Make sure you're considering the age factor in your conversion strategy. If you're under 59½ when you do the conversion and plan to access any of the converted funds within 5 years, you could face penalties on those withdrawals. Each conversion has its own 5-year clock for penalty-free access to the PRINCIPAL amount converted. This is separate from the 5-year rule for earnings.

One additional consideration for your multi-year conversion strategy - don't forget about the impact on your Medicare premiums if you're approaching age 65 or already enrolled. The additional taxable income from your Roth conversions could push you into higher IRMAA (Income-Related Monthly Adjustment Amount) brackets, which would increase your Medicare Part B and Part D premiums. These surcharges are based on your modified adjusted gross income from two years prior, so a large conversion in 2025 would affect your 2027 Medicare premiums. You might want to model different conversion amounts to see how they impact not just your current tax brackets, but also your future Medicare costs. Sometimes spreading the conversions over 4-5 years instead of 3 can help you stay below the IRMAA thresholds while still achieving your goal of converting to Roth.

I'm also going through this exact situation right now! My refund check appeared in Informed Delivery on March 25th and it's been 4 days with no delivery yet. Reading through everyone's experiences here has been such a huge relief - I was starting to panic thinking my check had been stolen. It's incredible how many people are dealing with nearly identical timelines and delays. The postal worker's explanation about the multi-step processing and additional security handling for IRS checks really helps me understand what's happening. I had no idea that Informed Delivery scans happen at regional facilities that could be days away from our local post offices! Based on all the shared experiences here, it seems like waiting 8-10 days from the Informed Delivery notification is the reasonable approach before taking action. For your sister's situation with the March 22nd notification, I'd definitely follow the advice about waiting until around March 31st before visiting the post office. This thread has been so valuable - it's reassuring to know that these delays are systemic USPS issues rather than theft in most cases. The stress of waiting for your refund money when you can see it was already processed is real, but hearing everyone's similar stories gives me confidence that our checks are just stuck in the postal pipeline. Thanks for starting this discussion - it's helping so many of us who are in the same boat!

I'm a newcomer to this community and I'm dealing with this exact same situation! My tax refund check appeared in Informed Delivery on March 27th and it's been 2 days now. I was starting to get really worried about mail theft, but reading through all these responses has been incredibly reassuring. It's amazing to see how many community members are experiencing nearly identical delays with very similar timelines. The explanation from the postal worker about the multi-step processing and additional security handling for IRS checks really helps explain what's happening behind the scenes. I had no idea that Informed Delivery scans occur at regional facilities that could be days away from our local post offices! Based on everyone's shared experiences, it seems like 7-12 day delays are unfortunately normal this tax season. For your sister's March 22nd situation, following the advice about waiting until March 31st (9 days from Informed Delivery) before taking action sounds very reasonable. This thread has been such a lifesaver for someone new like me who was starting to panic unnecessarily. The stress of seeing your refund check processed but not delivered is real, but hearing from so many people with similar experiences gives me confidence that these are just USPS processing delays rather than theft. Thanks to everyone for creating such a helpful discussion!

This is exactly what happened to me two years ago! The CP81 notice is actually a good thing - it means the IRS has legitimate withholdings or credits on file for you, they just can't match them to a processed return. In my case, the issue was that my e-filed return had a small formatting error that caused an automatic rejection, but the rejection notice got buried in my email spam folder. Meanwhile, my employer had already submitted my W-2 to the IRS showing tax withholdings, which created the credit balance. Here's my advice: First, log into your IRS online account at IRS.gov and pull your "Wage and Income Transcript" for 2021. This will show you exactly what income documents (W-2s, 1099s, etc.) the IRS has received about you. Compare that to what you filed - if they match, then you likely just need to refile your return. When you refile, make sure to write "SUPERSEDING RETURN" at the top if filing by paper, or use the same process through TurboTax if electronic filing is still open for 2021 returns. The $4,177 is real money that belongs to you - don't let it sit there unclaimed! One last tip: if you do need to call the IRS, try calling exactly at 7 AM when they open. The wait times are much shorter in the early morning before everyone else starts calling.

I'm going through the exact same thing right now! Got my CP81 notice yesterday showing a $3,892 credit but claiming they never received my 2021 return. Like you, I definitely e-filed through TurboTax and got all the confirmation emails. Reading through all these responses has been incredibly helpful - it sounds like this is way more common than I thought. The explanation about the IRS having our W-2 information separately from our actual returns makes so much sense now. I never realized employers submit that data directly to the IRS. I'm going to try the 7 AM calling strategy tomorrow morning, and I'll definitely check my IRS online account first to see what transcripts they have on file. It's reassuring to know that credit amount is legitimate money and not some kind of error or scam. Thanks everyone for sharing your experiences - this thread has been a lifesaver for understanding what's actually going on with these notices!

Does anyone know if there are different tax rules for classic or collector cars? I sold an old Mustang last year and actually made a profit (bought it in rough shape years ago and restored it). Is that different than a regular car?

One thing to keep in mind is that even though you don't need to report the loss on your personal vehicle sale, if you had any outstanding loan balance when you sold it, that doesn't change the tax treatment. The IRS looks at the economic substance - you bought for $35k, sold for $17.5k, so you had a $17.5k loss regardless of loan status. Also, since you sold through Carvana, they should have provided you with documentation of the sale price. Keep that along with your original purchase paperwork as Kayla mentioned. Even though it's not reportable, having clean records makes everything easier if questions ever come up. The confusion about "profit" vs "cash received" is totally understandable - a lot of people think getting cash means profit, but from a tax perspective it's all about the difference between what you paid and what you received, not your loan balance.

Has anyone used the actual expense method vs. standard mileage rate for a leased vehicle? I've heard conflicting advice about which is better.

Just wanted to share my experience as someone who made this exact decision last year. I'm also a sole proprietor with about 55% business use on my vehicle. After going through all the calculations (and talking to my CPA), I ended up purchasing instead of leasing, primarily because of the Section 179 deduction and bonus depreciation opportunities. For 2024, you can still deduct the full purchase price in year one for many vehicles under Section 179 (up to $1,220,000 limit), which created a significant immediate tax benefit for my business cash flow. One thing that really helped was keeping meticulous records from day one. I use a simple app to log every trip with the business purpose, and I photograph my odometer reading at the beginning and end of each tax year. The IRS loves detailed contemporaneous records if you ever get audited. Also, don't forget about the state tax implications - some states have different rules for vehicle deductions that might influence your decision. In my state, the sales tax on the purchase was also partially deductible as a business expense. The key is running the numbers for YOUR specific situation rather than relying on general advice. Vehicle cost, expected mileage, business use percentage, and your current tax bracket all factor into what's optimal.