Friendly reminder to everyone discussing RSUs: there are actually TWO tax events to worry about! 1. When RSUs vest: This is treated as ordinary income (what everyone's discussing in this thread) 2. When you sell the shares: Any gain or loss after vesting is capital gain/loss For example, if RSUs vest at $100/share and you sell later at $150, you'll pay: - Ordinary income tax on the $100 at vesting - Capital gains tax on the $50 appreciation when you sell I see a lot of people getting confused because they only think about one of these tax events. Both need to be reported properly!

Yes, you should definitely consider filing amended returns if you've been using the wrong cost basis! The cost basis for RSUs is always the fair market value on the vesting date (not the grant date), since that's when you already paid ordinary income tax on that amount. Using the grant date price as your cost basis means you've been paying capital gains tax on appreciation that was already taxed as ordinary income at vesting - essentially double taxation. If you've held and sold RSU shares over multiple years, this could add up to significant overpayment. You can file Form 1040X (Amended U.S. Individual Income Tax Return) for up to 3 years from the original filing date. You'll need your brokerage statements showing actual sale prices and your RSU vesting records showing the fair market value on each vesting date. The IRS will refund any overpaid taxes with interest. Given the complexity of equity compensation, this might be worth consulting with a tax professional who specializes in stock compensation to make sure you're calculating everything correctly before filing amendments.

Has anyone had the experience where TurboTax actually does let you e-file with Form 7202? My husband could swear he e-filed with it last year. Feel like some of this info might be outdated.

I went through this exact same situation earlier this year! After reading through all the responses here, I ended up using taxr.ai like Sophie and Connor mentioned, and it was honestly a game-changer for my Form 7202 amendment. The key thing that helped me was realizing that no matter which route you go - TurboTax's delayed 1040X feature, switching to new software, or using an AI service - you're still going to have to print and mail the forms. The IRS just doesn't accept e-filed amendments with Form 7202 attached, period. What made taxr.ai worth it for me was the time savings. As a self-employed person with multiple income streams like you, re-entering everything from scratch would have been a nightmare. The PDF upload feature worked perfectly and caught all my Schedule C details accurately. My advice: don't wait for TurboTax's 1040X feature if you want your refund sooner. Use one of the automated services to prepare your amendment, send it certified mail like Kelsey suggested, and then use Claimyr if you need to follow up with the IRS later. The whole process will still take months, but at least you'll get it started quickly!

I had this exact situation last month - WMR showed offset but transcript didn't have 898 code. Could it be a glitch in the system? Why would they show different information? I was worried sick about it, but guess what? I ended up getting my full refund on February 8th, exactly as my transcript showed. The WMR tool never updated correctly even after I got my money. Isn't that ridiculous? My advice is to trust your transcript and not WMR - the transcript is what the IRS actually uses to process your refund.

This is reassuring to read everyone's experiences! I'm dealing with something very similar right now - my WMR updated yesterday showing an offset, but my transcript shows code 846 for the full amount with no 898 code anywhere. The debt in question was from unemployment overpayment that I paid back in full last November, so this shouldn't even be happening. Reading through all these responses, it sounds like the transcript is definitely more reliable than WMR. I'm going to follow the advice here and call the Treasury Offset Program number tomorrow to confirm the debt status, and also get written documentation from the unemployment office showing it was satisfied. Has anyone noticed if there's a pattern with certain cycle codes being more prone to these system sync issues? I'm also -05 cycle like the original poster, so I'm wondering if that's coincidental or if Thursday processors see this more often. Thanks everyone for sharing your experiences - it's really helping calm my nerves about this!

Has anyone had experience with how long it takes the IRS to process Form 8379 if you're in Minnesota specifically? The IRS website says 8-14 weeks generally, but I've heard processing times can vary by region.

I went through this exact situation last year in Minnesota! You'll want to mail your Form 8379 to the Kansas City service center as mentioned earlier. One thing I wish I had known - make sure to write "INJURED SPOUSE" clearly at the top of the form in red or bold letters. Also, since you mentioned calculating about $1,650 as your portion, double-check your allocation on Part III of the form. The IRS is pretty strict about how you split income, withholdings, and credits between spouses. Any mistakes there can delay processing significantly. I'd recommend keeping detailed records of exactly how you calculated your portion (like which paystubs, W-2s, etc. you used) in case they have questions later. My processing took about 11 weeks from Minnesota, which seems pretty typical based on what others have shared here. Good luck!

I might be the minority here but I actually prefer doing my backdoor Roth in December and January of the same tax year to avoid this exact reporting confusion. Contribute to Traditional in early December, then convert to Roth before December 31st. That way everything happens in the same tax year and you get the 1099-R in time for filing season.

Just want to add one more thing that might help others in this situation - when you do file your 2024 taxes with Form 8606 to report the non-deductible contribution, make sure to keep a copy of that return AND the 8606 form in your tax records. You'll need to reference it next year when filing your 2025 taxes to show the IRS your basis calculation for the conversion. I learned this the hard way when I couldn't find my old 8606 and had to reconstruct the numbers. The IRS can get confused about basis if you don't have clean documentation showing the progression from contribution to conversion across tax years.