Does anyone know if I can still do this recharacterization thing for my 2024 contribution? I contributed to a Roth earlier this year but just realized my income will be too high.

Just wanted to add another perspective on this situation. I had a very similar mess with my 2023 Roth contribution and recharacterization timing, and what really helped me was understanding that the IRS treats the recharacterization as if you had made the correct choice from the beginning. The key insight that wasn't immediately obvious to me: when you recharacterize in 2024 for a 2023 contribution, you're not making a new 2024 contribution - you're retroactively changing what type of contribution you made in 2023. This is why your 2024 Roth contribution is completely separate and valid. Make sure when you're entering the 1099-R information in your tax software that you're categorizing it correctly. The recharacterization 1099-R should be coded as "N" and the conversion should be coded as "2". If your software is still showing over-contribution after entering these correctly, you may need to manually override the calculation or seek help from a tax professional who understands backdoor Roth conversions. Also double-check that your custodian reported everything with the correct tax year designations on the 1099-Rs. Sometimes they get confused about which year a recharacterized contribution should be attributed to.

I'm in a similar situation - filed 11 days ago and still waiting for my verification letter. The uncertainty is definitely stressful when you're expecting your refund! From everything I've read here, it sounds like 10-14 business days is the normal timeframe, but mail delays can definitely push it longer. I've been checking my mailbox obsessively too. One thing that's helped ease my anxiety is remembering that this verification process is actually a good thing - it means the IRS is working to protect us from identity theft and fraud. Even though it's frustrating to wait, it's better than having someone else file a fraudulent return in our name. I'm going to take the advice from others here and wait the full 14 business days before requesting a resend. And definitely signing up for USPS Informed Delivery so I can at least see what's coming in the mail each day instead of just wondering. Thanks to everyone who shared their experiences and timelines - it really helps to know we're not alone in this process!

I'm dealing with this exact same situation right now! Filed my return 9 days ago and got flagged for verification. The waiting is definitely nerve-wracking, especially when you're counting on that refund. From reading everyone's experiences here, it sounds like the 10-14 business day timeframe is pretty standard, though mail delays can definitely extend it. I've been checking my mailbox every day hoping to see that IRS envelope! One thing I'm going to do based on the suggestions here is set up USPS Informed Delivery so I can at least see what's coming each day instead of just wondering. And I'll definitely wait the full 14 days before requesting a resend since the system won't process it earlier anyway. It's actually somewhat comforting to know this is such a common experience and that so many people have successfully gotten through the verification process. The anxiety of not knowing what's happening with your return is real, but it sounds like patience is really the key here. Thanks to everyone for sharing their timelines and experiences - it really helps to know we're all in this together!

Has anyone run into issues with cost basis reporting on UTMA accounts? My son's 1099-B has some transactions marked as "basis not reported to IRS" and I'm not sure if I should be calculating the basis myself or if TurboTax handles this differently when using Form 8814.

I went through this exact same situation last year with my two kids' UTMA accounts. You're absolutely correct to be concerned about double taxation - it's a common pitfall that TurboTax doesn't automatically prevent. Here's what you need to do: Delete the UTMA 1099-Bs from your main tax return since you'll be reporting that income through Form 8814. When you complete Form 8814, TurboTax will ask you to enter the investment income information separately, and that's where you'll input the details from those UTMA 1099-Bs. One important thing to verify first - make sure your kids are still eligible for Form 8814. They need to be under 18 (or under 24 if full-time students), and their investment income must be under $11,000. If they had any capital gains over $2,200, be aware that portion will be taxed at your higher tax rate due to the kiddie tax rules. I'd also recommend double-checking the cost basis information on those 1099-Bs. UTMA accounts sometimes have transactions where the basis isn't reported to the IRS, and you'll need to have that information ready when completing Form 8814. The good news is that using Form 8814 often results in lower overall taxes compared to filing separate returns for the kids, especially if your children's investment income is modest. Just make sure you don't accidentally report the same income twice!

Just wanted to add another perspective on this issue. I've been dealing with partnership returns for about 8 years now, and this Box 14c confusion comes up every single year. What I've learned is that you really need to be careful about the distinction between limited and general partners, especially when it comes to self-employment tax implications. One thing that hasn't been mentioned yet is that you should also double-check your partnership agreement to make sure the limited partners are truly limited partners under state law and not just called "limited partners" in name only. Sometimes partnerships have members who are designated as limited partners but actually participate in management activities, which could affect their tax treatment. Also, when you make those manual K-1 adjustments for the limited partners, make sure you're keeping good documentation of the changes you made and why. The IRS has been paying more attention to partnership returns lately, and having clear records of your reasoning will be helpful if you ever get questioned about it.

Great question about verifying limited partner status! You'll want to look at both the partnership agreement and actual activities. Key things to check in the agreement: does it explicitly limit the partner's management rights, voting rights, and day-to-day business participation? Red flags for "limited in name only" include partners who sign contracts, hire/fire employees, make major business decisions, or have broad management authority. The safest approach is to review what each partner actually does versus what the agreement says they can do. If there's any ambiguity, consider consulting with an attorney familiar with your state's partnership laws since the rules can vary by jurisdiction. For documentation, I keep a simple spreadsheet showing: partner name, designation (general/limited), basis for classification, any manual K-1 adjustments made, and the tax code section supporting the treatment. Takes 10 minutes to set up but saves hours if you ever need to explain your decisions to the IRS or a reviewer.

One detail no one has mentioned yet: Coverdell ESAs have an annual contribution limit of $2,000 per beneficiary. If your CD is maturing and you want to add more money beyond just reinvesting the existing balance, that $2,000 annual limit will apply. 529 plans, on the other hand, have much higher contribution limits - technically up to the projected cost of education in your state, which is usually $300,000+ per beneficiary. So if you're planning to add more funds for future education expenses, the 529 might give you more flexibility there. Also worth noting that Coverdell contribution eligibility phases out based on your income (starts phasing out at $190,000 for joint filers), while 529s have no income limitations.

Another consideration that hasn't been mentioned is state tax benefits. Many states offer tax deductions or credits for contributions to their 529 plans, but not for Coverdell ESAs. Since you're looking at potentially rolling over $7,200, you should check if your state offers any tax incentives for 529 contributions. For example, some states allow you to deduct up to $10,000 or more annually from your state taxes for 529 contributions. Even though this would be a rollover rather than a new contribution, some states still allow the deduction. This could provide immediate tax savings that might outweigh keeping the money in the Coverdell. Also, since your son is in 10th grade, you have time to take advantage of multiple years of potential state tax benefits if you do decide to make additional contributions to a 529 plan after the rollover.