I've also seen the discrepancy, but the thread so far seems to be suggesting that the W-4R will calculate a higher withholding than you'll actually pay. I see the opposite. For example, for MFJ, W-4R would withhold $0 on $30,000, but the tax table would withhold "$2,385 plus 12% of the excess over $23,850". The only other difference that I see, which may be important, is that W-4R is using Total income values, while the tax tables use Taxable Income. So perhaps they are building in some assumptions about using the standard deduction.

Great discussion everyone! I'm a CPA who specializes in retirement planning, and I wanted to add some clarity to this confusion about W-4R vs. published tax rates. The root issue is that these serve completely different purposes: 1. **W-4R withholding tables** are designed for payroll systems to automatically calculate withholding without knowing your complete tax situation. They make assumptions about filing status, other income, and deductions. 2. **Published marginal tax rates** show the actual tax brackets that apply to your taxable income when you file your return. The W-4R tables can either over-withhold OR under-withhold depending on your situation, as Vic correctly pointed out. For smaller distributions, they often under-withhold because they assume standard deductions will significantly reduce your taxable income. For larger distributions, they typically over-withhold because they project that amount as if it were your annual income. My recommendation: Calculate your expected total taxable income for the year (including the distribution), determine your actual marginal rate from the IRS tax tables, then add 2-3% as a safety buffer when submitting your custom W-4R. This approach avoids both underwithholding penalties and excessive overwithholding. The key is understanding that withholding is just an estimate - your actual tax liability is always calculated using the published tax brackets when you file your return.

A detailed analysis of your transcript would help identify any issues. After dealing with hundreds of similar cases, I've found that using taxr.ai is incredibly helpful. It uses AI to analyze your transcript and gives you specific dates, identifies holds, and explains exactly what's happening. Much more reliable than guessing or waiting on hold with the IRS for hours.

I feel your pain! Filed in early March and still stuck in processing hell too. The IRS phone lines are absolutely useless - spent 3 hours on hold yesterday just to get disconnected. At this point I'm wondering if they're even working on 2023 returns or just focusing on 2024. Has anyone actually gotten through to a real person recently who could give useful info?

Quick question - I'm using FreeTaxUSA for my current taxes. Does anyone know if they support filing prior year returns like 2022? Or do I have to use the IRS forms directly?

Don't beat yourself up about this - tax situations like yours are way more common than you think! The good news is you have plenty of time since you can claim refunds up to 3 years after the original due date. One thing I'd add to the great advice already given: when you're gathering your documents for the 2022 paper filing, make sure you have ALL your tax documents from that year (W-2s, 1099s, etc.) because the IRS will need to match everything up manually. Also, double-check that you're claiming all the deductions and credits you're entitled to - sometimes people miss things like the Earned Income Tax Credit or education credits that could make your refund even larger. The paper filing process is definitely slower, but $3800 is worth the wait and effort. Make copies of everything before you mail it, and definitely use certified mail with tracking like others suggested. You've got this!

bruh the IRS be playing games fr. they take our money instantly but make us wait forever to get it back 💀

Been through this exact same situation! The 11/08 date is definitely when they mail it out, not when you'll receive it. I'd expect it to arrive anywhere between 11/13-11/17 depending on your location. Also keep in mind that if there are any postal holidays during that time it might add an extra day or two. The wait is brutal but you're almost there!

All these codes are confusing af but 806 is actually one of the good ones. Shows your withholding credit from your job. Dont stress about this one fam

Code 806 is definitely nothing to worry about! It's actually a positive thing on your transcript - it represents the federal income tax that was withheld from your paychecks throughout the year. Basically, it's the IRS acknowledging that your employer already sent them money on your behalf. You should see this amount match what's in Box 2 (Federal income tax withheld) on your W-2. So yeah, it's good news - means you've been paying your taxes all year long through payroll deduction!