This thread has been incredibly helpful! I had the exact same confusion with my spouse's paystub showing a "stock offset" that made their net pay look ridiculously low compared to gross income. Just to add one more verification step that helped us: we compared the "stock offset" amounts on each paystub throughout the year to the actual vesting schedule from the equity compensation portal (usually accessible through your company's benefits site). The dates and amounts matched perfectly, confirming that these were indeed the automatic tax withholding sales. Also, if anyone is still confused about whether their company is withholding correctly, most equity portals show a "tax withholding" or "shares sold for taxes" section in the transaction history. This was the final piece that made everything click for us - we could see exactly how many shares vested, how many were sold for taxes at what price, and how many we actually kept. One last tip: if you're in a state with no income tax, your RSU withholding might be lower than the standard 22% federal rate since there's no state withholding. This can actually create under-withholding if you have other income sources or are in a higher federal bracket.

Yes, it definitely gets easier to predict over time! After going through a few vesting cycles, you'll have a much better sense of how the withholding works and whether you need to adjust. For your W-4 adjustment question - if you're consistently getting large refunds due to the 22% supplemental withholding being higher than your actual rate, you have a couple options. You could increase your allowances/decrease withholding on your regular salary to roughly offset the RSU over-withholding. Or you could use the extra withholding box on the new W-4 to specify a smaller additional amount to withhold from regular paychecks. Just be careful not to under-withhold overall - you want to stay within the safe harbor rules (either owe less than $1,000 at filing, or pay at least 100% of last year's tax liability through withholding and estimated payments). I'd recommend tracking one full year of RSU activity first before making major W-4 changes, since vesting amounts can vary and you want to see the full picture. Many people also find it helpful to set aside some of their RSU shares specifically for tax purposes if they're worried about under-withholding in higher tax brackets.

I'm currently in week 2 after completing ID verification on March 28, 2024, and finding this thread has been such a relief! Like many others here, I'm also a first-time joint filer claiming the Child Tax Credit - it's incredible how common this pattern seems to be for triggering verification requirements. What I appreciate most about this discussion is the wealth of real-world data everyone is sharing. The IRS's generic "up to 9 weeks" timeline doesn't give much comfort, but seeing actual experiences from @Sadie Benitez (transcript movement in week 6), @Carmella Fromis (week 4), and others provides much more realistic expectations. I've already taken the advice about switching from daily WMR checking to weekly transcript monitoring - thank you @Elijah Knight for the specific codes breakdown (971, 977, then 846). It's so helpful to know what to actually look for rather than just hoping for generic status changes. Based on everyone's timelines, it sounds like I should expect to see potential transcript activity sometime in mid to late April, with possible refund processing in early May. The batch processing theory makes a lot of sense and explains why there are such long quiet periods followed by sudden bursts of activity. I commit to updating this thread when I see any movement to add another data point for future community members. This kind of peer support and shared experience has made the waiting process much more manageable than trying to navigate it alone with just official IRS guidance!

I completed my ID verification on March 16, 2024 - just 2 days after you, @Amara Eze! Reading through this entire thread has been incredibly enlightening and reassuring. Like so many others here, I'm also a joint filer claiming the Child Tax Credit for the first time, which clearly seems to be the primary trigger pattern for verification. What strikes me most about this discussion is how much more valuable these real-world timelines are compared to the generic "up to 9 weeks" guidance from the IRS. The patterns emerging from everyone's shared experiences - particularly the 4-7 week reality versus the 9-week maximum, and the emphasis on transcript monitoring over WMR checking - provide such practical insight. @Elijah Knight's breakdown of the specific processing codes (971, 977, then 846) is exactly the kind of detailed information I wish the IRS provided upfront. @Sadie Benitez's recent update about transcript movement in week 6 gives me hope that we're all approaching that critical window where activity typically begins. Based on the timelines shared here, I should expect to see transcript movement sometime in the next 2-3 weeks, potentially with refund processing in early May. The batch processing theory really explains the frustrating pattern of long quiet periods followed by sudden bursts of activity. I'm committed to updating this thread when I see any movement to contribute another data point for future community members navigating this same process. This collective sharing of experiences has transformed what felt like an isolated, anxiety-inducing wait into a much more manageable process with realistic expectations. Thank you to everyone who has shared their journey - it truly makes a difference!

Has your accountant run the cash flow projections for both scenarios? When we bought our last work truck, our CPA showed us that even though buying gave us the Section 179 deduction, the monthly lease payments were lower than loan payments would have been, which helped our cash flow during our expansion phase.

One thing I haven't seen mentioned yet is the timing of when you actually need the deduction. Since you mentioned you're already showing high expenses this year from expansion, you might not need the full Section 179 benefit right now. If your business is projecting significantly better profits next year, that larger deduction could be more valuable when you're in a higher tax bracket. Also, with a $130k vehicle, make sure you understand exactly what type it is for tax purposes. The Section 179 limits vary dramatically - if it's a luxury SUV under 14,000 pounds, you're capped at around $28,900 regardless of the purchase price. But if it's a heavy-duty truck or van over 14,000 pounds, you could potentially deduct the full amount. Have you considered a hybrid approach? Some dealers offer lease-to-own programs where you can start with lower monthly payments and decide later whether to purchase based on how your business performs.

Just a heads up that HR Block and TurboTax both handle these 1099-R Code G situations pretty well. If you use either software, they'll walk you through the right questions to determine what type of transaction it was and how to report it.

I had a very similar situation last year and it turned out to be exactly what others have mentioned - an in-plan Roth conversion that I had completely forgotten about! The key thing to remember is that when you convert traditional 401k money (which was contributed pre-tax) to Roth 401k money (which grows tax-free), you have to pay income tax on the converted amount. That's why you're seeing a taxable amount in box 2a even though you didn't "withdraw" anything. Code G on a 1099-R doesn't always mean a traditional rollover between different accounts. It can also indicate in-plan conversions, automatic plan transfers when providers change, or other internal movements of retirement funds. Since you mentioned finding paperwork about "optimizing your retirement tax strategy," this almost certainly sounds like an in-plan Roth conversion. The good news is there's no early withdrawal penalty - you just need to include that amount as taxable income for the year. Make sure to report the 1099-R correctly on your tax return, and consider setting aside money for the tax bill if you haven't already. Definitely confirm with your plan administrator, but this sounds very straightforward once you know what happened!

Has anyone actually gone through an audit when they've excluded these payments from their ACA application? My husband and I are in a similar situation with waiver payments for our disabled son, but I'm worried about getting flagged for a discrepancy between what the Medicaid program reports as paid to us and what we report on healthcare.gov.

As someone who works in disability services and helps families navigate these programs regularly, I want to emphasize that you're absolutely right to question including those Medicaid waiver payments! The key distinction here is that while your accountant may be thinking about general income reporting, the ACA has very specific rules about what counts toward MAGI (Modified Adjusted Gross Income). Medicaid Home and Community-Based Services waiver payments are explicitly excluded from both taxable income AND MAGI calculations for ACA purposes. What you're describing - going from a Bronze plan with a high deductible to potentially qualifying for a Silver plan with cost-sharing reductions - is exactly the kind of significant difference this can make. At around 135% FPL with just the Social Security income, you'd likely qualify for substantial premium tax credits and reduced out-of-pocket costs. I'd recommend getting this clarification directly from the marketplace, and don't be afraid to ask to speak with a supervisor if the first representative isn't familiar with waiver payment rules. Many front-line reps haven't encountered this specific situation before. Keep documentation of your waiver program and IRS Notice 2014-7 handy in case you need to reference it during the call or for any future verification requests.