Just went through this exact verification process last week! FAGI is your Federal Adjusted Gross Income from your previously filed tax return - so if you're dealing with your 2024 return now, they want the FAGI from your 2023 return that you filed earlier this year. You'll find it on line 11 of your Form 1040. The IRS uses this number because it's specific to you and helps confirm your identity. Make sure to enter it exactly as it appears on your return - if it shows whole dollars without cents, enter it that way. Quick tip: if you can't find your paper copy, log into whatever tax software you used last year (TurboTax, H&R Block, etc.) - they usually keep your returns accessible online. That's how I found mine when I was panicking about the same thing! Once you enter the correct FAGI, verification typically happens within 1-2 business days and your refund processing resumes. Just make sure to respond before the deadline in your letter. You'll get through this - the hardest part is just understanding what they're asking for!

I completely understand your confusion - I went through this exact same situation about two months ago and felt totally lost! FAGI stands for Federal Adjusted Gross Income, and it's the number from your PREVIOUSLY filed tax return (so your 2023 return if this letter is about your 2024 filing). You'll find your FAGI on line 11 of your Form 1040 from last year's return. The IRS uses this for identity verification because it's information only you would know. Make absolutely sure to enter it exactly as it appears - if your return shows whole dollars, don't add cents. If you can't locate your physical copy, check if you used tax software like TurboTax or H&R Block - they keep your old returns accessible online for years. That saved me when I was in panic mode looking through stacks of paperwork! Once you submit the correct FAGI, verification usually happens within 24-48 hours and your refund processing resumes. The key is just responding within the timeframe in your letter. I know it feels overwhelming, but you're almost at the finish line - just need to find that one number and you'll be all set!

I had this exact issue in 2022! The simplest solution ended up being asking my employer to issue a corrected W-2 for the year I received the overpayment (which would be 2023 in your case). They were resistant at first, but after I showed them guidance from the IRS about wage corrections, they eventually did it. This approach completely avoided the repayment deduction issue because it essentially "erased" the overpayment from my prior year income, which meant I could file an amended return for 2023 to get back the taxes I paid on that money.

You're in a frustrating but unfortunately common situation. Here's what I'd recommend based on your $2,400 repayment amount: First, immediately check with your payroll department to see HOW they're processing your repayments. Are they being taken as post-tax deductions from your paycheck, or are they actually reducing your gross wages before taxes are calculated? This is crucial - if they're reducing your gross wages, you're already getting the tax benefit you deserve. If they're NOT reducing your gross wages (which sounds likely based on your description), you need to push back. Reference Revenue Ruling 2009-151, which allows employers to adjust current year W-2 wages for repayments of prior year wages when done through payroll deduction. Your HR was actually partially correct - they CAN and SHOULD reduce your taxable wages, they're just not doing it properly. Document everything: your original overpayment amount, repayment schedule, and current pay stub treatment. If your employer won't cooperate, you might need to escalate this or consider getting professional help, because you're absolutely right that paying taxes twice on the same money is unfair. The $3,000 threshold in Pub 525 is real, but it shouldn't apply if your employer handles the repayments correctly through payroll adjustments rather than expecting you to claim a suspended deduction.

I went through this exact same nightmare last year! The hyphenated last name is almost certainly your issue. Here's what finally worked for me: First, try entering your name in ID.me exactly as it appears on your most recent tax return if you have a copy. Even if your parents filed it, your name should appear consistently with how the IRS has it stored. If you don't have that, here are the variations to try with your hyphenated name: - With the hyphen: "Smith-Jones" - Without the hyphen but with a space: "Smith Jones" - Without the hyphen, no space: "SmithJones" - Sometimes they store it as two separate last names Also, make sure you're using your full legal first name, not a nickname. If your birth certificate says "Elizabeth" but you go by "Liz," use Elizabeth. The other thing that helped me was checking my credit report first - sometimes the way your name appears there matches how it's stored in government databases, since they often cross-reference the same sources. Don't panic about the deadline! You can always file for an extension if needed, and like someone else mentioned, you can enter "0" for prior year AGI if you absolutely can't retrieve it. The IRS would rather have your return with a small processing delay than not have it at all.

I went through this exact same issue a few months ago and it was incredibly frustrating! The ID.me error 6001 is definitely a name formatting mismatch between what you entered and what the IRS has on file. Since you mentioned you have a hyphenated last name, that's almost certainly the culprit. Government systems are notoriously inconsistent about how they handle special characters like hyphens. Some store them, others strip them out, and some replace them with spaces. Here's what I'd recommend trying first before calling anyone: 1. Try your name with the hyphen, without the hyphen (as one word), and with a space instead of the hyphen 2. Make sure you're using your full legal first name exactly as it appears on official documents, not any nicknames 3. Double-check that you're not accidentally adding extra spaces anywhere If those don't work, calling the IRS at 1-800-829-1040 is actually your best bet. Yes, the wait times are terrible, but they can verify your identity using other information and tell you exactly how your name appears in their system. I ended up having to do this and the agent was actually very helpful once I got through. Don't stress too much about the deadline - you can always file for an extension if needed, and entering "0" for prior year AGI won't prevent you from filing. The IRS deals with these verification issues constantly during tax season.

I went through something very similar a few years ago with a forgotten investment that generated a surprise K-1. The key thing to remember is that this situation is much more common than you'd think, especially with complex investments like UVXY. Since you're dealing with a passive loss from a PTP (publicly traded partnership), there are a few specific things to keep in mind beyond just filing the 1040-X. The passive activity rules can be tricky - if you don't have other passive income to offset this loss against, you might not be able to use the full $3,200 deduction this year, but it will carry forward until you can use it. One thing that really helped me was keeping detailed records of the amendment process. Make copies of everything - your original return, the K-1, and your amended return. Also, when you file the 1040-X, include a brief explanation of why you're amending (received late K-1) in Part III of the form. The IRS is very familiar with late K-1 situations, so don't stress about red flags. They know these documents often arrive after the filing deadline. Take your time to get it right rather than rushing - you have three years from the original due date to file the amendment.

You'll need to track the passive loss carryforward yourself - the IRS doesn't maintain these records for you. I'd recommend keeping a simple spreadsheet or document that tracks your unused passive losses by year and source. Many tax software programs will also help track carryforwards if you use the same software each year and import your prior year return. When you do have passive income in future years (or dispose of the entire passive activity), you'll report the carryforward losses on Schedule E. Make sure to keep copies of this year's amended return and the K-1 in your permanent tax records - you may need to reference them years from now. For the 1040-X explanation, keep it simple but clear. Something like "Amendment due to receipt of late K-1 from UVXY showing passive loss not included in original return" is perfect. This gives the IRS context for why you're amending and helps them process it more efficiently. One more tip: consider setting up a simple tracking system for any future investments that might generate K-1s. Many people get surprised by these because partnerships and PTPs have different reporting timelines than regular stocks. Having a list of all your investments and their expected tax documents can prevent this situation in the future!

Has anyone here dealt with reporting suspended EBIE on partner tax returns when there's a partial disposition of a partnership interest? The regulations aren't super clear on how to allocate the suspended EBIE in that scenario.

This is a complex area that I've been wrestling with in my practice as well. One thing to keep in mind is that the proposed regulations under 163(j) specifically address the treatment of suspended EBIE when partnerships change their election status. Even though Partnership A is making the 163(j) election going forward, the suspended EBIE from 2018 and 2019 doesn't just disappear. The key is understanding that this suspended amount is tracked at the partner level, not the partnership level. Each partner maintains their own "bucket" of suspended EBIE from each partnership. Beyond the CARES Act relief allowing 50% deduction of 2019 EBIE, the remaining suspended amounts will indeed carry forward until one of the triggering events occurs - either the partnership generates excess taxable income/excess business interest income in future years, or the partner disposes of their interest. What's interesting about your situation is that even with the 163(j) election, Partnership A could still potentially generate excess amounts in future years if its income profile changes significantly. The election doesn't permanently eliminate this possibility, it just makes it less likely given the trade-off you're making with depreciation periods. I'd recommend keeping detailed records of each partner's suspended EBIE by year and partnership, as this will be crucial for proper reporting when disposition or other triggering events eventually occur.