I think everyone is overlooking a simple solution. If the traditional IRA contribution was made in 2022 and you've already filed your 2022 taxes without taking a deduction, you may be within the timeframe to recharacterize that contribution as a Roth contribution instead (assuming your income doesn't exceed Roth limits). Recharacterization is different from conversion and avoids the pro rata issue entirely. You'd need to contact Fidelity quickly though, as there are time limits.

This is exactly the kind of IRA maze that trips up so many people! You're definitely not alone in this confusion. The pro rata rule is one of those tax provisions that seems designed to make retirement planning as complicated as possible. From what you've described, you're in a classic catch-22 situation. The IRS treats all your traditional IRAs (including SEP IRAs) as one big bucket for pro rata calculations, so you can't just cleanly extract that $10k of after-tax money without paying taxes on a portion of it. A few thoughts on your options: 1. The Solo 401(k) strategy others mentioned is solid if you have self-employment income from your business. You can roll the pre-tax SEP money into it, leaving only the after-tax traditional IRA funds for conversion. 2. If you're comfortable with the tax hit, you could just do the conversion anyway and pay taxes on the pro rata portion. With $67k total and $10k after-tax, you'd pay taxes on roughly 85% of whatever you convert. 3. Consider whether you actually need to do anything right now. That $10k will grow tax-deferred, and when you eventually take distributions in retirement, only the growth portion will be taxable (assuming you properly track the basis with Form 8606). The most important thing is making sure you file Form 8606 for any year you made non-deductible contributions. This creates the paper trail the IRS needs to track your after-tax basis. What's your timeline for needing to resolve this? That might help determine the best approach.

Has anyone actually had their return rejected specifically because of a printed scanned signature? I'm curious because I've done the print-sign-scan approach for 3 years now (living in Australia) and never had an issue. The IRS cashed my check and processed my return just fine each time.

I can confirm from personal experience that the scanned signature approach works perfectly fine. I've been filing from the UK for the past 4 years using exactly the method you described - sign the forms here, scan them, email to family in the US who print and mail them in. Never had a single issue with acceptance or processing. The IRS has been quite accommodating about this, especially as more Americans live abroad. Just make sure your signature is dark and clear when you scan it, and that it's positioned exactly on the signature line. One small tip: I always include a brief cover letter explaining that I'm filing from overseas, which seems to help the processing go smoothly. Also double-check that your parents include all pages in the correct order when they mail it - that's usually where mistakes happen, not with the signature itself.

Has anyone used TurboTax for this scenario? I'm wondering if it handles this situation correctly or if I should go to a professional preparer this year.

I went through this exact same situation last year and it was really confusing at first! You absolutely need to file Schedule H even though your payroll service is making the estimated payments. Here's what I learned: The Schedule H shows the IRS that you had household employment tax obligations, while the 1040-ES payments you already made get credited toward your total tax liability. Think of it this way - Schedule H calculates what you owe, and the estimated payments show what you've already paid toward that debt. Your payroll service should provide you with a year-end summary showing total wages paid, Social Security, Medicare, and federal unemployment taxes. Use those exact numbers on Schedule H. The estimated tax payments you made throughout the year will appear as credits on your 1040, so you won't pay twice. One tip: double-check that the total of your quarterly estimated payments matches (or comes close to) the total household employment taxes shown on Schedule H. If there's a big discrepancy, you might need to make an additional payment or expect a refund. I was terrified of messing this up, but once I understood that Schedule H is just reporting what happened (not creating a new tax bill), it made much more sense!

Nah, the processing date is just when they finished looking at your return - not when you get paid! I made this same mistake last year and kept refreshing my bank account like crazy 😅 You're usually looking at another 1-2 weeks after that processing date before you actually see the money. The key is finding code 846 on your transcript - that's when they actually issue your refund and you'll get it within a couple days after that. All those transcript codes are confusing AF when you're new to it but don't stress too much, your money is coming! Just gotta play the waiting game unfortunately 🤷‍♀️

Processing date ≠ deposit date! I learned this the hard way too when I first started checking transcripts. The processing date is just when the IRS completes their review of your return - think of it as them stamping "approved" on your paperwork. After that, you're typically looking at another 1-2 weeks before you actually see the money in your account. The code you really want to watch for is 846 on your transcript - that's your actual refund issue date. Once you see that code, your deposit usually hits within 1-2 business days. I know all these codes and dates are super confusing when you're new to reading transcripts (honestly, they're confusing even when you're not new to them lol). Just try to be patient during the waiting period - I know it's easier said than done when you're expecting money! Your refund will come, it's just a matter of IRS timing 🤞

I've found that calling SBTPG right at 10am CT (when they open) gives you the best chance of shorter hold times. After 11am, you're looking at 45+ minute waits easily. Also, if you're an independent contractor like the original poster, you might want to check if your tax software offers any expedited refund tracking services - some of them have direct lines to SBTPG that can bypass the general customer service queue. Worth asking your tax preparer about it since you need the funds for quarterly payments.

As someone who's dealt with SBTPG delays multiple times, I'd recommend calling them at exactly 10am CT when they open - that's your best shot at getting through without a massive hold time. But honestly, three days isn't that unusual for them, especially during tax season. Since you're an independent contractor needing funds for quarterly payments, you might also want to check if your tax software (TurboTax, etc.) has a priority support line that can contact SBTPG on your behalf - sometimes they have backdoor channels that regular customers don't know about. Also worth logging into the SBTPG portal to screenshot your current status in case you need to reference specific details when you do get through to an agent.