Do you use a specific spreadsheet template for tracking? I'm wondering if I should just give up on software entirely and track everything manually from the start.

I created my own spreadsheet that specifically labels transaction types (buy, sell, short open, short close, staking reward, etc.) and calculates gains according to the actual tax rules. It was time-consuming to set up initially, but saves me headaches during tax season. I don't recommend giving up on software entirely though. I use it as a starting point and to catch transactions I might have missed, then reconcile with my own records and make manual adjustments where needed. The software is also helpful for generating the final tax forms.

Be careful with that approach. Unless you've made a formal mark-to-market election that covers your crypto trading (which is questionable since crypto isn't technically a security), you're supposed to track each transaction individually. The IRS has been increasingly focused on crypto compliance, and using an unauthorized accounting method could create problems if you're audited. They've specifically stated that cryptocurrency should be treated as property, subject to capital gains rules with specific lot identification.

Because the IRS doesn't know whether your distribution is contributions, conversions, or earnings without you telling them. That's what Form 8606 does - it helps you calculate and show which part of your distribution is taxable. Without it, they'd have to assume the worst (that it's all earnings).

I haven't received any letters yet. I've claimed both kids for the past 3 years, so it's not a new situation. Their mom and I have a formal agreement about who claims which child each year, so there shouldn't be any conflict there. Should I still be checking for mail from the IRS, or would they have contacted me by now if that was the issue?

If you've claimed the same children for multiple years without issues, it's less likely to be a verification problem. However, the IRS sometimes sends letters requesting information 4-6 weeks after filing, so it could still arrive. Mail from the IRS can also sometimes look like regular mail or get lost, so it's always good to check carefully. But honestly, at this point it sounds more like normal processing delays rather than an information request problem. The IRS processing times really have been significantly longer this year for returns with dependents.

The PATH Act is still in effect, but since the original poster filed on March 5th, that wouldn't be causing their delay. The PATH Act prevents the IRS from issuing refunds before mid-February for returns claiming EITC or the Additional Child Tax Credit, but once we're past that date, it shouldn't be a factor anymore.

Thanks for clarifying! I wasn't sure if they had extended those delays or if it was still just the mid-February cutoff. Makes sense that it wouldn't affect March filers.

$220 for a simple return?? That seems really expensive. Was that including state filing too?

Yes, that included both federal and state filing fees. You're right that it's not cheap - and honestly that's why I'm not going back this year. The $50 gift card was nice but when I looked at the total cost, I realized I could have done it myself for much less. I'm using one of the self-prep software options this year since my tax situation hasn't changed much. The "bonus" isn't worth the extra fees when you do the math.

Is that the same as the free version that TurboTax advertises? I tried that last year but they kept trying to upsell me and eventually said I needed to pay because of my student loan interest form.

Thanks for the insight from an HR perspective. She says they never filled out new W-4 forms during the transition, which seems weird to me. They just transferred everyone's data to the new system. Could they legally use her old W-4 information, or does a company acquisition require new forms?

They technically should have had everyone complete new W-4 forms since it's considered a new employer (unless it was just a name change of the same legal entity). Most acquisitions require new paperwork precisely to avoid these kinds of issues. Without new W-4s, they should have at minimum transferred the withholding settings from the previous system. The fact that everyone is experiencing the same issue suggests a systemic problem rather than individual errors. I'd recommend having your wife request to complete a new W-4 immediately and specifically note she wants federal withholding according to the latest tax tables.

I was thinking the same thing about possible confusion with COVID-era policies. My company temporarily messed up withholding in early 2022 thinking some of those policies were still in effect when they'd actually expired. Took them a month to fix it and everyone had to make catch-up withholding payments.