I'm going through the exact same thing right now! Filed Feb 11th, accepted Feb 14th, and I've had that "Action Required" message for almost 3 weeks. It's so maddening that they can't just tell us what they need instead of this vague message followed by waiting weeks for a letter. I finally broke down and checked my transcript yesterday using the IRS website, and it showed some codes that I couldn't decipher. Someone mentioned taxr.ai earlier in this thread so I gave it a try - turns out I have an identity verification flag on my account. At least now I know what's causing the delay instead of just sitting here wondering. The worst part is that the IRS website makes it sound like this review process is quick, but from what everyone is saying here it can take months. Really hoping my letter arrives soon so I can get this sorted out. Hang in there - sounds like most people eventually get their refunds once they complete whatever verification the IRS needs!

I'm dealing with this exact same frustrating situation! Filed on Feb 9th, accepted Feb 12th, and I've been stuck with that vague "Action Required" message for over 3 weeks now. No letter in the mail yet either. What's really annoying is how unhelpful that message is - they basically say "we might need something from you" but give zero specifics about what or when. I've been checking my mailbox religiously every day hoping for some actual information. Based on what everyone here is saying, it sounds like this is unfortunately super common this tax season. I'm planning to check my transcript this weekend to see if I can get any clues about what's causing the hold-up. The waiting is absolutely brutal when you're counting on that money for bills and expenses. Thanks for posting about this - it's oddly comforting to know so many others are in the same boat. Hopefully we all get our answers (and refunds!) soon!

This is such a great way to help your mom build up her Social Security credits! I actually did something very similar with my aunt who was in the same situation. One thing I'd strongly recommend is to establish a clear written agreement upfront that outlines her specific duties, work schedule, and pay rate. This doesn't need to be anything fancy - just a simple document that shows this is a legitimate employment arrangement rather than just family financial support. Also, make sure to research what personal chefs or meal prep services charge in your area so you can set a reasonable wage. In most areas, $12-20 per hour for cooking services would be totally justifiable, and paying her for 10-15 hours per week should easily get her the credits she needs. The key is consistency - pay her the same amount on the same schedule (weekly or bi-weekly), keep good records, and treat it like any other employer-employee relationship. Your mom will thank you when she gets those full Social Security benefits! One last tip: consider having her provide other household services too if needed (light cleaning, meal planning, grocery shopping) to justify more hours and higher total wages. Just make sure everything you pay for represents real work being performed.

This is a really smart way to help your mom! I've been reading through all the great advice here and wanted to add one more practical tip that helped me when I set up a similar arrangement with my father. Consider opening a separate checking account specifically for paying your mom's wages. This creates an even cleaner paper trail and makes it crystal clear that these are employment payments, not just family money transfers. I named mine "Household Employee Payroll" which made everything super obvious for record-keeping. Also, don't forget that your mom will need to pay estimated quarterly taxes on this income since you won't be withholding enough to cover her full tax liability (especially if she has other income sources). Help her set aside about 25-30% of what you pay her for taxes - this prevents any nasty surprises at tax time. The Social Security credits accumulate faster than you might think. At the current rate of $1,730 per quarter for each credit, even paying her $400-500 monthly should get her one credit per quarter. That means she could earn all 4 annual credits with just $6,920 in wages for the year - very achievable with consistent cooking work! The peace of mind knowing she'll have proper Social Security benefits is worth all the extra paperwork. You're being a great son looking out for her future like this.

This is exactly the kind of detailed analysis I was hoping to find! As someone who's been trading SPX options for about 2 years now, I've been going back and forth on the MTM election. The permanence aspect that @407e984dc284 mentioned is huge - I had no idea it was so difficult to reverse. That alone makes me want to be absolutely certain before making any election. I'm curious about the business expense angle though. For those who have made the MTM election, what kinds of expenses have you been able to deduct that you couldn't before? I spend quite a bit on trading education, multiple data feeds, and have a dedicated home office setup. Would these typically be enough to offset the loss of the 60/40 treatment? Also, has anyone run into issues with the "trader vs. investor" classification when making the MTM election? I trade almost daily and rarely hold positions overnight, but I'm not sure if that's sufficient to qualify as a trader for tax purposes.

The key insight everyone seems to be hitting on is that the 60/40 treatment for SPX options is incredibly valuable and shouldn't be given up lightly. I've been wrestling with this same decision. One aspect I haven't seen mentioned is the timing flexibility with Section 1256 contracts. Since SPX options are marked-to-market at year-end regardless, you get that automatic realization without having to actually close positions. This can be helpful for tax planning - you can see exactly where you stand by December 31st and make strategic decisions about other investments. With MTM election, you lose that timing control since everything becomes ordinary income anyway. Plus, as others have noted, the election is essentially permanent, which is a huge commitment. I think the sweet spot for most SPX traders is to qualify as a "trader in securities" (without the MTM election) so you can deduct business expenses on Schedule C while keeping the favorable 60/40 treatment. Best of both worlds if you can document sufficient trading activity to meet the trader qualifications. The $18k additional tax cost that @407e984dc284 mentioned really puts the financial impact into perspective. Unless you're sitting on massive business expenses or need to offset significant losses in other areas, the math just doesn't work in favor of MTM for SPX-focused trading.

Just wanted to add some clarification that might help with your planning - the OASDI tax is actually deducted from your paychecks throughout the year by your employers, so you don't need to calculate or pay it separately when you file your taxes. Each employer withholds 6.2% of your wages up to the annual limit ($168,000 for 2024, $175,800 for 2025 as someone mentioned). The key thing to remember is that if you change jobs during the year or have multiple employers simultaneously, each employer treats your OASDI withholding independently. So if you made $100,000 at Job A and $80,000 at Job B, you'd have OASDI withheld on the full $180,000 even though you should only pay it on $168,000. That's when you'd claim the excess back on your tax return. Your spouse's income has absolutely no impact on your individual OASDI calculation - you each get your own $168,000 limit regardless of your combined household income or filing status.

I just went through this exact situation last year and can confirm what others have said - the OASDI limits are completely individual, not combined for married couples. My husband and I both earn over the $168,000 limit, so we each paid the maximum $10,453.20 in Social Security tax. One thing I learned the hard way is to keep track of your year-to-date OASDI withholding if you switch jobs mid-year. I changed employers in August and my new company started withholding OASDI from zero again, even though I had already hit the limit at my previous job. I ended up overpaying by about $800 and had to claim it back as a credit on our tax return. The good news is that tax software usually catches this automatically when you enter multiple W-2 forms, but it's worth double-checking the math yourself. Your filing status (joint vs separate) has zero impact on OASDI calculations - it's purely based on individual earnings.

Just wanted to add one more consideration that might be relevant to your situation - check if your teacher retirement system has any vesting requirements that could affect your withdrawal options. Some state systems have rules where you forfeit employer contributions if you withdraw before being fully vested (usually 5-10 years of service). Since you mentioned teaching for just under 3 years, you might want to verify what portion of that $7,200 is actually yours to withdraw versus what might be forfeited employer contributions. This could impact whether withdrawal vs. rollover makes more financial sense, though in most cases the rollover is still going to be the better choice tax-wise. You can usually find this information in your annual benefit statement or by calling the retirement system directly (though as others mentioned, getting through can be challenging). Better to know the full picture before making your decision!

One thing that might help with your decision is to consider your current and projected future income levels. If you're expecting to be in a higher tax bracket in the coming years, the rollover becomes even more attractive since you'd be avoiding taxes on that $7,200 at today's rates and potentially withdrawing it later when you're in retirement at lower rates. Also, don't forget to factor in the growth potential difference. Even if your teacher retirement system offers decent returns while inactive, most 401k plans give you access to low-cost index funds that could significantly outperform over the long term. With potentially 30+ years until retirement, that growth difference could be substantial on your $7,200. One last tip - if you do decide on the rollover, ask both administrators for written confirmation of the process and timeline. Government retirement systems can be notoriously slow, and having documentation helps if anything gets delayed or goes wrong during the transfer.