I'm brand new to this community and just created an account after finding this incredibly helpful thread! I'm in almost the exact same situation - I have a 971 code from September 5th and an 846 code with a refund date of September 13th. I've been checking my transcript multiple times a day and was absolutely convinced something was wrong when I saw both codes together. Reading through everyone's experiences here has been such a lifesaver for my anxiety! As a complete newcomer to understanding these IRS codes, it's so reassuring to see how many people have been through this exact 971→846 pattern and actually received their refunds right on the 846 date. The explanations from tax professionals in this thread really helped me understand that this sequence is actually normal and indicates things are progressing properly, not that there's a problem. This community is incredible - everyone is so willing to share their real experiences and help newcomers like me decode these confusing transcript codes. Based on all the stories I've read here, I'm feeling much more confident about September 13th now. Thank you all for being so supportive and creating such a welcoming space for people trying to navigate these stressful IRS processes!

I'm completely new to this community and just joined after frantically searching for answers about my transcript codes! I have the exact same situation as the original poster - a 971 code from September 6th followed by an 846 code with a refund date of September 14th. I've been obsessively checking my transcript and was absolutely terrified when I saw both codes together. Reading through this entire thread has been such an incredible relief! As a total newcomer to understanding these IRS codes, I had no idea what any of this meant and was imagining the worst case scenarios. But seeing so many real experiences from people who've been through this exact 971→846 pattern and actually received their refunds on the scheduled date is incredibly reassuring. The explanations from tax preparers and long-time community members really helped me understand that this sequence is actually normal and indicates everything is progressing properly. It's amazing how supportive and knowledgeable this community is - I'm so grateful to have found a place where people share genuine experiences rather than just speculation. Based on all the stories I've read here, I'm feeling much more confident about September 14th now. Thank you all for creating such a welcoming space for newcomers trying to navigate these stressful IRS processes! This community is definitely going to be my go-to resource for tax questions going forward.

Just to add another perspective on the IRS contribution limits - it's worth noting that while your employee deferrals are capped at $22,500 total across all plans, if you end up with excess contributions due to payroll timing issues (like if Job 1's payroll doesn't know about Job 2), you'll need to request a return of excess contributions before the tax deadline to avoid penalties. I'd also suggest looking into SEP-IRA or SIMPLE IRA options if Job 2 is flexible about retirement benefits - sometimes smaller employers find these easier to administer than traditional 401k plans, and they might be willing to set something up if you approach them about it. While you still couldn't contribute more employee deferrals, they could potentially make employer contributions that don't count against your $22,500 limit. One more thing on the backdoor Roth strategy - given your $160k MAGI, make sure you're not missing out on any other tax-advantaged accounts first. If you have dependents, a 529 plan might make sense. Also, if either employer offers a dependent care FSA, that's another $5,000 of tax savings you could capture before moving to taxable accounts.

This thread has covered the main points really well, but I wanted to add one practical tip that saved me a lot of headache when I was in a similar situation with multiple W2 jobs. Since you're already maxing out at Job 1, I'd recommend reaching out to Job 1's payroll/HR and letting them know you have a second job where you might want to make 401k contributions. Some payroll systems can actually track your year-to-date contributions across multiple employers if you provide them with your other job's contribution information. This helps prevent the over-contribution issue that @ebd0c4c51e33 mentioned. Also, even though Job 2 doesn't offer matching now, I'd still enroll in their 401k plan if available and set contributions to $0. This way you're already in the system if they add matching later or if your income situation changes and you need to rebalance contributions between jobs. One last thing on the backdoor Roth - with your $160k MAGI, you're in that sweet spot where it definitely makes sense. Just make sure to do it early in the year after cleaning up any existing Traditional IRA balances, and consider doing it as a single large contribution rather than monthly to minimize the time your money sits in the Traditional IRA earning gains (which would complicate the conversion taxes).

I completely understand your confusion - this is one of those areas where everyone seems to have different opinions! Based on your description (Social Security as your only income source), you most likely don't need to file a federal tax return. Here's the simple test: if your Social Security benefits are under $25,000 for the year (as a single filer), they're not taxable and you don't need to file. Since you mentioned no other income at all, you'd just need to check the amount in Box 5 of your SSA-1099. However, I'd recommend considering filing anyway even if you're not required to. Many people in your situation choose to file using IRS Free File because: 1. It's incredibly simple with just Social Security income - takes about 15-20 minutes 2. Creates official documentation that you don't owe anything 3. Protects against identity theft (prevents fraudulent returns filed in your name) 4. Gives you complete peace of mind The IRS has a "Do I Need to File a Tax Return?" interactive tool on their website that can give you a definitive answer based on your specific situation. Either way you decide, you're being responsible by asking these questions rather than just guessing!

I've been reading through this entire discussion and it's been incredibly helpful! I'm in almost the exact same situation - Social Security is my only income source and I've been getting conflicting advice from everyone around me. What really stands out to me from all these responses is how many people decided to file anyway even when they weren't required to. The identity theft protection angle is something I definitely hadn't considered before, and with all the scams targeting seniors these days, that extra security seems really valuable. I think I'm going to follow the advice several people mentioned: first use the IRS "Do I Need to File?" interactive tool to get the official answer for my specific situation, then probably go ahead and file anyway using IRS Free File for the peace of mind. If it really only takes 15-20 minutes with just Social Security income, that seems like a small price to pay for having everything officially documented. Thanks to everyone who shared their experiences here - this thread has turned what felt like a really confusing and stressful question into something much more manageable. It's amazing what a difference it makes to hear from people who have actually been through the same situation!

Has anyone had experience with how suspended passive losses affect your MAGI when you finally get to use them? I've been accumulating losses on my rental for 5 years and am thinking of selling soon.

As someone who's dealt with this exact same confusion, I can confirm what others have said about using the pre-depreciation rental income figure for MAGI calculations. In your case, that would be the $4,000. One thing that helped me understand this better is thinking about why MAGI exists in the first place - it's meant to capture your actual economic income flow for determining eligibility for various programs. Depreciation is a "paper loss" that doesn't represent actual cash leaving your pocket, so it gets added back. The passive loss limitation (showing $0 on line 25) is a separate issue from MAGI calculation. Those suspended losses are essentially being "stored" for future use when you either have passive income to offset or sell the property. For your situation with $4,000 net rental income before depreciation, that's what you'd include in your MAGI calculation for most purposes. Just remember that if you're calculating MAGI for different programs (ACA subsidies vs IRA contribution limits, etc.), there might be slight variations in what other items get added back to your AGI.

Don't forget about the childcare tax credit! Since you pay 65% of the daycare expenses, you should be eligible to claim that credit regardless of who claims the child as a dependent (though it's simpler if the same person does both). Keep all your receipts and documentation showing you paid these expenses. My tax preparer saved me over $2000 last year because I had documentation showing I paid for most of my daughter's daycare even though my ex claimed her as a dependent that year.

I'm dealing with a similar situation and wanted to share what I learned from my tax attorney. The key issue here isn't just who has higher AGI, but also making sure you have proper documentation of your custody arrangement and expense payments. Since you have true 50/50 custody AND you're paying 65% of daycare costs, you're in a strong position to claim the younger child. For the older child, the same AGI tiebreaker rule applies. However, I'd strongly recommend getting this clarified in writing through a court modification to your custody agreement. One thing to consider is that your ex saying they "need the tax break more" isn't relevant under IRS rules - financial need doesn't override the legal guidelines. The IRS goes by custody time and AGI, not who needs the money more. Also, keep detailed records of all your childcare payments, child support payments, and any other expenses you cover. If this ever gets disputed, you'll want clear documentation showing you're following the rules correctly.