel much better about not needing to wait for a corrected form. One last question - when I file with TurboTax, should I just enter the 1099-R exactly as is with code "1" and then make sure the 8606 is correct? Or is there somewhere I need to indicate this was a conversion?

Yes, enter the 1099-R exactly as it appears with code "1" - don't try to change it to match what you think it should be. The important part is making sure that when TurboTax guides you through the 8606 portion, you correctly indicate this was a Roth conversion. The software should ask you questions about the purpose of the distribution, and you'll want to specify it was for a Roth conversion. TurboTax will then properly complete Form 8606 with Line 18 showing zero taxable amount. This is what tells the IRS system that no 10% penalty applies, regardless of the distribution code on the 1099-R.

Code "J" is actually correct for your situation. It specifically indicates an early distribution from a Roth IRA that is not subject to penalty (due to it being a qualified distribution). This is different from OP's situation with a Traditional to Roth conversion. Distribution codes can vary based on the specific type of transaction and account types involved. For a backdoor Roth where you contribute to a Traditional IRA and then convert to Roth, you'd typically see code "2" (or sometimes "1" as in OP's case) for the conversion step. But for distributions from Roth IRAs themselves, different codes apply.

Do you happen to know what the threshold is for 2025? I'm trying to plan ahead and figure out if I'll be close to that 22% bracket.

For 2025, the threshold between the 12% and 22% brackets for single filers is projected to be around $47,150 (up from about $44,725 in 2023). For married filing jointly, it's projected to be about $94,300. These are estimates based on inflation projections, and the IRS will announce the official numbers later this year. But they should be pretty close to these figures unless inflation changes dramatically.

While I agree the system favors the wealthy, that's not entirely accurate. The top 1% pays about 40% of all federal income taxes collected. The issue is more about proportional tax burden and the different treatment of earned income vs capital gains.

Is there any repository or website where you can look up these specific state rules? Trying to figure out what counts as "payment" in Colorado.

You can usually find these rules in your state's tax code or administrative code, which should be available online through your state's legislative website or department of revenue site. Search for terms like "date of payment" or "timely payment" along with "tax." For Colorado specifically, I believe they follow what's known as the "timely mailed, timely filed" rule, which means the postmark date is considered the payment date if sent by U.S. mail. They also have specific provisions for electronic payments. You can find these details in the Colorado Revised Statutes and the Department of Revenue's tax regulations. Their taxpayer service division can also provide this information if you call them directly.

Electronic payments aren't always an option for everyone though. My small business has to make special estimated payments for a particular industry tax that our state still requires to be submitted by mail with a special voucher form. It's ridiculous but that's how they want it.

That's a fair point. I didn't consider that some specialized tax types might still require physical payments. In those cases, I'd probably still try to use my bank's bill pay service rather than writing personal checks, since the bank creates an electronic record of when the payment was sent out, which gives you an additional layer of documentation. It's frustrating that some tax departments haven't fully modernized their systems yet, especially for business-specific taxes. Hopefully more states move toward comprehensive electronic payment options soon, as it's clearly better for both the taxpayers and the tax departments in terms of record-keeping. Profile: 1