This is such a helpful thread! I went through something similar last year and want to add one more piece of advice that saved me headaches: keep copies of ALL your Roth IRA contribution receipts/confirmations from your brokerage. When I had to file Form 8606, I discovered that my old brokerage (which had been acquired by another company) couldn't easily provide historical contribution data going back more than 3 years. Having my own records meant I could accurately complete the form without having to dig through old tax returns or make estimated guesses. Also, if you've been contributing to your Roth for several years like the original poster, double-check that you didn't accidentally exceed the annual contribution limits in any given year. If you did, those excess contributions could complicate your withdrawal calculations and potentially trigger different tax treatment. The peace of mind from having proper documentation is worth the small effort to maintain these records!

Great discussion everyone! As someone who works in tax preparation, I see this Roth IRA contribution withdrawal confusion constantly. The key points mentioned here are spot on, but I want to emphasize one critical thing that often gets overlooked: Even if you file Form 8606 correctly, the IRS automated systems sometimes don't properly match it with your 1099-R, which can trigger incorrect penalty notices months later. This is exactly what happened to several people in this thread. My recommendation: After filing your return with Form 8606, keep a copy of that form easily accessible and monitor your IRS account online (irs.gov) for any notices. If you do get an incorrect penalty notice, you'll need to either call the IRS directly or use a service like the ones mentioned here to get it resolved quickly. Also, for future reference, some newer brokerage platforms are starting to track contribution vs. earnings separately, which should eventually make this process smoother. But for now, assume you'll need to handle the proper reporting yourself regardless of what code appears on your 1099-R. The ordering rules Sofia mentioned are absolutely critical - contributions always come out first, but YOU have to prove that to the IRS through proper documentation!

This has been an absolutely fantastic discussion to follow as a newcomer to this community! I've been struggling with a very similar 1095-A allocation situation involving my 26-year-old son who's on our marketplace plan but files independently with around $20K in income. What I find most valuable is how this thread has evolved from the initial confusion about whether "100% allocation to the daughter" was acceptable, to a clear consensus on best practices backed by real practitioner experience. The marketplace premium calculator approach that multiple preparers have endorsed gives me confidence that there's a tried-and-tested method for these situations. For my case, I'm planning to follow the framework that's emerged here: - Use healthcare.gov to determine what my son's individual coverage would cost - Allocate based on that proportional share (likely around 30% for a 26-year-old) - Document everything with screenshots and calculation notes - Coordinate with my son upfront so we're aligned for filing The emphasis on "reasonableness" throughout this discussion really resonates with me. It's clear that while the IRS allows flexibility, they expect allocations to be defensible based on objective factors like premium costs, not just income optimization strategies. One thing that particularly stood out was the point about audit experiences - hearing that the IRS primarily looks for reasonable basis and documentation gives me confidence that following the marketplace calculator approach puts you in the safe zone. Thanks to everyone who shared their expertise - this is exactly the kind of real-world guidance that makes complex tax situations manageable!

As a newcomer to this community, I'm incredibly grateful for this comprehensive discussion! I've been dealing with a similar 1095-A allocation challenge involving my 23-year-old nephew who's on our marketplace plan but files independently with about $17K in income. What really stands out to me is how this thread has provided such clear, actionable guidance on what initially seemed like a confusing aspect of the Premium Tax Credit rules. The consensus around using marketplace premium calculators to establish defensible allocation ratios makes perfect sense - it transforms what could be arbitrary percentage choices into research-backed decisions. For my situation, I'm planning to implement the framework that's emerged here: - Research individual premium costs on healthcare.gov for my nephew's age and our location - Allocate based on that proportional cost (expecting around 30-35% based on the age ranges discussed) - Document the methodology with screenshots and calculation notes - Coordinate upfront to ensure he has all the information needed for his Form 8962 The "reasonableness" standard that seemed vague in the IRS publications becomes much clearer when you see how experienced preparers actually apply it in practice. Using objective premium cost data as the foundation for allocation percentages clearly puts you in defensible territory while still maximizing appropriate credits for lower-income family members. This discussion has been an excellent example of how community expertise can clarify complex tax regulations that official guidance leaves murky. Thanks to everyone who shared their real-world experience!

This is such a common situation! I was in almost the exact same boat with my spouse - we were both claiming 0 and getting huge refunds every year. What really opened my eyes was realizing that big refund meant we were missing out on having that money available for things like emergency savings, paying down debt, or even just having more breathing room in our monthly budget. One practical tip: when you do make the switch, keep track of your first few paychecks to see the actual dollar difference. It's pretty motivating to see that extra money hit your account! We ended up using our increased take-home pay to boost our emergency fund, which felt way better than waiting for a lump sum refund. Also, don't stress too much about getting it perfect right away. You can always adjust your withholding again if needed - it's not a once-and-done decision. The key is just getting started and fine-tuning as you go.

I went through this exact same situation a few years ago! My husband and I were both claiming 0 and getting refunds around $3,500 each year. After doing some research, we realized we were basically giving the government an interest-free loan while struggling with tight monthly budgets. We started by switching just my husband (the higher earner) from 0 to 1, and it added about $85 to his bi-weekly paycheck. That extra $170/month made a huge difference in our day-to-day finances! After a few months, we adjusted mine too. One thing that really helped was using that extra money strategically - we automatically transferred it to savings so we didn't just spend it frivolously. When tax time came around, we still got a small refund ($400) which was perfect - just enough to feel like we hadn't messed up our withholding, but not so much that we were overwithholding significantly. The peace of mind from having better monthly cash flow was worth way more than that big refund check. Just make sure you track your first few paychecks after making the change so you can see the actual impact!

Just to add to the confusion lol - I'm pretty sure you need to file Form 8283 if your gift was non-cash and over $5,000... like stocks or property. That's what my accountant told me when I gifted some shares to my kids last year.

I was in almost the exact same situation last year! I gave my daughter a substantial gift for her wedding and was completely confused about the filing requirements. After doing a lot of research and speaking with a tax professional, I can confirm what others have said - you absolutely do NOT need to file a 1040 just because you're filing Form 709. The key thing to understand is that gift tax filing requirements are completely independent from income tax filing requirements. Form 709 is due April 15th (same deadline as 1040) but it's processed separately. Since you had no reportable income, you're not required to file a 1040, period. One tip - when you file your 709, make sure you keep detailed records of the gift amount and recipient information. This helps with tracking your lifetime exclusion usage for future gifts. Also, double-check that your gift amount actually requires Form 709 filing - if it was under the annual exclusion amount ($17,000 for 2023), you might not need to file at all!

I went through this exact same frustration about a month ago! Filed through TurboTax, got the acceptance email, but WMR kept giving me that "info doesn't match" error for almost 3 weeks. I was starting to panic thinking something was wrong. What finally worked for me was accessing my tax transcript through the IRS website (irs.gov/individuals/get-transcript). You have to go through their identity verification process which is a bit of a pain, but once I got in, I could see my return was actually being processed normally. Turns out the IRS had made a small adjustment to my refund amount - only about $27 difference - but that was enough to make WMR throw the error. The transcript showed me the exact adjusted refund amount, and once I used that number in WMR instead of my original amount, it worked perfectly and showed my refund was already approved for direct deposit. Definitely try the transcript route if you can get through the verification. It's way more detailed than WMR and updates more reliably. Good luck!

I'm dealing with this exact same issue right now! Filed my return through TurboTax on February 28th and have been getting that "info doesn't match" error for over a week now. It's so frustrating because I know I'm entering everything correctly - I've checked my SSN, filing status, and refund amount probably 20 times at this point. Reading through these responses is actually really reassuring though. I had no idea that the IRS could make small adjustments to your refund amount and that would cause WMR to throw an error. That makes so much sense! I'm definitely going to try accessing my transcript like several people suggested here. Has anyone had luck with the IRS2Go app that Sean mentioned? I might try that first since it sounds easier than going through the whole transcript verification process, though I'm prepared to do that if needed. Thanks everyone for sharing your experiences - it's nice to know this is a common issue and not necessarily a sign that something is seriously wrong with my return!