Does anyone know if you have to wait for the IRS to process the federal amendment before filing the state amendment? Or can you do both at the same time?

You can generally file both federal and state amendments at the same time - you don't need to wait for the federal to be processed first. However, you should make sure the information matches on both amendments. Some states do want you to include a copy of your federal amendment with your state amendment, so have that ready when you prepare your state forms. And definitely check your specific state's deadline - while many follow the federal 3-year rule, quite a few have different timeframes that could work in your favor.

The only exception I know of is if you were physically or mentally unable to manage your financial affairs during that time. It's called "financial disability" and requires certification from a doctor. It's in Internal Revenue Code section 6511(h) if you want to look it up.

I've heard military members deployed in combat zones get extensions too, and there might be something for people in federally declared disaster areas. But from everything I've read, they're super strict about that 3-year limit for regular situations.

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.

Good point about the dependent status. I'm 25 and completely support myself, so my parents definitely aren't claiming me as a dependent. And I'm filing as single. With my $29k AGI, do you know which percentage tier I'd fall into exactly?

For a single filer with a $29,000 AGI in tax year 2024 (filing in 2025), you'd qualify for the 10% Saver's Credit tier. The 50% tier cutoff for single filers is $21,750, the 20% tier goes up to $23,500, and the 10% tier extends to $36,500. So with your contribution to your Roth IRA, you'd get a tax credit worth 10% of your contribution amount, up to a maximum credit of $200 (which would be based on a $2,000 contribution). Every bit helps when it comes to tax savings!

I used H&R Block last year and it handled the Saver's Credit correctly. The software asked if I was a full-time student for at least 5 months during the year (yes/no question) rather than asking for all the specific months. Make sure you're answering based on the 5-month rule, not just whether you were in school.

Do you know if there's a time limit for filing these complaints? The taxes were from 2022 but we just found out about the error when we got the IRS notice last week. Also, how would I find out if he has liability insurance? He hasn't mentioned anything about insurance, just offered to pay the penalties.

The time limit for filing complaints with state boards of accountancy varies by state, but typically it's between 1-5 years from when the incident occurred or was discovered. Since you just found out about the error, you should still be well within the timeframe. You can directly ask the accountant if they have professional liability insurance (sometimes called errors and omissions insurance). Most legitimate accounting practices carry this coverage. If they're hesitant to answer, that's a red flag. You can also mention that you're considering filing a complaint with the state board - this often motivates professionals to reach out to their insurance carriers rather than risk disciplinary action or damage to their reputation.

This is good advice. My sister got all her penalties waived when her accountant messed up. The IRS was actually pretty reasonable once she explained and had documentation.

Would this browser trick work with Edge too? I don't have Firefox installed and don't want to download another browser just for this if I don't have to.

I haven't personally tested Edge, but other users have reported success with it. The key seems to be avoiding Chrome, which has some weird compatibility issues with the Free File system's PDF handling. Edge should work better than Chrome since it uses a different rendering engine. The main thing is that some browsers handle the form submissions differently, especially with checkboxes and special characters. If you're getting the same rejection repeatedly in one browser, it's definitely worth trying a different one before giving up.

I actually tried that method last year with a different form (not 8863) and it failed because the Free File system requires certain forms to be filled electronically so their system can read the data. You can't just attach a scanned form as a PDF - the system needs the actual data in the fields.