We went through this exact same evaluation process last year with our firm of about 400 returns. After testing several alternatives to ProSystem fx Engagement, we ended up going with a hybrid approach that's worked really well for us. We switched to Drake Tax Software for the actual tax preparation (much more affordable and surprisingly robust) and paired it with SmartVault for document management. The total cost savings was about 40% compared to our ProSystem fx setup, and honestly the Drake software is more intuitive than ProSystem ever was. The key was not trying to find one system that does everything ProSystem fx Engagement does, but rather finding specialized tools that do each function better. For workpapers and review notes, we use a combination of Excel templates and SmartVault's annotation features. It took some adjustment, but our team actually prefers the new workflow now. One tip: if you do switch, plan to start the transition in May/June so you have the full off-season to get comfortable with the new system. We did a parallel run with about 50 clients to work out the kinks before committing fully.

We made the switch from ProSystem fx Engagement to Lacerte last year and it's been a solid choice for our firm. The interface is more modern and intuitive than ProSystem, and the diagnostics are actually better - they catch errors that ProSystem would sometimes miss. What really sold us was the integration with QuickBooks for our business clients. Since many of our small business clients use QB, being able to import their data directly into Lacerte saves hours of manual entry. The e-filing is rock solid too - we've had zero rejected returns due to software issues. The learning curve was manageable - took our preparers about 2-3 weeks to feel comfortable, and by mid-season they were actually faster than they'd been with ProSystem. Lacerte's customer support is also night and day better than what we dealt with at CCH. Cost-wise, we're saving about 25% annually compared to our ProSystem fx setup. Not as dramatic as some of the hybrid approaches mentioned here, but the single-system simplicity was worth it for us. If you want to stick with a comprehensive solution rather than mixing multiple tools, Lacerte is definitely worth a demo.

This is a really common issue that catches people off guard! I went through something similar when I had a big bonus year that pushed me over the limit. One thing I'd add to the great advice already given - if you decide to do the recharacterization route, ask your brokerage about the exact process for reporting this on your tax return. You'll need to file Form 8606 if you recharacterize to a Traditional IRA, and the timing of when you make the recharacterization request can affect which tax year it applies to. Also, some brokerages are faster than others at processing these requests, so don't wait until the last minute if you're going that route. The backdoor Roth conversion is definitely worth understanding even if you don't use it this year - it's a valuable strategy for high earners going forward. Just make sure you understand the pro-rata rule implications if you have existing Traditional IRA balances from old 401k rollovers.

Just wanted to chime in as someone who dealt with this exact situation last year. The capital gains surprise is so frustrating - I had no idea they counted toward the income limits either until my tax software flagged it. One thing I'd recommend is acting quickly once you decide on your approach. I initially thought I had plenty of time since the deadline seemed far away, but the recharacterization process with my brokerage took almost 3 weeks to complete. They had to calculate the earnings attribution, get supervisor approval, and then submit all the paperwork to the IRS. Also, if you're considering the backdoor Roth route for future years, it might be worth talking to a tax professional about whether you should roll your existing Traditional IRA balances into a current employer's 401k first (if your plan allows it). This can help you avoid the pro-rata rule complications down the road. The silver lining is that this is a "good problem to have" - your investments did well! Just an expensive lesson in tax planning for higher income years.

This is definitely a payroll system error that needs to be fixed immediately! As someone who's dealt with similar FICA tax issues, I can confirm that Social Security and Medicare taxes should never disappear when you adjust your W-4 withholding - they're completely separate calculations. The fact that these taxes showed up correctly on your first paycheck but vanished after your withholding change is a clear sign that someone made a data entry error when processing your request. This is actually more common than you'd think with payroll systems. When you meet with HR tomorrow, make sure to: - Bring both paystubs for comparison - Ask them to show you exactly what changed in their system - Calculate what your FICA should be beforehand (roughly 7.65% total of your gross pay) - Insist they correct the missing taxes from your affected paycheck, not just fix future ones - Get written confirmation of their correction plan Don't let them brush this off as "no big deal" - missing FICA contributions can affect your Social Security earnings record. You caught this early, which is great! Most people don't pay this close attention to their paystubs, so you're already developing good financial habits that will serve you well. This should be resolved within a few business days. If they seem uncertain or try to downplay the urgency, don't hesitate to escalate to their manager or finance department.

This is definitely a payroll system error that needs immediate attention! As others have mentioned, FICA taxes (Social Security and Medicare) are mandatory deductions that should appear on every paycheck regardless of any W-4 changes you make. The timing is very suspicious - having these taxes show up correctly on your first check but disappear right after your withholding adjustment strongly suggests someone made a data entry error when processing your W-4 update. This is actually a fairly common glitch with payroll systems. For your meeting with HR tomorrow, I'd recommend: - Bringing both paystubs to show the clear before/after comparison - Asking them to walk through exactly what they changed in their system - Having your FICA calculations ready (on $47k salary, you should see about $112 for Social Security + $26 for Medicare per bi-weekly check) - Insisting they correct the missing taxes from your second paycheck, not just fix it going forward - Getting written documentation of both the error and their correction timeline Don't accept any dismissive responses about this being "no big deal" - missing FICA contributions can create gaps in your Social Security earnings record that could potentially affect your future benefits. This should be resolved within 2-3 business days maximum. You did exactly the right thing catching this early! Your attention to detail is going to save you from much bigger problems down the road. Most people don't scrutinize their paystubs this carefully, so you're already developing excellent financial awareness habits that will serve you well throughout your career.

I'm new to this community and currently experiencing RIVO status myself! I filed my return in mid-February and have been stuck in this status for about 5 weeks now. Like so many others have shared here, I was initially really worried that I had made some error on my return. This thread has been incredibly informative and reassuring. Learning that RIVO stands for Return Integrity Verification Operation and is essentially an automated system that cross-checks our returns against IRS databases really put my mind at ease. The statistic about RIVO cases increasing by 40% this year definitely explains why so many of us are encountering this for the first time! I took the advice mentioned here and set up my IRS online account to check my transcript - everyone is absolutely right that it shows much more detail than the basic "Where's My Refund" tool. I can see the 570 hold code on my account and now I'm watching for that 571 release code that indicates when the hold is lifted. Based on all the timelines shared in this thread, it sounds like most people see resolution within 6-8 weeks, so I'm cautiously optimistic I'll see some movement in the next week or two. The waiting is definitely challenging, especially when you're counting on that refund, but knowing this is just their standard verification process makes it much more bearable. Thanks to everyone who took the time to share their experiences and advice - it's such a comfort to know we're not alone in this process!

I'm new to this community and currently dealing with RIVO status for the first time myself! I filed my return in late February and have been in this status for about 4 weeks now. Like so many others have mentioned, I was initially panicked thinking I had made some major mistake on my return. This thread has been absolutely invaluable for understanding what's actually happening. Learning that RIVO stands for Return Integrity Verification Operation and is essentially an automated fraud prevention system really put my mind at ease. That 40% increase statistic someone mentioned earlier definitely explains why so many of us are experiencing this for the first time this year! I immediately set up my IRS online account after reading all the recommendations here, and everyone is spot on about the transcript being much more informative than the basic "Where's My Refund" tool. Seeing that 570 hold code at least gives me something concrete to track rather than just the vague "still processing" message. Based on all the timelines shared here, it sounds like most people see resolution within 6-8 weeks, so I'm hoping to see movement in the next few weeks. The automated nature is both reassuring (no subjective human decisions) and frustrating (nothing I can do to speed it up), but at least I understand the process now. Thanks to everyone who shared their experiences and timelines - it's such a relief to know we're not alone in this and that the vast majority of cases resolve successfully with full refunds intact!

As someone who went through a similar situation with work requiring me to split time between locations, I can't stress enough how important it is to get the primary residence determination right from the start. The IRS really does look at the totality of your circumstances, not just work schedules. In my case, I was spending about 60% of my time at a work location in another city, but my family, voter registration, and banking all remained at our original home. When I consulted with a tax professional before making any property purchases, they made it crystal clear that my original home would be considered my primary residence regardless of my work schedule. The key insight that saved me from making an expensive mistake was understanding that the IRS focuses heavily on where your "household" is established - meaning where your spouse and children reside, where they attend school, and where your family's social and economic ties are centered. Since your family isn't moving with you to the work location, you'd have a very difficult time convincing the IRS that the work property is your primary residence. I ended up sticking with temporary housing for my work situation rather than buying a second property, and honestly, it's been much simpler from both a financial and administrative standpoint. No dual property taxes, insurance, maintenance headaches, or complex tax filings to worry about. The mortgage brokers aren't wrong about loan qualification, but they're definitely not considering the full tax picture. Get that professional tax consultation before making any major moves - it'll be the best money you spend!

This has been such an incredibly thorough discussion of a really complex topic! As someone who's been lurking and reading through all these responses, I wanted to add my perspective as a newcomer to understanding these tax rules. What really strikes me is how the original question seemed so straightforward - "Can you have two primary residences?" - but the reality is so much more nuanced. The disconnect between mortgage qualification rules and IRS tax rules is honestly pretty shocking. It seems like there should be better coordination or at least clearer disclosure in the mortgage industry about these tax implications. The documentation requirements everyone has discussed are particularly eye-opening. I had no idea the IRS looks at such a comprehensive picture - voting registration, banking relationships, where your kids go to school, medical care providers, etc. It's clearly not just about where you sleep most nights. For someone in my position who's trying to understand these rules for the first time, the key lessons seem to be: 1) Never assume what works for mortgage purposes will work for taxes, 2) The IRS really does look at your entire life circumstances, not just time spent, 3) Professional advice upfront is much cheaper than fixing mistakes later, and 4) Sometimes the simplest solution is actually the smartest when you factor in all the hidden complexities. The real-world examples of audit battles and unexpected tax bills shared throughout this thread really drive home why getting this right from the beginning is so important. Thank you to everyone who shared their expertise - this discussion has been incredibly educational!