Just to add to the stapling advice - make sure you don't staple through any barcodes on your forms! The IRS uses those for processing and if they're damaged by staples, it can slow things down. Also, if you have multiple copies of the same form (like multiple 1099s), don't staple them together in a separate stack - just include them in order with the rest of your return. And definitely keep copies of everything before you mail it! I scan all my forms before sending just in case something gets lost in the mail. Paper filing makes me nervous but sometimes it's unavoidable.

Thanks for all the helpful advice everyone! I'm definitely going to try that taxr.ai suggestion first before committing to paper filing. If I do end up having to mail everything in, I'll make sure to use a small staple in the upper left corner and send it certified mail. One thing I'm curious about - for those who have paper filed thick returns, do you fold the pages to fit in a standard envelope or use a larger manila envelope? I'm worried about the forms getting wrinkled or damaged in transit, especially if they're folded. Also, should I include a self-addressed stamped envelope for any correspondence, or is that not necessary?

For anyone else dealing with this, the IRS actually published an FAQ that specifically addresses this issue. Here's the direct quote from their website: "Q1. May I choose to include my Medicaid waiver payments in earned income for the earned income credit (EIC)? A1. Yes. You may choose to include qualified Medicaid waiver payments in earned income for the earned income credit." Print this out and include it with your response to the IRS adjustment notice! It's directly from their own guidance.

This is such a helpful thread! I'm a new caregiver for my elderly father and just started receiving Medicaid waiver payments last month. I had no idea about Notice 2014-7 or how it affects the EIC calculation. Reading through everyone's experiences, it sounds like the key is being very explicit about what you're doing and why when you file. I'm planning to use the Form 8275 approach that Ravi mentioned, along with including that IRS FAQ reference from Freya. One question though - for those who successfully got this resolved, did you have to provide any specific documentation from the state Medicaid office, or were your regular payment statements sufficient? I want to make sure I have everything I need before I file to avoid the headache you all went through.

Has anyone else noticed that OPM is TERRIBLE about explaining the "UNKNOWN" issue to survivors? When my dad passed and my mom started getting the survivor benefits, we called OPM like 5 times and got 5 different answers about how to handle the taxes. One rep told us it was all taxable, another said none was taxable, and one even said "just ask your tax preparer" which wasn't helpful at all! We ended up overpaying taxes for 2 years before a CPA finally explained the Simplified Method to us.

I'm dealing with this exact same situation right now! My father passed away in early 2024, and my mother started receiving OMP survivor benefits in June. We just received her first full-year 1099-R and sure enough - "UNKNOWN" in boxes 2a and 9b. Reading through all these responses has been incredibly helpful. I had no idea about the Simplified Method worksheet, and our tax preparer seemed just as confused as we were. They actually suggested we might need to report the entire amount as taxable, which based on what everyone is saying here would have been a huge mistake. Does anyone know if there are any special considerations for mid-year benefit starts? My mom only received survivor benefits for about 6 months in 2024, so I'm wondering if that affects the Simplified Method calculation at all, or if we just pro-rate based on the actual months she received payments? Also, has anyone successfully amended returns for this issue? We're probably looking at needing to file an amended return too since we may have reported this incorrectly initially.

Did u check wmr? sometimes it updates before transcripts do

The good news is your transcript actually looks pretty normal for someone in the ID verification process! That "No tax return filed" at the top is just a glitch in how the IRS system displays transcripts during processing - it doesn't mean they don't have your return. Your processing date of 04-15-2024 confirms they received it. The 570 code with the 971 notice is standard procedure when they need additional verification. Since you completed ID verification 2 weeks ago, you should see the 570 code reverse (usually shows as a 571 code) within the next few weeks, followed by your refund being released. Your EIC amount looks correct for your income level and HOH status. Just keep monitoring your transcript weekly - once that 570 reverses, your refund should process within 1-2 cycles. Hang in there! 🤞

As a tax professional, I want to emphasize that while these alternative solutions like taxr.ai and Claimyr might be helpful, the most important thing is accuracy. The IRS does allow you to report Social Security income without the physical SSA-1099 form, but you need to be absolutely certain of the amounts. If you received only two payments in 2023, you should be able to find the exact amounts on your bank statements or by checking your Social Security account online during off-peak hours (as others mentioned). The key is that whatever you report must match exactly what the SSA reports to the IRS. For future reference, SSA-1099 forms are typically available online by February 1st even if the mailed versions are delayed. But definitely try the early morning login trick - I've recommended this to many clients with success. Don't let a delayed form prevent you from filing on time, especially since you can always file an amended return later if needed.

You cannot request a 1099 by phone, so don't bother calling. AND if you cant login to SSA using either login.gov or id.me because they won't verify your identity, you have no choice but to go to the local SSA office and wait for a few days in line in hopes somebody there can help you. Today is 2/26/26 and I still have not received my 1099.