9 I had exactly this issue! The solution is actually pretty simple. Since it's a Roth IRA and Box 2b is checked, you need to determine what portion of the distribution is earnings vs contributions. In TurboTax, there should be a question asking "Do you know your basis in this Roth IRA?" For a Roth that's only been open a few years with a small amount, it's likely very little is actually taxable. Just make sure to enter the total contributions your daughter made to the account (her basis).

This is a really common issue that trips up a lot of people! When Box 2a is blank and Box 2b is checked on a 1099-R for a Roth IRA, it means the financial institution is leaving it up to you to determine what's taxable. The key thing to remember is that with Roth IRAs, you get your contributions back first, tax-free. Since your daughter is 24 and only had the account for 3 years, and it was a small distribution of $650, there's a good chance most or all of it was just her original contributions coming back out. Here's what you need to do: Figure out how much she contributed to the Roth IRA over the years vs. how much it grew. If she put in $600 and it grew to $650, then only $50 would be taxable earnings. If she put in the full $650 or more, then nothing is taxable. Check with the financial institution for her contribution history, or look at old tax documents if she claimed the Saver's Credit for Roth contributions. Once you have that number, TurboTax should be able to handle the rest and generate Form 8606 automatically.

Went through this exact process last filing season. Submitted my 4800C on February 8th and got my refund on March 2nd, so just over 3 weeks. The key was making sure I submitted EXACTLY what they asked for - no more, no less. I made the mistake of sending too much documentation the first time (thought I was being helpful) and they rejected it and made me resubmit. The second time I followed their instructions to the letter and it went through without issues. Hope this helps and good luck!

Just went through this process myself - submitted my 4800C on February 28th and refund hit my account yesterday (March 8th), so about 8 business days for me. I think timing might depend on how backed up they are when you submit. One thing that helped was checking my account transcript on the IRS website rather than just relying on WMR - it showed the verification hold codes and when they were cleared, which gave me a better sense of what was actually happening behind the scenes. The transcript updated about 2 days before WMR finally showed "approved" status. Hang in there - it's definitely nerve-wracking but they seem to be processing these more efficiently than in previous years.

Don't panic! Form 1462 usually means there's a discrepancy or missing information in your filing. Since you have your confirmation number, that's great evidence you did file. I'd recommend calling the IRS practitioner priority line if you can get through - sometimes it's just a processing delay on their end. Also make sure to respond within the timeframe they give you (usually 30 days) with copies of your return and that confirmation number. Keep everything organized and document all your communications with them!

I went through something similar last year! The key thing is not to panic - Form 1462 is actually pretty common and usually just means there was a processing issue on their end. Since you have your confirmation number, you're in good shape. Make sure to respond promptly with a copy of your original return, that confirmation number, and a cover letter explaining you already filed. I'd also suggest getting your account transcripts from the IRS website to see what they have on file - sometimes that gives you clues about what went wrong. The whole process took about 6-8 weeks for me to resolve, but it worked out fine in the end!

Great thread everyone! As someone who's been through this exact process, I wanted to add one more perspective that might help newcomers like Andre. The key thing to remember is that this initial complexity is a one-time setup cost. Yes, the W-9 and NR301 forms seem daunting at first, and tracking multiple transfer agents can feel overwhelming, but once you get everything properly documented, the ongoing maintenance is minimal. I'd also suggest starting a simple tax folder (physical or digital) specifically for your Canadian investments. Keep copies of all your forms, correspondence with transfer agents, and quarterly dividend statements showing the withholding amounts. This saved me hours during tax season when I needed to complete Form 1116 for the foreign tax credit. One thing I learned the hard way: if you're planning to expand your Canadian holdings over time, submit the NR301 forms for new positions as soon as you buy them, rather than waiting to see how much dividend income they'll generate. Even a small dividend payment at 25% withholding instead of 15% adds up over time. The investment in time and paperwork upfront really pays off in the long run, both in terms of proper tax treatment and peace of mind that you're handling everything correctly!

As someone who's been navigating Canadian dividend taxation for the past few years, I can definitely relate to your confusion! The good news is that once you understand the process and get the proper documentation in place, it becomes much more manageable. You're absolutely right that both the US and Canada will want to tax your Canadian dividends, but the US-Canada tax treaty helps prevent excessive double taxation. Here's what you need to know: **Forms you'll need:** - **W-9**: Submit this to Vanguard to certify you're a US person for tax purposes - **NR301**: This goes to the transfer agents of your Canadian companies to claim treaty benefits and reduce withholding from 25% to 15% **Key points:** 1. Don't wait - submit these forms as soon as you start investing in Canadian stocks, as it can take 1-3 dividend payment cycles for the reduced withholding to take effect 2. The NR301 forms go to individual transfer agents (not Vanguard), so you'll need a separate form for each Canadian company or their transfer agent 3. Keep detailed records of all Canadian taxes withheld - you'll need this for Form 1116 (Foreign Tax Credit) on your US return **Pro tip:** Start with your largest Canadian positions first to get comfortable with the process, then tackle the smaller holdings. Many companies share the same transfer agents, so it's not always one form per stock. The foreign tax credit on your US return will help offset the Canadian taxes withheld, effectively preventing true double taxation. While the initial setup takes some effort, it's definitely worth it to ensure you're not overpaying taxes on your Canadian dividend income!

Has anybody ever been audited for messing this up? My husband and I accidentally both contributed to dependent care FSAs at different jobs last year (about $4000 each) and I'm freaking out now reading this thread.

I'm a tax preparer and see this mistake ALL the time! Just to reinforce what others have said - the $5,000 dependent care FSA limit is definitely per household when you're married filing jointly, not per person. What I tell my clients is to think of it this way: the IRS doesn't care which spouse's employer plan you use or how you split it between accounts. They only care about the total household contribution not exceeding $5,000. One practical tip: if you do split contributions between both spouses' FSA accounts, make sure you coordinate your reimbursement claims carefully. You don't want to accidentally submit the same daycare receipt to both accounts for reimbursement - that would be claiming the same expense twice, which is definitely not allowed. Also, keep excellent records of all your childcare expenses throughout the year. You'll need them not just for FSA reimbursements, but also to properly calculate any additional tax credit you might be eligible for on the amounts above your FSA contributions.