Has anyone else noticed that these dividend reclassifications seem to be happening more frequently in recent years? I swear I never had to deal with this before 2020, but now almost half my dividends get some kind of adjustment after year-end.

I've been dealing with this exact issue for the past few years and wanted to share what I learned from my tax preparer. The key thing to understand is that these "Paid/adjusted in 2024, but for 2023" entries represent corrections companies make after they've completed their year-end analysis. For your specific example with Stock B, the reason the ordinary dividend reduction ($180.27) doesn't match the qualified dividend increase ($201.50) is likely due to foreign tax withholding or other adjustments. When foreign taxes are withheld from dividends, the gross amount might qualify as a qualified dividend, but the net amount you received was reduced by the foreign withholding. Regarding your quarterly payment concerns - you're absolutely right to think about this. For future years, I recommend keeping a spreadsheet tracking when you receive dividend reclassifications. If they come in February or March (which is typical), you can document that you made your Q1 estimated payment based on the best information available at the time. The IRS generally won't penalize you for underpayment if you can show you used reasonable assumptions based on the information you had. Since most of these corrections favor taxpayers (moving dividends to the lower qualified rate), you're usually in good shape. One tip: if you're using tax software, make sure to enter the final corrected amounts from the 1099-DIV rather than trying to manually track each payment. The software will handle the proper reporting automatically.

DONT WAIT FOR THE LETTER!!! Go ahead and verify online, you'll get your refund way faster. I waited for the letter like a 🤡 and it took forever

Been through this process twice now and here's what I wish I knew: make sure you have ALL your 2024 documents ready before starting. The system will timeout if you take too long uploading stuff. Also, if you're married filing jointly, BOTH spouses need to verify separately which they don't really tell you upfront. Save yourself the headache and do it all in one sitting!

Does anyone know if the financial institution you transfer the inherited 401k to matters? I've heard some places handle stretch IRAs better than others since the SECURE Act changes. I'm in a similar situation where I qualify as an eligible designated beneficiary (I'm disabled) but worried about choosing the right place to transfer my late husband's 401k.

I'm dealing with a very similar situation and wanted to share what I learned from my estate attorney. Since you're older than the original 401k owner, you definitely qualify as an "eligible designated beneficiary" under the SECURE Act exception for individuals not more than 10 years younger than the decedent. One thing that hasn't been mentioned yet - make sure when you do the rollover that it's titled correctly as an "inherited IRA" with both your name and the deceased's name (something like "Kaitlyn Otto as beneficiary of [deceased's name] IRA"). This is crucial for maintaining the tax-deferred status and ensuring you can take the stretch distributions properly. Also, since the original owner passed in 2022, you should have already started taking RMDs by December 31, 2023. If you missed that deadline, you may need to file Form 5329 to request a waiver of the 50% penalty, but the IRS has been more lenient with inherited account penalties during the transition period after the SECURE Act. I'd strongly recommend getting everything documented before you approach the financial institution, because as others have mentioned, many of them are still learning these rules themselves.

Don't wait for transcript updates - call the IRS verification hotline directly at 800-830-5084 to confirm your verification was processed correctly. Sometimes the online system doesn't sync properly, and you can lose weeks waiting for something that's stuck. Ask specifically if there are any other holds on your account besides the identity verification. If they say it's clear, request they expedite the release of your refund due to financial hardship if that applies to you.

I went through this exact process about 3 weeks ago and can share my timeline. After ID.me verification, it took exactly 9 business days for my transcript to show any movement. The key thing I learned is that the IRS systems update overnight, typically between 12am-6am EST, so checking first thing in the morning is most productive. One thing that helped me track progress was setting up IRS account notifications - they'll email you when there are transcript updates instead of you having to check manually every day. Also, don't panic if you see a 570 code appear first - that's actually a good sign that your verification went through and they're now processing your return. The 571 code (hold release) usually follows within 3-5 business days after that. My advice: check Wednesday and Friday mornings like Maya suggested, but don't stress about daily checking. The system will update when it updates, and constantly refreshing won't speed it up!

Little tip for anyone using tax software in the future - always double check these specific form details before filing! TurboTax, H&R Block, and others sometimes make default selections that aren't right for your situation. I always go through the actual PDF preview of my return before submitting to catch stuff like this.

I had this exact same issue with TurboTax last year! Box F instead of Box E on my 8949 for long-term capital gains. I was stressed about it for weeks, but ultimately decided not to amend since all my dollar amounts were correct. From what I've learned through my research and talking to other people who've dealt with this, the IRS computer matching system is primarily looking at whether you reported all your proceeds from sales. The box selection is more of an administrative detail for form organization rather than something that affects your actual tax calculation. One thing that helped me feel better about my decision was realizing that filing an amendment can sometimes draw more attention to your return than the original minor error would have. Since your gains/losses are calculated correctly and match what was reported on your 1099-B, I'd personally leave it alone. Two years later, I've never heard anything from the IRS about that box error.