Has anyone successfully amended their return for this? I have a similar situation with about $12,500 in excess deductions on termination, but I'm worried about triggering an audit if I file an amendment claiming all of these deductions against my income.

I had a very similar situation last year with excess deductions from a terminated family trust. What helped me was getting a clear breakdown from the trustee of exactly what types of deductions were included in the excess amount. In my case, I had about $8,200 in excess deductions that included administrative fees, legal costs, and some investment-related expenses. The key was determining which of these could be claimed as above-the-line deductions versus itemized deductions. For your 1040-X amendment, make sure to include Form 8960 if any of the trust income was subject to the Net Investment Income Tax - this is something I almost missed. Also, keep copies of all correspondence with the trustee about the deduction categorization, as the IRS may request additional documentation during processing. The good news is that if your excess deductions are properly categorized and you follow the 2020 regulations, you should be able to claim them without the old $3,000 capital loss limitation. Just be thorough with your documentation and consider getting professional help if the amounts are substantial.

My HR department told me that 125PL stands for "Section 125 Plan" and covers all the pre-tax deductions for benefits like health insurance, dental, vision, etc. The 125IN might be for disability insurance premiums maybe? These codes can vary by employer so it might be worth asking your HR or payroll department for a full list of their specific W-2 codes and what they mean.

I can help clarify these Box 14 codes for you! You're right to be confused - these employer-specific codes can be tricky. **125PL ($1,495.32)** - This is almost certainly your health insurance premiums paid through a Section 125 cafeteria plan (pre-tax). The "PL" likely stands for "Premium" or "Plan." This is NOT union dues - your tax software was probably just guessing based on common deductions. **125IN ($37.92)** - This is probably insurance-related as well, possibly supplemental insurance like life, disability, or vision coverage, also paid pre-tax through your Section 125 plan. **RET ($3,067.61)** - This represents your retirement plan contributions (401k, 403b, etc.). **Important:** All of these amounts have already been subtracted from your taxable wages shown in Box 1 of your W-2. You typically don't need to enter them separately when filing your taxes - they're just informational to show you what pre-tax deductions were taken. However, double-check your pay stubs for clearer descriptions of these codes, and if you're still unsure, contact your HR/payroll department for a definitive explanation of your employer's specific Box 14 codes. Better safe than sorry when it comes to taxes!

Thanks for all the helpful info everyone! I'm the original poster and this has been super educational. I had no idea about the different thresholds for documentation requirements. One follow-up question - when you're estimating fair market values, do you base it on what similar items sell for at thrift stores like Goodwill, or what they'd sell for in other secondhand markets like Facebook Marketplace or consignment shops? I'm trying to be accurate but not sure which pricing to use as my benchmark. Also, @Camila Castillo - that's a little scary about your friend getting audited! Do you know if there was something specific that triggered the extra scrutiny, or was it just random? $3,000 doesn't seem like an unusually large amount for donations.

Great thread everyone! As someone who works in tax preparation, I wanted to add a few practical tips that might help: 1. **Timing matters** - Don't wait until tax season to organize your donation records. Set up a simple system now: take photos as you bag items, keep all receipts in one folder, and update your donation log regularly. 2. **Condition is key** - Be honest about item condition. The IRS expects "good used condition" for most donations. If something has stains, tears, or significant wear, either don't donate it for tax purposes or value it much lower. 3. **Bundle strategically** - You don't need to list every sock individually, but don't be too vague either. "10 pieces of children's clothing, good condition" is better than just "bag of clothes." 4. **Keep it proportional** - A general rule of thumb I tell clients: if your total charitable deductions seem unusually high compared to your income (over 20-25%), make sure your documentation is bulletproof. The key is finding the balance between being thorough and being reasonable. The IRS isn't trying to catch you doing something wrong - they just want to see that you're being honest and following the rules!

Chime user here! I've gotten my refunds through them for the past 2 years and they're definitely faster than traditional banks. Usually hits anywhere from 1-6 PM but I've also seen it come through late at night or early morning. The uncertainty is annoying but the speed makes up for it. You'll probably see it within the next day or two max. Just try to keep yourself busy - watching the account won't make it come any faster! 😊

Hey! I've been using Chime for refunds for about 4 years now and the timing really is all over the map. I've gotten deposits as early as 12:30 PM and as late as 2 AM the next day. What I learned is that it depends on when the IRS actually sends the batch to Chime - sometimes they send multiple batches throughout the day. The good news is Chime doesn't hold it once they receive it like bigger banks do. You'll definitely get it faster than most other banks, just might not know exactly when. Hang in there! 💰

I just want to say that as someone who prepares 1099s for my small business, the new 1099-NEC form is confusing as hell compared to the old 1099-MISC. I've definitely put info in the wrong boxes before. Your client is probably just confused by the form layout. Definitely ask for a corrected form, but don't assume malice when simple confusion is more likely. The IRS doesn't exactly make these forms user-friendly for small business owners who don't have professional accountants.

I'm a tax preparer and see this exact mistake constantly with the new 1099-NEC forms. Your client almost certainly just put the same amount in both boxes by accident - it's one of the most common errors I encounter. Here's what likely happened: They saw Box 1 for the payment amount, then when they got to Box 7, they either didn't read the label carefully or thought it was asking for the total income amount again. The fact that your federal refund doubled is a red flag that the software is treating Box 7 as state withholding (which it's not on the NEC form). My advice: Don't file until you get a corrected form. The IRS matching system will flag the discrepancy between what you report and what your client reports. Even if you report it correctly on your end, having mismatched documents creates unnecessary headaches. Contact your client ASAP and explain that Box 7 should only have an amount if you performed work in multiple states and they need to allocate the income geographically. If all your work was done in one state (or remotely), Box 7 should be blank. Most small business owners are grateful when you help them avoid IRS issues.