Check your loan estimate carefully! Mine had an origination charge of 1% but when i looked at the breakdown it was actually 0.25% for points (deductible) and 0.75% for underwriting fees (not deductible). They lump it all together as "origination" which is super confusing.

Great advice from everyone here! I went through this same confusion last year. One thing that really helped me was getting the HUD-1 Settlement Statement (or Closing Disclosure for newer loans) and looking specifically at line 801 for "Loan Origination Fee" and line 802 for "Loan Discount (Points)". If your 1.25% fee shows up on line 802 or is specifically labeled as discount points, it's likely deductible. If it's on line 801 as a service fee, it's probably not. Also, the IRS has a specific test for deductible points: they must be computed as a percentage of the loan amount, paid for your main home, be customary in your area, and not exceed the amount generally charged. Your lender should be able to confirm which category your fee falls into - don't be afraid to press them for specifics since this affects your taxes!

I'm dealing with this exact scenario right now after my recent PCS move. One thing I'd add that hasn't been mentioned yet is to check if your refund status shows a specific "mailed date" on the IRS2Go app or Where's My Refund tool. If it just says "sent" but doesn't show the actual mail date, you might still have a narrow window to intercept it. I called yesterday and the agent told me that checks showing "sent" status can sometimes sit in their mailing queue for 3-5 business days before actually being dispatched. She was able to see that mine was scheduled to mail on Friday, giving me time to update my address. Also, if you're using MyMilitary OneSource, they have a tax service that can help coordinate with the IRS on your behalf - it's often faster than calling directly since they have established relationships with IRS military liaisons. Don't forget to also update your address with your state tax agency if you're due a state refund - they have similar no-forwarding policies but often less flexibility than the IRS for military members.

Just went through this exact situation during my PCS from Fort Carson to Norfolk. The key thing everyone's touching on is timing - but here's what worked for me specifically: I called the IRS at exactly 7 AM Mountain Time (they open earlier for West Coast) and got through in about 15 minutes instead of the usual hour+ wait. The agent was able to see my refund was in "final processing" stage and put what she called a "address correction hold" on it. This gave me 10 business days to submit Form 8822 with military orders attached as supporting documentation. She also mentioned that active duty members can email a copy of their PCS orders directly to a special IRS military processing unit (she gave me an email address that's not publicly listed). The whole process took about 3 weeks total, but I got my refund sent to the new address without the return/reissue delay. Pro tip: mention your DODID number when you call - it helps them verify your military status faster and access the expedited procedures. Also keep a copy of your PCS orders handy since they ask for the effective date and gaining unit information.

Great question! I went through this exact situation last year and learned the hard way that the withholding is just a prepayment, not the final amount you'll owe. Here's what happened to me: I withdrew $15,000 from my Traditional IRA and had 20% withheld ($3,000). When I filed my taxes, I ended up owing an additional $2,200 because: - The withdrawal pushed me into a higher tax bracket, so my actual tax rate on that income was 24% instead of the 20% I had withheld - I owed the full 10% early withdrawal penalty ($1,500) since I didn't qualify for any exceptions - Total taxes owed: $5,100, but I'd only prepaid $3,000 My advice: Calculate your estimated tax bracket for the year INCLUDING the IRA withdrawal, then have at least that percentage withheld for income taxes. Remember the 10% penalty is completely separate and won't be covered by withholding, so set aside that money too. It's better to overwithhold and get a refund than to owe a big chunk at tax time!

Something to also keep in mind is the timing of your withdrawal and how it affects quarterly estimated tax payments. If you're taking a large early distribution and you're self-employed or have other income that isn't subject to withholding, you might need to make estimated quarterly payments to avoid underpayment penalties. I learned this the hard way when I took an early distribution in Q3 last year. Even though I had taxes withheld from the IRA distribution, the IRS expects you to pay taxes evenly throughout the year. Since my withdrawal was large enough to significantly increase my tax liability for the year, I should have made an estimated payment for Q4 to cover the difference. The safe harbor rule mentioned earlier saved me from penalties, but it's something to consider if your withdrawal is substantial relative to your annual income. You might want to calculate whether you need to make an estimated payment for the current quarter to stay on the safe side. The IRS Form 1040ES has worksheets that can help you figure this out.

Has anyone here actually gone over the $10k SALT cap? I'm wondering if it's even worth the effort to time my payments since I'm probably only going to hit about $9,700 with both property tax payments. Would the extra few hundred in deductions even make a significant difference?

Great question about the SALT cap timing! I was in a similar situation last year with my supplemental property tax bill. One thing I learned is that even if you're close to the $10k limit, it's worth doing the math on your total itemized deductions vs. the standard deduction. In my case, I was at about $9,800 in SALT taxes, but when I added mortgage interest, charitable donations, and some medical expenses, my total itemized deductions were still higher than the standard deduction. So that extra $200 in property tax deductions actually did save me money. Also, don't forget that the SALT cap includes both property taxes AND state income taxes (or sales tax if you choose that). So if you paid estimated state taxes or had withholding, those count toward your $10k limit too. I almost missed that and would have been over the cap without realizing it!

Those 60-day letters are absolutely the worst! I went through the exact same thing earlier this year - got THREE of them between March and August. The complete lack of real information is what made it so stressful. Like everyone else here, I was stuck with that useless "Where's My Refund" tool showing "still processing" for months. What finally gave me peace of mind was downloading my tax transcript from the IRS website (irs.gov - look for "Get Transcript Online"). You have to create an account, but once you see those transaction codes, you'll finally understand what's actually happening behind the scenes. In my case, it was just a routine income verification that had been flagged automatically - nothing scary like I'd been imagining! The transcript shows WAY more detail than that generic "still processing" message. You can see dates, transaction codes, and the actual progress of your return through their system. It's honestly frustrating that the IRS makes this information so hard to find when it would eliminate so much anxiety for taxpayers. Hang in there - the vast majority of these cases are just routine reviews that got backed up in their system. Once you can see what's actually flagging your return, you'll probably find it's much less dramatic than all the worst-case scenarios your mind has been creating!

I'm dealing with this exact situation right now and honestly, these 60-day letters are driving me insane! Filed back in March and just got my second one last week. The "Where's My Refund" tool has been completely useless - just shows "still processing" with zero helpful information for months now. Reading through all these comments has been incredibly eye-opening though. I had absolutely no idea you could download your own tax transcript or that there were AI tools to help decode what's actually happening. It's honestly ridiculous that the IRS has all this detailed information but keeps us completely in the dark with these vague form letters. The anxiety of not knowing whether you made a mistake or if it's just routine processing is honestly worse than the delay itself. I've been imagining all sorts of worst-case scenarios when it sounds like most of these are just verification issues that got backed up in their system. Definitely going to try the transcript download approach tonight - seems like that's the key to finally getting some real answers instead of just waiting helplessly for the next 60-day letter to show up. Thanks to everyone who shared their experiences and solutions here. It's both frustrating and comforting to know this is such a widespread problem!