Anyone know how options trading affects your MAGI for things like Roth IRA contribution limits? I'm planning to do some NVDA calls like OP but worried it might push me over income limits if I'm successful.

Great question about getting started with options trading! One thing I'd add to the excellent tax advice already given - make sure you understand the assignment risk with options, especially if you're holding them close to expiration. If your NVIDIA calls get assigned (which can happen early with American-style options), you'd suddenly own 100 shares per contract at the strike price. This creates a much larger tax event than just selling the option for a profit. The tax treatment changes too - instead of just capital gains on the option premium, you'd have basis in the stock that affects future gains/losses. Also, consider starting smaller than $13K for your first options trade. Even experienced traders can get burned by the leverage and time decay (theta). Maybe try a $2-3K position first to get comfortable with how options behave, especially with a volatile stock like NVIDIA. Keep detailed records of every transaction from day one - your broker's cost basis reporting for options can sometimes be incomplete, and you'll thank yourself during tax season!

I'm a bit confused about what the 3219A notice actually means. If I get one after already paying a CP2000, does that mean I'm being audited? Should I be worried?

I went through almost the exact same situation last year! Got a CP2000 in March, paid immediately, then received a 3219A in October showing additional interest through the notice date. It was really frustrating because I thought paying right away would end the matter. Here's what I learned: the 3219A is basically the IRS's formal way of closing the examination, even if you already paid the CP2000. The key issue is that their computer systems don't always sync up properly between departments. When I responded to the 3219A, I included: - Copy of my canceled check from March - Screenshot from IRS.gov showing my payment was processed - A simple letter stating "Payment was made in full on [date] as evidenced by the attached documentation. Interest should not accrue beyond this payment date per IRC Section 6601." Within 6 weeks, I received a letter confirming they had adjusted my account and removed the incorrect interest charges. The whole process was much smoother than I expected once I provided the payment proof. Don't stress too much about it - this seems to be a common administrative hiccup rather than anything you did wrong. Just respond promptly with your documentation and you should be fine.

Check if you claimed any credits or deductions. That usually triggers manual review tbh

I went through this exact same thing last year with Michigan! The "completed" but "under manual review" status is super confusing - basically it means they received and processed your return through their initial systems, but something triggered an additional human review step. In my case, it was also a credit claim (earned income credit) that flagged it. Took about 4-5 weeks total from the date I first saw that message. The waiting is honestly the worst part because there's literally nothing you can do except wait for them to either mail you requesting more info or approve it. One thing that helped me was checking the status every Friday - I noticed they tend to update things toward the end of the week. But definitely don't check daily, it'll just drive you crazy! The system rarely changes during the week. Michigan is notoriously slow with manual reviews compared to other states, but they do eventually get through them. Just try to be patient even though I know it's frustrating when you're expecting that refund!

One important thing nobody's mentioned yet - make sure you keep VERY detailed records of all your recharacterizations and conversions. I got audited last year specifically on IRA transactions, and without my documentation showing the exact dates and amounts, it would have been a nightmare. For the original poster, make sure you document: 1. Your original $6,900 Roth contribution date 2. The recharacterization date and total amount ($12.7K) 3. Your new Traditional contribution ($7,500) 4. The conversion back to Roth This paper trail will be crucial if questions ever come up years later.

Something to be aware of - the recharacterization makes it look like you never contributed to the Roth in the first place, but your 2024 conversion of $7,500 from Traditional to Roth IS reportable on your 2024 taxes. You'll get another 1099-R for that. And don't forget about Form 8606 for the Traditional IRA contribution. It's super confusing but critical to track the non-deductible contributions if you're over the income limit!

in the same boat rn... verified 3 weeks ago still waiting. this whole process is a joke fr fr 🤡

Good luck tomorrow! I just went through this last week. Definitely bring passport or driver's license, Social Security card, and all your tax docs (W-2s, 1099s, etc). Also bring a recent utility bill or bank statement for address verification - they asked me for that too. The whole appointment took about 30 minutes and they were actually pretty nice about it. Just be patient with the timeline after - mine took about 7 weeks but worth the wait!