I just wanted to add some reassurance here - I received my Austin letter about 3 weeks ago and it was indeed a 5071C verification notice. The whole experience was much less stressful than I anticipated! A few practical tips based on my recent experience: 1. When you get the letter, don't panic if the deadline seems tight - they actually give you 30 days from the letter date, not the date you receive it 2. I recommend trying the online ID.me route first since it's available 24/7, unlike the phone lines 3. Have your tax return handy during verification - they might ask you to confirm specific amounts from your filing 4. If you're married filing jointly, only the primary taxpayer needs to complete the verification My verification was completed online in about 35 minutes (including multiple attempts at getting decent photos), and I saw the 570 hold code removed from my transcript exactly 6 business days later. Refund hit my account 3 days after that. The IRS has definitely streamlined this process compared to previous years. While it's frustrating to have the delay, the actual verification steps are pretty straightforward now. Good luck and try not to stress too much about it!

Based on your timeline and description, this is very likely to be a 5071C identity verification letter from the IRS. The Austin Service Center is indeed one of the main facilities that handles identity verification correspondence, and your 15-day timeframe from acceptance to letter generation is pretty typical for these cases. A few things to prepare for while you wait: 1. **Gather your documents now**: You'll likely need a government-issued photo ID (driver's license or passport), your Social Security card, and a copy of the tax return in question 2. **Check your transcript one more time**: Look for any new transaction codes that might have appeared since your last check - specifically TC 971 with Action Code 522 or 524, which would confirm identity verification requirements 3. **Consider your verification options**: Online through ID.me is usually fastest (available 24/7), but you can also verify by phone or schedule an in-person appointment at a Taxpayer Assistance Center The good news is that this process has become much more streamlined over the past couple of years. Most people who complete online verification see their refund released within 7-10 business days. While the delay is frustrating, it's become a fairly routine part of the process for many taxpayers. Don't stress too much - the letter will have very clear instructions on exactly what you need to do. Keep us updated on what you receive!

Great question! I went through this same situation a couple years ago. You absolutely can split the mortgage interest deduction when filing separately, but documentation is key. Since you're paying from a joint account that you both contribute to equally, a 50/50 split should be fine. Just make sure you keep good records showing your equal contributions to that joint account - bank statements, pay stubs, etc. The IRS wants to see that you can substantiate your portion of the payments. Also keep in mind that even though the Form 1098 might only show one of your names, you can both claim your respective portions as long as you can prove you both paid. One tip: consider using tax software that can handle MFS situations properly, or at least double-check your work. The interaction between splitting deductions and the requirement that both spouses must itemize if one does can get tricky to navigate correctly.

This is exactly the situation my husband and I were in last year! We also pay from a joint account and were really worried about getting it wrong. After doing a ton of research, we ended up splitting our mortgage interest 50/50 on our separate returns since we contribute equally to the joint account. One thing I'd definitely recommend is running the numbers both ways (joint vs separate filing) before you commit to MFS. We almost lost money overall because of all the credits and deductions you can't take when filing separately. In our case, filing separately only made sense because of some specific income-based student loan considerations. Also, keep really good records! We created a simple spreadsheet showing our deposits to the joint account throughout the year, just in case. The IRS never questioned it, but having that documentation gave us peace of mind. Your accountant's advice sounds right to me - splitting based on actual contribution is the correct approach.

Has anyone used TurboTax for this? Do they handle HSA excess contributions properly? I'm in a similar situation with about $45 in excess contributions.

I went through something very similar last year with multiple HSA accounts due to employer changes. For your $16 excess, you're absolutely making the right call to just pay the 6% tax - it's only going to cost you about $0.96. One thing to keep in mind: if you don't correct the excess contribution, you'll technically owe that 6% tax each year until the excess is removed. However, given how small the amount is, even paying it for several years would cost less than the time and hassle of trying to coordinate distributions from closed HSA accounts. For future reference, if you ever have a larger excess contribution, you can also "absorb" it by contributing less than your annual limit in a subsequent year. The excess essentially gets offset against your unused contribution room. But again, for $16, just paying the tax is definitely the path of least resistance. Make sure to keep good records of this excess contribution and the tax payments in case the IRS ever asks about it down the road.

I've been through a similar situation with high-volume trading and can share some practical insights. With 5,000+ trades, you definitely meet the frequency requirement, but the IRS also looks at whether trading is your primary income source and if you're conducting it like a business (regular hours, dedicated workspace, etc.). A few key points from my experience: **Mark to Market Election**: This is the game-changer for your capital loss limitation problem. With MTM, all your gains and losses become ordinary income/losses, eliminating the $3,000 annual cap. However, you lose preferential capital gains rates on everything. **Employment Concerns**: Trader status is just a tax classification and wouldn't automatically be visible to employers. However, if you're concerned about conflicts of interest, document that you never trade your employer's stock and maintain clear separation between your employment and trading activities. **Documentation**: Start keeping detailed records now - trading journal, time spent, equipment used, educational materials purchased. The IRS wants to see this is a business activity, not just investing. **Professional Help**: Given the complexity and your volume, I'd recommend finding a CPA who specializes in trader taxes rather than H&R Block. Yes, it costs more upfront ($1,000-2,000), but the potential tax savings and audit protection are worth it. **State Considerations**: Since you're in Texas, you avoid most state complications, but keep this in mind if you ever relocate. The math generally works in your favor with your volume, but get professional guidance before making the election - it's largely irrevocable.

I've been following this discussion with great interest as I'm in a somewhat similar situation with around 2,800 trades this year. One aspect that hasn't been fully addressed is the timing of making the MTM election if you decide to go that route. From what I've researched, if you want MTM to apply to your 2024 taxes (filing in 2025), you need to make that election by the original due date of your 2024 return (April 15, 2025) - no extensions allowed. This means you have a relatively short window to decide and get the paperwork filed correctly. Given that we're already well into 2024, you might want to focus on whether MTM makes sense for your 2025 tax year instead, which would give you more time to properly document your trading business activities and consult with a qualified CPA. Also, regarding your concern about H&R Block's hourly charges - many specialized tax pros who handle trader status actually offer flat fees for this type of work since they're experienced with the volume. The $500-1,000 range mentioned earlier is pretty typical, and when you factor in the potential tax savings from eliminating that capital loss limitation, it usually pays for itself. One practical tip: start categorizing your trades now by holding period and strategy. This will help both you and your tax preparer determine if trader status makes sense and will make the documentation process much smoother.

I'm going through this exact same situation right now! Filed my 2024 taxes in early February and got the dreaded "refund on hold" notice last week. They want my 2022 W-2 that I apparently never filed (oops!). Reading through everyone's experiences here is both reassuring and terrifying - 6-10 weeks seems to be the consensus, which means I'm looking at late April/early May for my refund. As a fellow grad student, I totally feel your pain about needing that money for summer expenses! I'm planning to send mine certified mail this week after reading all these suggestions. Has anyone tried calling the IRS upfront to ask exactly which documents they need? I want to make sure I'm not missing anything else that could cause additional delays. The last thing I want is to wait 8 weeks only to find out they needed something else too. Thanks for starting this thread - it's incredibly helpful to hear real timelines from people who've actually been through this process!

Welcome to the tax hold waiting room club! 😩 I'm currently on week 7 of waiting for my 2024 refund after mailing in my missing 2021 return. Based on what I'm seeing here, it looks like most people are getting their refunds released between weeks 6-10, so there's definitely light at the end of the tunnel. A few things I learned the hard way that might help you: 1. **Check your online account transcript weekly** - it updates before the refund status tool and shows processing codes that indicate movement 2. **Call exactly at 4 weeks** - don't wait longer because if there's an issue, you'll want to catch it early 3. **Keep detailed records** - write down dates, confirmation numbers, and who you spoke with The certified mail suggestion is spot-on. I used regular mail initially and had no way to prove they received it when I called. Had to resend everything certified, which added another 2 weeks to my timeline. For what it's worth, even though the wait is brutal, every person I've talked to who went through this process eventually got their refund. The IRS is slow but they do process these holds systematically. Hang in there - your summer ramen budget will thank you later! 🍜