This whole thread has been incredibly helpful! I'm dealing with a similar situation where my Form 1098 shows property taxes and "other taxes" but I wasn't sure how to handle them. Based on everyone's advice, I think the key takeaway is: don't automatically assume everything in Box 10 is deductible. You really need to get that detailed breakdown from your mortgage servicer to understand what each component actually represents. I'm going to call my lender tomorrow and ask for the escrow analysis like several people suggested. It sounds like the magic words are asking specifically for the "escrow breakdown" for the tax year, not just trying to interpret the 1098 form on your own. One question though - for those who discovered they'd been claiming too much in previous years, did any of you actually go back and file amended returns? I'm wondering if it's worth the hassle for relatively small amounts, or if it's better to just get it right going forward like some people mentioned. Thanks again to everyone who shared their experiences - this is exactly the kind of real-world advice that's so much more helpful than just reading IRS publications!

This is such a valuable discussion! I've been making the same mistake for years - just adding everything in Box 10 together without understanding what it actually represents. After reading through all these responses, I realized I need to stop treating my mortgage servicer's 1098 as the final word on what's deductible. They're just reporting what they paid out of escrow, not making tax determinations for me. I'm definitely going to call and request that "escrow breakdown" that everyone keeps mentioning. It sounds like that's the key to understanding exactly what each component of those "other taxes" actually represents. I never knew there was such a clear distinction between things like school district taxes (deductible) versus special assessments for neighborhood improvements (not deductible). The tip about cross-referencing with your actual county property tax statement is brilliant too - I bet that would clear up a lot of the confusion about what's what. Thanks to everyone who shared their experiences and the specific resources like Publication 530. This kind of detailed, practical advice from people who've actually dealt with the same issues is so much more helpful than trying to figure it out on your own!

This thread has been incredibly helpful! I work as a freelance graphic designer and ran into this exact Box 6 issue with three different 1099-NEC forms this year. Like many of you, I was really stressed about "filling in" information that wasn't on my original forms. After reading all these experiences, I decided to go with the state abbreviation approach. I entered "IL" for Illinois (where my state withholding went) in Box 6, and TurboTax accepted it immediately. My return has already been processed and accepted by both the IRS and Illinois Department of Revenue with no issues. What really clicked for me was understanding that Box 6 isn't asking for some mysterious number - it's just asking which state received the withholding taxes shown in Box 5. If your client withheld state taxes but forgot to include their state ID number, using the state abbreviation is actually the most accurate information you can provide. For anyone still hesitating: don't let this hold up your filing! The state code solution works and makes complete logical sense. You're not falsifying anything - you're providing the correct state identifier for where your withholding taxes were sent.

I've been following this discussion and wanted to add my perspective as someone who handles tax compliance professionally. The state abbreviation solution everyone is discussing is absolutely correct and widely accepted. When Box 6 is blank but Box 5 shows state withholding, entering the two-letter state code is the standard practice. This isn't a "workaround" - it's actually what tax professionals do routinely when payers fail to include their complete state identification information. The IRS and state tax agencies understand that businesses sometimes omit this information on 1099 forms. What matters most is that you're accurately reporting your income and the actual withholding amounts. The state identifier in Box 6 is primarily used for administrative matching, and using "PA" (or whatever your applicable state is) provides exactly the information needed for that purpose. Don't let this technical issue delay your filing. Use the state abbreviation where your taxes were withheld, and you'll be in full compliance. I've seen hundreds of returns processed this way without any issues.

Your return was delivered in July. When did you contact the IRS? I’m trying to determine the amount of time that passed between the delivery of your return and the date you reached out to them

I've been dealing with IRS issues for years and want to emphasize something important that others have touched on - the difference between "lost" and "stuck in processing" returns. Based on your description, your return likely isn't truly lost but rather caught in a specific processing queue. Since you filed MFS in a community property state with Form 8958, your return almost certainly triggered an automatic flag for manual review. The problem is that these manual review queues are severely backlogged, and returns can sit there for 6+ months without any movement. Here's my specific recommendation: When you call (and definitely try the 7am timing others suggested), ask to speak with someone in the "Exam Support" function who can check for "TC 971" notices on your account. These are internal codes that indicate when a return has been flagged for manual review but not yet assigned to a reviewer. If they find a TC 971 code, you can request that they expedite the review since you're well past normal processing times and are owed a refund. I've seen this approach work when other methods failed. Also, since you made an extension payment that resulted in an overpayment, make sure to mention this upfront - returns with refunds due often get different handling priorities than those where additional tax is owed. The key is getting to someone who understands these specific processing codes rather than just looking in the basic "Where's My Refund" system that most customer service reps use.

Has anyone dealt with this issue when you have HSA contributions as well as Cafeteria Plan deductions? Our situation is similar but more complex: - W-3 Box 5: $412,000 - Section 125 Cafe deductions: $24,500 - HSA contributions: $15,300 - ADP Gross: $451,800 Should our G/L expense still match the ADP gross of $451,800?

This is such a common source of confusion! I went through the exact same thing last year when our bookkeeper quit right before tax season. The key thing to remember is that your business tax deduction should reflect the actual economic cost to your company, which is the full gross payroll amount of $250,250. The Section 125 deductions don't disappear - they just get redirected to employee benefits before hitting their W-2s. I found it helpful to think of it this way: if you wrote individual paychecks, you'd write them for the gross amount, then the payroll company handles directing some of that money to benefits. Your checkbook (and G/L) still shows the full amount going out. Also, make sure your payroll tax returns (941s) reconcile properly with these numbers. The wages subject to federal income tax withholding on your 941s should match the W-3 Box 5 amount, while your total wages paid should match the ADP gross. This creates a nice audit trail if anyone ever questions the discrepancy.

For anyone else with this issue - check your previous years' W2s if you've been with the same employer. If boxes 3 and 5 had amounts in previous years but are suddenly empty this year, that's a red flag that something changed or there's an error.

Just want to add another perspective here - I'm a CPA and see this situation fairly regularly. Before you panic, definitely check if you're in any of these categories that Mason mentioned. But also look at your pay stub from your last paycheck of the year. Sometimes there are timing differences where the final payroll processing might not have been completed when the W2 was generated. Also, if you're dealing with multiple employers during the year, sometimes one might be exempt while another isn't, which can create confusion when you're comparing different W2s. One more thing to check - if you had any pre-tax deductions like a 401k, health insurance, or flexible spending account, those reduce your social security wages but not necessarily your regular wages in box 1. So boxes 1 and 3 might legitimately be different amounts, but box 3 should never be completely empty unless you're in one of those exempt categories. If none of these situations apply to you, definitely get that corrected W2 before filing!